the phoenix summary budget 2013-14this overview outlines the 2013-14 annual budget—view the...
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The Phoenix Summary Budget
2013-14
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P r in t ed o n R ecy c l ed Pap e r
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J u n e 2013
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City of PhoenixCouncil Members
and District Boundaries
CAREFREE HWY.
JOMAX
JOY RANCH
DOVE VALLEY
CLOUD RD.
JOMAX
C.A.P.
PINNACLE PEAK
BETHANY HOME
MISSOURIBETHANY HOME
THOMASTHOMAS
OSBORN
BUTLER BUTLER
VAN BUREN
BASELINE
OSBORN
THUNDERBIRD
GREENWAYBELL
DUNLAP
NORTHERN
CACTUS
MOUNTAIN VIEW
GLENROSA
NORTHERN
CAMELBACK
INDIAN SCHOOL
McDOWELL
McDONALD
OAK
McDOWELL
VAN BUREN
BUCKEYE
BUCKEYE
BROADWAY
I-10MCDOWELL
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JOY RANCH RD.
BEARDSLEY
UNION HILLS
SALT RIVER
January 2013
Mayor Greg Stanton602-262-7111
Thelda Williams602-262-7444
[email protected] Waring
Daniel Valenzuela602-262-7446
Tom Simplot602-262-7447
Michael Nowakowski602-262-7492
Michael Johnson602-262-7493
Sal DiCiccio602-262-7491
Bill Gates602-262-7441
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Mayor and City Council
Greg StantonMayor
Bill GatesVice MayorDistrict 3
Thelda WilliamsDistrict 1
Jim WaringDistrict 2
Tom SimplotDistrict 4
Daniel ValenzuelaDistrict 5
Sal DiCiccioDistrict 6
Michael NowakowskiDistrict 7
Michael JohnsonDistrict 8
Mayor’s Office
Karen PetersChief of Staff
City Council Office
Penny ParrellaCouncil Chief of Staff
Management Staff
David CavazosCity Manager
Ed ZuercherAssistant City Manager
Rick NaimarkDeputy City Manager
Lisa TakataDeputy City Manager
Paul BlueSenior Executive Assistant to the City Manager
Neal YoungTemporary Senior Executive Assistant to the City Manager
Ginger SpencerTemporary Special Assistant to the City Manager
Dennis MurphyAssistant to the City Manager
Department Heads
Wylie BearupStreet Transportation Director
James BurkeActing Parks and Recreation Director
John ChanCommunity and Economic Development Director
Debbie CottonActing Phoenix Convention Center Director
Jeff DeWittChief Financial Officer
Daniel V. GarciaPolice Chief
Bill GreeneCity Auditor
Chris HallettNeighborhood Services Director
Rita HamiltonCity Librarian
Derek HornActing Planning and Development Director
Maria HyattActing Public Transit Director
Deanna JonovichHuman Services Director
Robert KhanFire Chief
Lionel LyonsEqual Opportunity Director and Acting Human Resources Director
Toni MaccaronePublic Information Director
Neil MannActing Water Services Director
Karl MatzingerActing Housing Director
Cris MeyerCity Clerk
Danny MurphyAviation Director
Mario PaniaguaBudget and Research Director
Rob SweeneyActing Chief Information Officer
John TrujilloActing Public Works Director
Gary VerburgCity Attorney
Chief Presiding Judge
Roxanne K. Song Ong
City of Phoenix
City of Phoenix Organizational Chart
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PUBLIC
CITY MANAGER
MAYOR AND CITY COUNCIL
DEPUTYCITY MANAGER
GovernmentRelations City Clerk
Public DefenderLiaison
Regional Wireless
Cooperative
EnvironmentalPrograms
MUNICIPALCOURT
SENIOR EXECUTIVEASSISTANT TO THE
CITY MANAGER
SENIOR EXECUTIVEASSISTANT TO THE
CITY MANAGER
ConventionCenter
Education/ASU/Bio-Medical
Campus
Planning &Development
Public Works
Housing
HumanServices
Library
EqualOpportunity
Fire
InformationTechnology
NeighborhoodServices
CitywideVolunteerProgram
CourtLiaison
CityAuditor
HumanResources
Law
PublicInformation
Community &Economic
Development
Budget &Research
ASSISTANT CITY MANAGER
Note: Interim organization chart pending national recruitment for Deputy City Manager position.
DEPUTYCITY MANAGER
StreetTransportation
Arts &Culture
West PhoenixRevitalization
Innovation &Efficiency
Family Violence
Issues
City CouncilMeetingFunction
StrategicPlanning
ASSISTANTTO THE
CITY MANAGER
Parks &Recreation
Aviation
EmergencyManagement
FinancePublic Transit& Light Rail
Water Services/Water Strategy
SPECIALASSISTANT TO THE
CITY MANAGER
Police
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2013-14 Summary Budget Table of Contents
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BUDGET DOCUMENT OVERVIEW ..................................................1
DISTINGUISHED BUDGET PRESENTATION AWARD .................3
CITY MANAGER’S BUDGET MESSAGE...........................................5
STRATEGIC PLANNING AND COMMUNITY INVOLVEMENT...................................................11
PHOENIX STRATEGIC PLAN...........................................................13
Strategic Plan 2012-13 Major Accomplishments...............................27
OUR COMMITMENT TO EXCELLENCE........................................31
COMMUNITY PROFILE AND TRENDS .........................................39
BUDGET OVERVIEW
Resource and Expenditure Summary.................................................43
Financial Organization Chart – Operating Budget .....................48-49Services to the Community..................................................................51
Budget Process, Council Review and Input, Public Hearings
and Budget Adoption......................................................................67
General Budget and Financial Policies..............................................73
REVENUE OVERVIEW
Revenue Estimates...............................................................................81
General Funds.......................................................................................83
Special Revenue Funds........................................................................93
Enterprise Funds..................................................................................97
DEPARTMENT PROGRAM SUMMARIES
General Government
Mayor....................................................................................................101
City Council.........................................................................................102
City Manager .......................................................................................103Regional Wireless Cooperative (RWC) ............................................103Government Relations........................................................................104
Public Information..............................................................................104
City Auditor .........................................................................................105Equal Opportunity ..............................................................................106Human Resources...............................................................................107
Phoenix Employment Relations Board.............................................108
Retirement Systems............................................................................108
Law .......................................................................................................109Information Technology.....................................................................110
City Clerk and Elections....................................................................111
Finance ................................................................................................112Budget and Research .........................................................................113Public Safety
Police....................................................................................................115
Fire .......................................................................................................117Emergency Management....................................................................118
Criminal Justice
Municipal Court..................................................................................121
Public Defender ..................................................................................122Transportation
Street Transportation.........................................................................125
Aviation ................................................................................................127Public Transit......................................................................................128
Community Development
Planning and Development ...............................................................131Housing................................................................................................133
Community and Economic Development.........................................134
Neighborhood Services.......................................................................135
Community Enrichment
Parks and Recreation.........................................................................139
Library..................................................................................................141
Phoenix Convention Center...............................................................142
Human Services..................................................................................143
Phoenix Office of Arts and Culture...................................................144
Environmental Services
Water Services.....................................................................................147
Solid Waste Management...................................................................149
Public Works........................................................................................150
Environmental Programs...................................................................151
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Contingencies.....................................................................................153
Debt Service........................................................................................155
CAPITAL IMPROVEMENT PROGRAM
Overview of Capital Improvement Program Process......................159
2013-18 Capital Improvement Program Highlights ........................165Financial Organization Chart –
2013-14 Capital Improvement Program .....................................175Operating Costs for New Capital Facilities......................................177
SUMMARY SCHEDULES
1. Resources and Expenditures by Fund
2011-12 Actual........................................................................183
2012-13 Estimate ...................................................................1842013-14 Budget.......................................................................185
2. Revenues by Major Source...........................................................186
3. Expenditures by Department ......................................................1884. Expenditures by Department by Source of Funds....................190
5. Debt Service Expenditures by Program, Source of Funds
and Type of Expenditure.......................................................192
6. Capital Improvement Program Financed From
Operating Funds.....................................................................194
7. Net Interfund Transfers to the General Fund............................195
8. Positions by Department ..............................................................197
GLOSSARY..........................................................................................199
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Phoenix City Hall
This overview outlines the 2013-14 AnnualBudget—view the document atphoenix.gov. Copies of the document areavailable by contacting the city of PhoenixBudget and Research Department at 602-262-4800. Also, this document can bemade available in alternate formats (largeprint, Braille, audio cassette or compactdisc) upon request. For information,contact the Budget and ResearchDepartment or city TTY relay at 602-534-5500.
The Summary Budget contains anarrative description of Phoenix programsand services planned for the upcomingfiscal year. Also included is a narrativedescription of all revenue sources and adescription of major financial policies.
The Detail Budget presents extensivestatistical data (including multiyearcomparisons) for each city departmentand fund. The statistical data includesstaffing allocations and a detailedreporting of planned expenditures.
Finally, the 2013-18 CapitalImprovement Program provides Phoenix’splanned construction program by projectand detailed sources of funds.
A more detailed description of the2013-14 Phoenix Summary Budget follows.
CITY MANAGER’S BUDGET MESSAGE
The City Manager’s Budget Messageprovides an in-depth look at the citymanager’s priorities and outlook for theupcoming fiscal year. These prioritiesreflect many months of working with theMayor and City Council, the communityand city staff.
PHOENIX STRATEGIC PLAN
This section provides the city’s missionstatement, complete Phoenix StrategicPlan, 2013 Strategic Plan goals, and 2012Strategic Plan major accomplishments.
OUR COMMITMENT TO EXCELLENCE
This section provides an overview of thecity’s various programs that contribute toour overall pursuit of excellence. Includedis a description of a few of the awards andrecognitions received by employees thisyear, results of the employee suggestionprogram and winners of EmployeeExcellence Awards.
COMMUNITY PROFILE AND TRENDS
This section includes key demographic,financial and infrastructure profilemeasures. Estimates or projections areprovided for 2012-13 and 2013-14 as well asactual results for recent and historicalperiods.
2013-14 BUDGET OVERVIEW
The Budget Overview provides adescription of the city’s budget process aswell as the major assumptions included inthe preparation of the 2013-14 AnnualBudget. This section includes a broadoverview of the resources andexpenditures included in the budget. Alsoincluded is a historical look at Phoenix’scommunity services, an overview ofsignificant budgetary and financial policiesincluding general legal requirements andbasis of accounting, and descriptions ofcity funds.
2013-14 REVENUE OVERVIEW
This section provides an extensivenarrative describing the city’s revenueestimates. The section is divided into threecategories: general funds, special revenuefunds and enterprise funds.
DEPARTMENT PROGRAM SUMMARIES
The Department Program Summariessection provides total funding andpositions, program goals, majorperformance measures and service trends,and any changes in service for each citydepartment. Also included in this sectionis a discussion of the city’s debtmanagement policies and the contingencyfund.
CAPITAL IMPROVEMENT PROGRAM
This section provides a description of thecapital improvement program process andan overview of the 2013-18 CapitalImprovement Program.
SCHEDULES
The schedules provide a general statisticaloverview of the budget. Schedule 1provides estimated beginning and endingbalances for each major fund group. Theremaining schedules summarize staffingcomplements and estimated resources andexpenditures.
GLOSSARY
Definitions of the terms used throughoutthe budget document are presented in theglossary.
If you have questions, need furtherclarification of a concept or term, or desiremore detailed information about thisdocument, please contact the Budget andResearch Department at 602-262-4800.
Budget Document Overview
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Distinguished Budget Presentation Award
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The Government Finance OfficersAssociation of the United States andCanada (GFOA) presented aDistinguished Budget Presentation Awardto the city of Phoenix, Arizona for itsannual budget for the fiscal yearbeginning July 1, 2012.
In order to receive this award, agovernmental unit must publish a budgetdocument that meets program criteria asa policy document, as an operationsguide, as a financial plan and as acommunications device.
This award is valid for a period of oneyear only. We believe our current budgetcontinues to conform to programrequirements, and we are submitting it toGFOA to determine its eligibility foranother award.
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TO THE HONORABLE MAYOR ANDCITY COUNCIL:
This letter transmits the balanced fiscalyear 2013-14 City of Phoenix Budgetrequired by the City Charter.
The 2013-14 Budget demonstrates thecity’s commitment to the continuedrestoration and enhancement of importantservices at the lowest possible cost. Forthe third consecutive year, no cuts toservices were needed to balance thebudget and the city is able to providerestored and added services to thecommunity. Innovation and efficiency andsuccessful cost management continue tobe the foundation of the city’s ability tomaintain financial health while restoringimportant services. Additionally, in thecity’s 2012 Community Opinion Survey,more residents than ever said they believePhoenix is a good place to live, and overallcustomer satisfaction rates increased fromtwo years ago.
The important foundations outlinedbelow are all critical to the city achievingits budget goals.
STRONG CITY LEADERSHIPn The strong leadership of the Mayor and
City Council has kept the city on courseto provide the best service possiblewhile successfully managing costs.
OUTSTANDING CITY EMPLOYEES ANDSERVICE DELIVERYn Restored services will be provided with
even fewer positions overall. Nowdown to 10.1 employees per 1,000residents, from a high of 11.9 in 1980,the city continues to operate at itslowest staffing efficiency levels in over40 years. Also, in the most recentCommunity Opinion Survey, 93 percentof residents believe the city is a goodplace to live, the highest in the 27-year-history of the biennial survey.
INNOVATION AND EFFICIENCYn In 2013-14, the city will reach savings
of more than $81 million throughinnovation and efficiency since 2010.
TRANSPARENCY AND COMMUNITYENGAGEMENTn An enhanced budget process using a
zero-based approach provides theCouncil and community withtransparent budget documents thatfacilitate public vetting during thebudget process.
n A total of 20 Community BudgetHearings took place this year (threemore than last year), including anonline hearing hosted by the Mayor andCity Manager and a citywide bilingualhearing. The public also has onlineaccess to video recordings of budgethearings.
n One hour prior to each budget hearing,staff provided detailed briefings andreceived comments from thecommunity regarding the emergencysales tax on food.
FINANCIAL MANAGEMENTn The city has maintained its AAA Bond
rating and is on course with the plan toincrease the contingency (“rainy day”)
fund. The 2013-14 budget includes anincrease of $3 million to thecontingency fund. This brings thecontingency to nearly $44 million, or3.9 percent of General Fund operatingexpenditures. Once again, thecontingency amount will reach ahistoric high.
NO INCREASED GENERAL FUND USERFEES OR TAXESn As with the last two years, the balanced
budget includes no increase to existingGeneral Fund user fees.
MODERATE ECONOMIC GROWTHn The budget is based on a projection of
moderate economic and revenuegrowth, as economists have continuedto project a full recovery from theeconomic recession in 2015 or 2016.
ZERO-BASED INVENTORY OFPROGRAMSOn Feb. 12, 2013, a full six weeks prior tothe publication of the City Manager’s TrialBudget, staff presented and made availablethe Improved Budget Process,Transparency, and Zero-Based Inventory ofPrograms Budget. This document, one ofthe most comprehensive budgets availablein the country, details by department a listof all of the programs and servicesprovided by the city. The document alsoreflects the current and base (next) yearcosts to provide these services. Theestimated base budget is provided in thefollowing formats:
a. By major cost category for everydepartment in a single table
b. By program for every department,organized by major service category,in a single table
c. Each department has its own budgetsummary page
d. Each program (more than 400) hasits own budget summary page
In addition, the online document hasan interactive table of contents,bookmarks and is fully searchable.
City Manager’s Budget Message
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David CavazosPhoenix City Manager
FIVE-YEAR GENERAL FUND FORECAST
On Feb. 26, 2013, Budget and Researchstaff provided a five-year General Fundforecast. The long-range forecast is afinancial management best practiceproviding policy makers with a frameworkfor strategic decision-making. The reportexplained that under the economic,revenue and expenditure assumptions inthe forecast, it is possible for the city toremain balanced over the next five years.The five-year forecast enables the CityCouncil, city management and thecommunity to evaluate resources alongwith projected expenditures over multipleyears, which improves the city’s ability toconduct long-term budget planning. Themulti-year forecast was prepared well inadvance of community budget hearings sothat it could also be discussed andconsidered during the budget settingprocess involving residents.
CITY MANAGER’S TRIAL BUDGET
Presented March 26, 2013, the 2013-14 CityManager’s Trial Budget recommendedmore than $6.2 million in restored andadded General Fund services to thecommunity. Additionally, $5 million fromthe Arizona Highway User Revenue FundReserve was proposed in the CapitalImprovement Program for improved streetsinfrastructure and maintenance. Asoutlined in the Strategic Plan, theseadditions will move the city forward in theareas of Public Safety, Education, SocialService Delivery, Neighborhoods andLivability, Economic Development,Technology, Innovation and Efficiency,Financial Excellence, and Infrastructure.
The City Manager’s Trial Budgetincluded the following restored and addedservices shown under correspondingStrategic Plan areas. Unless otherwisenoted, these additions are paid from theGeneral Fund:
Public Safetyn Add 15 civilian positions to Central
Booking allowing 15 police officers tobe assigned to direct community policeservice.
n Add six officers and two sergeants tomeet minimum police staffingrequirements at the airport at zero netcost; the increased staffing allowspolice overtime costs to be reduced byan amount equal to the cost of the newpositions. Because of securityrequirements at the airport, thesepositions will be filled by veteranofficers, opening eight General Fundvacancies to be filled with new officers.(AVIATION FUND)
n Fund the hiring of three additionalpolice officer positions for patrol andcommunity police work. At zero netcost using the General Fund savingsrealized by replacing veteran officerswith new officers at entry-level pay. Intotal due to these changes, the city willbe able to hire 11 new police officers atno additional cost. The 11 new officerscan be hired from the existing PoliceReserve force, utilizing officers whohave already been through the PoliceAcademy and have some experiencewith the Phoenix Police Department ina reserve capacity.
n Add seven new firefighter/paramedicpositions to ensure sustainedemergency ambulance response timesin all areas of the city.
n Add staff to assist the Prosecutor’sOffice with cases involving non-permitted construction activity andunlicensed contractors.(DEVELOPMENT FUND)
n Convert Public Safety and municipalwireless radio communicationequipment to comply with federallymandated frequency andinteroperability requirements. Thecost of this equipment totaling at least$66 million over five years will be paidusing Council-authorized lease-purchase financing. (GENERAL,SPECIAL REVENUE ANDENTERPRISE FUNDS)
Educationn Add more than 13,000 “e-books,”
provide the capability for online librarycard registration, and enable onlinemeeting room reservations to enhancethe Library’s 24X7 accessibility.
n Continue the existing College Depotprogram due to expiring privatefunding.
n Restore an additional three PhoenixAfterschool Center (PAC) sites (afterrestoring nine last year) based onassessment of highest need asdetermined by the Parks andRecreation Department.
n Restore some funding for the JobTraining Program.
Social Services Deliveryn Enhance Senior Center technology use
and training for seniors.n Provide additional Family and Child
Victim Services through expandedfunding for lease costs and servicesprovided by the public safety partnersat the Childhelp facility to serve abusedchildren.
n Allocate funding for an administrativeposition and projects to facilitate thecity’s involvement in the public/privateimplementation of the DomesticViolence Roadmap to Excellence.
n Restore additional homeless sheltersupport.
n Increase existing water utilityassistance program for low-incomehouseholds. (WATER FUND)
Neighborhoods & Livabilityn Increase funding for arts grants to
improve opportunities for arts andcultural development.
n Increase funding for maintainingcompleted public art projects,including mitigating graffiti and othervandalism.
n Increase funding for operationalsupport of performing artsorganizations at city-owned venues.
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n Operate new and expanded facilitiesfor the Sonoran Preserve, Tres Riosrecreational facilities, the dog park atMargaret T. Hance Park, Echo Canyontrailhead expansion, Cortez poolrenovation, Hermoso Park recreationcenter expansion, Winship Houserenovation and Rio Salado Peace Path.(PHOENIX PARKS AND PRESERVESINITIATIVE FUND)
n Support historic preservation efforts byhiring a consultant to complete theNational Register Landmarknomination for the David and GladysWright House, fund an existing positionto make additional historicpreservation bonds available anddecrease design review turnaroundtimes by insourcing currentlycontracted services.
n Align the city’s Golf Program with otherrecreation programs and balance theGolf Fund by:n Implementing efficiency actions,such as rightsourcing, to reduce theannual operating deficit
n Removing the Golf Fund’s designationas an enterprise fund
n Allocating $1.1 million from theGeneral Fund in 2013-14 intended tooffset the annual operating deficit
n Planning to pay off the existing GolfFund cumulative deficit by fiscal year2014-15.
Economic Developmentn Expand the Adaptive Reuse Program to
provide regulatory relief and planreview/permit fee waivers to assistsmall business in renovating existingbuildings for new uses and help getnew businesses open sooner.
n Expand international economicdevelopment program includinginternational air service at Sky HarborInternational Airport. (AVIATIONFUND)
n Provide support to recently establishedDowntown Phoenix, Inc., anorganization that will work withexisting downtown community groupsto market and further developdowntown Phoenix. (DOWNTOWNCOMMUNITY REINVESTMENT FUND)
Technology, Innovation and Efficiency,and Financial Excellencen Implement E-procurement,
Transparency, and Integrated BudgetSystem to streamline purchasingoperations, decrease costs, andenhance efficiency, transparency,compatibility, and fiscal reporting.(GENERAL, SPECIAL REVENUE ANDENTERPRISE FUNDS)
n Replace Planning and DevelopmentServices Permit Tracking System, orKIVA, which will enable streamliningand customer improvements to thecity’s development process, includingonline permit applications, mobiletechnology alternatives, and enhancedtransparency and tracking.(DEVELOPMENT FUND)
Infrastructuren Restructure the city’s Arizona Highway
User Revenue Fund (AHUR) toimplement street improvement andsafety enhancement projects, conductNorth Mountain RedevelopmentArea/Metrocenter multimodal study,downtown transportation study, secondphase of downtown parking meterinstallations and create a temporaryprojects administrator to manage theadditional projects. (AHUR FUNDRESERVE)
n Fund freeway landscape maintenancefor an additional nine miles alongInterstate 17.
n Maintain new landscaping along thePHX Sky Train. (AVIATION FUND)
COMMUNITY INVOLVEMENT
The city of Phoenix strives to continuouslyimprove financial transparency, engageresidents in the annual budget adoptionprocess, and provide opportunities for thecommunity to provide input. A total of 20formal budget hearings were held
throughout April 2013, in addition tobudget presentations at communitymeetings. This is three more hearingsthan last year and five more than two yearsago. As a result, the community is veryinvolved in developing the city’s budget.The community has provided input atbudget hearings, by email, letters andthrough social media during Phoenix’sonline budget hearing with the Mayor andCity Manager.
ADDITIONAL SERVICE CHANGES IN2013-14 BUDGET BASED ONCOMMUNITY INPUT
Public input provided during the budgetprocess often results in changes to thecity’s budget. This year is no exception, asthe final 2013-14 Budget includes changesreflecting the service prioritiescommunicated by residents. Describedbelow are restored and additional servicesbeyond what was presented in the CityManager’s Trial Budget. This once againdemonstrates that the city is committed toresponding to the community’s input onthe priorities, services, and programsimportant to our residents.
The additions were made possible as aresult of further efficiency measuresproposed by the city’s Public InformationOffice, Parks and Recreation Departmentand by the Public Transit Department.These actions were in addition to theadministrative efficiencies proposed in theTrial Budget. The Public InformationOffice is reducing three positions throughthe implementation of enhancedtechnology and additional outsourcing.Further savings will result from a pilotproject for the rightsourcing of mowingservices in a division of the Parks andRecreation Department. These actionsresult in annual ongoing General Fundcost savings of nearly $300,000.Additionally, the Public TransitDepartment expects to achieve significantGeneral Fund savings through contractingReserve-A-Ride senior transportationservices by implementing a taxi voucherbased program. The change will result inan annual savings between $100,000 and$600,000, depending on utilization. Theactions in the Public Information Office,
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Parks and Recreation Department andPublic Transit Department demonstratethe spirit of innovation and efficiency tofind new ways of doing business that lowercosts without reducing service to thecommunity. These measures free upfunding to provide the services below,including the possible need to help offsetfederal grant matching funds to advancethe hiring of police officers in 2013-14.
Also, as a result of additional analysisof the Arizona Highway User Revenue(AHUR) Fund Reserve, another $1.5million is available to provide additionalstreets-related enhancements and fundbicycle infrastructure.
Based on feedback and input from thecommunity on service priorities, as well asthe savings and available reserve fundsdescribed above, the 2013-14 City Budgetincludes the additional services describedbelow. Unless otherwise noted, theseadditions are paid for from the GeneralFund.
Education and Economic Developmentn Restore five more Phoenix Afterschool
Center (PAC) sites in addition to thethree that were already proposed forrestoration in the Trial Budget.
n Restore an additional $100,000 infunding for the Job Training Programbeyond the $150,000 proposed forrestoration in the Trial Budget.
n Restore $50,000 for youth recreationprogramming.
Neighborhoods and Livabilityn Restore additional park ranger
positions to enhance safety, securityand protection of mountain parks.
Infrastructuren Use an additional $1.5 million of the
AHUR reserve to fund bicycleinfrastructure and street maintenancethroughout the city, reflecting anextensive community interest inincreasing safe bicycle riding inPhoenix. (ARIZONA HIGHWAY USERREVENUE FUND RESERVE)
Public Safetyn Apply for Community Oriented Policing
Services (COPS) grants from the U.S.Department of Justice. If awarded, thegrants would offset funding required tohire as many as 25 additional policeofficers beginning in 2013-14. Thegrants cover up to $125,000 over threeyears (or about $42,000 per year) foreach officer. Also, the grants will notcover costs for training or for necessaryequipment. The costs to provide thenecessary grant matching funds and topay for the cost of new equipment willbe covered by additional efficiencies,including those mentioned above.(FEDERAL GRANT FUNDING)
Neighborhoods and Livabilityn Use $900,000 in capital impact fee
funding in addition to $100,000 ofexisting federal funding to pay for siteselection and conceptual design of theCesar Chavez Community/RecreationCenter near 35th Avenue and BaselineRoad to address a need for recreationalfacilities in the Laveen area. (CAPITALIMPROVEMENT-IMPACT FEES)
In all, the General Fund costs of therestored and added services to thecommunity total approximately $6.7million. Also, the use of AHUR reservefunds for street improvement andmaintenance projects, bicycleinfrastructure and other streets relatedenhancements totals $6.5 million. Othernon-General Fund service enhancementstotal approximately $3.6 million.
ADMINISTRATIVE EFFICIENCIES
As part of continuing efforts to reducecosts, specific administrative efficiencyreductions in several departments totalingabout $11 million in ongoing savings areincluded in this budget. Also, the budgetincludes approximately $5 million insavings from expected additionalinnovation and efficiency measures in2013-14. With these actions, the city willachieve more than $81 million in
innovation and efficiency savings since2010, which is well on the way towardreaching the $100 million savings goal by2015. These reductions lower costs but donot negatively impact delivery of directservices to the public and are the result ofoutstanding work by city departments toenhance efficiency.
OVERVIEW OF 2013-14 BUDGET
The 2013-14 General Fund Budget is$1,127,815,000. This is a 1.1 percentincrease from the adopted 2012-13 GeneralFund budget, and the amount is $71.5million below the General Fund peak yearin 2007-08. The 2013-14 budget amountfor all funds, which includes General,Enterprise and Special Revenue Fundssuch as grants, and includes all debtservice and pay-as-you-go capital costs, is$3,502,506,000. This is a 2.0 percentdecrease from the adopted 2012-13 budgetfor all funds, and $233 million, or 6.2percent, below the peak year in 2008-09 forall funds.
NON-GENERAL FUND CHANGES
Arizona Highway User Revenue Fund(AHUR) – A restructuring of AHUR Fundreserves totaling $6.5 million will be usedto add new bicycle infrastructure,implement street improvement, repair andsafety enhancement projects, conduct aNorth Mountain RedevelopmentArea/Metrocenter multimodal study,conduct a downtown transportation study,implement the second phase of downtownparking meter installation and create atemporary projects administrator tomanage the additional projects.
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Aviation Fund – Aviation will add sixofficers and two sergeants while reducingexisting police overtime by an equivalentamount at zero net cost. Additionally, theAviation Department will work with theCommunity and Economic DevelopmentDepartment to enhance international airservice development and cover 50 percentof costs of a position dedicated tointernational economic development.Finally, Aviation will fund maintenance ofnew landscaping along the new PHX SkyTrain facility.
Development Fund – This fund will addstaff and funding to replace the agingpermit tracking system (KIVA). This willstreamline and improve the city’sdevelopment process, including onlinepermit applications, provide mobiletechnology alternatives and enhancetransparency. Also, this fund will add staffto assist the City Prosecutor’s Office inaddressing non-permitted construction andunlicensed contractors.
Downtown Community ReinvestmentFund (DCRF) – Equivalent to this fund’sincrease in 2011 when the Arizona Centerproperty was sold, $3 million will be usedto increase the city’s Contingency fund.Additionally, $1 million from this fund willbe used to cover costs associated withongoing downtown development, and$100,000 will be allocated to support thenewly formed Downtown Phoenix, Inc.organization.
Impact Fee Capital Improvement Fund –A reprogramming of projects in this fundwill allow $900,000 to be used for siteselection and conceptual design of theCesar Chavez Community/RecreationCenter in the Laveen area.
Phoenix Parks and Preserves InitiativeFund (PPPI) – This fund is being used toreduce the cumulative Golf Fund deficit.Additionally, PPPI will cover costs tooperate new and expanded facilities forthe Sonoran Preserve, Tres Riosrecreational facilities, the dog park atMargaret T. Hance Park, Echo Canyontrailhead expansion, Cortez poolrenovation, Hermoso Park recreationcenter expansion, Winship Houserenovation and Rio Salado Peace Path.
Sports Facilities Capital Fund – TheSports Facilities Capital Fund includesnecessary pay-as-you-go capitalmaintenance for the city’s downtownparking garages.
Water Fund – The Water Fund includes anincrease to the existing program providingwater related utility assistance for low-income Phoenix households in crisis.
Lastly, both General and non-GeneralFunds capital and operating budgets willfund implementation of E-procurement,Transparency and Integrated BudgetSystem and conversion of Public Safetyand municipal wireless radiocommunications equipment to comply witha federal mandate.
CONCLUSION
The 2013-14 Budget demonstrates thecity’s commitment to the continuedrestoration and enhancement of importantservices at the lowest possible cost. Itincludes enhanced and restored services tothe community, further strides withinnovation and efficiency, and greaterbudgetary and financial transparency.Best of all, the city received outstandingfeedback from more residents than ever, 93percent, who believe Phoenix is a goodplace to live. On behalf of all ouroutstanding city employees, I want toexpress our gratitude to the Mayor andCity Council for strong leadership anddedication to the community. And to thededicated city employees, thank you forthe devotion to providing outstandingservice and for continuing to reach newheights with implementing innovationsand efficiencies in city operations.
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David CavazosCity Manager
May 7, 2013
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The Phoenix Strategic Plan was adoptedin the spring of 2011 and was included inthe Summary Budget Book for Fiscal Year2011-12. The plan was developed by ateam of 50 people working in 10 study-areacommittees. The team consisted of citystaff and members of the private sector.Each committee consisted of two cityChampions, two Champions from thepublic and one staff assistant. During theplanning process, team members met withother city staff, researched existing publicdocuments, and sought input fromexternal partners. Each team’s draftstudy-area goals were reviewed and revisedthrough Work Study sessions of thePhoenix City Council. During the month ofApril 2011, the City Manager’s Office held15 Strategic Plan outreach meetings as apart of the community budget hearingprocess. During these sessions, staffpresented an overview of the draft planand received public comment that wasincorporated into the final Plan.
The new Phoenix Strategic Plan guidesdecision-making within the organizationand focuses the city’s efforts to deliver coreservices that meet the city’s mission: “Toimprove the quality of life in Phoenixthrough efficient delivery of outstandingpublic services.” The Plan includes 10study areas:
• Economic Development and Education• Financial Excellence• Infrastructure• Innovation and Efficiency• Neighborhoods and Livability• Phoenix Team• Public Safety• Social Services Delivery• Sustainability• Technology
During the fall of 2011, the strategicarea committees reconvened and starteddeveloping a strategic action plan withspecific strategies and measurableoutcomes, for each study area, throughfiscal year 2013. The City Manager selected25 goals from the citywide strategic actionplan that staff will achieve by the end ofcalendar year 2012.
In December 2011, city staff reported onthe 2011 Strategic Plan Accomplishments:33 key accomplishments over the 10 studyareas.
In the fall of 2012, city stafftransitioned the Strategic Plan toSharePoint – a web-based intranetapplication that streamlines themanagement of and access to the strategicplan goals and accomplishments – therebyenabling city staff to put the most up todate information about the Strategic Planonline at phoenix.gov.
The Phoenix Strategic Plan continuesto be updated annually as part of thenormal budget process. For the first time,the city’s Zero-Base Inventory of ProgramsBudget was organized and presented bythe 10 Strategic Plan study areas.
Documents included in this section:• Revised Phoenix Strategic Plan (April
2013)• Strategic Plan Accomplishments 2012
Strategic Planning and Community Involvement
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About the Strategic Plan
The city of Phoenix developed a strategicplan to help guide decision-making at alllevels of the organization and focus thecity’s efforts on its core businesses.Throughout the budget cycle, a strategicplan proves beneficial in communicatingand setting budget priorities. Thepriorities in the Phoenix Strategic Planwill assist in allocating limited resources.The plan will be updated annually as partof the budget cycle. The Phoenix StrategicPlan was coordinated by a team in the CityManager’s Office. For more informationabout the Strategic Plan, visitphoenix.gov/strategicplan or send an emailto [email protected].
ECONOMIC DEVELOPMENT ANDEDUCATION
A diverse, vibrant economy that provideseconomic opportunity for residents isessential to achieving the city’s aspirationsfor a high quality of life. Creating andpreserving jobs and enhancing our revenuebase are key objectives. Businesses,neighborhoods and individual residentsbenefit from the improved quality of lifethat the city’s economic developmentefforts create. The most importantbuilding block of a strong economy is aneducated and productive workforce.
Priorities1. Create and retain high-quality jobs
focusing on key domestic andinternational business sectors. To agreat extent, the quality of life forPhoenix residents will be dependent onthe number and quality of jobs createdand retained that are convenient andappropriate for residents of the city ofPhoenix.
Strategiesa. Support the attraction of wealth-
generating, emerging technology,manufacturing, producer service,renewable energy and bioscienceemployers to the city of Phoenix.
b. Support the retention and expansion ofkey wealth-generating employers.
c. Attract foreign direct investment fromaround the world.
d. Further develop the creation of a filmproduction industry as a key businesssector.
2. Foster an environment forentrepreneurial growth.Entrepreneurs make criticalcontributions to the economy, includingthe generation of new jobs. Energized,educated entrepreneurs createeconomic opportunity for others andenhance a culture of innovation.
Strategiesa. Facilitate the retention and expansion
of small- and medium-sized wealth-generating businesses, particularlybusinesses focused on innovation,technology, finance/business servicesand biosciences.
b. Participate in regional collaboration toenhance entrepreneurial opportunities.
c. Support and grow diversity in Phoenixbusiness ownership.
d. Support initiatives that create andexpand venture capital funds.
3. Revitalize the urban areas ofPhoenix. Thriving urban cores arecritical to the economic health and wellbeing of the entire metropolitan area.Strong urban centers enhancePhoenix’s image and should bereflective of the city’s collective socialand economic aspirations as a region.
Strategiesa. Support development of the downtown
research and educational campuses.b. Promote residential and commercial
infill compatible with neighborhoods.c. Promote adaptive reuse of existing
structures.d. Enhance the city by redeveloping
brownfields.e. Comprehensively revitalize targeted
neighborhoods.f. Engage and collaborate in DiscoveryTriangle.
4. Expand the city’s revenue base. Salestaxes provide the largest source of localgovernment funding. Phoenix needs toattract and retain a fair share of retailactivity to sustain quality publicservices for residents.
Strategiesa. Continue efforts to preserve and expand
the city’s retail sales tax revenue base.b. Attract new auto and other vehicle
dealerships and retain existing autocenters/corridors.
c. Market the Phoenix Convention Center.d. Promote and market the region to the
business and leisure traveler.e. Support professional/amateur/youth
sports, film, entertainment and specialevents, which generate tourismrevenue.
f. Encourage the revitalization of existingretail centers and neighborhood retailbusinesses.
Phoenix Strategic Plan
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Mission Statement“To improve the quality of life in Phoenix through efficient delivery of outstanding public services.”
5. Develop and retain qualified talentto meet the needs of business andthe community. A skilled workforce isessential for an economy to sustain andenhance its competitiveness. Aworkforce development strategy thatallows employers to grow and residentsto enhance their income is critical tomaintaining a high quality of life forPhoenix residents.
Strategiesa. Provide assistance to job seekers and
employers by focusing on high skill,technology and other key occupationareas.
b. Collaborate regionally with communitycolleges, universities and otherproviders to develop school and trainingcurriculum to develop skill sets fortargeted key business sectors.
c. Strengthen the relationship betweenthe public-sector workforce programsand the business community.
d. Coordinate and enhance economicdevelopment efforts with the educationcommunity by promoting quality STEMmodels within the K-12 system,including math and science careerpathway programs that provide realworld context.
e. Focus resources on enrichment andeducation programs through communitycenters and libraries.
f. Promote access to informationtechnology and provide Phoenixresidents with instruction and access toavailable resources.
6. Promote early literacy and prepareyoung children for academicsuccess. Early childhood developmentis critical in preparing youth forsuccess in school and developing afoundation of knowledge, skills and life-long learning in families and thecommunity.
Strategiesa. Promote the increased funding of early
childhood development, health andsocial service programs.
b. Collaborate with community resourcesto ensure all children have access topreventative and continuous healthcare, including physical, oral, mentaland nutritional health.
c. Support families with the informationand services they need to help theirchildren achieve academic success.
d. Partner with institutions of highereducation to train well-qualified earlychildhood teachers and care providers.
7. Commit to achieving educationalexcellence for all Phoenix residentsthrough sponsored facilities andprograms The future success of theregion depends on ensuring thatresidents are prepared to meet thechallenges of the 21st Century aseducated, productive and engagedresidents.
Strategiesa. Partner with schools, after-school
providers, neighborhood organizations,businesses and other stakeholders tomaximize educational opportunities forPhoenix residents.
b. Leverage educational resources atPhoenix public libraries, includingaccess to information technology.
c. Promote sports, experiential learning,arts and other recreation programmingknown to improve learning outcomes.
d. Focus resources on quality youthengagement, enrichment and educationprograms through community centers,libraries and school-based, after-schoolprograms during out-of-school hours,when children are most at risk.
e. Increase access to, and success in,higher education through CollegeDepot.
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FINANCIAL EXCELLENCE
Financial excellence ensures the effectiveand efficient allocation of city resourcesfor the delivery of quality services toresidents. It creates trust and confidencethat city resources are used appropriately.At the core of financial excellence isintegrity and innovation. The PhoenixFinancial Excellence strategic plan strivesto maintain fiscally sound and sustainablefinancial plans and budgets that reflectcommunity values and residents’ priorities.
Priorities1. Maintain high bond ratings. A bond
rating is a measure of the credit qualityof the city. Factors considered in arating are the health of the localeconomy, stability and volatility ofrevenues, level of reserves for liquidityduring unexpected financial conditions,as well as sound financial practices,polices and structures or systems thatallow flexibility to address challenges.An entity with a long-term outlook andplans to address unexpected changes ispositively considered. In essence, abond rating reflects an independentview of financial excellence. A higherbond rating will usually result in lowerborrowing costs.
Strategiesa. Implement a plan to achieve a general
fund budgetary fund balance of at least5 percent of total expenditures withinthe next five years to provide thenecessary liquidity to address revenuevolatility and unexpected expenses.
b. Develop a multi-year financial plan forthe general fund that maintains long-term bond ratings.
c. Develop and maintain financial policiesthat achieve high bond ratings.
d. Maximize current revenues by takingsteps to ensure collection of establishedtaxes, rates, fees and fines.
2. Prioritize capital and funding plansfor critical infrastructure. With thesignificant downturn in the state, localand national economy and theassociated impact on revenues, thefinancial capacity to fund and financeadditional capital projects has beensignificantly reduced. As a result, afocus on maintaining existinginfrastructure must be balanced withthe need for new infrastructure. Thisincludes prioritizing the use of theremaining 2006 General Obligation(GO) bond capacity and otherresources and investigating alternativemethods to finance priority capitalneeds.
Strategiesa. Establish a five-year capital planning
process that prioritizes the evaluationof existing facilities and infrastructureand considers repair and/orreplacement for use of available funds.
b. Identify and evaluate alternativeapproaches to finance capitalinvestments as part of the capitaldecision-making process.
c. Prioritize the use of existing resources,for example remaining GO bond fundsand pay-as-you-go (cash) funding, toaddress the highest priority needs.
3. Provide accurate and reliablerevenue and expenditure forecasting.To ensure available resources areallocated to the highest priority needs,accurate and reliable forecasts of bothrevenues and expenditures are needed.This requires access to the necessaryresources and expertise to ensure allcritical factors are considered inrevenue forecasts and all factors thatimpact expenditures are consideredand modeled. Accuracy of expenditureforecasts also requires discipline of allcity departments to ensureexpenditures are monitored andmanaged. Without accurate forecastsand management of expenditures,reserve levels may be tapped belowcritical levels and services may beunnecessarily reduced.
Strategiesa. Maintain a fiscally responsible revenue
forecast based on external and internalinputs and consistent with bestpractices to efficiently allocateresources.
b. Establish an expenditure forecast thataligns with the city’s strategic priorities.
c. Develop multi-year performancemeasures and benchmarks to monitorthe effectiveness of financial operations.
d. Develop multi-year forecasts thatcontemplate various economicscenarios that assist in the developmentof alternative planning strategies.
e. Develop structures and incentives toencourage and reward managers andemployees for maintaining discipline inmanaging expenditures.
4. Maintain a transparent financialenvironment, free of fraud, wasteand abuse. One of the most importantaspects of financial excellence is theability to assure the public, businesscommunity, investors and the ratingagencies that systems and processesare in place to prevent fraud, waste andabuse of public funds. An importantelement of preventing fraud, waste andabuse, is regular financial reports thatare easy to access, accurate andunderstandable. Financial excellencerequires the implementation of qualityfinancial systems, staff training,internal controls and regular internaland external audits to prevent fraud,waste and abuse.
Strategiesa. Maintain comprehensive and
continuous auditing of high-risk areas.b. Implement strong citywide policies and
practices that promote ethical behavior.c. Provide accurate financial information
on at least a quarterly basis that iseasily accessible and understandable tointernal and external audiences.
d. Continue to ensure all steps are takento receive financial excellence awardsfor budgeting and financial reportingfrom the Governmental and FinancialOfficers Association (GFOA) each year.
e. Highlight financial successes andeducate residents on the importance ofhigh-quality credit ratings, e.g. AAAratings.
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INFRASTRUCTURE
Infrastructure is the basic physical andorganizational structure needed for theoperation of a society or enterprise and theservices and facilities necessary tofunction, such as roads, pedestrian andbicycle systems, water supply, sanitary andstorm sewers, public transit, airports,railroads, public buildings and facilities,solid waste collection, power supply, andtelecommunications.
Priorities1. Create and maintain intra-city
transportation. Provide safe, clean,efficient, sustainable, multi-modalsurface transportation systemsconsistent with Complete Streetspolicies to support mobility needs ofpresent and future residents,businesses, and visitors within the cityof Phoenix.
Strategiesa. Plan, design, construct and operate new
streets, pedestrian friendly sidewalks,bicycle lanes, hiking trails, bridges anddrainage ways for new residential andcommercial development to reducecongestion, improve air quality, reusematerials, leverage new technology,encourage infill development, createlivable neighborhoods, and promotegrowth. Consider using modern streetcar and light rail as surfacetransportation modes to support andencourage new development.
b. Maintain existing streets and associatedassets in a state of good repair so theyare clean, safe, and aestheticallypleasing for all users. Invest resourcesand technology to extend the servicelife of existing infrastructure, protectthe city’s investment, and support ahigh quality-of-life standard.
c. Develop and maintain passenger andoperating facilities for a multi-modalregional transit system. Utilize soundmethodology and principles to locatefacilities to meet ridership demands andbus operations. Implement amaintenance and improvement planthat adequately addresses the needs offederally funded assets. Continue todesign and construct facilities that usesustainable design standards, areattractive, and provide an enhancedsense of security to encourage increaseduse of public transit.
d. Procure and maintain assets required tooperate the transit system. Coordinatewith local agencies to ensure transitinfrastructure will support transitoperations. Analyze routes to ensurethey will support ridership needs.
e. Coordinate, permit and documentprivate utilities within city right-of-wayand easement areas to minimize initialroadway disruptions, reduce futureroadway cuts, maintain reasonableutility corridors for future growth,encourage future development andminimize visual impact for residentsand businesses. Improve reliability andaccuracy of as-built documentationthrough new technology to increasesafety and reduce utility locating andrelocation costs.
f. Plan, design, develop and maintain agreen infrastructure, such asinterconnected trail systems thatincrease shade canopy coverage andpromote pedestrian mobility, parks,preserves, tree and shade master plansand habitat restoration.
2. Establish and enhance inter-citytransportation. Provide safe, efficient,sustainable, cost-effective multi-modaltransportation systems to supporteconomic growth, population growth,and competitiveness throughconnectivity to regional, national andglobal destinations.
Strategiesa. Participate in, or lead, planning efforts
to maximize the effectiveness of futurefreeway construction alignments orexpansions to the existing freewaysystem. Coordinate with partners onsustainable funding mechanisms tosupport present and futureinfrastructure improvements to thefreeway system.
b. Maintain local access to city owned andoperated aviation facilities and expandthe national and internationaldestinations its airlines serve. Continueto improve and enhance or expandinternal airport transportation systems.
c. Coordinate with the appropriateagencies on expansion plans forincreased freight corridors andparticipate in planning efforts toexpand the heavy rail system to provideadditional links to out-of-statedestinations.
d. Plan, design, develop and maintain aregional multi-use trail system toconnect Phoenix with adjacent cities orpreserve areas to accommodatewalkers, hikers, joggers, bicyclists andequestrians. Consider jointly-fundedregional projects to enhance existingconnections and to evaluate inter-cityconnections and future infrastructureneeds.
3. Develop and operate public utilities.Protect the public health andenvironment by providing reliable,efficient and affordable water,wastewater, storm water and garbageand diversion (recycling, reducing,reusing) services.
Strategiesa. Manage, develop, operate and maintain
infrastructure that is integrated, well-maintained, reliable, aestheticallypleasing and continuously improves thehigh-quality service delivery standards.
b. Develop a financing plan for long-termsustainable infrastructure growth andreplacement that implements anequitable fee structure and incentivesfor conservation.
c. Use public/private partnerships forgrowth and economic development.Optimize regional partnerships tocooperatively utilize new and existinginfrastructure to maximize collectionefficiencies, implement new diversionand resource recovery technologies,minimize the need for future capitalinvestment, reduce transportationdemands and provide sustainable landreuse.
d. Develop an asset management plan thatidentifies improvements needed toensure reliability, regulatorycompliance, operational efficienciesand resource recovery, while creating anintegrated system that improvesinformation access by sharing citywideand across departments.
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4. Construct and manage publicfacilities. Provide safe, efficient,sustainable, cost-effective, well-maintained and aesthetically pleasingpublic facilities for delivery ofmunicipal services to residents andvisitors; build, maintain and managecapital assets to preserve long-terminvestment and ensure uninterruptedsupport services.
Strategiesa. Apply benchmarking and other industry
comparison techniques in order tomanage costs and maintain industry-leading service levels.
b. Communicate the value of Capital AssetManagement and establish a dedicatedfunding source for city infrastructurerepair and capital improvements.
c. Plan, construct and maintain parkbuildings, trails systems, open spaces,picnic areas and ramadas, pools,playgrounds, lighted basketball,volleyball, soccer and softball facilities,restrooms, and golf courses that meetthe diverse recreational and culturalneeds of the city’s residents and visitors.Continue investment to maintainappearance and safety of existingfacilities which could result in greateruse.
INNOVATION AND EFFICIENCY
The city of Phoenix must further enhanceits commitment to developing new andcreative service delivery methods toprovide services to residents. The recenteconomic climate challenges the city to domore with less, while maintaining high-quality public services. The city must alsoremain dedicated to developing andseeking continuous improvements inbusiness processes, and maintaining aculture of innovation and efficiency. Therecent efforts of the City Manager increating the Innovation and EfficiencyTask Force have helped set the stage asthe city formalizes its approach.
Priorities1. Infuse a mindset focused on
innovation and efficiency into thecity of Phoenix organizationalculture. An “innovation and efficiency”way of thinking must become a muchmore prevalent part of theorganization’s core value system and beintegrated into the way every daybusiness is conducted. Executives,managers, supervisors and frontlinestaff must embrace an attitude thatquestions existing business processesand practices throughout theorganization, with the goal of fosteringinnovation through the creation andimplementation of new ideas.
Strategiesa. Develop a communication plan for
executive and middle managers tocreate an innovation and efficiencymovement through all levels of staff.
b. Empower supervisory staff to encourageand reward the creation of innovativeideas as a dominant model within theorganization.
c. Build innovation and efficiency corevalues and skills sets into staffmanagement practices, includingrecruitment, selection, orientation,development, mentorship, performancemeasurement and compensationsystems.
d. Cultivate and reward a philosophy ofinnovation through exploratory thinkingamong all employees.
2. Establish and support city programsand mechanisms focused ondeveloping and implementingtangible innovations throughout theorganization. The city’s innovationand efficiency efforts must be drivenfrom the top to all levels, be resultsoriented, and demonstrate investmentof available means. A proven approachinvolves assignment of resourcesdedicated to producing substantialinnovative changes that enhancecustomer service, increase productivity,reduce costs and engage employees.
Strategiesa. Assign an executive sponsor from the
City Manager’s Office with the authority,responsibility and resources to providestrategic direction, guidance andsupport for innovation and efficiencyobjectives.
b. Utilize technology and a standardbusiness process evaluation approach toachieve optimal efficiency andstreamlined systems in providing topquality services.
c. Invest resources necessary to carry outinnovation and efficiency strategies andobjectives.
d. Continue to evaluate and rightsourceservices to maximize efficiency whilemaintaining the highest quality publicservice.
3. Work continually toward eliminationof barriers to innovation andefficiency. Several obstacles can standin the way of creating an environmentof innovation and pathways toefficiency. The organization must seekto identify these real or perceivedhindrances and when appropriate,actively remove or facilitate workingthrough them.
Strategiesa. To lessen the “business silo” effect,
provide incentives for departmentdirectors, managers and staff tocollaborate, consolidate, streamline andadapt processes or functions thatoverlap or cross formal organizationalstructures.
b. Identify unneeded requirements orobsolete expectations thatunnecessarily slow down businessprocesses and work to eliminate them.
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4. Engage the Phoenix community inthe city’s innovation and efficiencymethodologies to facilitate citizeninvolvement, input, and awareness.Involvement by Phoenix residents inthe accomplishment of the city’sinnovation and efficiency goals willboost the meaningfulness andconnectedness of the achievements tothe community. It is important for thecity to enhance public awareness aboutinnovation and efficiency achievementsand make strong efforts to requestrelevant input.
Strategiesa. Celebrate innovation and efficiency
efforts and accomplishments on acitywide scale.
b. Actively inform customers of innovationand efficiency efforts through availablepublic communication methods andmedia.
c. Improve the use of social media andexpand the city’s communicationvehicles and processes with the use oftechnology.
d. Continue to reach out to the communitythrough the Mayor and City Council,Boards and Commissions, neighborhoodassociations and other stakeholders toengage the community and inviteparticipation and input.
NEIGHBORHOODS ANDLIVABILITY
To preserve healthy, vibrant, diverse andsafe neighborhoods that enhance thequality of life for all Phoenix residentsthrough neighborhood vitality, by providinga range of housing opportunities andchoices, supporting quality parks and openspace, and enriching its populace with astrong art and culture infrastructure, andan accessible and quality library system.
Priorities1. Support neighborhood vitality
through strong partnerships,collaborations and by leveragingresources. In order to preserve healthy,vibrant, diverse and safeneighborhoods, the city must supportneighborhood self-reliance and enhancethe quality of life for all residentsthrough community-based problemsolving, neighborhood-oriented servicesand public/private cooperation.
Strategiesa. Encourage and continue to enforce
compliance with city ordinances toprevent blight, address graffiti, illegalactivities (dumping, signage andbusinesses) and deterioration in orderto ensure a quality community.
b. Strengthen the capacity ofneighborhood organizations, volunteers,businesses, nonprofit and faith basedorganizations to assist in addressingneighborhood issues effectively inpartnership with the city to makePhoenix an attractive place to live andwork.
c. Focus revitalization efforts in a mannerthat maximizes private and publicresources to the greatest extentpossible.
d. Enhance the physical and economicenvironment of principally low- tomoderate-income neighborhoodsincluding continued strategicrevitalization through the variousprograms and services supported andfunded through federal, local andprivate resources.
e. Ensure that new development in oradjacent to neighborhoods is compatibleand promotes adaptive reuse of vacantand underutilized buildings andstructures.
f. Promote aggressive and appropriateneighborhood infill development toimprove Phoenix neighborhoods, reducedecay and take advantage ofopportunities to maintain healthycommunities.
2. Provide a diverse range of housingopportunities and choices to Phoenixresidents. Promoting diversifiedhousing opportunities enriches thequality of life for all Phoenix residents,including low- to moderate-incomefamilies, seniors, persons withdisabilities and the homeless.Providing a range of housingopportunities allows the city tocontinue to preserve healthy, vibrant,diverse and safe neighborhoods.
Strategiesa. Support strong housing development by
designing all housing units, subdivisionsand site plans in a quality manner topromote health, safety, functionality,attractiveness and sustainability.
b. Increase homeownership opportunitiesto help stabilize neighborhoods.
c. Promote and increase the availability ofdecent, safe and affordable housing andexpand the supply of assisted housingchoices.
d. Encourage the development of specialneeds housing and supportive servicesfor persons with disabilities, seniors,homeless and those with special needs.Work with for-profit and nonprofitorganizations to promote andparticipate in a regional continuum ofcare system that will effectivelytransition persons who are homeless toappropriate permanent housing.
e. Provide quality, affordable rentalhousing opportunities through theacquisition and rehabilitation ofexisting properties and construction ofnew rental units that focus onundergoing revitalization, receivingrehabilitation (federal and/or grantfunding) benefiting low- and moderate-income households in collaborationwith external partners.
f. Support and ensure equal opportunityand fair housing by prohibiting unlawfuldiscrimination in housing by addressingand reducing impediments.
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3. Ensure Phoenix residents havequality parks and open space.Partner with the community to providea parks and recreation system thatmeets the needs of Phoenix residentsand visitors that is convenient,accessible, and diverse in programs,locations and facilities.
Strategiesa. Support healthy communities by
providing clean, safe and accessibleparks and recreational facilities thatmeet the needs of Phoenixneighborhoods and incorporatesustainable design standards withavailable resources.
b. Support diverse and accessibleeducational and life enrichmentactivities that embrace art, dance,music, culture, fitness, nutrition, sportsand out-of-school time as a foundationfor recreational activities offered atparks and park facilities.
c. Create a network of shared-use trailsand pathways that are safe, convenientand connected within and betweenpreserves and parks.
d. Protect natural and open spaces, suchas mountain and desert preserves, inorder to preserve the environment andprovide recreational opportunities forPhoenix residents and visitors.
4. Promote a strong arts and cultureinfrastructure. Continue to partnerwith the community to provide strongarts and culture facilities and programsto create a more beautiful and vibrantcity which contributes to a betterquality of life.
Strategiesa. Enrich and infuse arts and culture into
all aspects of Phoenix’s life byintegrating arts and culture intoneighborhoods citywide and public artinto planning and development ofPhoenix’s infrastructure.
b. Generate public and private supportand resources to strengthen, expandand stabilize funding for the arts.
5. Provide accessible and qualitylibrary systems to Phoenix residents.Partner with the community to providea library system that meets the needs ofresidents and visitors and is accessible,convenient and diverse in locations,programs and facilities.
Strategiesa. Develop and maintain a system of
public libraries with sufficienttechnology, materials, hours and staff tomeet each community's needs.
b. Design, build and maintain signaturefacilities that are accessible to allresidents.
c. Continue an aggressive plan of librarydevelopment, expanding and/orrenovating existing facilities andbuilding new ones to meet residents’needs.
d. Enhance library technology to providegreater access to the internet andelectronic resources for library users.
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PHOENIX TEAM
As the organization becomes leaner andcontinues to face increasing pressures forimproved results, it becomes even morecritical for a heightened connectionbetween employees and their work, theirorganization, and the people they work forand with. Methods for motivatingemployees must be updated to keepemployees engaged and retained withinthe organization. Additionally, traditionalmeans of communication may no longer beadequate to convey critical information toboth employees and the public.
Priorities1. Establish pay and benefits and a
workplace culture that attracts,retains and motivates a highlyqualified workforce. Given the currentstate of the economy, the communityhas expressed interest in the currentsalary, benefits and overallcompensation packages for governmentemployees.
Strategiesa. Conduct a study of current industry and
professional pay levels andcompensation practices bybenchmarking other organizations.
b. Explore alternate pay and benefitoptions.
c. Actively seek out a diverse and talentedpool of candidates who possess thevalues and skills consistent withorganizational goals.
2. Provide a workplace culture thatsupports the health, productivityand efficiency of employees. The cityof Phoenix understands thatorganizational success depends on ahealthy, productive and efficientworkplace and workforce. Employeesalso recognize that they can improvetheir lives by taking charge of their ownhealth and making greater use oftechnology to ease ever increasing workdemands.
Strategiesa. Analyze and evaluate employee and
retiree health care benefit options.b. Create citywide programs focusing on
increasing employees’ capacity tomanage their own wellness and healthcare.
c. Recommend technology uses for greateraccess to current credible data to makeinformed decisions and improve workresponsiveness.
d. Engage policy makers and seniorexecutives in a unified, on-goingcultural shift toward improving wellnessproductivity initiatives citywide.
3. Establish Communications Plans toengage and inform employees andthe community. The city’s recentbudget challenges have made evidentthe necessity of providing clear, timelyand accurate information to employeesand the public to garner continuedsupport for and achievement oforganizational goals and continuedquality services.
Strategiesa. Develop and implement comprehensive
internal communications to increaseunderstanding and connection to city ofPhoenix goals and values amongemployees at all levels of theorganization.
b. Promote more interdepartmentalcommunication to increase consistencyof messages, ensure faster decisionmaking, empowerment, effectivenessand accountability.
c. Create an alliance of understandingbetween employees and the public,through a variety of media formats, toaccurately demonstrate andcommunicate the city’s efforts inrunning a world-class operation.
d. Use new technologies, such asFacebook, Twitter and other socialmedia, to reach employees and thepublic.
e. Develop opportunities to “showcase”improvements, accomplishments, andquality programs provided by employeesthat benefit the community.
4. Create development opportunitiesthat enhance the city’s standing as ahigh-performing organization. Thecity continues to reduce unnecessaryhierarchy to improve efficiencies andspeed communication and decisionmaking. This has resulted in a flatterorganization, increases in span ofcontrol, and consequently fewerpromotional opportunities. Further, anincreasing number of employees areleaving the city as they reachretirement eligibility. As a result, itbecomes even more critical to manageand coordinate the available humanresources effectively to provideleadership and ongoing quality servicesto the community.
Strategiesa. Analyze and develop a reward and
recognition program that supports theorganization’s goal to attract and retaintop talent.
b. Establish methods for capturingorganizational knowledge and expertisethrough workforce planning efforts.
c. Recommend professional developmentand training opportunities that reflectthe key values of the organization.
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5. Mobilize and leverage communitypartnerships and volunteerprograms to enhance programs andservices. The city continues to makedifficult choices regarding programsand services to our customers in lightof revenue stream uncertainty.Additionally, the community hasexpressed interest in assisting the cityin continuing to provide qualityservices to residents in a variety ofareas.
Strategiesa. Coordinate a citywide program that
increases exposure to volunteeropportunities throughout the city ofPhoenix.
b. Use new technology to recruit,schedule, recognize and report onvolunteers and their impact.
c. Identify and engage with communityand corporate partners to developquality programs and services that canaddress the community’s greatest needs.
d. Explore and capitalize on opportunitiesto work with outside agencies to poolresources, share information andmanage an increased number ofvolunteer projects.
e. Work with city departments to identifynew ways to engage volunteers insupport of city services.
f. Identify and implement a volunteerrecognition program.
PUBLIC SAFETY
The city of Phoenix is committed to a highlevel of public safety and working inpartnership with the community tomaintain a safe and secure city. ThePublic Safety Study Area includesmembers of and services provided by thePolice Department, Fire Department,Municipal Court, Prosecutor’s Office andOffice of Emergency Management.Working together, these departments striveto provide Phoenix with an environment ofsafety and security.
Priorities1. Prevent crimes and accidents by
enhancing community awareness ofpublic safety systems andpartnering with other crimeprevention programs. The cityprovides the community withinformation about a variety of publicsafety issues including crime andaccident prevention, information on theoperation of the judicial system, andeducation on police and firedepartment services.
Strategiesa. Provide information and education to
Phoenix residents and visitors aboutactions that can be taken to keepthemselves and their families safe.
b. Provide residents and visitors withinformation about how public safetyagencies deliver service to thecommunity and the operation of thejudicial system.
c. Educate communities in traffic safetyand the prevention of crime andaccidents in the home and workplace.
2. Provide public safety workers withthe tools necessary to professionallymeet city and regional public safetyneeds. Ensure that public safetyworkers have the training, education,equipment, facilities and otherresources needed to provide a highlevel of service to the community.
Strategiesa. Provide appropriate training, continuing
education, professional development,programs and procedures to be able tobetter serve their customers, andsupport their safety and well-being.
b. Provide appropriate management andplanning support for public safetyservice providers.
c. Provide necessary resources includingpersonnel, equipment, vehicles, andfacilities for public safety serviceproviders.
3. Ensure timely and appropriateresponse. The city of Phoenix deployspublic safety workers in a manner thatprovides a timely and appropriateresponse to emergencies. Responseresources include those needed forroutine incidents as well as thecapacity to respond to and managenatural and human-caused incidents ofregional significance.
Strategiesa. Deploy public safety resources to
respond to emergencies withinacceptable timeframes.
b. Support emergency response withappropriate investigation andprosecution activities.
c. Provide equal access to justice,professional and impartial treatment,and the fair and timely resolution of allcourt matters.
d. Provide sufficient resources to manageincidents of regional significance.
e. Work in concert with other publicsafety, governmental and non-governmental agencies to eliminateduplication and provide quality serviceand seek opportunities to workcooperatively to improve customerservice and efficiency.
f. Ensure that after an incident, recoveryof public and private resources occurs inthe affected area(s).
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4. Provide strong customer serviceinternally and externally. Everymember of the community and everyorganization working in Phoenix is apublic safety customer. Firefighters,police officers and officers of the courtswear an oath to protect the peoplethey serve. Every public safety workershould serve their customers withdignity and honor to develop mutualtrust and respect.
Strategiesa. Embrace diversity and treat every
customer with respect, compassion,equality, and fairness and work in a waythat engenders community trust andsupport.
b. Build relationships with communitiesand the public that encouragecollaboration, communication, trust,and understanding.
c. Provide customers with a venue toopenly discuss issues of concern.
d. Seek opportunities to workcooperatively with other jurisdictionsand groups to improve the efficiencyand effectiveness of customer service.
e. Maintain relationships with other city ofPhoenix departments to ensure thatpublic safety is incorporated into theplans and goals of non public safetydepartments.
f. Provide volunteer opportunities forcommunity members
5. Ensure fiscal responsibility in allpublic safety efforts. Public safetymanagers and public safety workersmust be responsible stewards of thefunds provided by the customers tosupport public safety efforts.
Strategiesa. Encourage, support, and value
innovation, efficiency, and continuousimprovement.
b. Be open to discuss and implementchange in service provision methodsand change in the needs of thecommunities that we serve.
c. Constantly seek ways to reduce the costof public safety services whilepreserving or improving the quality ofthe service provided.
d. Utilize resources and technologycarefully and effectively.
e. Pursue grant funding from all sources,as appropriate, to provide public safetyservices.
SOCIAL SERVICES DELIVERY
The city of Phoenix has a long history ofresponding to community needs andproviding services to those most in need.Building upon this foundation, the city iscommitted to continue seeking innovativeand effective methods for delivering socialservices. The city will serve as a catalystto support a full continuum of high qualityservices for Phoenix residents.
Though the city of Phoenix has, andwill continue to respond to specific socialservices needs directly where appropriate,the framework of this plan defines andcoordinates the greater scope of needs andservices required by Phoenix residents.By providing a clear vision and continuedleadership, city services will be provided intandem with other resources provided bycommunity and faith-based organizations,as well as, other levels of government.
Priorities1. Strengthen the safety net of social
services available to protect thosewho are most vulnerable or in crisis.The city of Phoenix will assure thosemost in need have access to basicneeds such as shelter and food. Thecity will connect the homeless, workingpoor, elderly, disabled and victims ofviolent crimes to core services neededto stabilize their lives.
Strategiesa. Enhance the support and delivery
systems of core services includingshelter, utility assistance, housing, andfood to vulnerable populations.
b. Expand access to city and nonprofitprograms providing essential services.
c. Enhance the coordination of emergencyprograms to streamline client access toservices.
d. Increase the effectiveness of existingand new programs through theimplementation of innovative servicedelivery models with increasedemphasis on accountability andperformance-based assessments.
2. Enhance the quality of life for low-income or at-risk individuals andfamilies. The city of Phoenix willempower all residents to live in safe,affordable housing and achieveeconomic self-sufficiency throughaccess to social, employment, and othereconomic resources needed tomaximize their quality of life.
Strategiesa. Promote linkages to job training and
other employment and educationalresources empowering low-incomehouseholds to realize a livable wage.
b. Enhance the community’s capacity toprovide at-risk populations, includingthe disabled, elderly and chronicallyhomeless, with access to supportiveservices leading to greater self-sufficiency.
c. Develop performance-based measures,such as a “Return on Investment” (ROI)to promote effective programmanagement and responsible fiduciarystewardship of fiscal resources.
d. Create safe and affordable housingopportunities for all Phoenix residentsby strengthening programs and servicesthat enhance opportunities forhouseholds to gain and/or retainhousing meeting their economic, socialand cultural needs.
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3. Build healthy, caring communities.The city of Phoenix will promote rich,diverse and innovative networks ofpublic, community, and faith-basedprograms, services, and facilities tomaximize the potential of everycommunity. The city will serve as aresource and a catalyst instrengthening neighborhoods andbuilding community capacity.
Strategiesa. Engage faith and community-based
organizations by promoting awarenessof social services issues and developingtheir ability to actively respond to theseneeds.
b. Maximize the impact of faith andcommunity-based organizations’participation on the health and capacityof social services networks by leveragingtheir increased support throughcoordinated planning and strategicpartnerships.
c. Enhance and expand the formal andinformal networks connecting the socialservices sector (non-profits, faithcommunity, etc.) to individuals andfamilies in high need neighborhoods.
d. Develop new and innovativemechanisms to improve the alignmentand efficiency of local and citywidesocial services resources to meetneighborhood needs.
e. Strengthen communities by promoting abroad and diverse continuum ofprograms and services.
SUSTAINABILITY
The city of Phoenix is committed tosecuring environmental and economiclivability for future generations in theregion, with an emphasis on solar energyproduction. Phoenix has long usedsustainability as a guiding principle,believing that sustainable living is criticalto ensuring that the actions we take todaydo not compromise the ability of futuregenerations to meet their needs. Phoenix’ssustainability motto, “Living Like itMatters!” reaffirms the sustainability creedthat guides its current programs andfuture plans.
Priorities1. Accelerate renewable energy
development. The city has a long-standing commitment to resourceconservation and continues to be anactive participant in energyconservation, efficiency andenvironmental preservation. Pursuingrenewable energy development guidesthe city towards energy independence.
Strategiesa. Pursue utility scale solar development
through emerging technology on the SR85 Landfill property.
b. Implement small or distributed scalesolar projects on city-owned buildingsand property.
c. Proceed with gas-to-energy projects atlandfills and treatment plants.
d. Develop effective public-privatepartnerships to secure timely powerpurchase and solar service agreements.
2. Enable opportunities forenvironmental stewardship.Environmental sustainability is bestachieved by encouraging sharedresponsibilities, protecting naturalsystems, and promoting the efficientuse of natural resources. It is alsoimportant to implement policies,programs and practices that have a far-reaching effect on the environment.
Strategiesa. Actively participate with the Maricopa
Association of Governments (MAG) toattain and exceed federal air qualitystandards for the region.
b. Create sound water management policyand ensure choices are available toengage residents in conservation effortsincluding water, solid waste, naturalhabitat and open space.
c. Seek, evaluate and integrate emergingtechnologies and products includinggreen building elements, environmentalpurchasing, energy management,alternative fuels, alternative surfacingmaterials and heat island reduction.
d. Develop new methods to further reducethe tonnage of solid waste being hauledto landfills and increase recyclingparticipation and diversion rates byresidents.
e. Continue attaining federal funds topursue sustainability initiatives.
f. Facilitate the development andexpansion of local green businesses toachieve a stronger economy and jobcreation in the city.
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3. Enhance sustainable land use andmobility practices. The success insustainable land use and mobility liesin adopting policies that encourage theuse of green infrastructure andbuildings, brownfield redevelopment,creating connectivity within roadnetworks and ensuring connectivitybetween pedestrian, bike, transit androad facilities.
Strategiesa. Develop and implement voluntary
programs and incentives for thecommunity to participate in residentialsustainability initiatives.
b. Implement recommendations from theTree and Shade Master Plan anddevelop integrated pedestrian, bicycleand transit plans.
c. Utilize the Capital ImprovementProgram to achieve sustainabilitypriorities.
d. Promote mixed land use to achievecomplete communities and encourageinfill development.
4. Foster collaboration andcommunication. Empoweringemployees at all levels throughcollaborative workgroups will galvanizethem to realize the city’s sustainabilitygoals. They in turn become an exampleof the city’s efforts and progress to thecommunity they serve. Communicatingand celebrating the city’saccomplishments is essential tomotivating employees, customers,stakeholders and the public inachieving sustainability goals.
Strategiesa. Strengthen and support the city’s
Sustainability Task Force effortsthrough a renewed organizationalcommitment and public/privatepartnership networking.
b. Provide a mechanism to formallycoordinate public information andeducation programs offered by the cityand its partners regardingsustainability.
c. Develop media campaigns, utilizingmultiple channels to increase internaland external messaging on organizationsustainability programs andaccomplishments.
d. Engage city of Phoenix employees byfostering a culture of sustainability.
TECHNOLOGY
Information technology is a vital part of avibrant city government. Informationtechnology, utilized appropriately, enablesenhanced services to the community,increases efficiency of operations, deliversuseful information, and supportsinnovation. The Phoenix Strategic Plan’sTechnology Area leverages technology todrive key actions that fundamentallyenhance the way Phoenix connects toinformation.
Priorities1. Provide seamless customer service.
A seamless customer experience isachieved when a customer interactswith both internal and external cityservice providers without experiencingservice interruptions during the servicedelivery process.
Strategiesa. Use technology to provide a consistent
customer experience, based onstandardized service processes appliedto all forms of customer interaction.
b. Enhance phoenix.gov as a single “frontdoor” for residents and businesses byoffering Web-based governmentservices.
c. Adopt and expand the concept oftechnology service catalogs andhardware/software services that assistinternal and external customers withfinding technical solutions to businessproblems.
d. Support the concept of a single “3-1-1”contact center through which telephoneand web inquiries can be funneled toprovide efficient and timely customersupport and case management tracking.
2. Increase operational efficiencythrough constant innovation.Constant product and serviceinnovation nurtures ideas and focuseson customer satisfaction, combinesprocess and technology to enhanceproductivity and value, drives downoperational costs and supports othercity strategies.
Strategiesa. Support and drive innovations that
leverage technology and businesssolutions citywide.
b. Focus on organization-wideapplications, using right-sourcing andmanaged services where appropriate.
c. Partner with city departments toconserve and redeploy resources whileproviding services supporting multiplecity lines of business.
d. Encourage development and use ofcomputer-based business analysisprocesses and tools to more efficientlymanage business data as well as helpidentify trends and innovations thatimpact customer service delivery.
3. Turn data into information througha web-enabled city. When businessdata is stored in easily accessible,organization-wide repositories, the citycan create opportunities to use thisdata to make better decisions.Internet-based information delivery andcollection efforts empower thecommunity to interact with and receivecity services 24 hours a day, giving themthe opportunity to conduct theirbusiness online versus waiting in line.
Strategiesa. Investigate strategies to assist internal
and external customers with access todata and web-based services at outlyingcity facilities.
b. Identify common transactions andcustomer services within departmentalbusiness processes that can reasonablybe developed into web-enabled services.
c. Modify and implement online systemsthat utilize reengineered businessprocesses for departments and thecommunity.
d. Create a technology foundation tosupport web-enabled governmentservices.
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4. Create a shared commoninfrastructure. Consolidatingtechnological infrastructure aroundcommon IT components allowsimproved investments on behalf of theentire city. Strategic use of technologywill result in tangible cost savings andresults in the efficient and effectiveallocation of resources.
Strategiesa. Establish citywide business standards
and measurement criteria that supportconsistency in IT project management,project completion and realizedbenefits.
b. Enhance IT standards andrequirements that will governinformation system design, developmentand operation across all citydepartments.
c. Consolidate technologies wherepractical to take advantage of savingsachieved through economies of scale.
d. Secure software and hardware savingsthrough volume purchasing andinstallation, and reduced maintenancecosts.
5. Enhance information security andprivacy. In today’s businessenvironment, information security andprivacy form the foundation oftechnology projects. The city shouldcreate a comprehensive program toprotect data and technologyinfrastructures, secure systems andassets, mitigate threats, and provide amechanism for business continuity inemergencies.
Strategiesa. Establish the organizational framework
to develop and implement acomprehensive security and privacyprogram.
b. Educate employees and residents aboutthe importance of information securityand about safeguards to protectconfidential data.
c. Collaborate with city securityauthorities to ensure a unified securityand privacy framework.
d. Investigate strategies to insulate thecity’s technology infrastructure fromthreats to information security andprivacy by adopting and implementingindustry-standard continuity ofoperations concepts.
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ECONOMIC DEVELOPMENT ANDEDUCATION
1. Significantly increased visitations toexisting businesses to increase pipe lineleads by implementing a strategy to visitthe Top 100 employers in Phoenix. Thestrategy focused on contacting each ofthe Top 100 employers at least once toschedule a visit.
2. Fostered neighborhood stability forcommunities hit hard by foreclosuresthrough the Neighborhood StabilizationProgram by monitoring the number oflow and moderate income familiesassisted to reoccupy vacant foreclosedresidential units.
3. Partnered with nonprofits or privateorganizations seeking funding for youthservices and child care through thecitywide Public Service Request ForProposals, with 37,681 low/moderateincome youth served.
FINANCIAL EXCELLENCE
1. Updated and maintained financialpolices that achieve high bond ratings bymonitoring Bond Ratings and Outlooksreceived from rating agencies.
2. Established an expenditure forecast thataligns with the city’s strategic prioritiesby incorporating reconciliation processbetween forecast and city priorities intoannual budget cycle.
3. Provided accurate financial informationon at least a quarterly basis that is easilyaccessible and understandable tointernal and external audiences bydeveloping and posting onlinesummarized financial report for public.
INFRASTRUCTURE
1. Procured and maintained assetsrequired to operate the transit system,coordinated with local agencies toensure transit infrastructure willsupport transit operations, and analyzedroutes to ensure they will supportridership needs. This was accomplishedby expanding analyses of ridership dataand existing/planned operational servicelevels.
2. Worked with Arizona Department ofTransportation, Maricopa Association ofGovernments and other citydepartments to incorporate transit-friendly amenities and features intoregional freeway system projects.
INNOVATION AND EFFICIENCY
1. Improved use of social media andexpanded the city’s communicationvehicles and processes with the use oftechnology by reaching 5,000 views onthe city of Phoenix YouTube site.
2. Continued to evaluate and right-sourceservices to maximize efficiency whilemaintaining the highest quality publicservice. Recommended examplesinclude outsourcing the Senior MealProgram and insourcing riskmanagement litigation services.
3. Continued to reach out to thecommunity through the Mayor and CityCouncil, Boards and Commissions,neighborhood associations, and othercontacts to engage the community andinvite participation and input. This wasachieved by developing a mailing list toinform boards and commissions ofInnovation and Efficiency Efforts.
4. Piloted the use of tablet devices used byStreet Transportation field staff toeliminate redundant data entryprocesses.
NEIGHBORHOODS AND LIVABILITY
1. Promoted and increased the availabilityof decent, safe and affordable housingand expand the supply of assistedhousing choices by working with thePhoenix Residential InvestmentDevelopment Efforts (PRIDE) board toupdate their strategic vision tomaximize their financial strengths.
2. Encouraged and continued to enforcecompliance with city ordinances toprevent blight, address graffiti, illegalactivities and deterioration in order toensure a quality community. Changedthe City Code to allow for betterprosecution of illegal dumping,increased staff dedication to theinvestigation, education andenforcement of illegal dumping.
PHOENIX TEAM
1. Established methods for capturingorganizational knowledge and expertisethrough workforce planning efforts. TheHuman Resources Departmentcompleted the Knowledge TransferToolkit, which is used as a guide toprovide departments an effective andefficient way to identify, capture andtransfer essential knowledge to ensurethe continuity of the processes andservices our customers expect from thecity of Phoenix.
2. Conducted a study of current industryand professional industry levels andcompensation practices bybenchmarking other organizations bydeveloping a consultant report.
3. Coordinated a citywide program thatincreases exposure to volunteeropportunities throughout the city ofPhoenix by developing andimplementing a citywide volunteerwebsite.
Strategic Plan 2012-13 Major Accomplishments
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PUBLIC SAFETY
1. Deployed public safety resources torespond to emergencies withinacceptable timeframes by maintaininginitial arriving emergency response timebelow the average for the past threeyears and maintaining ambulanceresponse times below the state-mandated standard.
2. Provided appropriate training,continuing education, professionaldevelopment and programs andprocedures to be able to better servecustomers and support their safety andwell-being. Developed a casemanagement training program for allsworn personnel within theInvestigations Division and delivered thetraining.
SOCIAL SERVICE DELIVERY
1. Provided emergency assistance,including utility rental and emergencyfood services within a case managementservice delivery model to stabilize crisissituations. More than 12,000 Phoenixhouseholds were provided emergencyassistance and case managementservices annually.
2. Completed a Return on Investment(ROI) pilot initiative on Open Tableprogram for social services to improveprogram outcome and impactassessments.
SUSTAINABILITY
1. Developed effective public-privatepartnerships to secure timely powerpurchase and solar service agreementsby executing the request forqualifications (Request forQualifications) process for powerpurchase agreements at the downtownparking garages.
2. Developed new methods to furtherreduce the tonnage of solid waste beinghauled to landfills by reducing greenwaste tonnage and by adding one site fordebris chipping and reuse as mulch.
TECHNOLOGY
1. Encouraged development and use ofcomputer-based business analysisprocesses and tools to more efficientlymanage business data as well as helpidentify trends and innovations thatimpact customer service delivery. Thiswas achieved by implementing GIS MapRouting Inspection Requests.
2. Focused on organization-wideapplications using right-sourcing andmanaged services by replacing theAutomated Vehicle Identification Systemin order to meet full groundtransportation business requirements.
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Sunshine Review, a no
n-profit organization d
edicated to state and l
ocal
government transparency, reco
gnized Phoenix with a
2013 Sunny Award fo
r
the content phoenix.go
v provides to residents
.
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Phoenix continues the pursuit ofexcellence throughout the organization.Delivering quality, efficient, cost-effectiveservices to Phoenix residents is thecornerstone of the organization’scommitment to public service.
One of our most remarkableachievements is the recent CommunityOpinion Survey regarding the quality of lifein Phoenix. More than nine out of 10residents, or 93 percent, said Phoenix is agood place to live; this is the highest ratinglevel in the history of the survey. This is aresult of outstanding leadership of theMayor and City Council and the city’sexcellent employees.
This year, satisfaction rates for top cityservices were analyzed, comparing surveyresults from 2002 to 2012. Satisfactionrates increased over the last 10 years for20 out of 26 services such as policeprotection, enforcing traffic laws,emergency medical services, garbage andrecycling, preserving mountains anddeserts, and property maintenancestandards. Overall satisfaction withproviding services also increased from 83percent in 2010 to 87 percent in 2012.
City Manager David Cavazos createdthe Innovation and Efficiency Task Forcein 2010 to develop and implementinnovative processes that would result inmore efficient delivery of services to thecommunity, while at the same timemaximizing the use of limited taxpayerdollars. The task force is made up ofprivate-sector members and citymanagement and was charged withexamining alternative service deliverymethods; identifying organizationalstructure efficiencies, evaluatingrightsourcing opportunities, implementingprocess improvements, and ensuring thecity’s continued focus on customer service.To accomplish its goals, the task forceestablished work groups to collaborate
with every city department to identifyspecific improvements and cost-savinginitiatives. More than 1,100 ideas wereproposed by employees through a websitesuggestion program.
Thus far, the city has achieved morethan $65 million in ongoing savings. The2013-14 City Manager’s Trial Budgetproposes an additional $16 million inefficiency savings, advancing the citycloser to its goal of $100 million by 2015.
The City Manager also initiated anorganizational review process that has ledto a leaner work force and more efficientdelivery of services. As part of theorganizational review, the city eliminatedlayers of supervision, streamlined services,identified efficiencies and reducedmanagement staffing at twice the rate ofoverall staff reductions.
In recognition of these processes, thecity of Phoenix received an Award ofExcellence from The Alliance forInnovation, a nonprofit group thatpromotes excellence and innovation inlocal government.
Other 2012-13 accomplishments include:
n Implementing Public Transit routeefficiency changes, saving about $3million annually.
n Making improvements to various PublicWorks Department processes thatreduce costs by about $2.7 millionannually.
n Reducing maintenance costs in theWater Services Department by about$3.1 million annually from the sale of aproperty in McMullen Valley, Arizona.
The city of Phoenix is committed tohelping residents understand how their taxdollars are being spent and to making allour processes, accessible, and easy tounderstand. This commitment wasrecognized by Sunshine Review, a
nonprofit organization dedicated to stateand local government transparency, with a2012 Sunny Award for exceedingtransparency standards for the content itprovides to residents at phoenix.gov. Thisis the third year in a row Phoenix hasreceived the award, and is one of only 214jurisdictions out of 6,000 reviewed, or thetop 3.5 percent, to be recognized.
As part of efforts to advancetransparency and to further engagecitizens in helping shape the city’s budget,the city provides one of the most open andaccessible budget input and adoptionprocesses in the country. The Zero-BasedInventory of Programs Budget documentwas transmitted to the Council andcommunity six weeks prior to the CityManager’s Trial Budget and subsequentCommunity Budget Hearings. Thisprovides important context for evaluatingthe Trial Budget that is released at the endof March. The document is online,searchable, and has links to allow for easynavigation. The Inventory of Programsdocument answers many questions forresidents, including the following:
n Does city spending reflect mypriorities?
n How much of the costs to provide cityservices come from staff, contractualservices or supplies?
n Have the costs of staffing levels toprovide services been changing and byhow much?
n How much of staffing costs are relatedto wages and benefits?
n What programs and services areprovided by the city?
n How much do these programs cost?
n How many city staff are involved indelivering these programs?
Our Commitment To Excellence
n What sources of funding are used topay for these programs?
n What services are provided by theseprograms and how are they beingmeasured?
Additionally, in February, staff providedthe preliminary status for the 2013-14budget, a Five-Year General Fund Forecast,and updated Public Safety Funds Forecastto City Council. These presentationsprovided a strategic and long-term view ofthe city budget and provided necessarycontext and considerations for well-informed budget discussions and decisions.
A new fiscal transparency project wasimplemented over the past year andanother is planned for the future thatincludes:
n A redesigned Budget and ResearchDepartment website, which nowfeatures a more graphics driveninterface with information presented insmaller pieces and multiple formats tomake learning about the budget moreaccessible to residents. Included onthe website is a short video on the city’sbudget development and adoptionprocess, a FAQ section to addresscommonly asked questions, a glossaryof budget and fiscal terminology, andan online calendar that allowsresidents to see when budget relatedreports go to Council with links to thereports, and a map link for communitybudget hearings with links to videorecordings of the hearings.
n The Finance Department is currentlyimplementing technologyenhancements that make vendorpayment information available online.Initially there will be a simplifiedversion that will allow the public toview payment information bydepartment. The Finance Departmentis also moving forward with a moreextensive version of the onlinefinancial database for payment andcontract information.
In addition to fiscal transparency, hereare a few non-fiscal examples of howPhoenix currently makes our cityaccessible:
n An online searchable history of allactions taken at council andsubcommittee meetings includingmeeting agendas, staff reports, metingminutes, contracts and paymentordinances. The “Search of PublicRecords” function is linked to thephoenix.gov homepage under“eServices.”
n The “eServices” area of the phoenix.govhomepage provides easy online accessto many city services including; asearch tool for campaign financedocuments, Pay My City Service Billfeature, building permits/inspectionsinformation, filing a police report,paying a court fine, fee or restitutionand registering to receive notices ofcity bids.
n All Phoenix City Council meetings,including subcommittee meetings, aretelevised live on PHX11, phoenix.gov,and the city’s Facebook page. Meetingsare archived on phoenix.gov and on thecity’s YouTube -youtube.com/cityofphoenixaz.
The city’s philosophy and commitmentof maintaining a highly trained and welleducated workforce is imperative toachieve the maximum contribution aworkforce can provide to the customersthey serve. In addition to the community’srecognition of a job well done, the city andits employees have also been recognized bya variety of professional organizations forits continuous pursuit of excellence. Thefollowing is a list of just a few awards andrecognitions received by the city duringthe course of this fiscal year.
n Hundreds of city parks, recreationfacilities and other spaces to playearned the city of Phoenix Playful CityUSA recognition for 2012 fromKaBOOM!, a national nonprofitorganization dedicated to encouragingcommunities to increase playopportunities for children. This is thesixth year that Phoenix has receivedthis acknowledgement. To earn theaward each Playful City USAcommunity must demonstrate creativeefforts to increase play opportunitiesfor children.
n The Phoenix Business Journal hasselected the city of Phoenix as one ofthe Valley’s healthiest employers for thesecond year in a row. The cityconstantly strives to improve employeehealth and wellness programs and thisyear added on-site health coaching atselected city work locations offeringemployees advice on nutrition, exerciseand stress management.
n The city of Phoenix and its partnerswere among the top winners in theValley Forward’s 32nd AnnualEnvironmental Excellence Awards.Valley Forward is committed tohonoring communities participating insustainability initiatives that create afoundation for a better future. The cityof Phoenix and four project partnersreceived the highest honor, aPresident’s Award, for the MaricopaCounty Master Watershed StewardsProgram. The program graduatesvolunteers that spend hours learningabout water quality, riparian areas,groundwater and surface watermanagement to educate others onimproving watersheds and theircommunities. The city also receivedawards or recognition for the followingprojects: South Mountain CommunityLibrary, Tres Rios Restoration Project,Central Station, Ocotillo Library andWorkforce Literacy Center, and the27th Avenue and Baseline Road Park-and-Ride.
n The Phoenix Office of Arts and Culturein partnership with Arizona StateUniversity Art Museum and theRoosevelt Row CommunityDevelopment Corporation received a$100,000 National Endowment for theArts (NEA) “Our Town” grant. Thegrants are awarded annually to fundinnovative efforts to stimulate localeconomies through the arts. Phoenix isone of 80 communities in 44 states tobe awarded a grant. NEA awards grantsto organizations with creative placemaking projects to help transformcommunities into lively, beautiful andsustainable places with the arts at thecore.
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n The Finance Department received aCertificate of Achievement forExcellence in Financial Reporting fromthe Government Finance OfficersAssociation (GFOA) for its 2011-12comprehensive annual financial report(CAFR). The city has earned the awardcontinuously since 1976.
n The Budget and Research Departmentreceived a Distinguished BudgetPresentation Award from theGovernment Finance OfficersAssociation (GFOA). The GFOA iscommitted to enhancing and promotingthe professional management ofgovernments for the public benefit byidentifying and developing financialpolicies and best practices. The cityhas earned this award continuouslysince 1985.
n Sky Harbor International Airport’smobile website placed first in theAirports Council International – NorthAmerica (ACI-NA) 2012 Excellence inMarketing and Communicationscontest. Websites were judged ondesign, ease of navigation and overalleffectiveness. Soon after its Novemberlaunch, the mobile website wasreceiving 14,000 visits per week. Thesite provides travelers with theinformation they need on-the-go and iseasy to read on smartphones andtablets. To access it, visitskyharbor.com from a mobile device.
n The city of Phoenix received theInternational City/County ManagementAssociation (ICMA) Certificate ofExcellence for PerformanceMeasurement for its commitment tocontinuous learning and improvementbased on a criterion of effective,results-orientated managementpractices.
We are Committed to Making PhoenixBetter
The city of Phoenix has been named anAll-American City five times by theNational Civic League. This honor is basedlargely on our partnership with Phoenixresidents who are inspired to be a part ofour great city through volunteering. Manyresidents serve as volunteers with cityprograms, boards, commissions, task forcesand committees and are an integralcomponent to the delivery of city services.Last fiscal year, nearly 30,000 peoplevolunteered their time, generating anestimated value of $12.7 million for thecity of Phoenix.
This year the city will launch a newenhanced volunteer website which willmake the process of volunteering moreseamless for our residents and will allowstaff to more efficiently manage thousandsof volunteers. In addition, the first evercitywide volunteer recognition ceremony,Impact Volunteer Awards, was hosted.This ceremony is dedicated to recognizingvolunteers known for their extraordinarycontribution to our community. A listing ofvolunteer opportunities is available on thecity of Phoenix website at phoenix.gov.
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Hundreds of city parks, recreation facilities and other spaces to play earned
the city of Phoenix Playful City USA recognition for 2012 from KaBoom!
Vision and Values
This year the city updated its Vision andValues statements, which continue to serveas a common source of motivation for cityof Phoenix employees to do all that theycan to make Phoenix better. The updatedVision and Values statements are shownbelow:
CITY OF PHOENIX VISION STATEMENT2013We will make Phoenix a great place to live,work and visit by fostering a dynamic andsustainable environment with exceptionalpublic services.
CITY OF PHOENIX VALUES STATEMENTS2013We are committed to excellence through:
1. Exceptional Customer Servicen We exist to provide responsive andconsistent customer service to thecommunity and to city employees. Weexhibit empathy by listening to eachother and to the public in our efforts todeliver services that improve people'slives.
2. Integrity and Transparencyn We safeguard the public trust throughhonest business practices and opencommunication. Our credibility withthe public depends on our strongethical stewardship of all resources.
3. Respect for Diversityn We recognize and respect thedifferences that make us unique. Weembrace diversity in everything we doto create a healthy and productivecommunity and workplace.
4. Personal Empowermentn We trust our employees to always ownthe problem and solution in addressingbusiness challenges. We value andinvest in the growth and developmentof our employees.
5. Engaged Teamwork n We engage employees and the public inproductive and respectful dialogue.Our success hinges on dynamic andinterdependent partnerships. Weachieve our highest performance byworking together.
6. Consistent Professionalism n We work to the highest standards ofproficiency and expertise. We areaccountable to ourselves, to the cityand to the public.
7. Creativity and Innovation for ExcellentResultsn We promote an environment ofinventive thinking and imaginativesolutions to community needs. Weencourage a spirit of continuousimprovement in all our activities toexceed community expectations.
Not only do city of Phoenix employeesfollow these guiding principles in theirworkplace, they show they care about thecommunity they serve by contributingfinancially to the Valley of the Sun UnitedWay through the city of PhoenixCommunity Service Fund Drive. This year,The Valley of the Sun United Waypresented three awards to the city,including a “Million Dollar Club” award forraising more than $1 million during thecity “Giddy-Up and Give” campaign.
City of Phoenix employee organizationsand departments coordinate various fundraising events to assist communities inneed both locally and globally. In addition,city employees volunteer in the communitywith many organizations serving youth,homeless, disadvantaged, marginalized andother areas of need.
The following are more examples ofhow city employees, have demonstratedtheir commitment to our Vision and Valuesstatements by going above and beyond toimprove the quality of life for Phoenixresidents.n Phoenix Police Sgt. Natalie Simonick
was patrolling in her squad area andstopped what appeared to be a juvenilefor a possible curfew violation. Afterfinding no violation or police recordshe offered him a courtesy transporthome because he was on foot and still along way from his house. In theconversation that ensued, Sgt.Simonick learned that he worked at afast food restaurant and often had towalk that distance (more than sixmiles from his home) because no busesran during his work hours. She alsolearned that he did not have a bike norhad he ever learned how to ride one.In the weeks to follow, SergeantSimonick took it upon herself to seizean opportunity to make a difference inthis young man’s life. At her own
expense, she donated a mountain bike,safety lights, helmet, and bike lock.She was further determined to see to itthat he learned to ride the bike safely.Sergeant Simonick arranged with threeof her fellow officers, Brian Dennis,Stuart Babcock and Jakob Burke, tomeet the young man at PaseoHighlands Park where they outfittedhim with his bike equipment andtaught him the basics of bicycle safety.
n Alan Cottrell and Ron Ponce, WaterServices employees along with aresident saved the lives of two menwhose helicopter crashed in a centralPhoenix neighborhood. The employeesused a pry bar to break down a lockedgate to get to the crash site and helpthe injured pilot and passenger out ofthe helicopter.
n Aimee Conroy and Mark Henslee fromWater Services were both honored atthe 2012 Arizona Water AssociationAnnual Conference. Aimee Conroy wasnamed “Engineer of the Year” and MarkHenslee was named “OperationsSupervisor of the Year.” Water Servicesdistributes tap water to 1.5 millioncustomers over approximately 540square miles, and provides water andsewer rates that are among the lowestin comparable-sized cities nationwide.
34Alan Cottre
ll and Ron Ponce, Wate
r Services employees, alo
ng with a resident sav
ed
the lives of two men whose h
elicopter crashed in a
central Phoenix neighb
orhood.
n Gail LaTour, from the Public WorksDepartment was presented with theGreen Guru Award of 2013. Gail’spassion for promoting healthy living ledto the implementation of the GreenGardening Group (G3), the DowntownDemonstration Garden, and the city’sfirst Food Day Event. Food Day is anationwide movement toward healthy,affordable and sustainable food. Gailled a group of employees and 25 localbusinesses to host the first Food Day inPhoenix. More than 1,000 attendeesenjoyed cooking demonstrations, menusampling from local restaurants andeducation/information on eating andgrowing healthy foods.
City of Phoenix Excellence Awards
Each year, the city honors city employeesand employee teams for excellence. Theirefforts help to make Phoenix a morelivable city.
n Ilene Klein with the InformationTechnology Services championed,designed, authored and implemented anew website that is devoted toinformation security and privacy. Thewebsite, phoenix.gov/infosec, containsinformation for city employees, thepublic and anyone else who wants toknow how to protect their family,identity, privacy and devices. Thewebsite is a terrific resource forbusinesses, too. Visitors to the site willfind a wealth of videos, presentationsand articles created by Ilene’sInformation Security and PrivacyOffice. The content is presented inplain English . . . no tech-speak here.
The website was named the winner ofthe “Best of the Web” contest,conducted by The Multi-StateInformation Sharing and AnalysisCenter (MS-ISAC), whose mission is toimprove cyber security of state, local,territorial and tribal governments.Ilene is a nationally recognized experton cyber security who regularlyconducts presentations for employeesand the public.
n Will Gonzalez, an assistant trial bureauchief with the Law Department, is athome in two courts. There’s PhoenixMunicipal Court, where he prosecutesoffenders, and the basketball court,where he conducts a youth programcalled “All Rise, Court’s in Session.” Theafter-school initiative combinesbasketball with “The Wisdom ofWooden,” a book by legendarybasketball coach John Wooden. Open toboys ages 7 to 12; the program startswith the boys doing basketball drills fora couple of hours with Will and othervolunteer coaches. They don’t have togo home hungry, thanks to Will, whoarranged for the nonprofit Kitchen onthe Street to provide dinner. After theyeat, the coaches and boys meet in smallgroups to discuss the “7 Things to Do”from Wooden’s book. The list includes“Be True to Yourself,” “Help Others” and“Make Each Day Your Masterpiece.”Three Boys and Girls Clubs haveadopted the program, and more aresure to follow. Will runs anothersuccessful youth program, “PreventingTeen-Dating Violence throughEducation.” Concerned about familiesliving lives of violence, Will researchedthe problem and found that teens areat higher risk of partner-abuse thanany other age group. In response, he
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Gail LaTour implemented the Green Gardening Group, the Downtown
Demonstration Garden and the city’s first Food Day event.
Employee Suggestion Awards
The Employee Suggestion Program (ESP),which began in the mid-1950s, has savedmillions of dollars through direct costsavings and other productivity and cost-avoidance improvements. Employees canmake improvement suggestions for any cityoperation, not just for their owndepartment. Below are some examples ofthis year’s ESP awards:n The Water Services Department has
been actively pursuing multiplestrategies to cost-effectively achievecompliance with regulatoryrequirements. Andrew Avila, OlieCarvajal, Darlene Helm, BertinMorales, Lorenzo Ortega, Erin Pyseland Andy Terry, a group of WaterServices employees, came up with anidea to reconfigure a series ofreservoirs that would improve thequality of water and meet therequirements. Initially, to meet therequirements a new diffused bubbleaeration system would need to beinstalled in one of the existingreservoirs at an estimated cost of $3.4million. Water operations staffsuggested the flow of water through thereservoirs be reversed. The suggestionwas implemented by the Water ServicesDepartment at a cost of $15,000,subsequently generating a cost savingsover millions of dollars.
n Don O’Dell with the Public WorksDepartment suggested taking currentrefuse trucks and refurbishing them toextend overall life of the equipment andavoiding the expense of having topurchase new trucks. The project wasgiven the go ahead to rebuild ten of thebest 2002 and 2003 Peterbilt side loaderrefuse trucks. The rebuild of theselected trucks included replacing theengines, refuse body, hydraulic system,exhaust systems, drivelines, and A/Csystems. The total savings for eachrebuilt truck was $87,000, saving the cityclose to $870,000 for all 10 rebuilt trucks.
As you can see we work very hard to earnour reputation as a well-run city. We striveto be leaders in our professions. Each daythe values of our organization – what we callour “Vision and Values” – are at the core ofeverything we do.
created a program called, “HealthyRelationships,” which dispels a youthfulmyth that suggests dating violence issomehow acceptable. Will has spent adecade teaching “HealthyRelationships” at conferences andschools, and even inspired a group ofhigh school students to start a club toprevent dating violence. Otherprosecution agencies have adoptedWill’s “Healthy Relationships” initiative,and a school district is consideringadding a class on preventing datingviolence to its curriculum.
n The city collects about 78,000 gallons ofused oil annually through cityoperations and services such as theHousehold Hazardous Waste (HHW)events. The city recycled the oil, butreceived no payment for this valuablecommodity from the contractedrecycler. A multi-department teamcame up with the idea of selling theused oil. They researched the industry,the current local market and othermunicipal oil-sales programs. Knowingthe price of oil fluctuates, the teambuilt into the contract a public crudeoil-price index as opposed to a set fee.The contract also included therecycling of crushed and uncrushed oilfilters, another item frequentlycollected at HHW events. Under thecontract that was executed in February2012, pricing for used oil has rangedfrom $0.9834 per gallon to a high of$1.2932 per gallon, based on apercentage of the market value. Now,the city is being paid between $76,500and $100,600 annually for a commoditythat was previously given away.
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PHOENIX GROWTH
Phoenix was founded in 1870 as anagricultural community and wasincorporated as a city in 1881. The originalCity Charter was adopted in 1913 and hasbeen amended by Phoenix voters from timeto time since then. The charter allowsPhoenix to determine its governmentalstructure and levy revenue and privilegelicense taxes. A council-manager form ofgovernment was also adopted in 1913.Under this organizational structure, theMayor and Council appoint a city managerto act as the chief operating officer. TheCity Council sets policy direction, and thecity manager is responsible forimplementing those policies in an efficientand effective manner. In 1982, a group ofresidents initiated an effort to move to adistrict system for electing councilmembers. These residents were concernedthat at-large elections resulted in anorganization that was less responsive toneighborhoods. The initiative was passedby the voters of Phoenix, and the numberof Council seats was increased from six toeight. The Mayor continued to be electedat-large.
Economic Diversity
Phoenix has grown steadily, especiallysince 1950. The 1900 Census recordedPhoenix population at 5,544. In 1950, thecity occupied 17 square miles with apopulation of almost 107,000, ranking it99th among American cities. The recent2010 Census recorded Phoenix populationat 1,445,632. The city currentlyencompasses 519.4 square miles.
Today, Phoenix is the sixth mostpopulous city in the United States, statecapital of Arizona and center of themetropolitan area encompassed byMaricopa County. This metropolitan areaalso includes the cities of Mesa, Glendale,Tempe, Scottsdale, Chandler, Peoria,Surprise, Goodyear, Avondale, El Mirage,Tolleson and the towns of Gilbert andBuckeye. It is situated 1,117 feet above sealevel in the semi-arid Salt River Valley. Thearea is widely known for its mild, sunnywinters and hot summers and receives anaverage rainfall of seven inches a year.
The Phoenix metropolitan areaemployment mix is well diversified andfairly similar to that of the United Statesas a whole. An exception is constructionand financial employment, which comprisemore of Phoenix’s employment mix thanthe United States average due to historicalrapid population and employment growth.Additionally, the Phoenix area’smanufacturing mix is much moreconcentrated in high technology than theUnited States. The high technologymanufacturing sectors are cyclical innature and may be more impacted duringperiods of economic slowing than othermanufacturing sectors. The primaryemployment sectors and their share oftotal employment in the Phoenixmetropolitan area consist of serviceindustry (45%); trade (17%); government(13%); construction (5%); financialactivities (8%); and manufacturing (7%).Major employers of the Phoenixmetropolitan area include the state ofArizona, Wal-Mart Stores, Inc., Banner
Health Systems, city of Phoenix, WellsFargo and Co., Maricopa County, Bank ofAmerica, Arizona State University,Raytheon Co., and JPMorgan Chase & Co.The top 10 property taxpayers, based onsecondary assessed valuation, are ArizonaPublic Service Company, QWestCommunications (CenturyLink),Southwest Gas, Host Kierland LP, AT&TCorporation, Metropolitan Life InsuranceCompany, Hub Property Trust, VerizonWireless, Phoenix Plaza PT LLC, andStarwood Hotels and Resorts. Thesetaxpayers make up just over six percent oftotal assessed valuation.
Demographics and Economic Statistics
The following statistics are presented toprovide an overview of Phoenix residents,the city’s financial condition andinfrastructure.
Community Profile and Trends
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Actual Estimated Projected1980-81 1990-91 2000-01 2010-11 2011-12 2012-13 2013-14
Demographic Profile
Population1 789,704 995,896 1,350,435 1,445,632 1,464,405 1,472,000 1,479,000Percent of Population by Age
Under 5 7.8 8.5 8.5 8.35-19 25.0 21.6 21.5 23.020-44 39.3 42.9 42.8 37.245-64 18.6 17.3 17.3 23.165+ 9.3 9.7 9.8 8.4
Percent of Population by Race 1
Caucasian 78.1 71.9 55.8 65.9Black/African American 4.7 4.9 4.8 6.5American Indian/Alaska Native 1.1 1.6 1.6 2.2Asian 0.9 1.5 1.9 3.2Native Hawaiian/ Other Pacific Islander2 N/A N/A 0.1 .2
Other 15.2 20.1 35.8 22.0Hispanic/Latino (of Any Race)3 14.8 20.0 34.1 40.8Not Hispanic or Latino (of Any Race)3 85.2 80.0 65.9 59.2
City Economic Profile
Median Household Income4 $29,706 $30,797 $40,856 $42,260 $43,960 $45,200 $46,500Personal Income Growth
(Metro Phoenix)5 14.8% 4.6% 6.7% 3.0% 4.8% 4.5% 5.5%Assessed Valuation (‘000s)6 N/A $5,700,825 $7,573,211 $16,092,308 $12,343,774 $10,849,744 $10,023,416Employment Growth Rate7 N/A (3.0)% 3.7% (2.1)% 1.4% 2.6% 2.8%Unemployment Rate8 N/A 4.9% 2.7% 9.1% 7.9% 7.1% 7.1%Value of Residential Construction9
(Billions) N/A $0.42 $1.16 $0.28 $0.42 $0.48 $0.49Value of Commercial Construction9
(Billions) N/A $0.46 $1.33 $2.60 $2.40 $2.50 $2.80
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Actual Estimated Projected1980-81 1990-91 2000-01 2010-11 2011-12 2012-13 2013-14
City Financial Profile
Total Budget (‘000s) $392,780 $1,026,545 $1,946,013 $3,020,690 $2,966,657 $3,210,455 $3,502,506Total GF Budget (‘000s)10 $221,106 $591,021 $953,324 $954,795 $995,771 $1,052,051 $1,127,815Total Employees 9,435 11,388 14,352.0 15,002.8 14,893.8 14,897.0 14,875.6Total Employees per
1,000 population11 11.9 11.4 10.6 10.4 10.2 10.1 10.1Non-Enterprise Employees per
1,000 population N/A N/A 8.6 8.1 7.9 7.9 7.9Enterprise Employees per
1,000 population12 N/A N/A 2.0 2.3 2.2 2.2 2.2Property Tax Rate 1.75 1.79 1.82 1.82 1.82 1.82 1.82G.O. Bond Rating
(Moody’s/Standard and Poor’s) Aa/AA Aa/AA+ Aa1/AA+ Aa1/AAA Aa1/AAA Aa1/AAA Aa1/AAANumber of PLT Licenses 37,943 43,756 51,000 56,460 53,302 53,300 53,300City Retail Sales Tax Rate13 1% 1.2% 1.8% 2.0% 2.0% 2.0% 2.0%
Infrastructure Profile
Area (Square Miles) 329.1 427.1 483.5 519.1 519.1 519.4 519.4
PoliceMajor Crimes 86,287 110,961 97,666 70,108 72,040 72,000 72,000Dispatched Calls for Service 452,350 895,117 862,769 620,969 600,102 611,000 616,000Authorized Sworn Police Officers 1,694 2,047 2,810 3,281 3,273 3,272 3,272
FireFire Stations 35 45 45 57 58 58 58Fires and All Other Calls 25,162 26,281 28,369 19,335 19,164 20,000 20,000Emergency Medical Calls 46,122 75,112 101,396 136,163 144,899 151,000 151,000Authorized Sworn Firefighters 838 1,042 1,315 1,661 1,661 1,668 1,668
Building InspectionsTotal Number of Inspections14 196,356 176,909 261,184 131,600 141,640 156,403 164,500
StreetsTotal Miles 3,084 3,800 4,299 4,825 4,832 4,845 4,855Miles Resurfaced and Sealed 216 250 220 127 192 171 152Total Miles of Bikeway15 N/A 250 472 615 627 640 650
Traffic Control and LightingSignalized Intersections 555 761 906 1,092 1,096 1,102 1,110Street Lights 39,097 50,825 70,750 89,826 90,145 90,613 90,998Traffic Accidents16 28,129 28,414 36,500 22,742 22,234 22,000 22,000
AviationPassengers Arriving and Departing 6,500,000 22,175,000 35,900,000 40,500,000 40,600,000 40,600,000 41,000,000
Solid Waste CollectionResidences Served 281,900 281,392 327,953 392,825 395,785 397,000 400,000Tons Disposed at City Landfills17 379,000 513,643 1,051,935 1,002,346 893,766 754,000 769,000
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Actual Estimated Projected1980-81 1990-91 2000-01 2010-11 2011-12 2012-13 2013-14
Municipal ParksNumber of Municipal Parks18 137 181 199 225 225 226 226Developed Park Acres19 1,303 2,206 3,332 5,071 5,646 5,679 5,679Number of municipally
operated golf courses 5 5 7 6 6 6 6
LibrariesBook Circulation20 3,691,745 5,962,411 9,151,000 13,839,543 14,464,958 11,066,000 11,295,000Total Book Stock 1,182,606 1,732,410 2,016,000 1,643,977 1,759,428 1,748,000 1,750,000Number of library branches 9 11 13 16 17 17 17
Equipment ManagementNumber of Equipment Units
in Fleet21 4,497 4,776 6,080 7,612 7,397 7,289 7,289
WaterConnections 282,048 321,996 350,967 397,390 407,902 412,300 417,400Production (billions of gallons)22 88.5 84.7 109.4 98.6 98.5 97.7 97.9
WastewaterConnections 250,199 311,980 327,051 389,978 394,495 397,900 402,500Miles of Line 3,040 3,661 4,174 4,980 4,810 4,816 4,822
1Population by age and race is only available in census years. Also, racial categories were modified by the Census Bureau in the 2000 Census. 2Prior to the 2000 Census, Native Hawaiian/Other Pacific Islander data was combined under the same category. In pre-2000 Census counts this racecategory was included in the Asian category. 3Hispanic/Latino of any race is included in the Census’ “Other” race category for fiscal year 1980-81, fiscal year 1990-91, fiscal year 2000-01 and fiscal year2010-11.4Median Household Income is based on United States Census Bureau data for city of Phoenix geographic area. For the estimate and projection years, theCalendar Year 2012 greater Phoenix Consumer Price Index (CPI) (+2.8%) was applied to the 2010 census figure to forecast Median Household Incomegrowth. This reflects a change from the method used in previous budget documents, which calculated median household income using personal incomegrowth rates from the U.S. Bureau of Economic Analysis.5Personal income growth percentage is from University of Arizona’s “Economic Outlook” quarterly publication (University of Arizona Economic and BusinessResearch Center).6The formula for assessing valuation was changed significantly in 1980 making comparisons to prior years not meaningful.7Employment growth rate figures (total non-farm employment) are calendar year and not fiscal year. Calendar 2011 is shown under fiscal year 2011-12, andcalendar 2012 is shown under fiscal year 2012-13, and projected calendar 2013 is shown under fiscal year 2013-14. Estimates are for the Phoenix metro areaand are obtained from the Arizona Workforce Informer-Arizona Department of Economic Security.8Unemployment rate is reported monthly on by the Arizona Department of Commerce Research Administration’s website: workforce.az.gov and converted tofiscal year by the city of Phoenix Budget and Research Department. Seasonally adjusted unemployment data from 2001-12 is currently unavailable for thePhoenix-Glendale-Mesa MSA due to data revisions. Revisions for the MSA, counties and cities are currently in process, however no released due has beenannounced.9Beginning with fiscal year 2006-07, multi-family projects are included in the commercial valuation total. Prior to fiscal year 2006-07, multi-family projectswere included in the residential valuation total. These measures represent the annual estimated value of projects permitted by the city of Phoenix (newconstruction).
10As of fiscal year 1998-99, Arizona Highway User Revenue funds are no longer included in the General Fund total.11A correction was made to the calculation of city employees per 1,000 population for fiscal year 1980-81 and fiscal year 1990-91. Previous budget books didnot adjust for Census data that was published at least a year after the statistic was recorded in budget documents.
12Enterprise departments include Water, Wastewater, Aviation, Phoenix Convention Center and Solid Waste Management. 13Voters approved a 0.1 percent increase in most city sales tax categories effective Dec. 1, 1993, for increased fire and police protection services. Votersapproved a 0.1 percent increase in most city sales tax categories effective Nov. 1, 1999, for 10 years and reapproved it on May 30, 2008, for 30 years toprovide funds for parks enhancements and improvements, and to acquire land for a Sonoran preserve. Voters approved a 0.4 percent increase in most citysales tax categories effective June 1, 2000, for 20 years to provide funding for public transit improvements and light rail. Voters approved a 0.2 percentincrease in most city sales tax categories to provide funds for additional police officers and firefighters effective Dec. 1, 2007.
14Includes building, electrical, mechanical, plumbing and general inspections. The lower numbers for recent years, as compared to 1970-71, are the result ofthe implementation of the general inspection program that combined several residential inspections, performed by one inspector, into a single permit.
15The bikeway program was approved by the City Council in 1987. Figures include on-street bike lanes, bike routes and paved and unpaved paths.16Due to the implementation of a new Arizona Department of Transportation (ADOT) collision system in 2009 and associated delays in data entry andprocessing, full collision data for Phoenix for the years 2009-11 is not yet available. The figures presented are projections based on historical trending. Trafficaccident data comes from the city of Phoenix Police Department’s TADS database and estimates are based on an average over the previous three years.
17Residential tonnage has reduced from 2011-12 actuals due to department’s efforts to increase recycling.18This number includes all parks and areas maintained by the Parks and Recreation Department. For example, retention basins, canal projects, developedand undeveloped parks.
19Increase in developed parks acres in fiscal year 2011-12 is due to improved methods of measurement.20The projected decrease is due to a change in lending policy that increases the loan period from one to three weeks, thereby decreasing the number of itemscirculated.
21Reduction in vehicles is due to programmed reductions and turn in of underutilized vehicles.22Includes water produced for city of Phoenix only.
This section provides a broad overview ofthe resources and expenditures includedin the 2013-14 budget. Information ispresented for General, Special Revenueand Enterprise funds. General funds,which receive special attention by thecommunity, are highlighted throughoutthis section. General funds are ofparticular importance to our residents asthey provide for most basic services, suchas police, fire, parks and streets.Enterprise funds are supported by feescharged for the services provided with theexception of the Convention Center whichhas earmarked sales taxes as its primaryfunding source. Special Revenue funds arerestricted to statutory and/or voter-approved uses.
The 2013-14 budget, financed byoperating funds, totals $3,502,506,000. Asshown in the accompanying pie chart, theGeneral Fund portion of $1,127,815,000 isapproximately 32 percent of the total. TheEnterprise funds, which include Aviation,Water, Wastewater, Solid Waste andConvention Center, make up another 38percent of the total. Special Revenue fundssuch as Arizona Highway User Revenues,grant funds such as CommunityDevelopment Block Grants, HumanServices grants and Housing grantsrepresent the remaining 30 percent of thetotal budget. In April 2013, the Mayor andCouncil approved no longer classifying Golf
as an Enterprise Fund starting in FY 2013-14. The Golf Fund is reflected as a SpecialRevenue Fund.
In addition to presenting the budget byfunding source, the budget also is describedin terms of the major types of activities orexpenditures funded. Included in theoperating budget are operating andmaintenance expenses that provide forongoing costs of delivering city services;capital expenditures for pay-as-you-goprojects for major additions, improvementsor renovations to city facilities; and debtservice payments to retire outstanding debt.The following pie chart shows thedistribution of the total operating budgetinto these three types of expenditures.Bonds and other capital funds used forcapital improvement projects are includedin a separate capital improvement program.
The 2013-14 General Fund budgetincludes ongoing operating andmaintenance and pay-as-you-go capitalexpenses. No debt service is paid from theGeneral Fund. Instead, debt serviceassociated with General-funded activities ispaid for with earmarked property taxes orwith the City Improvement Fund. Due tothe restrictions on using these funds bothare appropriately included in the SpecialRevenue funds portion of the budget.
Finally, budgeted expenditures are mosteasily understood on a departmental basis.Detailed explanations of each department’s
budget are provided in the DepartmentProgram Summary section of thisdocument. The following bar chart presentsthe General Fund budget on a department-by-department basis.
The table below provides a comparisonof the 2013-14 budget to the 2012-13adopted budget. Actual expenditures for the2011-12 fiscal year also are included.
Citywide operating and maintenanceexpenditures are expected to decreaseoverall; however, General Fundexpenditures are expected to increase as aresult of increases in pension costs, anincrease in the General Fund contingency,and some restored services to thecommunity. These increases will be offsetby reduced Transit 2000 expenditures dueto an increase in Federal PreventativeMaintenance funding and LocalTransportation Assistance (LTAF) from thestate which will offset costs. Also, variousone time ARRA grants have expired.
Pay-as-you-go capital is expected toincrease slightly due to construction of newprojects such as the Southwest Zone 1Transmission Mains and the LargeTransmission Main Rehabilitation in Water,replacement of booster pump station at64th Street and Thomas Road and at the24th Street Water Reservoir. Also, newstreet improvement projects will beconstructed using AHUR funding such asthe Greenway Parkway at Cave Creek and
2013-14 Resource and Expenditure Summary
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2013-14 Budget Compared to 2012-13 Adopted Budget(In Millions of Dollars)
2013-14
2011-12 2012-13Actual Adopted Amount Percent
Expenditures Budget Budget Change Change
Operating and Maintenance Expenditures $2,206.6 $2,507.6 $2,506.9 $ (0.7) (0)%
Capital Expenditures 280.2 526.3 530.7 (4.4) (0.8)%
Debt Service 479.9 538.7 464.9 73.8 (13.7)%
Total $2,966.7 $3,572.6 $3,502.5 $(70.1) (2.0)%
Pinnacle Peak Road and 43rd to 35thavenues. Federal Transit funds will be usedto purchase 30 and 40 foot standardreplacement buses.
These increases are offset by decreasesin Aviation contingencies; the Terminal 4Solar Energy System Study and theBroadway Road Parallel Sewer projectsnearing completion; a change in fundingsource from operating funds to capitalfunds for the Alkali-Silica ReactionPavement Rehabilitation for Terminal 4 andthe Regional Wireless Cooperative projects;and completion of the renovations of theBallet Arizona building and the PhoenixTheatre expansion. Grant funded capitalprojects are also expected to decrease. Inaddition, the Parks and Preserves Initiativefunding is expected to decline due to lowerthan expected revenues and because PPPIfunding is helping to offset the Golfnegative fund balance.
2013-14 GENERAL FUND BUDGETOVERVIEW
The 2013-14 General Fund budget of$1,127,815,000 provides for ongoingoperating and maintenance and a smallamount of pay-as-you-go capitalexpenditures. The table below comparesthe 2013-14 General Fund budget with theadopted 2012-13 budget.
The operating and maintenanceexpenditures for 2013-14 are expected toincrease 1.5 percent compared to the 2012-13 adopted budget. This increase isprimarily the result of expected increasesin pension costs, an increase in generalfund contingencies, and some restoredservices to the community. The pay-as-you-go capital expenditures are expected
to decrease due to pay-as-you-go fundedprojects nearing completion in 2012-13such as the replacement of the HVACmetal shed that houses the MetroFacilities HVAC Fabrication Shop andvarious upgrades to the Heritage andRegency garages.
The following pie charts show the 2013-14 General Fund budget summarized bymajor programs and major resources.
RESOURCES
Resources include beginning fundbalances, fund transfers, revenues andrecoveries. In the Enterprise funds, fundbalances provide a financial cushionagainst unanticipated changes. Thecontingency allocation serves this samepurpose for the General Fund. While minorchanges in fund balances occur from yearto year, maintaining proper fund balancesover the long term and providing for acontingency fund in the General Fund areimportant components of sound financialmanagement and a significant factor inbond ratings.
2013-14 Estimated Beginning FundBalances
As explained in a later section, a GeneralFund balance may not be budgeted.However, a contingency fund, also knownas a “rainy day fund,” may be planned toprovide a means to address unexpectedrevenue decreases or expenditureincreases that may occur throughout theyear. Each year, all or almost all of thecontingency allocation remains unusedand, therefore, falls to the ending fundbalance along with any changes inestimated revenues and expenditures.
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2013-14 General Fund Budget Compared to 2012-13 Adopted Budget(In Millions of Dollars)
2013-14
2011-12 2012-13Actual Adopted Amount Percent
Expenditures Budget Budget Change Change
Operating and Maintenance Expenditures $993.5 $1,109.3 $1,125.4 $16.1 1.5%
Capital Expenditures 2.3 5.7 2.4 (3.3) (57.9)%
Total $995.8 $1,115.0 $1,127.8 $12.8 1.1%
The estimated 2013-14 beginning fundbalances of $1,042.7 million include $56.8million in General funds, $370.9 million inSpecial Revenue funds and $615.0 millionin Enterprise funds. The estimatedbeginning fund balance for SpecialRevenue and Enterprise funds include:Transit 2000 - $248.3 million; Aviation -$292.0 million; Wastewater - $86.4 million;Water - $167.0 million; Convention Center -$32.0 million; Solid Waste - $37.5 million;Parks and Preserves - $21.7 million; SportsFacilities -$30.7 million; Grant funds -$14.6 million; Arizona Highway UserRevenue - $24.7 million and $31.0 millionin various other restricted funds.
2012-13 General Fund EstimatedEnding Balance
As shown in the following table, theestimated 2012-13 ending General Fundbalance is $56.8 million. The balanceresults from a $8.3 million higherbeginning balance, a $60.8 milliondecrease in operating expenditures, a $2.2million decrease in pay-as-you-go capitalexpenditures, a $3.4 million increase intransfers, and a $17.9 million decrease inoperating revenues. The variance inestimated 2012-13 General Fundexpenditures from the 2012-13 budget islargely due to unused contingency funds.Reallocating vehicle replacement costsfrom an operating fund to a capital leasepurchase fund also reduced expendituresin 2012-13. The reduction in pay-as-you-gocapital expenditures is primarily due tothe use of Sports Facilities funds to pay fordowntown parking garage maintenancecosts. The decrease in estimated 2012-13General Fund revenues is largely due to areduction in estimated city sales taxes.
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Millions of Dollars
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Expenditures by Department2013-14 General Fund Budget
$500
450
400
350
300
250
200
150
100
50
0
Property Tax 13%
Other Resources 7%
State-SharedRevenues 30%
Local Sales Tax39%
User Fees/Other
Revenue 11%
GENERAL FUNDSTotal Resources – $1.13 Billion
Public Safety andCriminal Justice2 68%
Community Development
and Enrichment1 15%
Transportation4%
GeneralGovernment
8%
EnvironmentalServices
and Other 5%
GENERAL FUNDSTotal Expenditures – $1.13 Billion
General Funds 32%
Enterprise Funds 38%
Special Revenue Funds 30%
ALL SOURCES OF FUNDSTotal Resources – $3.50 Billion
ALL SOURCES OF FUNDSTotal Expenditures – $3.50 Billion
Operation & Maintenance
72% Debt Service 13%
Capital 15%
*Functions include several small offices such as the Office of Arts and Culture and Environmental Programs.
1Includes Parks, Library, Human Services, Neighborhood Services, Planning and Economic Development2When contingency is excluded, the percentage of Public Safety and Criminal Justice exceeds 70% ofbudgeted General Fund expenditures.
2013-14 Estimated Revenues
Revenues from taxes, fees, interest, grantsand other sources provide resources tofund programs and services delivered bythe city. Total revenues for 2013-14 areestimated at $3,104,578,000. This is$2,136,000, or 0.1 percent less than the2012-13 estimate of $3,106,714,000.General Fund revenues are estimated at$1,051,790,000 which is $63,265,000 or 6.4percent more than the 2012-13 estimates.The increase is due to anticipatedincreases in city and state sales taxes, theinclusion of some tort liability judgment inprimary property taxes and state sharedincome tax revenues as the economycontinues to recover.
The following table provides acomparison of the 2013-14 estimatedrevenues to 2012-13 estimates and 2011-12actual collections. Detailed explanationsby category are provided in the 2013-14Revenue Estimates section of thisdocument.
State and local economic growthincreased in 2011-12 as the economy slowlycontinued to recover from the recession.The main factors which hindered a robustrecovery include slow job creation and lowlevels of net migration. The state and localeconomy continues to recover, however thesame factors continue to prevent stronggrowth rates in 2012-13. Local and statesales tax collections are expected to growmodestly in 2013-14, and state sharedincome tax collections are expected toincrease by 8.9 percent from 2012-13.
The 2013-14 estimate for SpecialRevenue funds includes a $7.6 millionincrease in Transit 2000 funds, a $5.4million increase in Court Awards revenueand a $3.8 million increase in 2007 PublicSafety Expansion funds. Special Revenuefunds also include a $27.6 million decreasefor secondary property taxes and a $20.4million decrease for other grant revenues.The decrease in other grant revenues isdue to reductions in Workforce InvestmentAct funds and ARRA grants for theNeighborhood Stabilization Program.
2013-14 Transfers to the General Fund
Transfers are used to allocate resourcesbetween funds for purposes of matchingcosts with benefits received through acentral service cost allocation or to assessin lieu property taxes.
Central service cost allocation andother transfers to the General Fund for2013-14 total $62.1 million. This amountreflects $56.2 million from Enterprise andother funds to recoup central service costsand/or payments for in lieu property taxesfrom the Aviation, Water and Wastewater,Solid Waste, Convention Center andDevelopment Services funds. Centralservice provides a repayment to theGeneral Fund for services provided bydepartments such as Human Resources,Information Technology, Finance, Law andother administrative support areas that areGeneral funded. This transfer is calculatedby the Finance Department in accordancewith generally accepted full-costaccounting principles and is in accordancewith long-established City Council-approved policy.
The Special Revenue transfers include$201,000 from the Golf Course Fund torecoup Parks, Recreation and Golfdepartment direct administrative supportcosts. The Golf Fund does not pay citywidecentral service costs or in lieu propertytaxes.
Approximately $5.9 million inmiscellaneous transfers from other fundsalso is included. As a result, total transfersto the General Fund exclusive of excisetax-related items are $62.1 million. Atransfer of $735.8 million from the ExciseTax Fund represents the General Fundshare of local and state-shared sales taxesand fees and state-shared income taxes.However, this amount is reflected inrevenues, rather than a transfer,throughout this section.
2013-14 ESTIMATED ENDINGBALANCES
Arizona budget law requires a balancedGeneral Fund budget. No General Fundbalances may be accumulated in reservefor subsequent fiscal years. Arizona lawdoes, however, provide for a contingency or“rainy day fund” each year. For 2013-14,$43.7 million is included for the GeneralFund contingency and is discussed in moredetail in the Contingency section of thisdocument. As a result, budgeted GeneralFund resources equal expenditures.However, any unused contingency amountsat year-end fall to a General Fund endingbalance. Generally, at least 95 percent ofthe General Fund contingency remainsunused each year and in the last four
years, the contingency fund has remained100 percent unused.
Year-end balances are planned in theEnterprise funds and other self-supportingfunds primarily to provide for adequatefunds at the beginning of the followingfiscal year. Such funds are used to stabilizerate increases associated with fluctuationsin service demand, insure bondholders offuture debt service payments and toaccumulate funds for annual pay-as-you-gocapital improvements. In addition,Enterprise Fund balances are intentionallypermitted to grow over time in order tofund large capital projects.
The estimated 2013-14 ending balanceof $635.4 million includes: Transit 2000 -$209.8 million; Aviation - $237.6 million;Wastewater - $55.8 million; Water - $64.5million; Convention Center - $19.6 million;Parks and Preserves - $15.6 million; SolidWaste - $7.1 million; Arizona Highway UserRevenue - $7.0 million and a combined$18.4 million in various other SpecialRevenue funds. Beginning and ending fundbalances are provided in more detail inSchedule 1 located in the SummarySchedules section.
In 2013-14, the Enterprise funds endingbalances in the aggregate are programmedto decline from $615.0 million at thebeginning of 2013-14 to $384.6 million atyear end. The Aviation balance is decliningdue to reduced resources available tooffset increased operating expenditures fora full year of costs to operate the SkyTrain. The decrease in resources is due toreclassifying several Rental Car Facilityfunds from operating to capital, which willallow for proper accounting of revenues toservice debt associated with the facility.Solid Waste funds are decreasing due toreduced resources available to offsetincreased operating expenditures forvehicle replacement costs, solid wastecontainers and employee-related costs.Water funds are decreasing primarily dueto increased pay-as-you-go capitalexpenditures for rehabilitation of largewater main transmission lines, increasedcosts for debt service on bond fundedprojects and increased employee-relatedcosts. Wastewater funds are decreasingdue to reduced resources available tooffset increases in expenditures foremployee-related costs.
Special Revenue Fund balances in theaggregate are expected to decrease from
46
$370.9 million to $250.8 million. TheTransit 2000 balance is decreasing due tooperating expenditure increases caused byincreases in the price of fuel and acontractual increase in the cost per mile ofbus and rail services. As expected, thePublic Safety Expansion and EnhancementFunds are decreasing due to increases inoperating expenditures for employee-related costs. The CommunityReinvestment fund balance is decreasingdue to a transfer to the General Fund andthe Arizona Highway User Revenue Fund isdecreasing due to an increase in pay-as-you-go expenditures for construction of abridge and bike paths at the GreenwayParkway and reimbursement to Transit forstreet construction costs relating to theLight Rail project.
Negative Fund Balances
The Mayor and Council adopted a plan inMarch 2013 to balance the negativebalance in the Golf Fund, which willinclude paying off the cumulative deficitover three years and making operationalimprovements to reduce or eliminate theannual operating deficit. A transfer of $5.7million from the Phoenix Parks andPreserve Initiative Fund was made in 2012-13 as the first payment toward bringing thedeficit into balance.
The three dedicated public safetyfunds, Neighborhood Protection, PublicSafety Enhancement, and 2007 PublicSafety Expansion, have been severelyimpacted by declines in sales tax revenuesand increased costs of Public Safety
2013-14 Estimated Revenues Compared to 2012-13 Estimates(In Thousands of Dollars)
2013-14
2011-12 2012-13 Amount Percent Fund Types Actuals Estimate Estimate Change Change
General $ 948,246 $ 988,525 $1,051,790 $63,265 6.4%
Special Revenue Funds 879,372 930,961 918,081 (12,880) (1.4)%
Enterprise Funds 1,161,752 1,187,228 1,134,707 (52,521) (4.4)%
Total $2,989,370 $3,106,714 $3,104,578 $(2,136) (0.1)%
General Fund Balance Analysis(In Thousands of Dollars)
2011-12 2012-13 Estimate Over (Under) Budget
Actuals Budget Estimate Amount Percent
Resources
Beginning Balances $ 92,908 $ 84,485 $ 92,810 $ 8,325 9.9%
Revenue 948,246 1,006,418 988,525 (17,893) (1.8)%
Recoveries 776 1,000 1,000 --- 0%
Transfers 46,651 23,117 26,479 3,362 14.5%
Total Resources $1,088,581 $1,115,020 $1,108,814 $ (6,206) (0.6)%
Expenditures
Operating Expenditures 993,471 1,109,322 1,048,511 (60,811) (5.5)%
Capital 2,300 5,698 3,540 (2,158) (37.9)%
Total Expenditures $ 995,771 $1,115,020 $1,052,051 $ (62,969) (5.6)%
Ending Fund Balance $ 92,810 $ — $ 56,763 $ 56,763 100.0+%
personnel. In November 2010, the Mayorand City Council adopted a Public SafetySpecialty Funds Balancing plan to balancethese funds as soon as possible using anattrition approach. This plan was modifiedin February 2013 to account for changes inattrition and revised revenue forecasts.Currently, it is expected that these fundswill be brought into balance by 2015-16.
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48
City of Phoenix Financial Organizational Chart
49
City of Phoenix Financial Organizational Chart
50
Phoenix is the core of Maricopa Countyand the state’s population and economiccenter. With its attractive climate,recreational opportunities, and affordablecosts of living and doing business, the cityhas experienced sustained growth. ThePhoenix area is slowly recovering from thenational economic recession and growthhas slowed in terms of population,employment and personal income. Thecity’s area, just under 520 square miles,increases periodically with annexations.
Population in Phoenix has consistentlyoutpaced the U.S. growth over the last 18years, and according to the 2010 census, ismore than 1.4 million making Phoenix thenation’s sixth-largest city. The city’semployment base is the foundation of adeep and diverse metropolitan areaeconomy. The primary employment sectorsin the Phoenix area consist of professionaland business services, trade, government,education and health services, financialactivities, leisure and hospitality, andconstruction. While the unemploymentrate in greater Phoenix suffered during theeconomic downturn, jobs recovery ispredicted to continue to improve over thenext several years.
The balanced budget for 2013-14includes some critical community serviceenhancements and ongoing innovation andefficiency improvements. The GeneralFund budget includes $6.7 million incritical service needs and some restoredGeneral Fund services delivered to thecommunity including Phoenix’s strongcommitment to Public Safety.
The General Fund budget includes theaddition of 18 officers to patrol andinvestigative units by hiring 15 civilians atCentral Booking which allows the shiftingof 15 officers as well as the funding ofthree new officers; new firefighters forimproved ambulance response; additionalfunding to assist businesses throughadaptive reuse of existing buildings;increased access to library e-books, therestoration of additional Phoenix After-School sites and funding for arts programsand homeless shelters; investments intechnology to create additional efficienciesand improve reporting and transparency.These service enhancements to theGeneral Fund in the 2013-14 budget arepossible because of innovation andefficiency savings totaling nearly $16million.
Non-General Fund changes in thebudget include the restructuring of StreetTransportation’s Arizona User HighwayRevenue (AHUR) funded CapitalImprovement Program (CIP) to providethe ability to fund additional streetimprovements, safety enhancements andbicycle infrastructure along streets;Aviation will add six officers and twosergeants to meet minimum police staffingrequirements at the airport at zero netcost; the replacement of Planning andDevelopment Services Permit TrackingSystem, or KIVA, will enable streamliningand customer improvements to the city’sdevelopment process.
The City Council approved Golf Fundbalancing plan includes theimplementation of efficiency actions, suchas rightsourcing, to reduce the annualoperating deficit and remove the GolfFund’s designation as an enterprise fund,which allows the General Fund to offsetannual operating deficits.
The chart that follows indicates howmajor services provided to Phoenixresidents have been adjusted in responseto local economic and financial conditions.Because benchmarking is an importantmeasure of the efficiency and effectivenessof services provided, we have also includedmulti-city comparisons of performance inseveral areas. Much of the data for thesecomparisons is taken from the 2011International City/County ManagementAssociation's Center for PerformanceMeasurement report.
Services to the Community
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PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
PUBLIC SAFETY
POLICE
Personnel Resources:In 2002-03, the PoliceDepartment had 2,836 swornofficers and 925 civilianemployees.
The 2012-13 budget included $1.1 millionin General Fund Police additions. Themajority of the additional resources wentto the Centralized Booking Unit tocivilianize the function and allow swornpersonnel to return to patrol relatedduties. The other additions added civilianpositions that allowed sworn personnel toreturn to critical crime fighting andinvestigative duties. The total additionswere 23.7 civilian positions.
The budget additions listed above wereoffset with budget reductions totaling($737,000) and included the eliminationof (14.0) vacant civilian positions fromvarious bureaus throughout thedepartment.
At the end of 2012-13, 264 of the 400sworn positions funded by Proposition 1will be filled.
The 2013-14 budget includes $590,000 in General Fundadditions. The additional resources are allocated to theCentralized Booking Unit to finalize the civilization of thefunction and allow sworn personnel to return to morecritical patrol related duties. The total additions include15.0 civilian positions.
In addition, eleven existing Police Reserves will be hired onas police officers for patrol and community policing work atzero net cost to the General Fund. The General Fundsavings is achieved by moving eight senior-level PoliceOfficers to the Airport Bureau which allows acorresponding reduction to Aviation Police overtime, andhiring the new Police Officers at entry-level pay for a netincrease of three officers in patrol.
The budget additions listed above are offset with budgetreductions totaling ($2,911,000) and includes the rightsourcing of the polygraph function and includes theelimination of four civilian support positions.
In the 2013-14 budget, it is anticipated that the departmentwill have 3,273 authorized sworn positions or 2.2 for every1,000 residents, and 1,195.4 civilian employees.
Response Time Average:Response time for 2002-03Priority 1 emergency callswas an average of fiveminutes.
With slower population growth and acontinued decrease in overall crime rates,budgeted response times for Priority 1emergency calls have been consistentlymaintained. During this same time period,the department has maintained thepercentage of 911 calls answered within 10seconds at 93 percent.
Reliable response time data is currentlyunavailable due the conversion of theComputer-Aided Dispatch (CAD) system.These issues are being addressed and acomplete replacement of the PoliceRecords Management System (RMS) isalso underway.
City of Phoenix actual response times wereunavailable for the 2011 ICMA data.Below are average response times forother benchmark cities.
Other Cities Average ResponseTimes to Top Priority Calls:
Dallas – 6 min 11 secAustin – 6 min 28 secOklahoma City – 7 min 51 secSan Antonio – 8 min 13 secPortland – Unavailable
The 2013-14 budget provides for an estimated five minuteand 48 second average response time for Priority 1 calls.
Response Time Average:In 2002-03, the Fire Departmentmaintained an average responsetime of 4 minutes 50 seconds forall fire and medical emergencycalls.
Since 2001-02, response times have decreased four percent to4 minutes 37 seconds for all fire and medical emergency calls.This 13 second decrease is at least partly attributed to staffingand deployment changes for paramedic engine companies andambulances. The overall incident activity level increased 10percent from 2001-02 to 2011-12.
The 2010-11 budget included a $9.0 million reduction. Thebudget cuts resulted in the elimination of 21.3 General-Funded civilian positions, including the fire marshal whoseduties were reassigned. The budget reductions also includedthe elimination of two deputy chiefs, six battalion chiefs,seven fire captains and 13 firefighters for a total of 28 swornpositions.
The department reorganized operations in response to staffreductions and significant cuts were made in overtime. Inaddition, program reductions were made in contractualservices, commodities and capital outlay.
The department eliminated three positions and re-classed twopositions down in pay class as part of the City Manager’sReorganization.
In addition, four positions from the New Construction sectionwere eliminated and one position from this section as well asthe Site Planning section (three positions) was moved to thePlanning and Development Department.
The fiscal year 2011-12 budget included a $678,000 reductionand reflects the elimination of 4.7 General Funded civilianpositions as well as the reduction of sworn and civilianovertime. In addition, program reductions were in contractualservices, commodities and capital outlay.
The 2012-13 budget included additions for staff coverage inthe Alarm Room (four civilian positions) and Operating costsfor the new Dispatch and Emergency Operations Center.Reductions reflected in the 2012-13 budget included theelimination of 8.3 General Funded civilian positions as well asa reduction of the Banner contract for the Health Center.
In addition, seven positions from the New Constructionsection were moved to the Planning and Development ServicesDepartment.
2011 ICMA response times were unavailable for comparisonpurposes.
The 2013-14 budget recommendsretaining current emergencyresponse staffing levels to preserveless than five minute averageresponse time for all fire andmedical emergency calls.
The 2013-14 budget includessavings in contractual andcommodity expenditures andmoving the Ambulance Billingoffice from leased space to city-owned space.
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PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
PUBLIC SAFETY
FIRE
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Emergency Transportation:In 2002-03, the city of Phoenix hada total of 20 full-time and 11 part-time ambulances in service.
The city initiated the Emergency TransportationSystem in 1985-86 with 10 full-time and six part-time ambulances. In 1987-88, the EmergencyTransportation System was increased to 12 full-time and six part-time ambulances. Theaddition of four ambulances funded withrevenue from Proposition 301 and theconversion of the department’s last medic unitsto ambulances resulted in 19 full-time and ninepart-time ambulances in service during 1997-98.
The 2000-01 budget included funding to add afull-time ambulance at Station 38 in AhwatukeeFoothills. Two part-time ambulances wereadded in mid-fiscal year 2002-03 to improveresponse times in fast growing, outlying areas ofthe city.
The 2004-05 budget included funding for twoadditional full-time ambulances. Theseadditions increased the EmergencyTransportation System to 22 full-time and 11part-time ambulances.
The 2006-07 budget included funding oneadditional ambulance.
The 2008-09 budget added two part-timeambulances funded by Proposition 1.
The 2009-10 budget included the elimination oftwo part-time ambulances.
The 2010-11 budget included the elimination oftwo full-time ambulances and the reduction ofpart-time ambulance operational times. In-service hours for part-time ambulances werereduced from 12 hours to 10.8 hours per day.These changes decrease the EmergencyTransportation System to 21 full-time and 11part-time ambulances.
The 2012-13 budget included adding staff for anadditional One and One Rescue (seven swornpositions) to meet state-mandated responsetimes
The 2013-14 budget includes adding staff for anadditional One and One Rescue (seven swornpositions) to meet state -mandated responsetimes.
PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
PUBLIC SAFETY
FIRE
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Service Miles/Hours:In 2002-03, 16,550,000 annualbus service miles were providedon weekdays and weekends inthe city of Phoenix.
Annual 2012-13 bus miles are estimated at 15,832,775 and Dial-a-Rideservice hours are estimated at 264,540.
The following service changes were effective on July 23, 2012: extendRoute 50 on Camelback Road, from 67th to 107th avenues, with a 30minute frequency.
Annual 2013-14 bus miles areestimated at 16,103,173 andDial-a-Ride service hours areestimated at 264,540.
PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
TRANSPORTATION
PUBLIC TRANSIT
Average Weekday BusRidership:In 2002-03 the average weekdaybus ridership was 125,171.
In the 2012-13 budget, average weekday ridership is estimated at136,857.
In the 2013-14 budget,average weekday ridership isestimated at 138,910.
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Major and Collector StreetSweeping and Maintenance:In 2002-03, sweeping majorand collector streets wasscheduled for every 14 days.
In 2003 04, budget constraints reduced funding for making quick concreterepairs to infrastructure throughout the city. Funding for paving dirt alleysalso was reduced as was funding for retrofitting sidewalk ramps. Anasphalt crew responsible for repairing asphalt pavement on major,collector and local streets was eliminated.
Continued budget constraints in 2004-05 reduced funding for retrofittingsidewalk ramps and neighborhood concrete repairs.
Dust proofing of dirt alleys continued to see reduced funding in both 2004-05 and 2005-06.
The 2007-08 budget added funding to improve the general maintenance ofstreets.
The 2009-2010 budget reduced funding for coordination of maintenanceprojects, eliminated all heater panel crews responsible for repairing failedstreet cuts and shifted this work to asphalt crews. It reduced by 25percent the downtown hand crews that pick up trash, sweep sidewalks,and hand sweep portions of the street that cannot be reached by motorbroom equipment within the boundaries of Third Avenue to Seventh Streetand Van Buren to Jefferson streets. In addition, the budget eliminated oneof three equipment operator positions responsible for operating equipmentused on large paving repairs, resulting in a 33 percent reduction in repairs.
The 2010-11 budget eliminated one of six equipment operators who wereresponsible for supporting the Street Cleaning Section. This reduced thesection’s ability to provide special street sweeping requests and eventsupport. Reductions did not impact routine street sweeping whichcontinued to be scheduled every 14 days. The budget also reduced thenumber of employees responsible for repairs of small maintenanceequipment, eliminated two of four miscellaneous crews responsible forinstallation and maintenance of 1,000 permanent barricades throughoutthe city, eliminated a position responsible for placing sand on spills in thestreet, and reduced the downtown hand crew by an additional 50 percent.
Reductions to 2011-12 Arizona Highway User Revenue Fund, used in partfor street maintenance, were brought about by the impact of the 2010Census and cuts of nearly $12 million made by the State of Arizona.
Reductions to the 2012-13 Arizona Highway user Revenue was broughtabout by the additional cuts of nearly $12 million made by the State ofArizona.
The 2013-14 budgetincludes no changes inservice for major andcollector sweeping andmaintenance.
Residential Street Sweeping:In 2002-03, the city of Phoenixprovided an estimated 100miles of sealcoat.
No changes were included in the 2012-13 budget. No changes are included inthe 2013-14 budget forresidential street sweeping.
PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
TRANSPORTATION
STREET TRANSPORTATION
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PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
TRANSPORTATION
STREET TRANSPORTATION
Sealcoat:In 2002-03, the city ofPhoenix provided anestimated 100 miles ofsealcoat.
In 2004-05, due to budget constraints and increased cost of materials, thenumber of sealcoat miles was reduced to 81 miles annually.
Increased material costs and continued budget reductions in fiscal year 2005-06further reduced the number of annual miles to be sealcoated to 49.
In 2006-07, 35 miles of city streets were sealcoated. This decrease was due tocontinued increases in material costs.
In 2009-10, funding was diverted to pilot the Fractured Aggregate SurfaceTreatment (FAST) program. The FAST application was used to sealcoat 12miles of city streets.
The 2010-11 budget included funding for 41 miles of city streets to besealcoated. The Fractured Aggregate Surface Treatment (FAST) pilot programwas put on hold until 2011-12.
The 2011-12 budget included funding for 39 miles of city streets to besealcoated.
The 2012-13 budget included 45 miles of streets to be sealcoated. It alsoincluded 20 miles of the FAST program.
Based on 2011 ICMA data, city of Phoenix paved road rehabilitationexpenditures per capita compare favorably to those of other benchmark citiesas noted below:
Paved Road Rehabilitation Expenditures per Capita:Oklahoma City – $20.46Portland – $20.89PHOENIX – $21.70San Antonio – $38.78Dallas – unavailable
The 2013-14 budgetincludes 37 miles ofstreets to besealcoated. It alsoincludes 15 miles ofthe FAST program.
Asphalt Overlay:In 2002-03, 128 miles ofoverlay were performed.
In 2004-05, 105 miles were overlaid. This decrease in miles was due toincreased cost of materials and bad weather.
In 2005-06, 89 miles were overlaid and in 2006-07, 76 miles overlaid. Thesedecreases were primarily due to continued increases in cost of materials.
In 2007-08, due to continued increases in cost, 62 miles of asphalt overlay werecompleted.
For 2008-09, due to continued cost increases and budget reductions impactingthe installation of ADA sidewalk ramps, which also impact street overlayprojects, 60 miles of asphalt overlay were completed.
In 2009-10, 97 miles of city streets were overlaid with rubberized asphalt. Thisincrease was due to a diversion of $1 million in Capital Improvement Project(CIP) funds from other CIP projects to the overlay and sidewalk rampcontracts.
The 2010-11 budget provided for 85 miles of overlay, including 65 miles thatwere funded by the American Recovery and Reinvestment Act (ARRA).
The 2011-12 budget provided 153 miles of overlay. The increase in the numberof miles of overlay is due to a carry over of Arizona Highway User RevenueFunds from the prior year.
The 2012-13 budget provided for 106 miles of overlay. The projected amount isthe result of a decrease in the elimination of the American Recovery andReinvestment Act (ARRA) funding and the addition of $5 million in AHUR.
The 2013-14 budgetprovides for 100 milesof overlay.
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PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
COMMUNITY DEVELOPMENT
HOUSING
Scattered Sites HousingProgram:In 2002-03, the HousingDepartment had 440 units.
This homeownership program allows eligible tenants the opportunity topurchase their home. Between 1998-99 and 2007-08, the program’s totalinventory expanded to 480 units.
At the end of 2012-13, the inventory of 418 units reflects the sale of 58homes to eligible tenants over the past decade and the transfer of fourunits to a local nonprofit agency.
In the 2013-14 budget,the program is expectedto reduce its inventory by10 Scattered Siteshomes.
Affordable Housing Program:In 2002-03, this program had1,034 units for families andindividuals.
By the end of 2011-12, the Affordable Housing Program was expanded toa total of 3,115 city-owned units for families and individuals with theaddition of the 483 units from the newly renovated units at Park Lee andthe Symphony.
The 2012-2013 units remained at 3,115.
In the 2013-14 budget,the program is expectedto maintain its currentinventory of 3,115affordable housing unitsfor families andindividuals.
Conventional HousingProgram:This program has been in effectsince 1951-52. In 2002-03, therewere 2,176 Conventional PublicHousing units.
In 2003-04, the program’s beginning inventory before the MatthewHenson HOPE VI project was initiated was 2,176 units. Due to thereconstruction activities funded by the HOPE VI grant, 280 units becameunavailable at the Matthew Henson housing site. One (1) additional unitwas transferred to the St. Vincent de Paul organization. Theconventional housing inventory at the end of 2004-05 was 1,895 units.
At the conclusion of the Matthew Henson HOPE VI project in 2008-09,the department had 2,113 public housing units. During this period, 14original units at Matthew Henson were removed from the inventory andare being maintained for historical preservation
Also in 2008-09, the Krohn West HOPE VI project was awarded and theMcCarty on Monroe project was initiated. The removal of 76 units fromthe Krohn West HOPE VI project and 24 units from McCarty on Monroeresulted in a reduction of 100 units, bringing the total conventionalhousing inventory to 2,013 at year end of 2008-09.
The McCarty on Monroe project was completed in 2009-10, adding back34 units. The 2009-10 year-end inventory of conventional housing unitswas 2,047.
In 2010-11, the department demolished 134 units and preserved four (4)units located within in the East AMP to make way for the new FrankLuke Addition HOPE VI Development. This brought the year-endinventory of conventional housing units to 1,913.
In 2011-12, 93 units at Marcos de Niza were converted to project-basedSection 8 vouchers. Also in 2011-12, a total of 92 units were added atThe Summit (50) and The Symphony (42). The year-end inventory ofconventional housing units was 1,912 units.
During 2012-13, 60 units were added back as part of the HOPE VIredevelopment at Aeroterra (formerly Frank Luke Addition) bringingthe year-end total to 1,972.
In the 2013-14 budget,the program is expectedto maintain its inventoryat 1,972 conventionalhousing units.
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PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
COMMUNITY DEVELOPMENT
NEIGHBORHOOD SERVICES
Neighborhood PreservationCase Cycle Time (Days)In 2002-03, cases were resolved in anaverage of 72 days.
Over time, ongoing process improvements, streamlining andautomation resulted in case cycle time improvements despitean increasing caseload. Overall average case cycle timeimproved from 72 days in 2002-03 to 45 days in 2012-13.
Case cycle times decreased to 61 days in 2005-06 as addedstaff were fully trained and gained expertise in performingtheir duties. Cycle times further reduced to 51 days at theclose of 2007-08 with the continued application oftechnology, training and quality control.
Significant staffing and resource reductions in March 2009occurred. The impact was minimized by the implementationof an enhanced quality control program, supplemented bysupervisory access to more detailed performance indicatorreports. Average cycle time for 2009-10 was 51 days.
The overall average case cycle time increased to 52 days infiscal year 2010-11. The increase was due in part to theongoing complexity of resolving violations at properties inthe foreclosure process which caused delays in bothadministrative (abatement) and adjudication (court) cases.
In fiscal year 2011-12, additional performance standard andquality control measures were initiated along with ongoingprocess improvements and some division reorganization.
These measures assisted in reducing overall average casecycle time back down to 45 days in 2012-13.
Based on 2011 ICMA data, city of Phoenix code enforcementexpenditures per capita compares favorably to those of otherbenchmark cities as noted below:
Code Enforcement Expenditures per Capita:Dallas - $13.40Kansas City – $11.22PHOENIX – $6.15San Antonio – $5.94Oklahoma City - $4.27Portland - $2.04
In 2013-14, it is anticipated thecase cycle time will remain at45 days.
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PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
COMMUNITY DEVELOPMENT
ECONOMIC DEVELOPMENT
Head Start Program:In 2002-03, the Human ServicesDepartment served 3,195 children.
The program is expected to serve 3,390 childrenduring 2012-13, of which, 300 are included in theEarly Head Start Program.
The program is expected to serve 3,390children in 2013-14.
Senior Nutrition Program:In 2002-03, the Human ServicesDepartment served 571,900 meals.
For 2012-13, the program is expected to serve655,000 meals.
In the 2013-14 budget, it is anticipatedthat the number of meals will be744,140.
Employment Growth RateCompared to Other CitiesIn 2002, Phoenix’s employmentgrowth rate was better than most ofthe following benchmark cities:
San Diego – 1.4%San Antonio – 0.7%Austin/San Marcos – 0.2%PHOENIX – (0.1)%Dallas – (0.3)%Los Angeles/Long Beach – (0.4)%Kansas City – (0.6)%Fort Worth/Arlington – (0.7)%San Jose – (3.5)%
The current issues inhibiting more robust growth inthe economy are expected to continue through2013. These include high levels of unemployment,large consumer debt loads, reduced income andwealth, weak housing and commercial real estatemarkets, rising health care costs and budgetdeficits.
Based on data from the Bureau of Labor Statistics,Phoenix ranked sixth in the Employment GrowthRate compared to the following benchmark cities:
Ft. Worth-Arlington – 4.2%Austin – 4.0%Dallas – 3.5%San Jose – 3.2%San Diego – 2.5%PHOENIX – 2.4%Los Angeles/Long Beach – 2.3%San Antonio – 2.0%Kansas City – .5%
It is anticipated employment willcontinue to grow slightly in 2013-14.
COMMUNITY ENRICHMENT
HUMAN SERVICES
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PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
COMMUNITY ENRICHMENT
PARKS AND RECREATION
Swimming Pools:In 2002-03, the city of Phoenixhad 28 public swimming pools.
In 2003-04, Pecos Pool was opened, increasing the number of pools to 29.
In the 2009-10 budget eight pools were closed for infrastructure repairs ona rotating basis for three years beginning in May 2009.
In the 2010-11 budget, Cortez Pool was closed indefinitely due to the needfor significant structural repairs.
In the 2011-12 budget, eight pools previously closed for infrastructurerepairs were re-opened. This increased the number of open pools to 28 outof 29.
The number of open poolsincluded in the 2013-14budget is 29 as Cortez Poolis expected to reopen inMay 2014.
Swimming Pool Season:In 2002-03, swimming poolswere open daily for 12 weeksfrom the week of memorialday through mid-August.
In 2003-04, budget considerations forced the city to reduce the swim seasonto 10 weeks. All pools closed in mid-August to coincide with the beginning ofthe school year.
The 2005-06 budget reduced the swim season by closing pools one weekearlier, resulting in a nine-week season.
Changes included in the 2007-08 budget added funding to increase the poolseason at all 29 pools. These funds added weekend hours beginning inAugust and continuing through Labor Day.
The 2008-09 budget eliminated weekend pool hours in May and Augustexcept for the Memorial Day weekend.
The 2009-10 budget reduced the swimming season by eliminating open swimhours during the last week in July. The 2009-10 budget also reduced dailyopen swim hours, and closed all city pools on Friday. Pool hours open to thepublic were changed from 1 to 7 p.m. instead of noon to 8 p.m. Also, feeswere increased for general swim lessons and recreational teams.
The 2012-13 budget added open swim hours at nine pools, representing allCouncil Districts and city regions, from 1 to 7 p.m. each day in Augustthrough the Labor Day holiday.
No changes are included inthe fiscal year 2013-14budget.
Children’s Summer Recreation Programs:In 2002-03, the city of Phoenixprovided recreation programsat 127 program sites.
In 2007, the Parks and Recreation Department conducted a comprehensiveevaluation of Phoenix After-school Center (PAC) programming. Changeswere implemented including re-defining what constituted an after-schoolprogram versus an after-school site. Based on this new definition, the 2007-08summer program had 32 sites and 50 program units (some sites have morethan one program).
No changes were included in the 2008-09 budget.
The 2009-10 budget reduced summer PAC to 16 sites and increased fees.
Beginning June 2010, all summer PAC sites were eliminated.
No changes are included inthe 2013-14 budget forchildren’s summerrecreation programs.
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PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
COMMUNITY ENRICHMENT
PARKS AND RECREATION
School Recreation ProgramDuring School Year:In 2002-03, funding wasprovided for school recreationprograms at a total of 166sites.
In 2007-08, additional funding was provided to improve after-schoolprogramming.
In 2007, the Parks and Recreation Department conducted acomprehensive evaluation of Phoenix Afterschool Center (PAC)programming. Changes were implemented including re-defining whatconstituted an after-school program versus an after-school site. Based onthis new definition, the 2007-08 school year had 83 sites and 166 programunits (some sites have more than one program).
Budget reductions in 2008-09 reduced the number of after-school programunits to 104, which included reducing the number of sites to 81.
The 2009-10 budget reduced the number of after school program sites to42 (the department no longer uses program units in their definition ofprogram sites). After the budget was approved, fees were increased and anadditional 13 sites were added. Total sites operated were 55.
The 2010-11 budget further reduced after-school sites to 25 General Fund-supported sites and five full cost recovery sites effective June 2010.
In 2012-13 nine Phoenix Afterschool Program sites (PAC) sites wererestored.
In the 2013-14 budget,eight Phoenix AfterschoolCenters (PAC) sites arerestored, which brings thetotal number of sites to 47.
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PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
COMMUNITY ENRICHMENT
LIBRARY
Central Library:The new Burton Barr CentralLibrary opened in May 1995. In2002-03, Burton Barr CentralLibrary provided 75 hours ofservice per week.
In April 2003, Central Library hours were reduced to 66 hours per week as aresult of citywide budget reductions.
The 2007-08 budget included opening the Central Library at 9 a.m. Mondaythrough Saturday, increasing hours of service from 66 to 72 hours per week.
In 2008-09, the budget for books and other circulating materials for CentralLibrary was reduced and the printed version of the calendar of events waseliminated.
In March 2009, the hours of operation were reduced from 72 hours per week to52 hours per week at Central Library. Programming for children, teens andadults was also reduced; and facilities maintenance projects were delayed.
In April 2010, customer service and Accessibility Center services at the CentralLibrary were reduced.
In December 2010, the hours at Central Library were expanded by six hours perweek, from 52 to 58 hours per week.
In July 2012, Burton Barr Central Library expanded morning hours by six hours,from 58 to 64 hours per week, opening at 9 a.m. instead of 11 a.m. on Tuesdays,Wednesdays and Thursdays.
The 2013-14 budget increasesfunding for over 13,000 e-books, online library cardregistration, and onlinemeeting room reservations.Burton Barr Central Libraryhours remain at 64 hours perweek.
The budget also includestransitioning the libraryinventory to be in alignmentwith customer demand,elimination of redundantdatabases and optimizingefficiencies in catalogingservices and facilitymaintenance operations.
Branch Libraries:In the 2002-03 budget(effective in April) branchlibrary hours were reduced to66 hours per week, decreasingtotal branch library servicehours to 792 per week.
The new 15,000-square-foot Desert Broom Library serving the Desert View Villagearea opened in February 2005 for 66 hours per week, increasing total branchlibrary service hours to 858 per week.
The new Palo Verde Library opened in January 2006, replacing the existing10,000-square-foot library with a new 16,000 square-foot facility.
The new 25,000-square-foot Cesar Chavez Library, serving the western SouthMountain Village, opened in January 2007 for 66 hours per week, increasing totalbranch library service hours to 924 per week.
The 2007-08 budget included opening all branch libraries at 9 a.m. Mondaythrough Saturday, increasing total branch library service hours to 1,008 per week.
The renovation of Saguaro Library was completed during spring 2008 and openedto the public on June 6, 2008.
Due to budget reductions in 2008-09, staffing was reorganized to create regionalmanagers and reduce a supervisory layer at the branches; facilities maintenanceprojects were deferred; the opening of the new Agave library was delayed; theprinted calendar of events was eliminated, and the budget for books and othercirculating material was reduced by 18.9 percent.
In March 2009, the hours of operation were reduced from 72 hours per week to52 hours per week at seven locations and to 48 hours per week at eight locations.The budget for circulating materials and programming for children, teens andadults was also reduced; facilities maintenance projects were delayed.
The new Agave Library, located at 33rd Avenue and Pinnacle Peak Road, openedin June 2009.
The new 12,300-square-foot replacement for Harmon Library opened to thepublic in September 2009.
In April 2010, the hours of operation per week were reduced from 52 to 44 atseven branches and 48 to 40 at the remaining branches.
The 2013-14 providesgeneral funds to continuethe existing College Depotprogram.
Branch Libraries will alsobe impacted by the increasein funding for on-lineservices as well inventoryadjustments, as describedabove under Central Library.
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PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
COMMUNITY ENRICHMENT
LIBRARY
Branch Libraries: (continued) Additionally in April 2010, the staff and library materials at Century, Acacia, andOcotillo branch libraries were reduced resulting in decreased direct customerservice and increased time to access library materials. Administrative andsupport staff were also reduced resulting in slower processing and re-shelving ofmaterials system-wide and less timely maintenance of facilities.
In December 2010, the hours at Mesquite Library were increased by six hours perweek.
A new South Mountain Community Library, jointly operated by Maricopa CountyCommunity College District and the city of Phoenix, opened August 2011 on thecampus of South Mountain Community College – open 72 hours per week.
In July 2012, evening hours were expanded at eight branches: Ironwood, Cholla,Cesar Chavez, Palo Verde, Juniper, Agave, Yucca and Saguaro. They opened anadditional 6 hours per week, from 7 to 9 p.m. on Tuesdays, Wednesdays andThursdays, bringing total branch service hours to 759 per week. College Depotalso expanded its programming to four branch libraries: Cesar Chavez, Cholla,Palo Verde, and South Mountain Community College.
Based on 2011 ICMA data, the Phoenix library system compared very favorably toother benchmark cities as noted below:
Cost per Item Circulated:
Austin – $4.39San Antonio – $4.38PHOENIX – $1.91Dallas – $1.74Long Beach – Unavailable
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PROGRAM SERVICE LEVEL SERVICE CHANGES SERVICE CHANGESIN 2002-03 THROUGH 2012-13 FOR 2013-14
ENVIRONMENTAL SERVICES
WATER SERVICES
Water Bill Comparison forSingle-Family HomesIn a March 2003 survey, Phoenix’saverage monthly water bill comparedfavorably to the following benchmarkcities:
San Jose – $33.44Kansas City – $31.37Austin – $28.56Tucson – $25.75Dallas – $24.83Alburquerque – $23.96PHOENIX – $19.64San Antonio – $15.62
In a March 2013 survey, Phoenix’s average monthlywater bill compared favorably to the followingbenchmark cities:
San Diego – $77.89Tucson – $60.62San Jose – $55.08Austin – $51.17Dallas – $48.53PHOENIX – $37.75Alburquerque – $31.81San Antonio – $21.33
It is anticipated Phoenix water rates willcontinue this trend during 2013-14. Thecombined water and wastewater rate for2013-14 will remain unchanged from theprior year.
Wastewater Bill Comparison for Single-Family HomesIn a March 2003 survey, Phoenix’saverage monthly wastewater billcompared favorably to the followingbenchmark cities:
Austin – $38.15Dallas – $26.57Kansas City – $19.81San Jose – $18.96Alburquerque – $18.45San Antonio – $16.84Tucson – $14.06PHOENIX – $13.60
In a March 2013 survey, Phoenix’s average monthlywastewater bill compared favorably to the followingbenchmark cities:
Austin – $60.79San Diego – $47.69Tucson – $40.90Dallas – $36.30San Jose – $33.83San Antonio – $23.97PHOENIX – $20.71Alburquerque – $18.16
It is anticipated Phoenix wastewaterrates will continue this trend during2013-14. The combined water andwastewater rate for 2013-14 will remainunchanged from the prior year.
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Each year, the city of Phoenix budget isdeveloped in conjunction with the Mayorand City Council, residents, cityemployees, the City Manager’s Office andall city departments.
Zero Base Budgeting Process
Enhancements were made to the city’sbudget presentation and communityprocess to strengthen public engagementand demonstrate the city’s commitment totransparency. The Budget and ResearchDepartment expanded the Citywide BudgetInformation Packet and Inventory ofPrograms developed last year as part of itszero-based budget. Additional informationwas added, including citywide anddepartment revenue, a department statusoverview, and a designation of the primarystrategic plan area supported by eachprogram. This provided more detailedinformation on every city program, allowedCity Council to review cost estimates forthe following year at an earlier stage in thebudget process, and created a more usefulformat for Phoenix residents to understandthe city’s budget. A five-year General Fundforecast also is provided to the CityCouncil giving them a tool for long-termplanning and strategic decision making.Additional outreach and opportunities forresidents to participate in the budgetprocess are again provided this year,including an interactive online hearinghosted by the Mayor.
Each fall, departments start from zeroand submit an estimate of the costsassociated with providing their currentlevels of service for the following year(called the “base budget”). Budget andResearch staff review these base budgetestimates to ensure that only the fundingneeded to continue current service levelsis included in the department’s basebudget for the following year. Adepartment’s base budget funding maydiffer from its current year funding for a
variety of reasons. For example, anincrease or decrease in electricity orpostage rates would be reflected in thebase budget.
After these base budget requests arereviewed, departments typically are askedto identify 5 to 10 percent of their budgetfor potential elimination. These proposalsare potential base reductions andrepresent the department’s lowest-priorityactivities. Departments also are asked toprovide any requests for new or expandedprograms. These are called supplementalbudget requests. Departments canpropose reducing or eliminating anexisting program in order to fund theexpansion of an existing program or addinga new program. Base reductions andsupplemental requests include alloperating and maintenance costsassociated with a specific program orservice. For example, costs for a swimmingpool would include personnel costs for alifeguard and other staff, chemicals for thepool, building maintenance and utilities.
When base reductions andsupplemental requests are proposed, theyare ranked together according to thedepartment’s priorities. These rankings areused by city management to assist in thecreation of the proposed trial budget.
The City Council then provides input tothe City Manager for the preparation of thetrial budget, which is reviewed with theCity Council early each spring. Thepurpose of the trial budget is to enable thecommunity and the City Council tocomment on a balanced budget proposalwell before the City Manager is required tosubmit a recommended budget in May.Public hearings are conducted throughoutthe community during day and eveninghours, at which residents are encouragedto provide their feedback. The proposedtrial budget is also available online andresidents can send comments by email.The City Manager recommended budgetreflects the input received from thecommunity and City Council. The City
Council makes final budgetrecommendations after the City Manager’srecommended budget is reviewed.
2013-14 BUDGET PROCESS
Initial Budget Status
In September 2012, Budget and Researchstaff presented an early review anddiscussion of the 2013-14 budget to theCity Council. At that time staff focused onthe General Fund, providing financialresults for the previous fiscal year. Staffreported that the 2011-12 fiscal year endedwith higher than estimated resources andless than expected expenditures, resultingin a stronger starting position for fiscalyear 2012-13. The 2011-12 ending balancewas $92.8 million, which was $8.3 millionhigher than estimated due to expendituresavings in city departments. These savingsput the city in a stronger position towithstand revenue shortfalls orunanticipated expenditures in 2012-13.
Budget Status Update
For the second consecutive year, Budgetand Research provided a Citywide BudgetInformation Packet and Inventory ofPrograms as part of a Zero-Based Budgetapproach. The information was presentedto provide the Council and communitywith an earlier view of the upcoming fiscalyear’s estimated expenditures. Thedocument provides a broader, morepractical context to the budget, facilitatinga more informed discussion.
In February 2013, Budget and Researchprovided a 2013-14 preliminary GeneralFund estimate report and five-yearforecast. The preliminary 2013-14 budgetestimate showed a balanced budget forfiscal year 2013-14.
Budget Process, Council Review and Input,Public Hearings and Budget Adoption
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The five-year forecast was developed toprovide the Mayor, City Council, citymanagement and the community a tool toenhance budgetary planning over multipleyears. This financial best managementpractice provides policy-makers with aframework for strategic decision-making.In order to model potential futurebudgetary scenarios under varyingeconomic conditions, a range was providedfor each year with the baseline forecastrepresented by the middle of the range.The baseline forecast showed that theGeneral Fund can generally be balanced inmost years if the revenue and costassumptions are achieved.
Trial Budget
On March 26, 2013, the Mayor and Councilwere presented with the 2013-14 CityManager’s Trial Budget. The proposedbalanced 2013-14 General Fund budgettotaled $1.128 billion, which wasapproximately $13 million, or 1.2 percent,more than the 2012-13 General Fundbudget.
Demonstrating the city’s commitmentto the continued restoration andenhancement of important services at thelowest possible cost, the Trial Budgetincluded about $6.2 million in expandedand restored General Fund services to thecommunity. This is the third consecutiveyear in which the city was able to provideenhanced or restored services. The serviceenhancements are possible because ofproposed General Fund (GF) efficiencysavings totaling nearly $16 million. Theseactions include process improvements,realignment of resources based oncommunity needs, organizationalstreamlining, rightsourcing, and otheroperational measures that lower costs andstaffing levels without reducing directservices to the community.
The proposed service enhancementssummarized by Strategic Plan areaincluded:
Public Safety
n Add 15 civilian positions to CentralBooking allowing 15 police officers tobe assigned to direct community policeservice.
n Add six officers and two sergeants tomeet minimum police staffingrequirements at the airport at zero netcost; the increased staffing allowspolice overtime costs to be reduced byan amount equal to the cost of the newpositions. Because of securityrequirements at the airport, thesepositions will be filled by veteranofficers, opening eight General Fundvacancies to be filled with new officers.
n At zero net cost using the GeneralFund savings realized by replacingveteran officers with new officers atentry-level pay, fund three policeofficer positions for patrol andcommunity police work. In total due tothese changes, the city will be able tohire 11 new police officers at noadditional cost. The 11 new policeofficers can be hired from the existingPolice Reserve force, utilizing officerswho have already been through thePolice Academy and have someexperience with the Phoenix PoliceDepartment in a reserve capacity.
n Add seven new firefighter/paramedicpositions to ensure sustainedemergency ambulance response timesin all areas of the city.
n Convert Public Safety and municipalwireless radio communicationequipment to comply with federally-mandated frequency andinteroperability requirements. It isproposed that the cost of thisequipment totaling at least $66 millionover five years be paid using lease-purchase financing, which must beauthorized by the City Council.
Education
n Increase number of “e-books,” providethe capability for online library cardregistration, and enable online meetingroom reservations enhance the library’s24X7 accessibility.
n Continue existing College Depotprogram due to expiring privatefunding.
n Restore an additional three PhoenixAfterschool Center (PAC) sites (afterrestoring nine last year) based onassessment of highest need as
determined by the Parks andRecreation Department.
n Restore some funding for the JobTraining Program.
Social Services Delivery
n Enhance Senior Center access and useof technology by seniors.
n Provide additional Family and ChildVictim Services through expandedfunding for lease costs and servicesprovided by the public safety partnersat the Childhelp facility to serve abusedchildren.
n Allocate funding for an administrativeposition and projects to facilitate thecity’s involvement in the public/privateimplementation of the DomesticViolence Roadmap to Excellence.
n Restore additional homeless sheltersupport.
n Increase existing water utilityassistance program for low-incomehouseholds.
Neighborhoods and Livability
n Increase funding for arts grants toimprove opportunities for arts andcultural development.
n Increase funding for maintainingcompleted public art projects,including mitigating graffiti and othervandalism.
n Increase funding for operationalsupport of performing artsorganizations at city-owned venues.
n Operate new and expanded facilitiesfor the Sonoran Preserve, Tres Riosrecreational facilities, the dog park atMargaret T. Hance Park, Echo Canyontrailhead expansion, Cortez poolrenovation, Hermoso Park recreationcenter expansion, Winship Houserenovation and Rio Salado Peace Path.
n Support historic preservation efforts byhiring a consultant to complete theNational Register for the David andGladys Wright House, fund an existingposition to make additional historic
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preservation bonds available, anddecrease design review turnaroundtimes by insourcing currentlycontracted services.
Economic Development
n Expand the Adaptive Reuse Program toprovide regulatory relief and planreview/permit fee waivers to assistsmall business in renovating existingbuildings for new uses and help getnew businesses open sooner.
n Expand international economicdevelopment program includinginternational air service at Sky HarborInternational Airport.
n Provide support to recently establishedDowntown Phoenix, Inc., anorganization that will work withexisting downtown community groupsto market and further developdowntown Phoenix.
Technology
n Implement E-procurement,Transparency, & Integrated BudgetSystem to streamline purchasingoperations, decrease costs, andenhance efficiency, transparency,compatibility and fiscal reporting.
n Replacement of Planning andDevelopment Services Permit TrackingSystem, or KIVA, which will enablestreamlining and customerimprovements to the city’s developmentprocess, including online permitapplications, mobile technologyalternatives and enhancedtransparency and tracking.
Infrastructure
n By restructuring the city’s ArizonaHighway User Revenue Fund (AHUR),implement street improvement andsafety enhancement projects, conductNorth Mountain RedevelopmentArea/Metro Center multimodal study,downtown transportation study, secondphase of downtown parking meterinstallations and create a temporaryprojects administrator to manage theadditional projects.
n Fund freeway landscape maintenancefor an additional nine miles alongInterstate 17.
Phoenix Golf Program
The City Council approved a Golf Fundbalancing plan on March 6, 2013, whichincludes the following budget-relatedelements:
n Implement efficiency actions, such asrightsourcing, to reduce the annualoperating deficit.
n Remove the Golf Fund’s designation asan Enterprise Fund, which allows theGeneral Fund to offset costs of annualoperating deficits. The 2013-14 TrialBudget includes a General Fundallocation of $1.1 million intended tooffset next year’s annual operatingdeficit.
n Pay off the cumulative deficit over athree year period, or by fiscal year2014-15. The initial installment tobegin paying off the Golf Fund’sexisting cumulative deficit used $5.7million in Phoenix Parks and PreserveInitiative Funds (PPPI).
The City Manager’s Trial Budget alsoincluded recommended changes to non-General Funds, as explained below.
Arizona Highway User Revenue Fund(AHUR) - a restructuring of AHUR reserveswill be used to implement streetimprovement and safety enhancementprojects, conduct a North MountainRedevelopment Area/Metro Centermultimodal study, conduct a downtowntransportation study, implement secondphase of downtown parking meterinstallations, and create a temporaryprojects administrator to manage theadditional projects.
Aviation Fund - Aviation will add sixofficers and two sergeants while reducingexisting police overtime by an equivalentamount at zero net cost. Additionally, theAviation Department will work with theCommunity and Economic DevelopmentDepartment to enhance international airservice development and cover 50 percent
of costs of a position dedicated tointernational economic development.Finally, Aviation will fund maintenance ofnew landscaping along the new PhoenixSky Train facility.
Development Fund - this fund will addstaff and funding to replace the agingpermit tracking system (KIVA), which willstreamline and improve the city’sdevelopment process, including onlinepermit applications, provide mobiletechnology alternatives, and enhancedtransparency.
Downtown Community Reinvestment Fund(DCRF) - $3 million equating to theincrease of the DCRF in 2011 when theArizona Center property was sold will beused to increase the city’s ContingencyFund. Additionally, $1 million from thisfund will be used to cover costs associatedwith ongoing downtown development, and$100,000 will be allocated to support thenewly formed Downtown Phoenix, Inc.organization.
Phoenix Parks and Preserves InitiativeFund (PPPI) - PPPI funds are being usedto help pay down the cumulative Golf Funddeficit. Additionally, PPPI will cover coststo operate new and expanded facilities forthe Sonoran Preserve, Tres Riosrecreational facilities, the dog park atMargaret T. Hance Park, Echo Canyontrailhead expansion, Cortez poolrenovation, Hermoso Park recreationcenter expansion, Winship Houserenovation and Rio Salado Peace Path.
Sports Facilities Capital Fund - the SportsFacilities Capital Fund includes necessarypay-as-you-go capital maintenance for thecity’s downtown parking garages.
Water Fund - the Water Fund includes aproposed increase to the existing programproviding water related utility assistancefor low-income Phoenix households incrisis.
Lastly, as discussed in the “EnhancedServices- Technology” section, General andnon-General Funds capital and operatingbudgets will fund implementation of E-procurement, Transparency, andIntegrated Budget System.
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Community Input
The proposed budget was presented at 20budget hearings conducted throughout thecommunity from April 3 to 25. Following apresentation describing the proposedbudget, residents were invited to comment.This included an interactive onlinehearing hosted by the Mayor, allowingresidents to submit comments or questionslive from a home computer or mobiledevice. In addition to the budget hearings,the budget was shared with the communityon the city’s website and through a tabloidentitled “Phoenix Budget for CommunityReview” that outlined the proposed servicechanges as well as a calendar of budgethearing dates. This information was madeavailable electronically in addition to hardcopies provided at senior centers, libraries,community centers and at budgethearings. The city also published where tofind the electronic version in “The ArizonaRepublic,” “Arizona Informant,” “AsianAmerican Times” and “La Voz.” Residentsalso were invited to send comments andquestions through the city’s website. Thepublicity of the trial budget allows the CityCouncil and the community to comment onproposed measures for balancing thebudget.
More than 312 comments were receivedfrom the community at 20 budget hearingsand by email, letters and through socialmedia during Phoenix’s online budgethearing. Most citizens voiced support forthe proposals already included, as well asidentifying additional community needsincluding increasing street maintenance,expanding afterschool programs, addingjob training programs, increasing bicycleinfrastructure, addressing graffiti, adding acommunity center and enhancing publicsafety. Based on the further fundingresources described in the City Manager’sBudget Message, the City Manager wasable to recommend service additions to theMayor and City Council beyond what waspresented in the Trial Budget that closelycorresponded to the resident input.
City Manager’s Budget and CouncilAction
On May 7, a revised budget package thatreflects feedback from the community waspresented to the Mayor and City Councilfor information and discussion only. Inaddition to the efficiencies proposed in theTrial Budget, additional efficiency actionsare proposed by Parks and Recreation andPublic Transit departments and the PublicInformation Office. The Parks andRecreation Department is moving forwardwith a pilot project to outsource mowingservices in their Northwest Division.Public Information proposes theelimination of three positions through theuse of enhanced technology and additionaloutsourcing. The Public TransitDepartment will implement a taxicabvoucher service that outsources thecurrent Reserve-a-Ride program.
Using savings made available throughthe new efficiencies, and available capitalfunds in the Arizona Highway UserRevenue Reserve and Impact Fee Program,the proposed budget includes the followingadditions reflecting feedback from thecommunity during the budget hearingprocess:
GENERAL FUND:n Restoration of two more Phoenix
Afterschool Center (PAC) sites inaddition to the three that were alreadyproposed for restoration in the TrialBudget.
n Restoration of an additional $100,000 infunding for the Job Training Programbeyond the $150,000 proposed forrestoration in the Trial Budget.
n Restoration of an additional 2.0 fulltime employee park ranger positions toenhance safety, security and protectionof mountain parks.
n Addition of power-washing equipmentfor use by residents to enhance thecity’s graffiti response and clean-up.This addition will be covered usingsavings identified in the 2012-13Neighborhood Services Departmentbudget.
FEDERAL GRANT FUNDING:n The city will apply for Community
Oriented Policing Services (COPS)grants from the U.S. Department ofJustice. The grants would offsetfunding required to hire as many as 25additional police officers beginning in2013-14. The grants cover up to$125,000 over three years (or about$42,000 per year) for each officer. Thecity’s costs to cover necessary grantmatching funds, training, and newequipment will come from additionalefficiency savings, including thosedescribed above.
CAPITAL IMPROVEMENT- ARIZONAHIGHWAY USER REVENUE RESERVE:n An additional $1.5 million of the AHUR
capital reserve to address communityinterest in increasing safe bicycleriding in Phoenix and make furtherprogress toward more CompleteStreets. In addition to thedevelopment of a comprehensivecitywide bicycle infrastructure plan,the funding will be used to add bicyclelanes/paths, bike-share infrastructureand increased bicycle safety on Phoenixstreets.
CAPITAL IMPROVEMENT - IMPACTFEES:n Use of $900,000 in capital impact fee
funding in addition to $100,000 ofexisting federal funding to cover thecost for site selection and conceptualdesign of the Cesar Chavez community/recreation center near 35th Avenue andBaseline Road to address a need forrecreational facilities in the Laveenarea.
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The revised City Manager’s ProposedBudget included an additional five PhoenixAfterschool Center (PAC) sites in 2013-14,taking the total new PAC sites to eight. Italso included additional funding toenhance youth programs in the Parks andRecreation Department. On May 21, 2013,the City Council approved the 2013-14budget, which provided the Councildirection necessary to prepare legalpostings and advertised publications forthe final legally required budget actions inJune and July.
Adoption of Tentative BudgetOrdinances
A public hearing and adoption of thetentative budget ordinances wascompleted on June 5, 2013, in compliancewith the City Charter requirement that thebudget be adopted no later than June 30.Upon adoption of tentative budgetordinances, the budget becomes the CityCouncil’s program of services for theensuing fiscal year. At that point, the CityCouncil may later decrease the budget, butonly in certain instances may the budgetbe increased. Generally, the ability toincrease the budget applies toexpenditures exempted from the stateexpenditure limitation. Transfers betweendepartment appropriations are stillpermissible before the final budget isadopted.
Adoption of Final Budget Ordinances
A public hearing and adoption of the finalbudget ordinances was completed on June19, 2013. Adoption of the property tax levyordinance was completed no less than 14days later on July 3, 2013, in accordancewith state law.
The following chart is an overview ofthe 2013-14 budget calendar.
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2013-14 Budget Calendar
Feb. 12, 2013 2013-14 Inventory of Programs ( Zero-Based Budget)
Feb. 26, 2013 Preliminary 2013-14 Budget Status; Five-Year General FundForecast; and Updated Public Safety Funds Forecast
March 26, 2013 City Manager’s 2013-14 Trial Budget
April 3 – April 25 Community Budget Hearings
April 9, 2013 Preliminary Five-Year Capital Improvement Program
May 7, 2013 City Manager’s Proposed Budget
May 21, 2013 Council Budget Decision
June 5, 2013 2013-14 Tentative Budget Ordinance Adoption
June 19, 2013 2013-14 Final Budget Ordinance Adoption
July 3, 2013 2013-14 Property Tax Levy Ordinance Adoption
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Input from residents a
t the Community Budget Hearings
is an important step in
developing the city’s b
udget.
2013-14City Charter Arizona State Statute Budget
Action Required Prescribed Deadline Prescribed Deadline Dates
City manager’srecommended five-year CapitalImprovementProgram submittedto the City Council.
At least three monthsprior to final date forsubmitting the budgetor a date designated bythe City Council.
Capital ImprovementProgram not required.
April 9, 2013
Post notice on theofficial city websiteif there will be anincrease in eitherthe primary or thesecondary propertylevy, even if thecombined levy is adecrease.
No requirement. 60 days prior to TaxLevy Adoption.
May 3, 2013
City Manager’sproposed budgetfor ensuing yearpresented to theMayor and CityCouncil.
On or before the firstTuesday in June or adate designated by theCity Council.
City Manager budgetnot required.
May 7, 2013
Post City Manager’sproposed budget onthe city’s websiteand provide copiesto libraries andCity Clerk.
No requirement. No later than sevenbusiness days after theestimates of Revenueand Expenses areinitially presentedbefore the CityCouncil.
May 16, 2013
Publish generalsummary of budgetand notice ofpublic hearing thatmust be held priorto adoption oftentative budgetordinances.
Publish in newspaperof general circulationat least two weeksprior to first publichearing.
No requirement. Publish Weekof May 20,2013
Publish notice ofpublic hearingwhich must be heldprior to adoption offive-year CapitalImprovementProgram byresolution.
Publish in newspaperof general circulationat least two weeksprior to first publichearing.
No requirement. Publish weekof May 20,2013
City of Phoenix budget and financialpolicies are governed by Arizona state law,the City Charter and Code and generallyaccepted accounting standards. These lawsand standards set budget calendar dates,provide for budget control, describe waysto amend the budget after adoption, andidentify appropriate methods forbudgeting, accounting and reporting. TheArizona Constitution establishes theproperty tax system and sets tax levy andassessed valuation limits. The CityCharter and Code also provide restrictionson property tax. The constitution alsoprovides annual expenditure limits andsets total bonded debt limits.
The city’s budget policies areextensions of these basic laws and followgenerally accepted governmentalbudgeting and accounting practices andstandards.
A BALANCED BUDGET IS REQUIRED
Arizona law (Title 42 Arizona RevisedStatutes) requires the City Council toannually adopt a balanced budget bypurpose of public expense. State lawdefines this balanced budget as “theprimary property tax levy, when addedtogether with all other available resources,must equal these expenditures.” Therefore,no General Fund balances can be budgetedin reserve for subsequent fiscal years.Instead, an amount for contingencies (alsocommonly referred to as a “rainy dayfund”) can be included in the budget eachyear.
The City Charter also requires anannual balanced budget. The Charterfurther requires that “the total of proposedexpenditures shall not exceed the total ofestimated income and fund balances.”
Annual Budget Adoption RequirementsThe City Charter and Code and statestatutes contain legal deadlines andactions that must be followed in adoptingthe budget. In cases where the deadlinesconflict, the city meets the earlier of thetwo dates. The deadlines and formalactions prescribed by both, as well as theactual or planned dates for the 2013-14budget development process are as follows:
General Budget and Financial Policies
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Amendments to the Budget After FinalAdoption
Generally, by Arizona state statute, noexpenditure may be made nor liabilityincurred for a purpose not included in thebudget even if additional funds becomeavailable. Phoenix’s level of legalbudgetary control is by fund except for theGeneral Fund for which control is byprogram.
In certain instances, however, thebudget may be amended after adoption. Allbudget amendments require City Councilapproval. These are (1) transfers from anycontingency appropriation, (2) increasesin funds exempt from the Arizona StateConstitution expenditure limit and (3)reallocations of amounts included in theoriginal budget. An amount forcontingencies is included in the GeneralFund and in many other restricted funds.Informal reservations of contingencies maybe made throughout the fiscal year asapproved by the City Council. Actualexpenditures are recorded in theappropriate departmental budget. Then, atthe end of the fiscal year, contingencyamounts actually needed are transferredby City Council formal action to theappropriate departmental budget.
If funds are available, appropriationsmay be increased for certain fundsspecifically excluded from the limitationsin the Arizona Constitution. These fundsare bond proceeds, Arizona Highway UserRevenue, debt service and grants. At theend of each fiscal year, the City Counciladopts an amendment to the budgetordinance for any necessary increases inthese funds. These increases are largelycaused by federal grants that becomeavailable throughout the fiscal year and bytiming changes in capital projects fundedby bond proceeds.
Finally, transfers of amounts within anyspecific fund or within General Fundprograms can be made upon approval ofthe City Manager.
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2013-14 City Charter Arizona State Statute Budget
Action Required Prescribed Deadline Prescribed Deadline Dates
Public hearingimmediatelyfollowed by adoptionof tentative budgetordinances with orwithout amendment.
On or before the lastday of June.
On or before the thirdMonday of July.
June 5, 2013
Publish truth-in-taxation noticetwice in anewspaper ofgeneral circulation(when required).
No requirement. First, at least 14 butnot more than 20 daysbefore required publichearing; then at leastseven days but notmore than 10 daysbefore requiredhearing.
Publish weeksof June 3,2013 andJune 10, 2013
Publish summary ofadopted tentativebudget ordinancesand notice of publichearing which mustprecede finaladoption.
No requirement. Once a week for twoconsecutive weeksfollowing tentativeadoption.
Publish weeksof June 10,2013 andJune 17, 2013
Public hearing plustruth-in-taxationhearing (whenrequired)immediatelyfollowed by adoptionof final budgetordinances.
No requirement. No later than secondMonday in August.
June 19, 2013
Post a completecopy of the adoptedfinal budget on thecity’s website.
No requirement. No later than sevendays after adoption.
June 28, 2013
Property Tax LevyAdoption.
No later than the lastregularly scheduledCouncil meeting in July.
No sooner than 14 daysfollowing final budgetadoption and no laterthan the third Mondayin August.
July 3, 2013
PROPERTY TAXES AND BONDED DEBTLIMIT
Arizona property tax law provides for twoseparate tax systems. A primary propertytax is levied to pay current operation andmaintenance expenses. Therefore, primaryproperty tax revenue is budgeted andaccounted for in the General Fund. Asecondary property tax levy is restricted tothe payment of debt service on long-termdebt obligations. Therefore, secondaryproperty tax revenue is budgeted andaccounted for as a special revenue fund.
Primary Property Tax Restrictions
Primary property tax levies are restrictedto an annual two percent increase plus anallowance for growth attributable topreviously unassessed properties(primarily new construction). In addition,the City Charter limits the primaryproperty tax rate to $1.00 plus an amountthat provides for the establishment andsupport of free public libraries and readingrooms. The primary levy may alsoadditionally increase by an amount equalto annual tort liability claims. Growth inprimary assessed valuation is restrictedannually to the greatest of 10 percent, or25 percent of the difference betweenprimary values in the preceding valuationyear and secondary values in the currentvaluation year, plus an allowance forpreviously unassessed properties. The CityCharter requires that eight cents of theprimary property tax levy be allocated tothe Parks and Playground Fund.
Secondary Property Tax Restrictions
Secondary property tax levies arerestricted in their use to the payment ofannual debt service on long-term debtobligations. Any over-collection of thesecondary levy or any interest earned byinvested secondary property tax fundsmust be used to reduce the following year’slevy. No restrictions limit the annualgrowth in secondary assessed valuations.Secondary assessed valuations areintended, therefore, to follow generalmarket conditions.
Generally, Arizona counties assessproperty and collect all property taxes.Proceeds are distributed monthly to theappropriate jurisdictions.
Bonded Debt Limit
Arizona cities can issue general obligationbonds for purposes of water, sewer,lighting, open space preserves, parks,playgrounds, recreational facilities, publicsafety, law enforcement, fire emergency,and street and transportation up to anamount not exceeding 20 percent of thesecondary assessed valuation. Generalobligation bonds can be issued for allpurposes other than those previously listedup to an amount not exceeding six percentof the secondary assessed valuation. Ananalysis of bonded debt limits is providedin the Debt Service chapter.
ANNUAL EXPENDITURE LIMITATION
Since fiscal year 1982-83, the city ofPhoenix has been subject to an annualexpenditure limitation imposed by theArizona Constitution. This limitation isbased upon the city’s actual 1979-80expenditures adjusted for interim growthin population and inflation as measured bythe gross domestic product implicit pricedeflator. The constitution exempts certainexpenditures from the limitation.Constitutional exemptions generally don’tapply to cities adopting a home rule optionunless specifically approved by voters. Theprincipal constitutional exemptions thatcould apply to the city of Phoenix are debt-service payments, expenditures of federalfunds, certain state-shared revenues andother long-term debt obligations.Exemptions associated with revenues notexpended in the year of receipt may becarried forward and used in later years.The 1979-80 expenditure base may beadjusted for the transfer of functionsbetween governmental jurisdictions.
The constitution provides for fourprocesses to exceed the expenditurelimitation: (1) a local four-year home ruleoption, (2) a permanent adjustment to the1979-80 base, (3) a one-time override forthe following fiscal year, and (4) anaccumulation for pay-as-you-go capital. Allrequire voter approval.
City of Phoenix voters have approvedeight local home rule options in 1981,1985, 1991, 1995, 1999, 2003, 2007 and2011. Before 1999, the home rule optionsgenerally excluded enterprise operationssuch as Aviation, Water, Wastewater andSolid Waste from the expenditurelimitation. Beginning in 1999, the votersapproved establishing the city’s annualbudget as the spending limit. The homerule option approved by voters Aug. 30,2011, will be in effect for four fiscal years
from 2012-13 through 2015-16 and willallow Phoenix residents to continue tocontrol local expenditures. Finally, in1981, the voters approved the permanentannual exclusion of the following amountsfor pay-as-you-go capital: $5 million forAviation, $6 million for Water, $6 millionfor Wastewater and $2 million for GeneralFund street improvements.
BUDGET BASIS OF ACCOUNTING
The city’s budget basis of accounting isbased on the modified accrual basis plusencumbrances. This method recognizesrevenues in the period that they becomeavailable and measurable, andexpenditures are recognized in the periodthe associated liability is incurred. Thismethod differs from generally acceptedaccounting principles (GAAP) used forpreparing the city’s comprehensive annualfinancial report. The major differencesbetween the modified accrual basis andthe GAAP basis are listed below. Areconciliation of budgetary and GAAP fundbalances is provided each year in thecomprehensive annual financial report.
1. For budgetary purposes, encumbrances(contractual commitments to beperformed) are considered theequivalent of expenditures rather thanas a reservation of fund balance.
2. Grant revenues are budgeted on amodified cash basis. GAAP recognizesgrant revenues on an accrual basis.
3. Fund balances reserved for inventories,bonded debt and unrealized gains orlosses on investments are notrecognized in the budget.
4. In lieu property taxes and centralservice cost allocations (levied againstcertain Enterprise and Special Revenuefunds) are budgeted as interfundtransfers rather than revenues andexpenses.
5. For budgetary purposes, all fixed assetsare fully expensed in the year acquired.
The differences between modifiedaccrual basis plus encumbrances andGAAP accounting listed above are similarto those of many other local governments.These differences exist largely becausethey provide a more conservative view ofrevenues and expenditures and becausethey provide greater administrativecontrols. 75
GENERAL FINANCIAL POLICIES
In addition to the legal constraintsoutlined in the previous section, a numberof administrative and City Council-approved policies provide guidance anddirection to the budget developmentprocess.
Form of Budget Adoption
1. Allocation of Appropriations - Fundsappropriated by the City Council areallocated to programs, offices,departments, divisions, sections,projects and type of expenditure by thecity manager or as delegated to theBudget and Research director to providemanagerial control and reporting ofbudgetary operations.
2. Budget Controls - At the departmentlevel, control of expenditures isgoverned by Administrative Regulation.City departments prepare revisedexpenditure estimates twice a year. TheBudget and Research Department keepsthe city manager and the City Counciladvised on the status of the budgetthrough periodic budget status reports.Mid-year revenue shortfalls can result inthe adoption of mid-year expenditurereductions.
3. Contingency Amounts - A contingencyallowance (also known as a “rainy dayfund”) is appropriated to provide foremergencies, mid-year communityservice requests, and unanticipatedexpenditures and revenue shortfalls.Expenditures may be made fromcontingencies only upon approval by theCity Council with recommendation bythe city manager. Over the last 10 years,the city’s contingency fund has been aslow as 2.6 percent of General Fundexpenditures, and will be at the highestlevel in 2013-14 at 3.9 percent. Bestpractices recommend a contingencyfund of five percent of totalexpenditures. In order to betterwithstand future economic downturnsthe City Council has adopted a policy togradually increase the contingency tofive percent over multiple years.
Enterprise and Special Revenue fundshave varying levels of contingencyfunding consistent with the variabilityin revenues and expenditures associatedwith the services provided.
4. Ordinances - Three budget ordinancesare adopted each fiscal year: (1) theoperating funds ordinance, (2) thecapital funds ordinance and (3) the re-appropriated funds ordinance. The lastordinance is required becauseunexpended amounts, including thoseencumbered, lapse at the end of thefiscal year. Since all expended amountsmust be included in the budgetadoption ordinance, the city re-budgetsall encumbrances outstanding at year’send.
Cost Allocation and Expenditure Policies
1. Administrative Cost Recovery - TheFinance Department prepares anindirect cost allocation plan thatconforms to federal guidelines for grantreimbursement of appropriateadministrative costs. The allocated costsare charged to eligible federal grantfunds through a fund transfer to theGeneral Fund.
2. Central Services Cost Allocation - TheFinance Department annually calculatesthe full cost of central services providedto Enterprise funds. These allocatedcosts are recouped from the Enterprisefunds through fund transfers to theGeneral Fund.
3. Employee Compensation Costs - Costsfor employee compensation including allwages, social security, industrial, health,life, unemployment, dental insuranceand other personal allowances areallocated to each department. Annualamounts for cash conversion ofvacation, compensatory time and sickleave are included in the budget.However, future values of compensatedabsences are not included in the budgetbut are disclosed in the notes to thecomprehensive annual financial reportat year’s end.
4. Enterprise Cost Recovery - Aviation,Water, Wastewater and Solid Waste arefully self-supporting from rates, fees andcharges and, as such, are budgeted andaccounted for as Enterprise funds. Costrecovery includes direct operation andmaintenance expenses, capitalexpenditures, debt service, indirect costallocation, and in-lieu property taxes,where allowable. The ConventionCenter, while accounted for usingenterprise accounting principles, ispartially financed from rental andparking fees with the remainder comingfrom earmarked sales taxes. Finally,federal regulations preclude theAviation Fund from paying in-lieuproperty taxes. By City Council policy,the Convention Center Fund does notpay in-lieu property taxes.
5. Internal Cost Accounting Allocation -Interdepartmental services performedby one department for another arecredited to the performing departmentand charged to the receivingdepartment to reflect the accurate costsof programs. The rates used areintended to reflect full costs includingappropriate overhead.
6. Maintenance and Replacement ofRolling Stock and Major Facilities - Amultiyear plan is used to project theneed for, and costs of, significant streetpavement, facility and equipment repairand replacement. The planning horizonfor each asset category is matched tothe life of the asset. Annually, that plan,combined with periodic physicalinspections of streets, facilities, vehiclesand other equipment, is used to developfunding levels for inclusion in thebudget. During economic downturns,these amounts are debt-financed with arepayment schedule shorter than theexpected life of the asset.
76
7. Pension Funding - In addition to otheremployee compensation amounts,pension amounts are allocated to eachdepartment. The required employercontribution is determined actuariallyto fund full benefits for active membersand to amortize any unfunded actuarialliability as a level percent of projectedmember payroll over a 20-year period.
8. Self-Insurance Costs - With a fewexceptions, the city is fully self-insuredfor general and automotive liabilityexposures. The major exceptions to self-insurance include airport operations,police aircraft operations and excessgeneral and automotive liability forlosses in excess of $7.5 million. Anindependent actuary determines theself-insurance costs, which arecombined with purchased policy costsand allocated to department budgetsbased on the previous five years’ lossexperience of each department.
Revenue Management
All local governments struggle to generatethe funds necessary to provide, maintainand enhance the service demands of theircommunity. Due to the legal limitations onproperty taxes in Arizona, and due to thepre-emption of city-imposed income,luxury and gas taxes, Arizona cities andtowns largely rely on local sales taxes and state-shared sales, income and vehiclelicense taxes. In Phoenix, 43 percent ofGeneral Fund revenue comes from thelocal sales tax. This reliance on sales taxcollections results in a highly cyclicalrevenue base. Significant decreases intotal General Fund revenue and salestaxes in particular led to the City Council’sFebruary 2010 approval of a temporarysales tax on food for home consumptioneffective April 1, 2010, which is set byordinance to expire on March 31, 2015.
Given our reliance on sales taxes,developing personal income is animportant step in managing our revenuebase. In recent years, considerable effort
has been devoted to attracting employersthat will provide our residents with qualityjobs and to developing a local workforcethat will support the needs of qualityemployers. We also have worked to developan employment base that is not as heavilyconcentrated in the highly cyclicalconstruction industry. However, the recentunprecedented declines in constructionactivity and unemployment in all sectorshad a significant negative impact onrevenue.
Also important to managing ourrevenue base is the continued growthexpected in catalog and Internet sales. Ouruse tax is an important tool in reducingthe impact of this shift from sales in“Bricks and Mortar” stores. Thedevelopment of our tourism-related salestax base (hotels, restaurants and short-term car rentals) is another importanthedge against future revenue loss due togrowth in Internet and catalog sales.Tourism is another industry that sufferedsignificant declines in the recentrecession.
Finally, utility taxes levied against thesales of electricity, natural gas,telecommunications, water and sewermake up about 21 percent of our localsales tax base. Generally, utility taxes arenot responsive to economic conditions andprovide us with a fairly significant revenuesource that remains stable during periodsof economic downturn. In addition, severaldetailed revenue policies are listed below.
1. Privilege License and Use Taxes (SalesTax) - The City Council may set the citysales tax rate by ordinance. The citysales tax rate on retail sales and mostother categories is 2.0 percent. TheModel City tax code exemption on foodfor home consumption was removed byCity Council action in February 2010. Itwas last imposed in June 1980. The ratevaries for certain other specializedtaxing categories as outlined in theOperating Fund Revenues section of thisdocument.
2. Property Taxes - By City Council policy,the combined city property tax rate is$1.82 per $100 of assessed valuation. Inaccordance with the Council-adoptedpolicy, the primary property tax levy isannually set at the previous year’s levyamount plus two percent and an amountassociated with new property. Thesecondary levy is then set at an amountnecessary to achieve a total $1.82 taxrate.
3. In Lieu Property Taxes - In-lieuproperty taxes are charged to the Water,Wastewater and Solid Waste funds basedupon acquisition or construction costwith the appropriate assessment ratioand current property tax rate applied.These amounts are calculated annuallyby the Finance Department.
4. Annual User Fee Review - The cityauditor conducts a comprehensive userfee review to project cost recovery rates,and then compares the projections tothe established cost recovery policy. Therates are based upon generally acceptedfull-cost accounting standards. The CityManager recommends expenditurereductions or fee adjustments to theCity Council to maintain the establishedcost recovery policy.
5. Fines and Forfeitures - The MunicipalCourt has jurisdiction over establishingmany of the fine and forfeiture feeschedules.
6. Parks and Recreation Fees andCharges - The Parks and RecreationBoard has jurisdiction over establishingcharges for miscellaneous recreationalfacilities and advising the City Councilon fees to be set for golf courses, tenniscenters and swimming pools.
7. Interest Earnings - Interest earningsfrom the investment of temporarily idlefunds are credited to the fundgenerating the earnings.
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FUND STRUCTURE
The budget presented here is made up ofthree distinct fund groups: General,Special Revenue and Enterprise funds.
All planned uses of these fund types areincluded in the annual budget. Fiduciaryfunds, which are described later in thissection, are not included in the annualbudget.
General Funds
General – These revenues come from fourmajor sources: local sales (privilegelicense) taxes, local primary propertytaxes, state-shared revenues, and user feesand other revenues. State-shared taxesinclude state-shared sales, vehicle licenseand income taxes. User fees and otherrevenues include cable and ambulancefees as well as interest earnings and fines.General funds are used to provide the mostbasic of city services including police, fire,parks, library, municipal court andneighborhood services.
Parks – The City Charter requires that aportion of the primary property tax levy beused to support parks programs. Todemonstrate compliance with thisrequirement, all parks revenues andexpenditures are segregated in a separatefund.
Library – State law requires that fundsreceived for library purposes aresegregated in a separate Library Fund.Revenues include library fines and fees,which are used to help offset libraryexpenditures.
Cable Communications – Included in thisfund are the revenues and expendituresassociated with administering cabletelevision licensing and programming thegovernment and education accesschannels.
Special Revenue Funds
Arizona Highway User Revenue (AHUR) – AHUR funds are made up ofstate-collected gas taxes and a portion ofother state-collected fees and charges suchas registration fees, driver’s licenses andmotor carrier taxes. These funds can onlybe used for street maintenance andconstruction, and street-related debtservice.
Capital Construction – This fund is usedto account for the two percent utility taxeson telecommunication services that areused for pay-as-you-go capital projects inthe city’s right-of-way.
City Improvement – This fund is used toaccount for debt payments incurred as aresult of facilities built by the CivicImprovement Corporation.
Community Reinvestment – Revenues andexpenditures associated with economicredevelopment agreements are maintainedin this fund.
Court Awards – This fund includesrevenue resulting from court awards ofconfiscated property under both thefederal and state Organized Crime Acts.Expenditures are restricted to additionallaw enforcement programs in the Policeand Law departments.
Development Services – Fee revenues andexpenditures associated with permittingand inspection services provided by thePlanning and Development Departmentare maintained in this fund.
Excise Tax – The Excise Tax Fund is usedto account for tax revenues ultimatelypledged to pay principal and interest onvarious debt obligations.
Golf – The Golf Fund is used to accountfor revenue and expenditures associatedwith the rental, sales, development andmaintenance of the city’s golf courses.
Grant Funds – Grant funds includefederal, state and local agency awards.These are Community Development BlockGrant funds, Public Housing funds, HumanServices funds and various other smallergrant allocations. Grant funds can beapplied only to grant-eligible expenditures.
Neighborhood Protection – These fundsare used to account for the revenues andexpenditures associated with a voter-approved 0.1 percent increase in the salestax in 1993. Revenue from the tax increaseis earmarked for police and fireneighborhood protection programs, andpolice Block Watch programs. The PoliceDepartment is allocated 70 percent, FireDepartment 25 percent and Block WatchPrograms 5 percent of revenues.
Other Restricted Funds – This is acombination of funds used to segregaterestricted revenues and related expenses.Included are Court TechnologyEnhancement Fees, Parks revenues suchas Heritage Square and Tennis Center, andvarious other receipts and contributionsreceived in small amounts and earmarkedfor restricted purposes.
Parks and Preserves – This fund is usedto account for the funds generated by the0.1 percent increase in the sales taxapproved by voters in 1999 for a 10-yearperiod. In 2008, voters approved a 30-yearextension to July 1, 2038. The funds areused to purchase state trust lands for theSonoran Desert Preserve open space, andthe development and improvement ofregional and neighborhood parks toenhance community recreation.
78
Public Safety Enhancement – These fundsare used to account for the revenues andexpenditures associated with a voter-approved 2.0 percent increment of the 2.7percent sales tax on utilities withfranchise agreements in March 2005. ThePolice Department, including the Office ofEmergency Management, is allocated 62percent and the Fire Department 38percent of revenues.
2007 Public Safety Expansion – Thesefunds are used to account for the 0.2percent increase in the sales tax approvedby voters in 2007. The funds are designatedfor hiring additional police personnel andfirefighters; hiring crime sceneinvestigator teams to improve evidencecollection; improving fire protectionservices, to improve response times; andincreasing paramedic and other emergencymedical services. The Police Department isallocated 80 percent of this fund and theFire Department is allocated 20 percent.
Regional Transit – This fund is used toaccount for transit services that are paidby and provided for other cities or fundedby the Regional Public TransportationAuthority.
Regional Wireless Cooperative (RWC) –This fund accounts for revenues andexpenditures associated with the RegionalWireless Cooperative (RWC), which is anindependent, multi-jurisdictionalorganization that manages and operates aregional radio communications networkbuilt to seamlessly serve the interoperablecommunication needs of first respondersand other municipal radio users in andaround Central Arizona’s Valley of the Sun.Phoenix operates and maintains thenetwork and is also responsible foraccounting, budgeting, procurement andcontracting for the RWC. Costs are sharedamong the RWC member organizations.
Secondary Property Tax – In Arizona,property taxes are divided into twoseparate levies: primary and secondary.The primary levy can be used for generaloperating and maintenance expense. Thesecondary levy can only be used forpayment of general obligation bondinterest and redemption. Because of thisrestriction, secondary property tax fundsare segregated in a Special Revenue Fund.
Sports Facilities – This fund accounts forrevenues generated from a 1.0 percenthotel/motel tax and a 2.0 percent tax onshort-term vehicle rentals. These funds aredesignated for payment of debt service andother expenditures related to thedowntown sports arena.
Transit 2000 – This fund is used toaccount for the 20-year, 0.4 percent salestax dedicated to transit improvementsapproved by voters on March 14, 2000. Farebox collections are also included in thisfund.
Enterprise Funds
Enterprise funds include Water,Wastewater, Aviation, Solid Waste andConvention Center funds. With theexception of Convention Center funds,these funds come entirely from the feesand rents paid by those who use theservices and facilities provided. Enterprisefunds are “self-contained” and can only beused to pay for the costs associated withEnterprise Fund-related services andprograms. Therefore, fees are set torecover all costs associated with providingthese services. These costs include day-to-day operations and maintenance, in lieuproperty taxes, pay-as-you-go capitalimprovements and debt service.
Convention Center funds come from acombination of rental and parking incomeand earmarked sales taxes. Theseearmarked taxes include a portion of thehotel, restaurant and bar, constructioncontracting and advertising taxes levied bythe city. This tax stream has beenearmarked to repay the debt issued for theConvention Center facility and to providefor operations and maintenance costs.
Fiduciary Funds
Fiduciary funds, including trust andagency funds, represent funds held forothers. As such, these funds are notincluded in the annual budget. Also,reserves and expenditures for fiduciaryfunds are not presented in thecomprehensive annual financial report(CAFR). However, the year-end balancesheld in fiduciary funds are provided in theCAFR.
79
80
Inspired by the hues of
the Sonoran Desert an
d the cool tones of the
Arizona sky,
the Phoenix Convention
Center welcomes visitors w
ith natural light strea
ming in
from dramatic architecture reminiscent of
the Grand Canyon.
Revenue estimates for 2013-14 are basedon assumptions about the local economy,population changes, activity levels,underlying estimates for cost-recoveryrates and fees, and on the continuation ofcurrent state revenue collection andsharing practices. In addition, otherrevenue estimates are developed using themost current information from outsideentities that establish such fees. Examplesof revenues derived from fees set byoutside entities include portions of courtfines and fees, and ambulance fees.Finally, consistent with the property taxpolicy adopted by Council in December2011, the primary property tax levyremains at the maximum allowableamount and includes some of the costsassociated with tort liability judgments.The current combined primary andsecondary property tax rate remains thesame at $1.82 in accordance with Councilpolicy through 2013-14.
State and local economic growth beganto stabilize in the latter part of 2009-10after the recession, and the economycontinues to recover, however at a slowerpace than prior economic recoveries.Economists are predicting the currenteconomic recovery to continue, with a fullrecovery not anticipated until 2015 or2016. There are several factors preventinga more typical pace of recovery. The ratesof net migration and job increases areslower than in prior years. The housingmarket is improving; however it is not fullyrecovered. Consumers are remainingcautious as a result of the recentexpiration of the payroll tax cut and thefederal sequestration. City sales taxrevenues are increasing which is a positivesign, but they remain below the peak levelsreached in fiscal year 2006-07. Personalincome is one of many indicators used forestimating state and local sales taxes, andstate-shared income taxes. Consistent with
projections by local economists, the chartbelow shows that personal income isexpected to grow by 5.5 percent in 2013-14,which is up slightly from the 4.5 percentestimated for 2012-13.
Several other economic indicators areused to develop revenue forecastsincluding the consumer price index,unemployment, population, gasoline sales,housing unit data, wage and salary relatedinformation, retail sales and disposableincome. A forecasting software program isused to create several statistical modelsusing data from the University of Arizona’sForecasting Project. These models assistwith the estimation process and serve as areasonableness test for projections. Theestimation process also includesinformation gathered throughout the yearfrom national and local publications, aswell as opinions from professionals ineconomics and finance from stategovernment, state universities and theprivate sector.
Revenue Estimates
81
2007-08
Personal Income Growth
12%Ê
10%Ê
8%Ê
6%Ê
4%Ê
2%Ê
0%Ê
(2%)
(4%)
(6%)
2.8%$
3.0%$
3.8%$
(3.3%)
$
1.1%$
2004-05 2008-09 2009-10 2010-11 2011-12
4.5%$
5.5%$
2006-07
$
2005-06
10.5%$ 8.2%
$7.9%$
Fiscal Year2012-13* 2013-14*
*Estimated
FIVE YEAR EXCISE TAX FORECAST
Excise taxes include local sales taxes,state-shared sales and income taxes, andsales tax license fees and permits. Excisetaxes represent a significant portion ofGeneral Fund revenues. In addition toproviding General Fund resources, localsales taxes also provide non-General Fundresources to programs such as Transit,Parks and Preserves, Convention Centerand public safety.
The following table details the five yearexcise tax revenue forecast. Included inthe forecast are several economicassumptions including moderate growthfor city and state sales tax rates; growth inpopulation, but at a smaller rate than prioryears; increases in personal income andjob growth; decreased unemployment;marginal increases in consumer spendingand continued improvement of the housing
market. Although increases in personalincome, jobs and population are expected,the pace of growth is expected to be slowand will prevent a robust recovery. Theforecast also includes no further periods ofrecession, no change to state sharedrevenue formulas, continuation of thecurrent revenue base, and a two percentfood for home consumption tax effectiveApril 1, 2010, through March 31, 2015.
82
2011-12 2012-13 % 2013-14 % 2014-15 % 2015-16 % 2016-17 % 2017-18 %
Actual Estimate Change Estimate Change Forecast Change Forecast Change Forecast Change Forecast Change
Privilege License Tax
Privilege License Tax1 $306,085 $320,142 4.6% $341,947 6.8% $359,554 5.1% $356,856 -0.8% $381,307 6.9% $405,969 6.5%
Police Neighborhood Protection1 18,583 19,719 6.1% 21,066 6.8% 22,163 5.2% 22,082 -0.4% 23,609 6.9% 25,139 6.5%
Police Block Watch1 1,320 1,409 6.7% 1,505 6.8% 1,583 5.2% 1,576 -0.4% 1,684 6.9% 1,796 6.6%
Fire Neighborhood Protection1 6,600 7,043 6.7% 7,523 6.8% 7,915 5.2% 7,886 -0.4% 8,432 6.9% 8,978 6.5%
Police - 2007 Public Safety Expansion1 42,467 45,072 6.1% 48,152 6.8% 50,658 5.2% 50,474 -0.4% 53,961 6.9% 57,461 6.5%
Fire - 2007 Public Safety Expansion1 10,617 11,269 6.1% 12,037 6.8% 12,664 5.2% 12,619 -0.4% 13,490 6.9% 14,365 6.5%
Parks and Preserves1 26,545 28,171 6.1% 30,094 6.8% 31,662 5.2% 31,546 -0.4% 33,726 6.9% 35,913 6.5%
Transit 20001 106,185 112,683 6.1% 120,380 6.8% 126,646 5.2% 126,185 -0.4% 134,904 6.9% 143,652 6.5%
Convention Center Excise Tax 40,030 41,246 3.0% 43,924 6.5% 47,144 7.3% 50,269 6.6% 53,900 7.2% 57,414 6.5%
Sports Facilities Excise Tax 14,670 14,867 1.3% 15,564 4.7% 16,478 5.9% 17,662 7.2% 18,711 5.9% 19,805 5.8%
Privilege License Fees (Annual) 2,147 2,150 0.1% 2,150 0.0% 2,187 1.7% 2,224 1.7% 2,262 1.7% 2,300 1.7%
PLT Application Fees 169 150 -11.2% 200 33.3% 200 0.0% 225 12.5% 250 11.1% 275 10.0%
Treasury Collection Service Fee 19 13 -31.6% 13 0.0% 15 15.4% 17 13.3% 19 11.8% 21 10.5%
Government Lease Property Excise Tax 306 475 55.2% 475 0.0% 500 5.3% 525 5.1% 550 4.7% 575 4.5%
Subtotal (PLT) $575,743 $604,409 5.0% $645,030 6.7% $679,369 5.3% $680,146 0.1% $726,805 6.9% $773,663 6.4%
Utility & Franchise
Utility & Franchise Tax $86,836 $88,847 2.3% $92,887 4.5% $97,433 4.9% $101,331 4.0% $106,152 4.8% $110,398 4.0%
Jail Tax 2 13,521 6,875 -49.2% 7,000 1.8% 7,180 2.6% 7,365 2.6% 7,554 2.6% 7,749 2.6%
Storm Water Management 4,605 4,651 1.0% 4,674 0.5% 4,721 1.0% 4,792 1.5% 4,863 1.5% 4,936 1.5%
Capital Construction 16,560 16,675 0.7% 17,051 2.3% 17,591 3.2% 18,294 4.0% 19,030 4.0% 19,786 4.0%
Police Public Safety Enhancement 14,675 15,259 4.0% 15,566 2.0% 16,210 4.1% 17,021 5.0% 17,857 4.9% 18,571 4.0%
Fire Public Safety Enhancement 8,995 9,352 4.0% 9,541 2.0% 9,936 4.1% 10,433 5.0% 10,945 4.9% 11,384 4.0%
Subtotal (Utility & Franchise) $145,192 $141,659 -2.4% $146,719 3.6% $153,071 4.3% $159,236 4.0% $166,401 4.5% $172,824 3.9%
Licenses & Permits 2,946 2,795 -5.1% 2,830 1.3% 2,898 2.4% 2,969 2.5% 3,043 2.5% 3,121 2.6%
State Sales Tax3,4 114,018 119,646 4.9% 127,448 6.5% 135,640 6.4% 144,393 6.5% 153,108 6.0% 161,473 5.5%
State Income Tax3,4 122,012 147,668 21.0% 160,852 8.9% 170,000 5.7% 180,000 5.9% 190,000 5.6% 201,000 5.8%
TOTAL $959,911 $1,016,177 5.9% $1,082,879 6.6% $1,140,978 5.4% $1,166,744 2.3% $1,239,357 6.2% $1,312,081 5.9%
1/ 4/1/2015 sunset of emergency sales tax on food for home consumption.2/ Effective July 2012 the City Council voted to reduce the jail tax by 50%.3/ Assumes 2010 Census population for state shared revenues.4/ Assumes no change to State shared revenue formulas or legislation that could impact state income or sales tax collections.
Note: * Assumes no further period of recession and modest revenue growth for the forecast period.* Assumes no change to current revenue base as provided in applicable state statutes and city ordinances.* Assumes no future fee increases/decreases or new sources of revenue.
FIVE YEAR EXCISE TAX REVENUE FORECAST(In Thousands of Dollars)
GENERAL FUNDS
Total 2013-14 General Fund revenues areestimated to be $1,051.8 million or 6.4percent more than 2012-13 estimates of$988.5 million. General Fund revenuesconsist of four major categories: localtaxes, state-shared revenues, primaryproperty taxes and user fees. Following aredescriptions of the revenue sources withinthese four categories and explanations of2013-14 revenue estimates.
Local and state sales tax collectionsrepresent approximately 53 percent ofGeneral Fund revenues. Local sales taxesfor 2013-14 are expected to grow by 6.3percent over 2012-13 estimates. This is anincrease from the 4.1 percent growth ratein local sales taxes estimated in 2012-13.Phoenix’s share of state sales taxes for2013-14 is expected to grow by 6.5 percentover 2012-13 estimates. This is increasedfrom the 4.9 percent growth in Phoenix’sshare anticipated in 2012-13.
Combined local and state sales taxrevenues for 2013-14 are expected to growby 6.4 percent over 2012-13 estimates.Combined rates of growth since 2004-05are provided in the chart below.
The table on the next page detailsestimated General Fund revenues by majorcategory.
83
Fiscal Year2008-09
* Estimated2009-10 2010-112005-062004-05 2007-08
(6.1%)
2013-14*2012-13*
9.0%8.1%
4.4%
(3.5%)
13.8%
(12.7%)
2006-07
4.3%5.0%6.4%
2011-12
16%Ê
12%Ê
8%Ê
4%Ê
0%Ê
(4%)
(8%)
(12%)
(16%)
Local and State Sales TaxRevenue Growth
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84
85
LOCAL SALES TAXES AND FEES
This major revenue category consists ofvarious local sales taxes, privilege licensefees, use tax, and franchise taxes and fees.The 2013-14 estimate is $444.7 million,which is $26.0 million or 6.2 percentgreater than the 2012-13 estimate of $418.7million. The assumptions used to estimatelocal sales taxes follow.
Local Sales Tax
The city of Phoenix’s local sales taxconsists of 15 general categories that arecollected based on a percentage ofbusiness income accruing in each category.To protect local businesses, Phoenix alsolevies a use tax on purchases where nosales taxes were paid.
Of the 15 categories collected, allexcept advertising provide General Fundresources and contribute to voter-approvedresources for police and fire, parks andpreserves, and transit programs. Portionsof several categories and the entireadvertising category are restricted to theConvention Center Fund and/or the SportsFacilities Fund. Effective April 1, 2010, thetemporary Phoenix Emergency Privilege
Sales Tax on Food provides for the taxationof the sale of food for home consumptionunder the retail classification at a rate of 2percent. The tax will sunset on March 31,2015, and provides resources to theGeneral Fund and the voter-approvedNeighborhood Protection, 2007 PublicSafety Expansion, Parks and Preserves andTransit 2000 Funds. Beginning in May2005, 2 percent of utilities sales taxcollections paid by those utilities with a
franchise agreement were directed to thenewly established Public SafetyEnhancement Fund. Finally, an additional2 percent tax on the telecommunicationscategory provides resources for the CapitalConstruction Fund. The table on thefollowing page provides a listing of thelocal sales tax categories, indicating thespecific tax rates for each fund and thetotal tax rate for each category.
CURRENT LOCAL SALES TAX RATES BY CATEGORY
2007General Neighborhood Public Safety Public Safety Parks & Transit Convention Sports CapitalFund Protection Expansion Enhancement Preserves 2000 Center Facilities Construction Total
Advertising – – – – – – 0.5% – – 0.5%Contracting 0.7% 0.1% 0.2% – 0.1% 0.4% 0.5% – – 2.0%Job Printing 0.7% 0.1% 0.2% – 0.1% 0.4% 0.5% – – 2.0%Publishing 0.7% 0.1% 0.2% – 0.1% 0.4% 0.5% – – 2.0%Transportation/Towing 0.7% 0.1% 0.2% – 0.1% 0.4% 0.5% – – 2.0%Restaurants/Bars 0.7% 0.1% 0.2% – 0.1% 0.4% 0.5% – – 2.0%Leases/Rentals/Personal Property 1.2% 0.1% 0.2% – 0.1% 0.4% – – – 2.0%Short-Term MotorVehicle Rental 1.2% 0.1% 0.2% – 0.1% 0.4% – 2.0% – 4.0%Commercial Rentals 1.3% 0.1% 0.2% – 0.1% 0.4% – – – 2.1%Lodging RentalsUnder 30 Days 1.2% 0.1% 0.2% – 0.1% 0.4% 2.0% 1.0% – 5.0%Lodging Rentals30 Days and Over 1.2% 0.1% 0.2% – 0.1% 0.4% – – – 2.0%Retail 1.2% 0.1% 0.2% – 0.1% 0.4% – – – 2.0%Amusements 1.2% 0.1% 0.2% – 0.1% 0.4% – – – 2.0%Utilities 2.7%* – – 2.0%** – – – – – 4.7%Telecommunications 2.7% – – – – – – – 2.0% 4.7%*The General Fund portion of the utilities category includes the 2.0 percent franchise fee paid by utilities with a franchise agreement.**The Public Safety Enhancement designated 2.0 percent sales tax applies only to those utilities with a franchise agreement.
LocalSales Tax
42.2%
GENERAL FUNDSTotal Revenues – $1,051.8 Million
The General Fund portion of the localsales tax estimate is $434,834,000 for 2013-14. This is an increase of $25,845,000 or 6.3percent from the 2012-13 estimate of$408,989,000. The increase in local salestax revenue is based on the assumptionthe economy will continue to improve at amodest pace. Estimated growth of 5.3percent is projected in the retail salescategory. Projected increases in othercategories include 4.5 percent for utilityand franchise; 8.0 percent for restaurantsand bars; and 6.0 percent for hotel/motelroom rentals.
As shown in the pie chart to the right,the retail category representsapproximately 44 percent of the localGeneral Fund sales tax. Personal incomegrowth, which is used as a trend indicatorfor retail sales activity, is projected at 5.5percent for 2013-14.
The tax on food for home consumption,which was effective April 1, 2010, isprojected to generate approximately $30.8million in General Fund revenue in 2012-13 and $32.7 million in 2013-14. On May1,2013, the City Council approved a motionto direct staff to prepare a plan by Oct. 1,2013, that would allow the potentialreduction of the sales tax on food for homeconsumption to 1 percent effectiveJanuary 1, 2014. The reduction woulddecrease 2013-14 revenue by an estimated$12.1 million and requires adoption of anordinance by the City Council.
General Fund sales tax revenue iscollected on three rental categories: leasesand rentals of personal property,commercial real property rentals andapartment rentals. For 2013-14, thesecategories are expected to increase 20.0percent, 7.0 percent and 12.0 percentrespectively. These three categoriescombined are approximately 19 percent oflocal General Fund sales tax revenue.
The contracting category is expected togrow by 4.0 percent in 2013-14.Construction activity in the commercialand retail markets continues to be sluggishand contracting sales tax is expected toremain unchanged in 2012-13. For 2013-14,economic indicators such as job andbusiness expansion coupled withanticipated population growth indicateconstruction activity should improve from2012-13. This category representsapproximately 4 percent of the localGeneral Fund sales tax revenue.
The restaurants and bars category isexpected to increase 8.0 percent and thehotel/motel category is expected toincrease 6.0 percent in 2013-14. These twocategories, combined with revenue fromshort-term motor vehicle rentals, areclosely related to tourism activity. Theexpected growth rates for these categoriesfor 2012-13 are 6.5 percent and 4.0 percentrespectively. Revenues from these tourism-related activities represent approximately7 percent of local General Fund sales taxrevenue.
The utility tax category isapproximately 21 percent of local GeneralFund sales tax revenue. The categoryincludes electricity, natural and artificialgas, water consumption, sewer service andcommunications activities. The 2013-14estimate for utility sales and franchise taxrevenue is $92,569,000, which is anincrease of 3.9 percent over the 2012-13estimate. The increase is due to expectedmodest increases in account growth andutility consumption as the economycontinues to improve.
A use tax is assessed on the purchaseof tangible personal property, which isstored, used or consumed within the city,and for which a local sales tax has notbeen paid at an equivalent rate to the cityof Phoenix rate. The tax also applies toitems purchased for resale andsubsequently used or consumed in thebusiness. The 2013-14 estimate of$15,288,000 is unchanged from the 2012-13estimate. This category is subject to
fluctuations in purchasing practices, aswell as economic drivers. The use taxcategory is approximately 3.5 percent oflocal General Fund sales tax revenue.
The following table shows GeneralFund sales tax collections since 2009-10.The amounts shown exclude the twoadditional utility tax items that arecollected based on water service accounts.
86
Various Leasesand Rentals
19%
Retail 44%
Other 5%
Tourism-related7%
Contracting4%
Utility& Franchise
21%
GENERAL FUNDS Local Sales Taxes
GENERAL FUND SALES TAXES(In Thousands of Dollars)
Fiscal Year Revenues % Change From Previous Year
2009-10 $338,533 (5.5)%
2010-11 373,767 10.4
2011-12 392,922 5.1
2012-13 (Est.) 408,989 4.1
2013-14 (Est.) 434,834 6.3
87
STATE-SHARED REVENUES
This major revenue category consists ofthe city’s share of the state sales tax, thestate income tax and vehicle license tax.The 2013-14 estimate for this category is$339.5 million, which is $23.4 million or 7.4percent more than the 2012-13 estimate of$316.0 million. The increase is due to anestimated increase of 8.9 percent in state-shared income taxes and moderate growthof 6.5 percent in state sales taxes. State-shared vehicle license tax revenue for2013-14 is estimated to increase at 5.0percent over the 2012-13 estimate.
State Sales Tax
The state sales tax rate on most taxableactivities is 6.6 percent. The revenues aresplit between a “distribution base,” ofwhich Phoenix receives a share, and a“combined non-shared” category, which isallocated entirely to the state. Withexceptions for some categories, thedistribution base consists of either 20 or 40percent of collections depending on thetax classification. The 0.6 percenteducation tax included in the total tax rateis not included in the distribution base. InJune 2010, the voters of Arizona approvedProposition 100 which increased the taxrate by 1.0 percent for 36 months and is
Privilege License Fees
The city charges a $20 fee to process anapplication for a privilege tax license andassesses a $50 annual fee for existinglicenses. These fees are intended torecover the costs associated withadministering a fair and efficient sales taxsystem. This category also includes a $2per unit ($50 maximum) annual fee oneach apartment complex for non-transientlodging. The recommended 2013-14estimate for privilege license fee revenueof $2,363,000 represents a 2.2 percentincrease from the 2012-13 estimate of$2,313,000. The increase is based on theassumption that as the economy continuesto improve the number of applications willincrease.
Other General Fund Excise Taxes
The jail tax collected on water serviceaccounts was implemented on Oct. 1, 1990,and provides resources to help offset jailcosts paid to Maricopa County formisdemeanor defendants. The City Councilvoted to reduce the jail tax 50 percenteffective July 2012. The 2013-14 estimateof $7,000,000 represents a 1.8 percentincrease from the 2012-13 estimate of$6,875,000.
State-SharedRevenue
32.3%
GENERAL FUNDSTotal Revenues – $1,051.8 Million
________________________________________________________________________STATE SALES TAXES(In Thousands of Dollars)________________________________________________________________________
Cities’ Share of State Collections Phoenix’s Share __________________ ______________________________
Fiscal Year Total % Change Percent Amount % Change ________________________________________________________________________2009-10 $356,998 (7.8)% 30.3% $106,916 (8.0)%2010-11 373,259 4.6 30.01/ 111,787 4.62011-12 392,476 5.1 28.8 114,018 2.02012-13 (Est.) 414,300 5.6 28.8 119,646 4.92013-14 (Est.) 440,535 6.3 28.8 127,448 6.5
1Impact of 2010 Census population changes became effective in June 2011.
not included in the distribution base.Under the current formula, incorporatedcities receive 25 percent of the distributionbase. These funds are distributed toindividual cities on the basis of relativepopulation percentages. Phoenix’s share ofthe distribution to cities for 2013-14 isestimated at 28.78 percent.
The city’s share of the state sales taxfor 2013-14 is expected to be $127,448,000,which is $7,802,000 or 6.5 percent morethan the 2012-13 estimate of $119,646,000.This estimate is based on the assumptionthat, similar to the local economy, thestate economy will continue to improve in2013-14. The table on the previous pageshows the cities’ share of state sales taxes,Phoenix’s allocation and annualincrease/decrease since 2009-10. Thepopulation factor changes with decade ormid-decade census counts and periodicadjustments made throughout the year.
State Income Tax
Since 1973, cities in Arizona have shared15 percent of the actual state personal andcorporate income tax collected two yearsearlier. Individual cities receive theirportion based on the cities’ share of thestate population.
The 15 percent portion of the stateincome tax, which will be distributed toArizona cities and towns in 2013-14, isexpected to be $559.5 million. Thedistribution represents actual individualand corporate income tax collections bythe state in the 2011-12 fiscal year. Theanticipated $559.5 million is an 8.9 percent
increase from the previous fiscal year. Theincrease is attributable to higher thanestimated individual and corporate incometax collections. Phoenix's total distributionfor 2013-14 is estimated at $160,852,000and is an increase of $13,184,000 or 8.9percent from the 2012-13 estimate of$147,668,000.
The following table shows the totalcities’ share of state income tax, Phoenix’sshare, percentage allocation and annualincrease/decrease since 2009-10. Similar tosales tax sharing, population is changedonly on the basis of a census count withperiodic corrections made throughout theyear.
88
STATE INCOME TAX(In Thousands of Dollars)
Fiscal Year
2009-10 15.0% $628,656 13.6% 30.3% $190,546 (13.7)%
2010-11 15.0 473,927 (24.6) 30.3 143,647 (24.6)
2011-12 15.0 424,573 (10.4) 28.81/ 122,012 (15.1)
2012-13 (Est.) 15.0 513,584 21.0 28.8 147,668 21.0
2013-14 (Est.) 15.0 559,486 8.9 28.8 160,852 8.9
1/Impact of 2010 Census population changes.
Cities’ Share of State Collections Phoenix’s Share
% Sharedw/Cities
Total % Change Percent Amount % Change
89
Vehicle License Tax
Vehicle license taxes have been sharedwith Arizona cities and towns since 1941.The tax is assessed on the basis of an advalorem rate on each $100 in value. Thevalue is equal to a percent of themanufacturer’s base retail price at thetime of initial registration. During eachsucceeding year, this value is decreaseduntil the established minimum amount isreached. The Arizona Department ofTransportation collects and distributes thetax.
Currently, 37.61 percent of collectionsare allocated to the Arizona Highway UserRevenue Fund. The remainder is allocatedby percentage to various state funds aswell as to the counties and cities. Thestate is responsible for distributing fundsto cities according to their relativepopulation within the county. Based on the2010 Census, Phoenix’s percentage ofpopulation within Maricopa County isapproximately 40.9 percent, down from42.6 percent based on the 2005 Census.
Phoenix’s share of the vehicle licensetax for 2013-14 is anticipated to be$51,150,000 which is $2,450,000 or 5.0percent more than the 2012-13 estimate of$48,700,000.
The following table shows the cities’share of the vehicle license tax, Phoenix’sshare, allocation percentage and annualpercentage change since 2009-10.
PRIMARY PROPERTY TAX
Arizona property taxes are divided into twolevies. The primary levy is used for generaloperation and maintenance expense. Thesecondary levy can only be used for voter-approved general obligation bond debtservice.
PrimaryProperty Tax
13.6%
GENERAL FUNDSTotal Revenues – $1,051.8 Million
________________________________________________________________________PRIMARY PROPERTY TAX________________________________________________________________________
Primary Assessed Rate per Valuation % Primary Levy % $100 Assessed
Fiscal Year (in Millions) Change (in Thousands) Change Valuation ________________________________________________________________________
2009-10 $16,062 9.5% $123,095 10.3% $.7664
2010-11 15,103 (6.0) 133,390 8.4 .8832
2011-12 12,232 (19.0) 128,955 (3.3) 1.0542
2012-13 10,803 (11.7) 133,929 3.9 1.2397
2013-14 (Est.) 9,890 (8.5) 145,024 8.3 1.4664________________________________________________________________________
________________________________________________________________________VEHICLE LICENSE TAX(In Thousands of Dollars)________________________________________________________________________
AmountDistributed by Phoenix’s Share Increase/(Decrease)
Fiscal Year Maricopa County Percent Amount Amount Percent________________________________________________________________________
2009-10 $116,197 42.6% $49,500 $(4,129) (7.7)%
2010-11 113,519 42.6 48,298 (1,202) (2.4)
2011-12 113,392 40.91/ 46,400 (1,898) (3.9)
2012-13 (Est.) 119,013 40.9 48,700 2,300 5.0
2013-14 (Est.) 125,000 40.9 51,150 2,450 5.0________________________________________________________________________1/Impact of 2010 Census population changes.
The annual increase in the primaryproperty tax levy is limited by the ArizonaConstitution to a 2 percent increase overthe prior levy plus an estimated levy forpreviously unassessed property (primarilynew construction), and allowable tortliability judgments.
Before 1996-97, the maximum levyallowed by the Arizona Constitution hadbeen levied each year. Leading up to 1996-97, due to a number of years of decliningassessed valuations, deferral of theproperty tax-supported CapitalImprovement Program was necessary. Anew revenue policy also was established.This policy called for a maximum andminimum allowable combined primary andsecondary property tax rate.
By 1996-97, the application of thisrevenue policy had driven the combinedrate down to the adopted minimum of$1.82. By Council policy, the $1.82 rateremains in effect today. The 2006 BondCommittee recommended that maximumallowable primary property taxes be leviedin order to help support operating andmaintenance costs resulting from 2006bond-funded capital projects.
The above chart shows the changes inthe primary property tax rate since 2009-10.
In accordance with the Counciladopted policy, the estimated 2013-14primary property tax levy is $145,024,000,which includes some allowable tortliability judgments totaling $10,008,000.The levy is a 8.3 percent increase over the2012-13 levy of $133,929,000. The primaryassessed valuation of $9.89 billion isapproximately 8.5 percent below the 2012-13 primary assessed valuation of $10.80billion.
Historically, actual property taxcollections are slightly lower than theamount levied. For 2013-14, actualcollections for primary property tax areestimated to be $142,849,000 or 98.5percent of the levy amount.
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Fiscal Year *Estimated
$1.50
$1.25
$1.00
$0.75
$0.50
$0.25
$0.00 2009-10 2010-11
$0.88
2011-12
$1.05
2012-13
$1.24
2013-14*
$1.47
Primary Property Tax Rate(combined rate each year is $1.82)
$0.77
The 2013-14 levy results in anestimated primary property tax rate of$1.4664 per $100 of assessed valuation anda secondary property tax rate of $0.3536,which maintains a total property tax rateof $1.82 per $100 of assessed valuation.
The table on the previous page showsprimary assessed valuation, primaryproperty tax revenues and primary ratessince 2009-10.
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USER FEES/OTHER REVENUES
This major revenue category consists oflicenses and permits, fines and forfeitures,cable television fees, parks and librariesfees, various user fees designed to recoverthe costs of providing specific city services,and other miscellaneous General Fundrevenue sources. The 2013-14 estimate forthis category is $124.8 million, which is$2.9 million or 2.4 percent more than the2012-13 estimate of $121.9 million.Following are descriptions of the variouscategories and explanations of the revenueestimates.
Licenses and Permits
This category consists of various businesspermit application and annual feesincluding liquor license applications,amusement machines, annual liquorlicenses and other business licenseapplications and fees. The 2013-14estimate of $2,830,000 is slightly higherthan the 2012-13 estimate of $2,795,000. Itis assumed that as the economy continuesto expand, growth in this category willincrease.
Cable Communications
The city imposes up to a 5 percent fee onthe gross receipts of cable televisionlicensees in return for the use of streetsand public rights of way by cablecompanies in the provision of cabletelevision service. The 2013-14 estimate of$9,525,000 is slightly lower than the 2012-13 estimate of $9,530,000 due to anincreased deduction for educationalsupport. The projection assumes nochange in the customer base for thecurrent cable provider. Cable providersalso make annual payments to theEducational Access Account, which areadjusted annually by the consumer priceindex.
Fines and Forfeitures
This category is comprised of varioussanctions including traffic movingviolations, criminal offense fines, parkingviolations, driving under the influence anddefensive driving program revenues. The2013-14 estimate is $19,312,000, which is2.3 percent lower than the 2012-13estimate of $19,757,000. The decrease isattributable to outsourcing the SubstanceAbuse Screening Services provided by theMunicipal Court.
Court Default Fee
A $25 default fee was implemented in1993-94 in order to recover court costsassociated with defendants who fail toappear for court appearances or fail to paypreviously imposed sanctions on civiltraffic violations. The 2013-14 estimate forthis revenue category is $1,210,000, whichis unchanged from the 2012-13 estimate.Activity related to the court default fee isnot expected to increase.
User Feesand Other Revenues
11.9%
GENERAL FUNDSTotal Revenues – $1,051.8 Million
Fire
The Fire Department receives fees fromvarious services. The majority of therevenue comes from emergencytransportation service (ETS). This userfee includes basic life support andadvanced life support services and relatedcharges for mileage and supplies for theprovision of ambulance service. The 2013-14 estimate for ETS is $37,900,000, whichis $2,100,000 or 5.9 percent greater thanthe 2012-13 estimate of $35,800,000. Theprojected increase is due to anticipatedgrowth in the number of transports and anassumed inflationary rate increase basedon information from the ArizonaDepartment of Health Services.
Other Fire revenue sources include fireprevention inspection fees, computer-aideddispatch (CAD) and various other servicesprovided to the community. The 2013-14estimate for other fire services is$11,301,000 which is $101,000 or 0.9percent more than the 2012-13 estimate of$11,200,000. The increase is based onhistorical growth rates and assumesmodest growth in 2013-14.
Hazardous Materials Permit andInspection Fee
Because incidents involving hazardousmaterials have increased over the years, ahazardous materials permit and inspectionfee was established in October 2001.Revenues from this category are used torecover direct costs incurred for inspectingbusinesses that use hazardous materials.Upon review in 2003-04, the annual permitfee amount was raised. This annual permitnow varies from $400 to $1,650 anddepends on the volume of hazardousmaterials stored on site. The 2013-14estimate is $1,150,000, which is unchangedfrom the 2012-13 estimate. Since therecession the number of inspections hasstabilized and is not expected to increasein 2013-14.
Library Fees
Library fee and fine revenue for 2013-14 is$1,362,000 which is $200,000 or 17.2percent more than the 2012-13 estimate of$1,162,000. Library revenues are expectedto increase due to a policy change that willimprove collections for overdue accountsand allow for increased revenue fromloaning library materials.
Parks and Recreation Fees
This category includes parks concessionrevenues, swimming pool revenues, fees forthe use of various park facilities such asball fields, recreation programs and celltowers, activities at Municipal Stadium,Maryvale Stadium and the Papago BaseballFacility, and other miscellaneous parkfees. The 2013-14 estimate of $7,912,000 is$94,000 or 1.2 percent above the 2012-13estimate of $7,818,000. The increase in2013-14 is primarily due to an expectedcontractual increase in cell tower revenueat South Mountain Park.
Planning
User fees in this category include revenuefrom the sale of codes and plans, rezoningfees and zoning adjustment fees for usepermits and variances. The 2013-14estimate of $1,058,000 is $92,000 or 9.5percent above the 2012-13 estimate of$966,000. Activity levels for rezoning andzoning cases have increased in the pastyear and are anticipated to continuethrough 2013-14.
Police
The Police Department receives revenuesfor various services and programs. Policeservices are provided on a fee-per-hourbasis for school and athletic events as wellas other activities where a lawenforcement presence is desired. Inaddition, a false alarm program includesboth permit fees and assessments for falsealarm responses. For 2013-14, the estimateof $13,266,000 is $138,000 or 1.1 percentmore than the 2012-13 estimate of$13,128,000. The increase is due toexpected increases in false alarmassessments.
Street Transportation
This user fee category includes permit feesfor utility construction in the public rightsof way as well as utility ordinanceinspections. The 2013-14 estimate of$3,975,000 is $123,000 or 3.0 percent lessthan the 2012-13 estimate of $4,098,000.The decrease is due to an anticipatedreduction in the number of utilityordinance inspections conducted by thedepartment.
Other Service Charges
Revenue in this category is composed ofseveral non-tax sources including interestincome, parking meter revenue, in lieuproperty taxes, sales of surplus andabandoned property, and various rental,parking and concession categories. The2013-14 estimate of $11,050,000 is $296,000or 2.8 percent more than the 2012-13estimate of $10,754,000. The increase isdue to anticipated growth in parkingmeter, interest and in lieu property taxrevenues.
All Other Fees
This fee category consists of miscellaneousservice charges in the Finance, Housing,Human Services and NeighborhoodServices departments and miscellaneouscategories. The 2013-14 estimate of$2,968,000 is $397,000 or 15.4 percentmore than the 2012-13 estimate of$2,571,000. The increase is primarily dueto increased revenue expected from themarketing partnership program. Theprogram includes revenues from theService Line Protection Program withUtility Service Partners and is an optionalwarranty program for residential sewerand/or water lines and the PrescriptionDrug Discount Program.
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NON-GENERAL FUNDS
Non-General Fund revenues consist of twomajor categories: Special Revenue andEnterprise funds. The following sectionsprovide descriptions of the various revenuesources in each category and explanationsof 2013-14 revenue estimates. The table onthe next page provides the 2012-13 and2013-14 estimates and 2011-12 actualrevenue amounts for revenues within thesetwo categories.
SPECIAL REVENUE FUNDS
This category consists of several revenuesources that are earmarked for specificpurposes. Included in this category arevoter-approved sales taxes forNeighborhood Protection, Parks andPreserves, Transit 2000, Public SafetyEnhancement, and 2007Public Safety Expansion. Also included inthis category are revenue from CourtAwards, Development Services, CapitalConstruction, Sports Facilities, ArizonaHighway User Revenue funds, PublicTransit, Community Reinvestment,Secondary Property Tax, Golf Courses,grant funds and other revenues.
Neighborhood Protection Sales Tax
This 0.1 percent sales tax rate wasapproved by the voters in October 1993and implemented in December 1993. Aspresented to the voters, the 0.1 percentincrease is specifically earmarked forPolice neighborhood protection programs(70 percent), Police Block Watchprograms (5 percent) and Fireneighborhood protection programs (25percent). The 2013-14 estimate of$30,094,000 is $1,923,000 or 6.8 percentgreater than the 2012-13 estimate of$28,171,000. These estimates areconsistent with those for the samecategories in the local sales tax discussion.Also, $146,000 is estimated for combinednet interest earnings in 2013-14.
2007 Public Safety Expansion Tax
The 2007 Public Safety Expansion sales taxis a 0.2 percent sales tax approved byvoters in September 2007 andimplemented in December 2007. Revenuesare allocated 80 percent to Police and 20percent to Fire. The funds are to be usedfor hiring additional police personnel andfirefighters; to hire crime sceneinvestigation teams to improve evidencecollection; and to improve fire protectionservices, improve response times, andincrease paramedic and other emergencymedical services. The 2013-14 estimate is$60,189,000 or 6.8 percent more than the2012-13 estimate of $56,341,000. Theseestimates are consistent with those for thesame categories in the local sales taxdiscussion. Also, ($65,000) is estimated forinterest earnings in 2013-14 due to thenegative ending fund balance in this fund.
Public Safety Enhancement Sales Tax
The Public Safety Enhancement sales taxwas implemented on May 1, 2005, and ismade up of the 2.0 percent increment ofthe 2.7 percent sales tax on utilities withfranchise agreements. The fund isallocated between Police and Fire needs.The Police Public Safety EnhancementFund is allocated 62 percent of revenuesand is dedicated to Police and EmergencyManagement needs. The Fire Public SafetyEnhancement Fund is allocated 38 percentof the revenues collected and is dedicatedto Fire needs. The 2013-14 estimate of$25,107,000 is $496,000 or 2.0 percentgreater than the 2012-13 estimate of$24,611,000.
Parks and Preserves Sales Tax
The Parks and Preserves sales tax is a 0.1percent sales tax rate increase approved byvoters in September 1999 and implementedin November 1999. Revenues from the 0.1percent tax are allocated to parkimprovements and acquisition of desertpreserves. This tax was renewed by votersfor a 30-year period in May 2008. Sixtypercent of the revenues are to be used forparks and recreation and forty percent fordesert preserves. The 2013-14 estimate of$30,094,000 is $1,923,000 or 6.8 percentmore than the 2012-13 estimate of$28,171,000. These estimates are consistentwith the estimates for the same categoriesin the local sales tax discussion. Also,$305,000 is estimated for interest earningsin 2013-14.
Transit 2000 Funds
The Transit 2000 tax is a 0.4 percent salestax approved by the voters in March 2000and implemented in June 2000. The 0.4percent tax is specifically earmarked fortransit programs and improvements. The2013-14 estimate of $120,380,000 is$7,697,000 or 6.8 percent greater than the2012-13 estimate of $112,683,000. Theseestimates are consistent with theestimates for the same categories in thelocal sales tax discussion.
Also included in this fund are fare boxand other miscellaneous transit systemrevenues. Fare box revenues are therevenues collected by the transit servicefor bus ridership. The 2013-14 fare boxrevenue estimate of $49,126,000 is 1.9percent greater than the 2012-13 estimateof $48,216,000. The increase is primarilyattributable to anticipated increases inridership. The 2013-14 estimate alsoincludes interest earnings and othermiscellaneous revenue of $1,665,000 whichis a 38.5 percent decrease from 2012-13estimate of $2,708,000. The decrease isprimarily attributable to decreasedinterest earnings.
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Court Awards Funds
The city of Phoenix receives funds as aresult of participation in the arrest and/orprosecution of certain criminal cases.These funds, referred to as Court Awardsfunds, represent court-ordered forfeituresof seized assets. Their use is limited topolice and prosecutor functions. Revenueestimates are based on cases in progress.The estimate for 2013-14 is $15,377,000,which is $5,435,000 or 54.7 percent greaterthan the 2012-13 estimate of $9,942,000.The increase is due to available funds inthe account that are programmed to bespent in 2013-14.
Development Services
Revenues in this user fee category includebuilding permits and plans review,subdivision and site plan fees, sign permitfees and engineering permits and planreview fees. These fees are used to fullysupport the activities of DevelopmentServices. The 2013-14 estimate is$36,720,000, which is $1,507,000 or 4.3percent more than the 2012-13 estimate of$35,213,000. This increase assumes acontinued increase in permit and reviewactivity as the economy continues toexpand.
Capital Construction
This category includes revenue from a 2percent increase in the sales tax ontelecommunications implemented inFebruary 1998 and is intended toreimburse Phoenix residents for the use oftheir public rights of way by thetelecommunications industry. The 2013-14estimate is $17,051,000, or a 2.3 percentincrease over the 2012-13 estimate of$16,675,000. These funds are usedprimarily for right-of-way improvements inthe Street Transportation CapitalImprovement Program. The 2013-14estimate also includes interest earnings of$175,000.
Sports Facilities
Sports facilities revenues consist of a 1percent portion of the 5.0 percenthotel/motel tax category, a 2 percent taxon short-term motor vehicle rentals, andinterest revenue generated by the fund.The 2013-14 estimate is $15,564,000, whichis $697,000 or 4.7 percent more than the2012-13 estimate of $14,867,000. Therevenue estimates are consistent with theGeneral Fund sales tax estimates in thehotel/motel and short-term vehicle rentalcategories. The 2013-14 estimate includes$6.7 million for the hotel/motel portionand $8.8 million for the short-term carrental portion. Also, $265,000 is estimatedin 2013-14 for interest revenue.
Arizona Highway User Revenue
The State Transportation Financing Planadopted by the Legislature in 1981 andamended in 1982 and 1985 included a 13cent per gallon gas tax plus other user feesand charges such as registrations, driver’slicenses, motor carrier taxes, othermiscellaneous fees and an increased shareof the motor vehicle license taxes.Additional gasoline taxes were added in1986 (3 cents per gallon), in 1988 (1 centper gallon), and in 1990 (1 cent pergallon) for a total state gas tax rate of 18cents per gallon.
A new distribution formula for ArizonaHighway User Revenue (AHUR) waspassed by the Legislature and signed by
the governor in May 1996 (effective July 1,1996). It was intended to be revenueneutral to cities. This distribution formulaprovides 27.5 percent to incorporatedcities and towns (distributed one-half onthe relative population of the cities andtowns and one-half on the county origin ofsales/relative population of the counties)and 3 percent to cities over 300,000population (Phoenix, Tucson and Mesa).As a result of the 2010 Census, Phoenix’sshare was adjusted. For 2013-14, it isanticipated that Phoenix will receive $80.2million from the 27.5 percent share and$19.9 million from the 3 percent share.
The total 2013-14 AHUR estimate of$100,600,000 is $812,000 or 0.8 percentabove the 2012-13 estimate of $99,788,000.Included in the estimate are interestearnings and other income of $450,000 in2013-14 and in 2012-13. Changes estimatedat the state level include gasoline taxcollections increasing by 0.5 percent,motor carrier tax collections (trucking)increasing by 3.0 percent, and vehicleregistrations including commercial carriersincreasing by 1.5 percent. The table aboveshows the state-shared Arizona HighwayUsers allocations to the city of Phoenixsince 2009-10.
ARIZONA HIGHWAY USER REVENUES(In Thousands of Dollars)
Fiscal Year AHUR Distribution Amount Percent
2009-10 $103,979 ($5,641) (5.1)%
2010-11 104,908 929 0.9
2011-12 90,368 (14,540) (13.9)
2012-13 (Est.) 99,338 8,970 9.9
2013-14 (Est.) 100,150 812 0.8
Increase/(Decrease)
Regional Transit Revenues
This category includes revenue from theRegional Public Transportation Authority(RPTA) for the regional transportationplan, other state funding agencies, and thesale of bus service provided to otherjurisdictions. The 2013-14 estimate of$41,867,000 is $988,000 or 2.3 percent lowerthan the 2012-13 estimate of $42,855,000.The decrease is due to a reduction inreimbursements from RPTA for regionaltransportation plan funded projects.
Community Reinvestment
The 2013-14 estimate of $4,862,000 is$2,000 higher than the 2012-13 estimate of$4,860,000 and represents estimatedrevenues to be received through variouseconomic redevelopment agreements inthe downtown area.
Secondary Property Tax
By law, the secondary property tax isearmarked for debt service on voter-approved general obligation bonds. Thereis no statutory limitation on the propertytaxes levied for debt service purposes.
As discussed in the General Fundrevenue section, the estimated 2013-14primary property tax rate is $1.4664. Inmaintaining our current $1.82 total rate,the secondary rate is $0.3536 per $100 ofassessed value for 2013-14. The 2013-14secondary property tax levy of $35,443,000is based on this rate and secondaryassessed valuation of $10.02 billion. Thisresulting levy is a decrease of $27,518,000,or 44.0 percent less than the 2012-13 levyof $62,961,000. This decrease is primarilydue to a decrease in assessed values.
Also included in the 2013-14 estimate is$50,000 in interest earnings and $5,088,000in bond interest subsidies.
The table above shows secondaryassessed valuation, secondary property taxlevies and secondary property tax ratessince 2009-10. The total property tax rateof $1.82 for 2013-14 has remainedunchanged since 1995-96.
Impact Fee Program Administration
In 1987, the City Council established anImpact Fee Program. Impact fees arecharged to new development in the city’speripheral planning areas. Impact feesassess new development for itsproportionate costs of publicinfrastructure that will be required due tothe development. Impact fees may only beused to pay for the identified publicinfrastructure. In conjunction with theImpact Fee Program, an administrative feecollected as a percentage of the grossimpact fee is also charged. Thisadministrative fee pays for the costs ofadministering the overall Impact FeeProgram.
Beginning in 2004-05, the revenue fromthe administrative fee and the relatedcosts were significant enough to requireseparate accounting. The 2012-13 and2013-14 revenue estimates are $304,000and $305,000 respectively.
Golf Courses
Revenue sources in the Golf Coursecategory include greens fees, golf cartrentals and pro shop sales at city-run golfcourses which include Aguila, Cave Creek,Encanto, Maryvale and Palo Verde. The2013-14 estimate of $8,056,000 isunchanged from the 2012-13 estimate. InApril 2013, the Mayor and Councilapproved no longer classifying Golf as anEnterprise Fund starting in fiscal year2013-14.
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________________________________________________________________________SECONDARY PROPERTY TAX ________________________________________________________________________
Secondary Assessed Rate per Valuation Secondary Levy $100 Assessed
Fiscal Year (in Millions) % Change (in Thousands) % Change Valuation________________________________________________________________________
2009-10 $18,861 0.0% $198,722 (0.5)% $1.05362010-11 16,092 (14.7) 150,753 (24.1) 0.93682011-12 12,344 (23.3) 94,529 (37.3) 0.76582012-13 10,850 (12.1) 62,961 (33.4) 0.58032013-14 (Est.) 10,023 (7.6) 35,443 (44.0) 0.3536
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Other Restricted Fees
Included in this category are revenuesassociated with the Court TechnologyEnhancement fee and the JudicialCollection Enhancement Fund, HeritageSquare, the Tennis Center at WashingtonPark, Vehicle Impound fees, AffordableHousing Program revenues, storm watermanagement fees, and monopole rentalsfrom several city parks. Also included isrevenue from restricted fees for recreationand other programs, and donationsspecified for various city programs.
The 2013-14 estimate of $28,895,000 is$532,000 or 1.9 percent more than the2012-13 estimate of $28,363,000. Theincrease is primarily due to projectedgrowth in vehicle impound revenuescaused by new towing contracts thatprovide for additional revenues from thesale, auction and disposal proceeds ofabandoned vehicles.
Public Housing Grants
The 2013-14 Public Housing grantsrevenue included in the annual operatingbudget is $79,224,000 which is a 0.6percent increase from 2012-13 of$78,763,000. This increase is due toadditional HOME program funds from thefederal government. The HOME program isaimed at increasing the availability ofaffordable rental housing and expandinghome ownership opportunities for first-time homebuyers. Other items in thiscategory include housing subsidies,interest income and housing assistancepayments.
Human Services Grants
The 2013-14 revenue estimate of$42,441,000 is $765,000 or 1.8 percent lessthan the 2012-13 estimate of $43,206,000.The decrease is due to a reduced amountof grant revenue from the Federal HeadStart Program and the Arizona Departmentof Economic Security. This categoryincludes funds from the Department ofHealth and Human Services, WorkforceInvestment Act, Aging Program Grants andHead Start funds.
Community Development Block Grant
Each year since 1974, the city has receivedCommunity Development Block Grant(CDBG) funds from the U.S. Departmentof Housing and Urban Development. Thesefunds are used to support a variety ofprojects and programs that must meet thefollowing national objectives: benefit low-and moderate-income persons; aid in theprevention or elimination of slums andblight; or meet other urgent communitydevelopment needs. The 2013-14 CDBGentitlement is $33,270,000 which is$14,441,000 or 76.7 percent more than the2012-13 estimate of $18,829,000. Theincrease is due to a carryover from 2012-13of CDBG grants from the federalgovernment.
Criminal Justice Grants
The 2013-14 grant revenue for criminaljustice programs is estimated to be$5,319,000 which is $6,735,000 or 55.9percent less than the 2012-13 estimate of$12,054,000. The decrease is due to areduction in federal grant funding. Thiscategory includes Police, Court and Lawdepartment grants. Grants include fundingfor the Police Department trainingacademy, drug trafficking prevention andother crime related prevention programs.
Public Transit Grants
The 2013-14 Federal TransitAdministration Grant estimate is$59,919,000 reflecting a increase of$3,468,000 or 6.1 percent above the 2012-13 estimate of $56,451,000. The increase isdue to a carryover of grant funds from2012-13 primarily to support capital budgetprojects.
Other Grants
The 2013-14 budget also includes$65,867,000 for federal, state and othergrants which is $20,353,000 or 23.6 percentless than the 2012-13 estimate of$86,220,000. The decrease is due to adecrease in Workforce Investment Actfunds and ARRA grants for theNeighborhood Stabilization Program. This
category includes funding for theneighborhood stabilization program,various parks and recreation and libraryactivities as well as programs such asworkforce development.
ENTERPRISE FUNDS
This category includes revenues from thecity’s five Enterprise funds includingAviation, Water, Wastewater, Solid Wasteand Convention Center. These Enterprisefunds fully recover their costs through userfees associated with the provision of theirservices. This category also includes theConvention Center that, in addition to theuser fees associated with the operation ofthe Convention Center, is supported byearmarked sales taxes. Following aredescriptions of each Enterprise Fundcategory and explanations of the revenueestimates. In April 2013, the Mayor andCouncil approved no longer classifying Golfas an Enterprise Fund starting in 2013-14.Golf revenue information is included underSpecial Revenue Funds.
Aviation
Aviation revenue estimates include landingfees, concession revenues and interestincome at Sky Harbor International, DeerValley and Goodyear airports. TotalAviation revenue for 2013-14 is anticipatedto be $309,343,000, which is $35,088,000 or10.2 percent less than the 2012-13estimate of $344,431,000. The decrease isdue to reclassifying several Rental CarFacility funds from operating to capital,which will allow for proper accounting ofrevenues to service debt associated withthe facility. The 2013-14 estimate alsoincludes conservative growth in airline,landing and parking fees and passengeractivity.
The table on the next page showsAviation revenue by major category andannual percent change since 2009-10.
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SUMMARY OF WATER SYSTEM REVENUES (In Thousands of Dollars)
2012-13 2013-142009-10 2010-11 2011-12 (Est.) (Est.)
Water Sales $254,732 $261,634 $288,711 $304,076 $311,379
Environmental Consumption Charge 45,852 47,293 50,585 45,365 46,344
Raw Water Charge 19,066 22,026 26,183 25,811 26,451
Interest 6,243 3,410 1,862 3,048 2,858
Development Fees 1,606 1,218 1,820 2,200 2,600
Combined Service Fees 3,126 3,102 3,008 6,000 6,000
Val Vista 8,314 6,585 6,424 6,665 6,733
All Other 6,648 8,055 10,222 35,077 5,388
Total Water Revenue $345,587 $353,323 $388,815 $428,242 $407,753
Change From Prior Year 5.3% 2.2% 10.0% 10.1% (4.8)%
SUMMARY OF AVIATION REVENUES(In Thousands of Dollars)
2012-13 2013-142009-10 2010-11 2011-12 (Est.) (Est.)
Airline Operation $ 101,188 $ 109,943 $115,526 $ 118,760 $ 123,050
Concessions and Rentals 159,358 169,162 169,125 174,074 177,384
ReRental Car Facility1/ 36,135 39,229 41,158 40,000 –
Interest 3,263 1,463 928 500 450
Other/Federal Grants 3,426 7,938 7,937 6,595 3,820
Goodyear 1,703 1,632 1,674 1,662 1,679
Deer Valley 3,015 3,226 2,960 2,840 2,960
Total Aviation Revenue $308,088 $332,593 $339,308 $344,431 $309,343
Change From Prior Year (2.8)% 8.0% 2.0% 1.5% (10.2)%
1/Rental Car Facility revenues will be reclassified in 2013-14 from operating to capital to properly account for revenue earmarked to servicedebt associated with the facility.
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Water System
Water system revenues include water sales,development fees, various water servicefees, resource acquisition fees, fees paid byother jurisdictions for the operation of theVal Vista Water Treatment Plant and othermiscellaneous fees. Total water systemrevenue for 2013-14 is projected to be$407,753,000, which is $20,489,000 or 4.8percent less than the $428,242,000estimate for 2012-13. The decrease is dueto one-time revenue from the sale ofMcMullen Valley in 2012-13. The 2013-14estimate includes anticipated smallincreases in the number of accounts.
The table on the previous page showswater system revenues by major categorysince 2009-10.
Wastewater System
Wastewater system revenues includemonthly sewer service charge revenues,which are based on water consumptionrates, development fees, the sale ofwastewater treatment services to otherjurisdictions, the sale of effluent and othermiscellaneous fees. The wastewater systemis expected to generate revenue of$211,312,000 in 2013-14, which is$3,374,000 or 1.6 percent less than the2012-13 estimate of $214,686,000. Thedecrease is due to an expected decline insales of effluent and interest earnings.
The table below shows Wastewaterrevenue by major category and annualpercent change since 2009-10.
Solid Waste
This category includes revenues from themonthly residential collection and landfilltipping fees. The 2013-14 estimate of$145,756,000 is an increase of $3,832,000 or2.7 percent greater than the 2012-13estimate of $141,924,000. The increase isdue to one-time reductions in recyclingrevenue in 2012-13 from the contractorwho operates two of the recycling facilities.The contractual agreement permittedpurchasing conveyor equipment and thecost was offset against revenues. Thepurchases will not occur in 2013-14.
____________________________________________________________________________________________________________SUMMARY OF WASTEWATER SYSTEM REVENUES(In Thousands of Dollars)____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
Sewer Service Charge $150,955 $161,054 $158,511 $144,902 $146,195
Environmental Charges 34,655 36,598 35,868 33,177 33,481
Development Fees 1,485 1,059 1,670 2,100 2,500
Interest 4,132 2,956 2,166 2,176 1,198
Multi-City 17,452 17,460 15,804 16,806 16,211
Other 14,400 6,662 18,825 15,525 11,727
Total Wastewater Revenue $223,079 $225,789 $232,844 $214,686 $211,312
Change From Prior Year 6.1% 1.2% 3.1% (7.8)% (1.6)%
2012-13 2013-142009-10 2010-11 2011-12 (Est.) (Est.)
Convention Center
The majority of Convention Centerrevenues are from earmarked sales taxesincluding a 0.5 percent tax on advertising,a 0.5 percent portion of the 2.0 percent taxon restaurant and bar sales, construction,publishing, printing, and transportationand towing, plus a 2 percent portion of the5.0 percent hotel/motel tax on roomsrented for 30 days or less.
Earmarked sales taxes are expected toproduce $43,924,000 in 2013-14, anincrease of 6.5 percent above the 2012-13estimate of $41,246,000. Convention Centeroperating revenues are expected to be$13,748,000, parking revenue is expectedto be $2,532,000, and interest revenue isexpected to be $339,000, for total revenueestimates of $60,543,000. This is $2,598,000or 4.5 percent more than the 2012-13 totalestimated revenue of $57,945,000. Theincrease is due to anticipated increases insales tax and parking revenues. Taxestimates are consistent with GeneralFund sales tax estimates for the categoriesincluded in Convention Center.
The table above shows the ConventionCenter excise tax collections since 2009-10.
Overall growth rates differ fromGeneral Fund sales taxes due to thesmaller number of categories, differingproportions of the total and their morevolatile nature. As shown in the followingpie chart, contracting and tourismrepresent 91 percent of the sales taxrevenue to this fund. Both industries areconsidered volatile; and both haveexperienced dramatic changes in the lastseveral years, but are expected to continueto improve in 2013-14. In the GeneralFund, however, contracting and tourismrepresent only 11 percent of the sales taxrevenue. Because of this, any changes tothese more volatile industries have agreater impact in this fund’s sales taxrevenue than in the General Fund’s salestax revenue.
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CONVENTION CENTER SALES TAXES (In Thousands of Dollars)
Fiscal Year Amount Collected Amount Percent
2009-10 $34,801 $(10,579) (23.3)%
2010-11 37,835 3,034 8.7
2011-12 40,030 2,195 5.8
2012-13 (Est.) 41,246 1,216 3.0
2013-14 (Est.) 43,924 2,678 6.5
Increase/(Decrease)
Tourism-related65%
Contracting26%
Other 9%
2013-14 CONVENTION CENTEREarmarked Sales Taxes
The growth rate anticipated for 2012-13reflects the assumption the currenteconomic recovery will continue, howeverat a slow pace and will gain momentum in2013-14.
MAYOR
Program Goal
The Mayor is elected on a nonpartisanballot to represent the entire city for afour-year term that expires in January2016. The Mayor represents the city in allofficial capacities and provides leadershipto the City Council, administrative staffand the community at large. The Mayorrecommends policy direction for the cityand chairs all City Council meetings thatare offset with a reduction in contractualservices totaling $15,000.
Budget Allowance Explanation
The Mayor’s 2013-14 operating budgetallowance of $1,755,000 is $68,000 or 4.0percent more than the 2012-13 estimatedexpenditures and reflects normalinflationary increases that are partiallyoffset with a reduction in contractualservices totaling $15,000.
General Government
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $1,443,000 $1,687,000 $1,755,000
Total Positions 11.5 12.5 12.5
Source of Funds:
General $1,443,000 $1,687,000 $1,755,000
Mayor Major Performance Measures and Service Levels
The following significant performance measures and service level trends will be achievedwith the 2013-14 budget allowance:
2011-12 2012-13 2013-14
Community Opinion SurveyPercent of residents regarding the quality of life in Phoenix as positive or fair.1 90% 95% 95%
1Based on 2012 Community Opinion Survey which is administered in even-numbered years.
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102
CITY COUNCIL
Program Goal
The City Council is composed of eightcouncil members elected by districts on anonpartisan ballot. Four-year terms forcouncil members from even-numbereddistricts expire in January 2014. Terms forcouncil members from odd-numbereddistricts expire in January 2016. The CityCouncil serves as the legislative andpolicy-making body of the municipalgovernment and has responsibilities forenacting city ordinances, appropriatingfunds to conduct city business andproviding policy direction to theadministrative staff. Under the provisionsof the City Charter, the City Councilappoints a City Manager, who isresponsible for carrying out its establishedpolicies and administering operations.
Budget Allowance Explanation
The 2013-14 City Council operating budgetallowance of $3,589,000 is $151,000 or 4.4percent more than 2012-13 estimatedexpenditures and reflects normalinflationary increases that are partiallyoffset with the reclassification of aposition.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $3,157,000 $3,438,000 $3,589,000
Total Positions 30.0 31.0 31.0
Source of Funds:
General $3,157,000 $3,438,000 $3,589,000
City Council Performance Measures and Service Levels
The following significant performance measures and service level trends will be achievedwith the 2013-14 budget allowance:
2011-12 2012-13 2013-14
Community Opinion SurveyPercent of residents who regard the city of Phoenix as a good place to live.1 91% 93% 93%
1Based on 2012 Community Opinion Survey which is administered in even-numbered years.
Phoenix City Council
CITY MANAGER
Program Goal
The City Manager provides professionaladministration of the policies and objectivesestablished by the Mayor and City Council,develops alternative solutions to communityproblems for Mayor and City Councilconsideration and plans programs that meet thefuture public needs of the city. Deputy citymanagers oversee and provide assistance to citydepartments to ensure achievement of theirdepartmental objectives and the objectives ofthe city government as a whole.
Budget Allowance Explanation
The City Manager’s Office 2013-14 operatingbudget allowance of $2,663,000 is $288,000 or12.1 percent more than 2012-13 estimatedexpenditures. The increase is due to receivingtwo new City of Services grants, full-yearfunding for the innovation executive andeducation manager positions, and normalinflationary factors. The increase is partiallyoffset by efficiency savings of reducing anadministrative secretary position.
REGIONAL WIRELESS COOPERATIVE(RWC)
Program Goal
The Regional Wireless Cooperative (RWC) is anindependent, multi-jurisdictional organizationwhich manages and operates a regional radiocommunications network built to seamlesslyserve the interoperable communication needsof first responders and other municipal radiousers in and around Central Arizona's Valley ofthe Sun. Formerly known as the PhoenixRegional Wireless Network, the RWC hasexpanded to service a still growing list of cities,towns, and fire districts, along with many otherarea entities who serve public safety needs.The RWC was formed through a governancestructure founded on the principle ofcooperation for the mutual benefit of allmembers.
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Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $1,972,000 $2,375,000 $2,663,000
Total Positions 18.0 19.0 18.0
Source of Funds:
General $1,830,000 $2,131,000 $2,339,000
State and Federal Grants — 12,000 88,000
Water 142,000 232,000 236,000
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $4,330,000 $4,728,000 $4,381,000
Total Positions 4.0 4.0 4.0
Source of Funds:
RWC $4,330,000 $4,728,000 $4,381,000
City Manager’s Office Major Performance Measures and Service Levels
The following significant performance measures and service level trends will be achievedwith the 2013-14 budget allowance:
2011-12 2012-131 2013-14
Public satisfaction with city services2 83% 87% 87%
Percent of employees agreeing that the city is a good place to work3 93% 93% 93%
Number of citywide operational improvements worked on during the year 5 5 5
1Based on 10 months actual experience.2Based on 2012 Community Attitude Survey which is administered in even-numberedyears.3Based on 2011 Employee Attitude Survey which is administered in odd-numbered years.
Budget Allowance Explanation
The RWC 2013-14 operating budgetallowance of $4,381,000 is $347,000 or7.3 percent less than 2012-13estimated expenditures. The decreasein 2013-14 is due to the one-time costof a major system upgrade thatoccurred in 2012-13.
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GOVERNMENT RELATIONS
Program Goal
The Office of Government Relationsrepresents the city, as appropriate, incontacts with federal, state, regional,county and other city governments.Government Relations also is charged withcitywide grants coordination.
Budget Allowance Explanation
The Government Relations 2013-14operating budget allowance of $1,305,000 is$55,000 or 4.4 percent more than 2012-13estimated expenditures and reflects anincrease in the annual dues to theMaricopa Association of Governments(MAG).
Government Relations Major Performance Measures and Service Levels
The following significant performance measures and service level trends will be achievedwith the 2013-14 budget allowance:
2011-12 2012-131 2013-14
Number of governments, communities, regional and private sector agencies, neighborhood associations, commissions and organizations communicated with during the year. 500 500 500
Number of Arizona state legislative bill versions and amendments evaluated and prepared to support or oppose. 3,998 3,200 3,500
1Based on 10 months actual experience.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $1,512,000 $1,250,000 $1,305,000
Total Positions 6.0 6.0 6.0
Source of Funds:
General $1,314,000 $1,250,000 $1,305,000
Other Restricted 198,000 — —
PUBLIC INFORMATION
Program Goal
The Public Information Office disseminatesinformation on city governmental servicesto residents, and assists them in using andunderstanding the information. The officealso encourages participation in citygovernment and develops programming forthe government access cable televisionchannel.
Budget Allowance Explanation
The Public Information 2013-14 operatingbudget allowance of $2,660,000 is $88,000or 3.2 percent less than 2012-13 estimatedexpenditures. The decrease is due toefficiency savings resulting from theimplementation of robotic cameras for CityCouncil chambers, additional outsourcing,and converting a full-time position to part-time. These savings are partially offset byan expected decline in the number ofvacant positions.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $2,630,000 $2,748,000 $2,660,000
Total Positions 22.8 22.8 19.6
Source of Funds:
General $2,325,000 $2,430,000 $2,319,000
Other Restricted 305,000 318,000 341,000
Public Information Major Performance Measures and Service Levels
The following significant performance measures and service level trends will be achievedwith the 2013-14 budget allowance:
2011-12 2012-131 2013-14
Percent of news releases that generate media coverage 85% 85% 85%
New PHX 11 programs produced per year 324 362 360
Percent of news distributed to stakeholders by 5 p.m. daily 90% 92% 92%
Percent of email responses to public inquiries within one day 100% 100% 100%
Average response time to public records requests (days) 3.5 3.5 3.5
Phoenix.gov page visits (monthly average) 1,116,200 1,120,000 1,120,000
1Based on 10 months actual experience.
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Fiscal Year *Estimated
$4
$3
$2
$1
$0
City AuditorImpact of Recommendations
Millions
$3.7
2009-10
$3.1
2010-11 2011-12
$2.3
2012-13*
$1.5
2013-14*
$1.5
CITY AUDITOR
Program Goal
The City Auditor Department supports theCity Manager and elected officials inmeeting residents’ needs for qualitygovernment, products and services byproviding independent and objectivefeedback on the city’s programs, activitiesand functions. The city auditor’s work isvital in maintaining trust and confidencethat city resources are used effectively andhonestly. The City Auditor budget alsofunds an annual independent auditconducted by outside auditors inaccordance with the City Charter. Thisincludes an audit of city accounting andfinancial records, the federal single audit,review of the City of Phoenix Employees’Retirement System, external audits ofspecific activities and review of businesssystems for possible improvements.
Budget Allowance Explanation
The City Auditor 2013-14 operating budgetallowance of $2,389,000 is $105,000 or 4.6percent more than 2012-13 estimatedexpenditures. The increase is primarilydue to an expected decrease in thenumber of vacant positions and continuedefforts to audit information technologysystems. This is partially offset by theelimination of an internal auditor position.
City Auditor Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved with the2013-14 budget allowance:
2011-12 2012-131 2013-14
Percent of audit plan completed 78% 80% 80%
Performance audit and management reports issued2 135 120 120
Average audit cycle time (calendar days)2 173 180 180
Economic impact of audits as a result of identified $2.3 $1.5 $1.5improvements or cost savings (millions)
Hearing rulings issued timely according to time 100% 100% 100%frames listed in the City Code
1Based on 10 months actual experience.2Number of audit reports issued and average cycle time can vary due to the size andcomplexity of audits conducted.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $1,992,000 $2,284,000 $2,389,000
Total Positions 26.5 26.5 25.5
Source of Funds:
General $1,992,000 $2,284,000 $2,389,000
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EQUAL OPPORTUNITY
Program Goal
The Equal Opportunity Departmentpromotes and enforces equal opportunitiesfor city employees and the public throughvoluntary education, communityinvolvement and enforcement programs.These programs are carried out by acombination of staff and volunteer panelsappointed by the Mayor and City Council.
Budget Allowance Explanation
The Equal Opportunity 2013-14 operatingbudget allowance of $2,797,000 is $95,000or 3.5 percent more than 2012-13estimated expenditures. The increase isprimarily due to an expected decline in thenumber of vacant positions, partially offsetby the elimination of one position.
Equal Opportunity Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved with the2013-14 budget allowance:
2011-12 2012-131 2013-14
Discrimination complaints in employment, public accommodations, housing and Americans with Disabilities Act (ADA) accessibility, investigated and closed2 203 166 166
Percentage of discrimination complaints investigated timely3 77% 74% 74%
Outreach presentations to small and disadvantaged small business advocacy organizations 15 14 14
Number of disadvantaged business enterprises (DBEs) certified4 80 77 77
Number of small business enterprises (SBEs) certified5 720 640 640
Construction subcontracts monitored for participation of DBE subcontractors and non-DBE-certified construction subcontractors6 900 1,200 1,200
1Based on 10 months actual experience.2Discrimination complaints investigated and closed are based on the number of casesfiled.3Timelines may be dictated by state and federal enforcement agencies and not by citytimelines. 4The number of available DBE-certified firms declined due to business closures and otherfirms choosing not to recertify, which is partly due to a decrease in federally-fundedconstruction projects. 5Interest in the SBE Certification Program has decreased. 6In 2010-11, federal requirements mandated monitoring of DBE-certified and non-certifiedsubcontractors on certain federally-funded construction projects. Monitored subcontractsare expected to increase due to new contract compliance software.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $2,580,000 $2,702,000 $2,797,000
Total Positions 26.0 27.0 26.0
Source of Funds:
General $2,166,000 $2,285,000 $2,367,000
Community DevelopmentBlock Grant 250,000 250,000 253,000
Federal and State Grants 147,000 153,000 161,000
Other Restricted 17,000 14,000 16,000
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Fiscal Year20112009
100%
75%
50%
25%
0%
Human ResourcesPercent of city employees who agree the city
of Phoenix is a good place to work*
2003
*Results from the biennial Employee Opinion Survey.The next survey is scheduled for Fall 2013.
2005
96% 97%93%
97%
2007
97%
HUMAN RESOURCES
Program Goal
The Human Resources Department partnerswith departments and employees to hire,compensate, support and develop a diverseworkforce that is dedicated to deliveringhigh-quality services to the community.
Budget Allowance Explanation
The Human Resources Department 2013-14operating budget allowance of $11,410,000 is$333,000 or 2.8 percent less than 2012-13estimated expenditures. The decrease ismainly due to reduced lease purchasepayments for vehicles, the transfer of fundingfor illegal dumping responses on cityproperties to the Office of EnvironmentalPrograms, and the elimination of twopositions.
Human Resources Department Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Percentage of hiring managers satisfied with applicants placed on hiring eligible list 88% 82% 82%
Annualized employee turnover rate 4.8% 6.0% 6.0%
Employee performance evaluations completed on time 86% 90% 90%
The number of employee suggestions received 108 118 120
1Based on 10 months actual experience.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $10,624,000 $11,743,000 $11,410,000
Total Positions 95.1 95.1 93.1
Source of Funds:
General $10,192,000 $10,285,000 $10,225,000
City Improvement 85,000 1,058,000 783,000
Other Restricted 347,000 400,000 402,000
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PHOENIX EMPLOYMENT RELATIONSBOARD
Program Goal
The Phoenix Employment Relations Boardoversees administration of the city’s meetand confer ordinance. Primaryresponsibilities of the board includeconducting representation elections, andselecting mediators and fact finders toresolve impasses. The board consists offive members appointed by the CityCouncil and has one staff member.
Budget Allowance Explanation
The Phoenix Employment Relations Board2013-14 operating budget allowance of$99,000 is $11,000 or 12.5 percent morethan 2012-13 estimated expenditures. Theincrease is primarily due to increases incontracted hearing officers for hearings,reduced work order credits and increasedpersonal services costs.
Phoenix Employment Relations Board Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved with the2013-14 budget allowance:
2011-12 2012-131 2013-14
Number of cases filed annually2 2 4 9
1Based on 10 months actual experience.2Number of cases filed varies depending upon specific issues encountered.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $95,000 $88,000 $99,000
Total Positions 1.0 1.0 1.0
Source of Funds:
General $95,000 $88,000 $99,000
RETIREMENT SYSTEMS
Program Goal
Retirement Systems provides staff supportto the general, police and fire retirementboards and administers retirementprograms for all city employees.
Budget Allowance Explanation
The Retirement Systems 2013-14 grossoperating budget allowance of $1,945,000is $117,000 or 6.4 percent more than 2012-13 estimated expenditures. Theincrease is primarily due to increased costsfor audit and legal services.
Retirement Systems Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved with the2013-14 budget allowance:
2011-12 2012-131 2013-14
General city retirements 426 380 275
Public safety retirements 192 175 150
General city and public safety member contactsAppointments 866 780 775Walk-in service 2,648 2,740 2,450Telephone calls 7,326 7,400 7,500
Overall member satisfaction survey as rated on a scale of 1 to 4, with 4 being the best 3.95 3.90 3.90
Success of educational classes as rated on a scale of 1 to 4, with 4 being the best 3.69 3.67 3.70
1Based on 10 months actual experience.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense (Gross1) $1,677,000 $1,828,000 $1,945,000
Total Positions 14.0 14.0 14.0
Source of Funds:General (Gross*) $1,677,000 $1,828,000 $1,945,000
1Gross costs are recovered through citywide assessmentsto all city departments.
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LAW
Program Goal
The Law Department provides effectivelegal services to the Mayor and CityCouncil, City Manager, departments andadvisory boards; interprets and enforcescity, state and federal laws as they pertainto city services and activities; andeffectively administers and prosecutescriminal cases filed in Phoenix MunicipalCourt using the prosecutorial function anddiscretion in a fair, impartial and efficientmanner.
Budget Allowance Explanation
The Law Department 2013-14 operatingbudget allowance of $20,550,000 is $92,000or 0.4 percent less than 2012-13 estimatedexpenditures. The decrease reflects theelimination of an assistant attorney IV.
Law Department Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Criminal cases sent to diversion 4,007 4,121 4,100
Pre-trial disposition conferences set 59,480 72,940 65,000
New civil cases opened in the fields of condemnation, collection, taxes and civil litigation, excluding liability and other cases assigned to outside counsel 823 884 850
Number of defendants submitted for charging review 40,979 43,904 42,000
Number of civil cases closed, including those assigned to outside counsel and handled through the alternative dispute resolution process 756 504 625
Ordinances and resolutions for City Council adoption drafted and reviewed 1,139 1,043 1,100
Number of jury trials prosecuted 219 165 175
1Based on 10 months actual experience.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $20,118,000 $20,642,000 $20,550,000
Total Positions 206.0 208.0 207.0
Source of Funds:
General $18,287,000 $19,186,000 $19,541,000
Court Awards 286,000 320,000 320,000
Federal and State Grants 1,492,000 1,082,000 635,000
Other Restricted 53,000 54,000 54,000
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INFORMATION TECHNOLOGY
Program Goal
Information Technology Services (ITS)coordinates the use of informationtechnology across the various departmentsand agencies of city government to ensurethat accurate and timely information isprovided to residents, elected officials, citymanagement and staff in the most cost-effective manner possible. Thedepartment provides operatingdepartments with information processingthrough the application and coordinationof computer technology and procures,manages and maintains the city’s radio,telephone and computer network systems.
Budget Allowance Explanation
The Information Technology Services 2013-14 operating budget allowance of$35,060,000 is $238,000 or 0.7 percent lessthan 2012-13 estimated expenditures. Thedecrease reflects a variety ofadministrative efficiency savings, includingtelecommunications savings and theelimination of 12 full-time employees. Thedecrease is partially offset by normalinflationary adjustments.
Information Technology Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved with the2013-14 budget allowance:
2011-12 2012-131 2013-14
Percentage of on-time operations center services 99.0% 99.0% 99.0%
Number of ITS-supported network devices 17,160 18,440 18,440
Critical systems availability percentage:Enterprise network 99.9% 99.9% 99.9%Business systems 99.0% 99.0% 99.0%Internet services 99.0% 99.0% 99.0%Telephone network 99.9% 99.9% 98.0%Microwave network 100.0% 100.0% 99.99%
Number of visits to phoenix.gov2 12,735,417 13,660,000 14,650,000
Average cycle time of telephone service requests < 13 days < 13 days < 21.21 days
Average cycle time of wireless communication repairs 0.89 hours 0.90 hours 1.00 hours
Units of portable and mobile radio equipment3 18,500 18,500 18,500
1Based on 10 months actual experience.2Current increase due to offering live streaming video for council meetings and an anticipatedincrease due to the redesign of phoenix.gov.3Includes all portable and mobile radios support on behalf of all RWC members as well assupport of portable and mobile radios for Fire’s VHF system.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $30,304,000 $35,298,000 $35,060,000
Total Positions 182.0 179.0 167.0
Source of Funds:
General $29,319,000 $33,049,000 $32,305,000
Cable Communications 409,000 441,000 476,000
City Improvement 190,000 1,256,000 1,684,000
Other Restricted 34,000 250,000 250,000
Aviation 164,000 169,000 172,000
Water 188,000 133,000 173,000
111
CITY CLERK AND ELECTIONS
Program Goal
The City Clerk Department maintainsorderly and accessible records of all cityactivities and transactions includingposting all public meeting notifications;preparing agendas and minutes for CityCouncil formal meetings; providing foreffective administration of city electionsand annexations; administering liquor,bingo and regulatory license services; andproviding printing, typesetting, documentimaging and mail delivery services to allcity departments.
Budget Allowance Explanation
The City Clerk 2013-14 operating budgetallowance of $6,769,000 is $392,000 or 6.1percent more than 2012-13 estimatedexpenditures. The increase is due to acarryover of funds for the new AgendaManagement System and an increase infunding for the implementation of theElectronic Document Management System.The increase is partially offset byadministrative efficiency savings thatincludes eliminating two vacant positions.
City Clerk Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Number of Council formal and special meeting agenda items 1,977 1,900 1,900
Open meeting law notices posted 2,771 2,800 2,800
Percent of open meeting law notices posted in accordance with state law2 100% 100% 100%
Total printing and copy impressions (millions)3 36.7 36.0 24.5
City Council regular and special elections held 2 1 1
License services applications and contacts 18,815 19,200 19,000
Records imaged and available for public access online 123,171 112,000 120,000
1Based on 10 months actual experience.2Includes meeting notices and meeting result postings as required by state law.3Assumes the outsourcing of water bill printing in July 2013.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $6,517,000 $6,377,000 $6,769,000
Total Positions 66.0 66.0 64.0
Source of Funds:
General $6,502,000 $6,201,000 $6,606,000
City Improvement 15,000 176,000 163,000
112
FINANCE
Program Goal
The Finance Department strives tomaintain a fiscally sound governmentalorganization that conforms to legalrequirements and generally acceptedfinancial management principles;maintains effective procurementprocedures for commodities and services;provides for effective treasurymanagement and a citywide riskmanagement program; acquires, managesand disposes of property for publicfacilities; provides an effective debtmanagement program; and providesfinancial advisory services for all citydepartments.
Budget Allowance Explanation
The 2013-14 Finance Departmentoperating budget allowance of $21,962,000is $1,495,000 or 7.3 percent more than2012-13 estimated expenditures. This isprimarily due to lease purchase paymentsfor citywide vehicle purchases, additionalfunctionality in the city’s financial systemand an expected decline in the number ofvacant positions. The increase is partiallyoffset with efficiency savings from a newtax analytical system and the outsourcingof services related to surplus property.
Finance Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved with the2013-14 budget allowance:
2011-12 2012-131 2013-14
Sales tax and franchise fees collected (millions) $707 $710 $710
Average real estate acquisition cycle time (months) 11.0 17.0 17.0
Average property damage claims cycle time (days) 47 50 50
Average invitation for bid (IFB) cycle time (days) 95 95 95
1Based on 10 months actual experience.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $19,326,000 $20,467,000 $21,962,000
Total Positions 236.2 234.0 232.0
Source of Funds:
Aviation 308,000 313,000 317,000
City Improvement 135,000 184,000 1,095,000
General $16,631,000 $17,487,000 $18,061,000
Other Restricted 446,000 513,000 388,000
Public Housing 8,000 (2,000) (1,000)
Sports Facilities 109,000 129,000 129,000
Wastewater 659,000 738,000 738,000
Water 1,030,000 1,105,000 1,235,000
113
BUDGET AND RESEARCH
Program Goal
The Budget and Research Departmentensures effective, efficient allocation ofcity resources to enable the City Council,City Manager and city departments toprovide quality services to our residents.
Budget Allowance Explanation
The Budget and Research Department’s2013-14 operating budget allowance of$3,054,000 is $85,000 or 2.9 percent morethan 2012-13 estimated expenditures andreflects an increase in softwaremaintenance costs and normal inflationaryincreases. These increases are partiallyoffset by the elimination of oneadministrative support position.
Budget and Research Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Percent variance of actual versus estimated expenditures for each major fund (data for the General Fund is shown) -1.1% 0 -± 1% 0 -± 1%
Percent variance of actual versus estimated revenues for each major fund (data for the General Fund is shown) -0.2% 0 -± 1% 0 -± 1%
Percent of Requests for Council Action processed within 24 hours 86% 75% 75%
Capital Improvement Program expenditures as a percentage of estimate 57.3% 65% 65%
1Based on 10 months actual experience.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $2,888,000 $2,969,000 $3,054,000
Total Positions 25.0 25.0 24.0
Source of Funds:
General $2,888,000 $2,969,000 $3,054,000
114
The Phoenix Police De
partment protects a populati
on of more than 1.4 million
and patrols 519 square
miles of the sixth largest
city in the United Sta
tes.
POLICE
Program Goal
The Police Department provides thecommunity with a law enforcement systemthat integrates and uses all departmental,civic and community resources for policeservices and protection of the lives andproperty of our residents.
Budget Allowance Explanation
The Police Department 2013-14 operatingbudget allowance of $585,913,000 is$19,772,000 or 3.5 percent more than 2012-13 estimated expenditures and reflectsincreased Court Awards funding, thereplacement of the Nice Communications
Public Safety
115
The Public Safety ProgramRepresents 34.1% of the Total Budget.
The Public Safety program budget includesthe Police Department, Fire Departmentand Emergency Management.
Police Major Performance Measures and Service TrendsThe following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Average Response Time (Minutes)2
Priority 1 – Emergency N/A N/A N/APriority 2 – Non-Emergency N/A N/A N/APriority 3 – All Others N/A N/A N/ATelephone Callbacks3 N/A N/A N/A
Percentage of phone calls to 9-1-1 and Crime Stop answered within 10 seconds 94% 94% 94%
Cases accepted by the county attorney for issuance of complaint 25,484 21,000 21,000
Moving violation citations issued 217,144 180,000 172,000
Traffic accidents 22,234 22,000 22,000
Percentage of cases cleared:Murder 84% 76% 76%Rape 27% 26% 25%Robbery 24% 24% 23%Aggravated Assault 44% 43% 44%Burglary 5% 6% 5%Theft 21% 22% 22%Auto Theft 6% 6% 6%Arson 10% 14% 14%
1Based on 10 months actual experience. 2Due to changes with the new CAD system implemented March 2010, call response timedata has demonstrated inconsistencies that are currently being resolved.3The number of calls and response times for incidents handled by callback are impacted bythe working hours and vacancy levels of this unit. The department began transitioningaway from using Callback officers and instead to using an online reporting system on Jan.16, 2012.
System, and fiscal year 2013-14 budgetadditions.
The budget additions include 15.0civilian positions for the Central BookingUnit. This completes the civilization of theunit and allows sworn staff to return tocritical crime response duties asrecommended in the Police Department’sefficiency study. In addition, 11 existingpolice reserves will be hired on as policeofficers for patrol and community policingwork at zero net cost to the General Fund.The General Fund savings is achieved bymoving eight senior-level Police Officers tothe Airport Bureau which allows acorresponding reduction to Aviation Policeovertime, and hiring the new officers atentry-level pay.
These additions are partially offset withbudget reductions totaling $2,911,000which includes the outsourcing of thepolygraph function and the elimination offour civilian support positions.
116
Fiscal Year2010-11
8
6
4
2
0
Police — Violent Crimes per 1,000 Residents
2009-10*Estimated
5.5 5.5
2011-12
5.9
2012-13*
6.2
2013-14*
6.2
Fiscal Year
80
60
40
20
0
Police — Property Crimes per 1,000 Residents
44 43 43
2009-10*Estimated
2010-11 2011-12
42
2012-13*
41
2013-14*
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $541,075,000 $566,141,000 $585,913,000
Total Positions 4,440.7 4,452.4 4,463.4
Source of Funds:
General $424,996,000 $445,606,000 $462,408,000
Public Safety Expansion 50,815,000 50,957,000 52,706,000
Neighborhood Protection 20,720,000 20,312,000 21,060,000
Public Safety Enhancement 19,021,000 18,896,000 19,697,000
Court Awards 8,821,000 9,169,000 15,511,000
City Improvement 2,658,000 5,550,000 4,865,000
Federal and State Grants 8,574,000 10,972,000 4,684,000
Other Restricted 3,681,000 3,530,000 3,786,000
Sports Facilities 1,106,000 1,149,000 1,196,000
Convention Center 683,000 — —
117
FIRE
Program Goal
The Fire Department provides the highestlevel of life and property safety through fireprevention, fire control and emergencymedical and public education services.
Budget Allowance Explanation
The Fire Department 2013-14 operatingbudget allowance of $297,953,000 is$11,296,000 or 3.9 percent more than 2012-13 estimated expenditures. This increasereflects the hiring of seven sworn positionsneeded to maintain state-mandatedambulance response times, increases inpersonal services costs, and other normalinflationary increases.
These increases are partially offset byreductions in contractual and commodityexpenditures and savings from moving theAmbulance Billing office from leased spaceto city-owned space. The department alsoeliminated one civilian position anddowngraded two positions through theorganizational review process. In addition,seven positions from the New Constructionsection were moved to the Planning &Development Department.
Minutes
Fiscal YearDepartment has changed standardized reporting for response time to include only emergency calls.
6
4
2
0
Fire — First Unit Average Response Time
4:46 4:41 4:38 4:38
2010-11 2013-14**Estimated
2011-12
4:40
2012-13*2009-10
Fire Department Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Percent of fire and emergency medical call responses within four minutes 37.8% 37.0% 38.0%
Patient transports to Valley hospitals via emergency medical vehicles 71,408 72,000 73,000
Percentage of time Advanced Life Support (ALS) medical calls are responded to with paramedic units within five minutes 63.4% 63.0% 64.0%
Number of fire investigations to determine cause only 805 845 887
Number of calls by type:Emergency Medical 144,899 151,000 151,000Fire 13,761 14,000 14,000Other (mountain/swift water/trench/tree rescues/other) 5,403 6,000 6,000
1Based on 10 months actual experience.
118
Fiscal Year *Estimated
40%
30%
20%
10%
0%
Fire — Percentage of Time First Unit Arrives on Scene in Four Minutes or Less
2009-10
35.5
2010-11
36.8
2011-12
37.8
2012-13*
37.0
2013-14*
38.0
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $261,904,000 $286,657,000 $297,953,000
Total Positions 2,003.7 1,997.4 1,997.4
Source of Funds:
General $220,052,000 $240,700,000 $250,694,000
Public SafetyEnhancement 10,392,000 10,435,000 11,051,000
NeighborhoodProtection 2,656,000 3,189,000 3,984,000
Public SafetyExpansion 10,799,000 13,273,000 15,022,000
Development Services 935,000 513,000 —
Federal andState Grants 10,239,000 11,502,000 9,186,000
Federal Transit Authority 3,000 43,000 —
Other Restricted 3,802,000 4,483,000 4,662,000
City Improvement 1,026,000 2,519,000 3,354,000
EMERGENCY MANAGEMENT
Program Goal
The Emergency Management Programprovides the city with the capability toplan for, mitigate, respond to and recoverfrom large-scale community emergenciesand disasters as a result of human-caused,technological or natural hazards.
Budget Allowance Explanation
The Emergency Management 2013-14operating budget allowance of $476,000 is$57,000 or 10.7 percent less than 2012-13estimated expenditures. This reflectsreduced federal funding, as fiscal year2013-14 emergency preparedness grantshave not been awarded at this time.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $424,000 $533,000 $476,000
Total Positions 4.0 4.0 4.0
Source of Funds:
General $1,000 $16,000 $21,000
Public SafetyEnhancement 369,000 337,000 455,000
Federal & StateGrants 54,000 180,000 —
The Phoenix Fire Depa
rtment’s Certified Car Seat
Technicians assist resi
dents to
properly install car sea
ts and perform car seat ch
ecks. During previous
car seat
inspections, the Phoen
ix Fire Department found t
hat four out of every fi
ve child
car safety seats were in
stalled incorrectly and
one-third of children w
ere found
to be riding in the wro
ng restraints for their
age and size.
119
120
The Phoenix Municipa
l Courthouse was open
ed to the public on Dec
. 27, 1999. It
was designed and con
structed to provide att
ractive, comfortable, eff
icient space
with the flexibility to m
eet the city's future cr
iminal justice needs.
MUNICIPAL COURT
Program Goal
The Municipal Court provides, withintegrity, to all individuals who comebefore this court: equal access,professional and impartial treatment, andjust resolution of all court matters.
Budget Allowance Explanation
The Municipal Court’s 2013-14 operatingbudget allowance of $41,969,000 is$485,000 or 1.1 percent less than 2012-13estimated expenditures. The decreasereflects the elimination of 13 positions.Nine positions were eliminated byoutsourcing the Substance AbuseScreening Services provided by theMunicipal Court. Additional administrativeefficiencies include the elimination of abailiff, court/legal clerk II, informationtechnology analyst/programmer I and apro-tem judge.
Criminal Justice
121
The Criminal Justice Program Represents 2.4% of the Total Budget.
The Criminal Justice program budgetincludes the Municipal Court, PublicDefender and City Prosecutor.
Municipal Court Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved with the2013-14 budget allowance:
2011-12 2012-131 2013-14
Criminal filings 73,500 70,000 75,000
Civil filings 205,737 180,000 200,000
Average number of days from arraignment to hearing for minor traffic cases 29.0 30.0 30.0
Number of criminal cases with a pending trial date at year end 2,160 2,200 2,200
Percent of trials/hearings appealed 2.7% 2.8% 2.8%
Average cycle time for sending out restitution and bail refund checks 1.7 days 2.5 days 2.5 days
Average hold time for incoming information calls to the Customer Call Center 7.2 minutes 7.2 minutes 7.5 minutes
1Based on 10 months actual experience.
Fiscal Year *Estimated
100%
60%
40%
20%
0
80%
Municipal Court - Percent of criminal casesresolved within 180 days from case filing
2009-10
96.9% 96.9% 96.6%
2010-11 2011-12
96.6%
2012-13*
96.6%
2013-14*
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $31,565,000 $42,454,000 $41,969,000
Total Positions 314.0 310.0 297.0
Source of Funds:
General $28,786,000 $29,984,000 $29,395,000
Other Restricted 2,303,000 6,244,000 6,342,000
City Improvement 476,000 6,226,000 6,232,000
PUBLIC DEFENDER
Program Goal
The Public Defender Program provideslegal representation for indigentdefendants in Phoenix Municipal Court.
Budget Allowance Explanation
The Public Defender Program’s 2013-14operating budget allowance of $4,902,000is $127,000 or 2.7 percent more than the2012-13 estimated expenditures andreflects normal inflationary increases.
122
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $4,756,000 $4,775,000 $4,902,000
Total Positions 9.0 9.0 9.0
Source of Funds:
General $4,756,000 $4,775,000 $4,902,000
Public Defender Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved with the2013-14 budget allowance:
2011-12 2012-131 2013-14
Defendants charged with misdemeanor crimes represented in Phoenix Municipal Court 13,177 13,924 14,000
Defendants represented at Jail Court (first appearance after arrest), and K-Court (second appearance after arrest for those not bonding out after their first appearance) 26,845 28,000 29,000
1Based on 10 months actual experience.
123
124
The city’s traffic signal
system consists of 1,097 traff
ic signals, 94 intersecti
on
video cameras and 828 intersecti
ons connected by eithe
r fiber or wireless
radios.
STREET TRANSPORTATION
Program Goal
The Street Transportation Departmentplans for the safe and convenientmovement of people and vehicles on citystreets, effectively maintains the city’sstreets, designs and inspects theconstruction of streets to assure they meetspecifications, and minimizes streetdamage through the control of irrigationand storm water.
Transportation
125
Street Transportation Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Routine street maintenance requests for service completed within 21 days2 87% 88% 82%
Percent of all traffic signal control cabinets inspected annually3 91% 95% 100%
Routine traffic operation requests for service completed within 30 days 95% 95% 93%
Construction project complaints or inquiries addressed within five working days 95% 95% 95%
Number of days to review and respond to street light requests 2.8 1.4 1.4
Number of days to review private development plans4 1.1 7.5 6.0
Utility plan review turnaround time within 10 working days 96% 97% 97%
Complete requests for sign and crosswalk work within 45 days5 83% 85% 80%
1Based on 10 months actual experience. 2Decrease in 2013-14 is a result of field staff shifting from routine maintenance topreventive maintenance activities.3Increase in 2013-14 is a result of an audit finding that requires all signal cabinets to beinspected annually.4Increase in 2012-13 is due to vacant positions. Some of these vacancies are in the processof being filled, therefore a decrease in 2013-14 is anticipated.5Decrease in 2013-14 is due to the shifting of street maintenance activities to focus onpreventive maintenance.
The Transportation ProgramRepresents 21.6% of the Total Budget.
The Transportation program budgetincludes Street Transportation, Aviation andPublic Transit.
Budget Allowance Explanation
The Street Transportation 2013-14operating budget allowance of $70,676,000is $2,361,000 or 3.5 percent more than2012-13 estimated expenditures. Thisincrease is primarily due to an expecteddecline in the number of vacant positionsand funding for new contracted freewaylandscape maintenance. The proposedbudget also includes additional stormwater funding for contracted maintenanceof natural washes and replacementvehicles. The increase is partially offset byproposed administrative efficiency savingsthat include a reduction in overtime hours,a change to leased communication linesfor traffic signals, and the elimination oftwo vacant positions.
126
Fiscal Year2009-10
Street Transportation –Maintenance Rapid Response
% within24 Hours
100%
80%
60%
40%
20%
0%
97.8%
2010-11
97.5%
2011-12
97.0%
2012-13* 2013-14*
97.0% 95.0%
(Responding to urgent issues such as obstructions in the roadway)
*Estimated
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $68,052,000 $68,315,000 $70,676,000
Total Positions 673.0 667.0 666.0
Source of Funds:
General $20,456,000 $20,071,000 $22,097,000
Arizona Highway User Revenue 45,181,000 45,504,000 45,129,000
City Improvement 113,000 501,000 735,000
Capital Construction 129,000 129,000 129,000
Federal and State Grants 42,000 38,000 53,000
Other Restricted 2,131,000 2,072,000 2,533,000
AVIATION
Program Goal
The Aviation Department provides thePhoenix metropolitan area with a self-supporting system of airports and aviationfacilities that accommodate general andcommercial aviation in a safe, efficient andconvenient manner.
Budget Allowance Explanation
The Aviation Department’s 2013-14operating budget allowance of$229,332,000 is $11,233,000 or 5.2 percentmore than 2012-13 estimated expenditures.This increase reflects the full yearoperating costs for the new PHX SkyTrain™ and other normal inflationaryincreases.
The budget also reflects the addition ofpartial funding for an EconomicDevelopment Executive Officer within theCommunity and Economic DevelopmentDepartment dedicated to internationaleconomic development to enhanceinternational air service.
127
Passengers (Millions)
Fiscal Year *Estimated2009-10 2010-11 2011-12
303234
3836
40424446
Sky Harbor Airport–Passengers Arriving and Departing
38.340.5
4850
40.6 40.6
2012-13* 2013-14*
41.0
Aviation Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Airline rental rates (cost per square foot):Terminal 2 $78.84/106.68 $110.88/117.12 $115.80Terminal 3 $90.12/106.68 $110.88/117.12 $115.80Terminal 4 $97.32/106.68 $110.88/117.12 $115.80
Gross sales per departing passenger:Terminal 2 $7.49 $7.50 $7.55Terminal 3 $8.72 $8.87 $8.90Terminal 4 $8.11 $8.64 $8.65
Aircraft takeoffs and landings 962,795 914,000 915,000
Total international passengers 2,219,590 2,180,000 2,200,000
Air cargo processed (in tons) 297,659 301,000 305,000
1Based on 10 months actual experience. Terminal rates effective July 2012 and January2013.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $202,167,000 $218,099,000 $229,332,000
Total Positions 851.0 858.0 858.0
Source of Funds:
Aviation $202,167,000 $218,099,000 $229,332,000
PUBLIC TRANSIT
Program Goal
The Public Transit Department providesimproved public transit services andincreased ridership in the Phoenixurbanized area through the operation of acoordinated regional fixed-route andparatransit bus transportation system.
Budget Allowance Explanation
The Public Transit 2013-14 operatingbudget allowance of $260,425,000 is$11,946,000 or 4.8 percent more than 2012-13 estimated expenditures. This increase isprimarily due to increases in the price offuel, a contractual increase in the cost permile of bus and rail services, and anincrease in debt service payments for lightrail. The increase is partially offset by adecrease in federal transportation funding.
128
Fiscal Year *Estimated2010-112009-10
Transit–Annual Bus Ridership
(Boardings)Millions
60
40
20
0
2011-12
38 40
2012-13*
41
2013-14*
3839
Public Transit Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
On-time performance for bus service 94.2% 92.8% 95.0%
On-time performance for Dial-a-Ride prescheduled service 91.1% 90.2% 90.0%
Cost recovery from bus fares 24.7% 25.0% 24.8%
Bus boardings per revenue mile 2.33 2.51 2.54
Average weekday ridership - light rail (Phoenix only)2 26,134 29,002 29,582
Number of Reserve-A-Ride Trips 124,341 120,595 123,007
1Based on 10 months actual experience.2The 2011-12 figure represents Jan. 1, 2011-June 30, 2011 ridership.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $233,500,000 $248,479,000 $260,425,000
Total Positions 136.5 137.5 137.5
Source of Funds:
General $18,704,000 $19,566,000 $19,521,000
Transit 2000 131,040,000 123,984,000 136,341,000
Regional Transit 21,797,000 23,385,000 25,036,000
Federal Transit Authority 13,564,000 30,652,000 26,161,000
City Improvement 48,395,000 50,892,000 53,366,000
129
130
Encanto Pointe, opene
d February 2013, is loc
ated at 4175 N. Ninth
St. The
54-unit apartment housing
complex serving homeless indivi
duals through a
“Housing First” model.
PLANNING AND DEVELOPMENT
Program Goal
The Planning and Development Departmentmanages planning, development andpreservation for a better Phoenix. Keyservices of the department include designreview, permitting, inspections,implementation and updates to the GeneralPlan, administration of the ZoningOrdinance, processing rezoning requests andHistoric Preservation.
Budget Allowance Explanation
The Planning and DevelopmentDepartment 2013-14 operating budgetallowance of $41,537,000 is $3,772,000 or10.0 percent more than 2012-13 estimatedexpenditures. This is primarily a result ofincreased Development Services fundingfor contractual inspection and plan reviewservices to meet anticipated demand, andadding three positions and equipment tobegin implementing a new permittingsystem. Additionally, General Funds wereadded to fund an existing position to make
additional historic preservation bond fundsavailable, hire a consultant to completethe National Register LandmarkNomination for the David and GladysWright House, decrease design reviewturnaround times by insourcing currentlycontracted services, and provide adaptivereuse fee waiver assistance to smallbusinesses renovating existing buildingsfor new uses. These increases include acarryover of unspent HUD grant funds fortransit oriented development.
Community Development
131
The Community Development ProgramRepresents 8.4% of the Total Budget.
The Community Development programbudget includes Planning and Development,Housing, Community and EconomicDevelopment and Neighborhood Services.
Fiscal Year *Estimated2009-10
Planning and DevelopmentTotal Construction Permits IssuedThousands
40
30
20
10
0
2010-11
29.4
2011-12 2012-13*
29.0
2013-14*
30.5
25.5 26.0
132
Planning and Development Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved with the2013-14 budget allowance:
2011-12 2012-131 2013-14
Total construction permits issued 27,652 29,000 30,500
Turnaround time for major commercial building plans (days) 37 37 40
Turnaround time for medium commercial building plans (days) 26 23 30
Turnaround time for minor commercial building plans (days) 17 18 25
Turnaround time for residential building plans (days) 24 22 30
Percent of commercial inspections completed on time 95% 96% 95%
Percent of residential inspections completed on time 94% 96% 95%
Percent of costs recovered through fees 114% 100% 100%
Average number of days to schedule pre-application meeting prior to rezoning application 11 9 15
Average number of days to complete Zoning Verification letters 10 11 15
Board, Commission and Committee packets available seven days prior to meeting 100% 99% 90%
Number of design reviews performed on building permits in historic districts2 426 400 410
Number of city grants awarded for historic rehabilitation projects 15 13 12
Number of regulatory compliance reviews for federally funded city capital projects 1,424 1,100 1,200
1Based on 10 months actual experience.2This projection includes the cumulative number of Certificates of Appropriateness,Certificates of No Effect, Demolition Reviews and Demolition Appeal Hearings.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $31,468,000 $37,765,000 $41,537,000
Total Positions 246.0 261.5 266.5
Source of Funds:
Development Services $26,683,000 $32,157,000 $34,161,000
General 4,345,000 4,560,000 5,026,000
Federal and State Grant 149,000 819,000 2,121,000
Community Development Block Grant 66,000 66,000 66,000
Other Restricted 227,000 163,000 163,000
Water Fund (2,000) — —
133
HOUSING
Program Goal
The Housing Department provides andpromotes diversified living environmentsfor low-income families, seniors andpersons with disabilities through theoperation and leasing of assisted andaffordable housing.
Budget Allowance Explanation
The Housing Department’s 2013-14operating budget allowance of $82,013,000is $3,363,000 or 4.3 percent more than2012-13 estimated expenditures. Theincrease is primarily due to the carry-overof unspent federal funds.
Housing Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Affordable housing units for families and individuals2 2,689 2,679 2,679
Affordable housing units created or preserved for families and individuals owned and operated by private sector developers3 502 359 359
Rental assistance provided for low-income residents in the private housing market4 6,452 6,452 6,452
City-owned and operated public housing units for families and seniors 2,667 2,667 2,667
Occupancy rate for Section 8 units5 95.1% 93.9% 95.0%
Occupancy rate for public housing units 96.3% 96.3% 96.3%
1Based on 10 months actual experience.2During fiscal year 2012-13, the Columbus apartments will be demolished resulting in theloss of 10 affordable units.3During fiscal year 2011-12, 502 affordable housing units were created through theAffordable Loan Program. It is estimated that 359 units will be created in fiscal year 2012-13 and 2013-14, respectively.4The Housing Department received an additional 100 Veterans Affairs Supportive Housing(VASH) voucher in April 2012. As of December 2012, total vouchers for HCV 5,601, VASH595, SRO 101, Mainstream 75, and HOPWA 80.5The drop in occupancy rate for fiscal year 2012-13 is resulting from the increase in VASHvouchers and new vouchers for Marcos de Niza rehab project, which have not yet beenfully utilized.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $77,299,000 $78,650,000 $82,013,000
Total Positions 190.0 188.0 188.0
Source of Funds:
Public Housing $71,518,000 $73,441,000 $74,561,000
Other Restricted 2,385,000 2,318,000 2,860,000
Community Development
Block Grant 1,819,000 1,589,000 2,786,000
Federal and
State Grants 710,000 797,000 713,000
HOPE VI 746,000 380,000 969,000
City Improvement 72,000 71,000 70,000
General 49,000 54,000 54,000
COMMUNITY AND ECONOMIC DEVELOPMENT
Program Goal
The Community and EconomicDevelopment Department creates orfacilitates development activities that addor retain jobs, enhances city revenues andenhances the quality of life includingbusiness development in Sky HarborCenter, downtown redevelopment area andother non-redevelopment areas.
Budget Allowance Explanation
The Community and EconomicDevelopment Department’s 2013-14operating budget allowance of $23,010,000is $6,271,000 or 21.4 percent less than2012-13 estimated expenditures and isprimarily the result of the transfer of theAmerican Recovery and Reinvestment Act(ARRA) funds for the Energize Phoenixgrant to the Public Works Department andthe transfer of a portion of funding for theGreater Phoenix Economic Council(GPEC) contract to the WaterDepartment. Also, funding for theEXPAND Loan program was reduced.Administrative reductions of $132,000 areincluded which allocate a portion ofsalaries for two executive level positionsfrom the general fund to aviation andgrant funds.
These decreases are partially offset byadditional funding to expand and enhancethe summer youth employment and jobtraining programs, support for the newDowntown Phoenix Inc. community agencythat will further develop the downtownarea, and the carry forward of unspentgrant allocations budgeted in 2012-13.
134
Community and Economic Development Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved with the2013-14 budget allowance:
2011-12 2012-131 2013-14
Projected jobs created/retained within the city of Phoenix as a result of department efforts2 5,761 5,400 6,000
Projected average annual salary for new jobs with companies newly located in Phoenix $42,812 $35,000 $35,000
Individuals serviced in employment and training programs3
Adult 1,188 1,135 N/AYouth 347 860 N/A
Number of Job seekers assisted through the Workforce Development Initiatives4 N/A N/A 27,000
1Based on 10 months actual experience.2Fiscal year 2011-12 is higher than fiscal year 2012-13 projection due to the relocation ofAetna during 2011-12. Fiscal year 2013-14 has been increased due to the University ofArizona Cancer Center and CityScape Apartments.3Measurement will be discontinued in fiscal year 2013-144New measurement in fiscal year 2013-14
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $24,215,000 $29,281,000 $23,010,000
Total Positions 103.0 101.0 101.0
Source of Funds:
General 4,305,000 4,699,000 5,134,000
Aviation 67,000 126,000 130,000
City Improvement 2,208,000 4,656,000 4,517,000
Community Reinvestment 345,000 498,000 760,000
Convention Center 454,000 415,000 433,000
Other Restricted 3,014,000 3,165,000 3,246,000
Sports Facilities 135,000 138,000 144,000
Water 565,000 567,000 30,000
Federal and State Grants 12,635,000 14,422,000 8,075,000
Community Development Block Grant 487,000 595,000 541,000
135
NEIGHBORHOOD SERVICES
Program Goal
To preserve and improve the physical,social and economic health of Phoenixneighborhoods, support neighborhood self-reliance and enhance the quality of life ofresidents through community-basedproblem solving, neighborhood-orientedservices and public/private cooperation.
Budget Allowance Explanation
The Neighborhood Services 2013-14operating budget allowance of $71,116,000is $4,472,000 or 6.7 percent more than2012-13 estimated expenditures. Thisincrease is due to unspent CommunityDevelopment Block Grant, HOME andother federal and state grant funding thatwas carried forward and included in the2013-14 budget.
The General Fund budget of$12,337,000 is $733,000 or 6.3 percentmore than the 2012-13 estimatedexpenditures. This is primarily due to anexpected decline in the number of vacantpositions and normal inflationary factors.The increase is partially offset by proposedadministrative efficiency savings thatinclude eliminating two positions.
Calendar Days
Fiscal Year *Estimated2010-112009-10
100
80
60
40
20
0
Neighborhood Services _
Neighborhood Preservation Case Cycle Time
51 50
2011-12
52
2012-13*
45
2013-14*
45
This measure includes all administrative, adjudicated and standard cases andthe average time taken to achieve compliance at properties reported with codeviolations.
136
Neighborhood Services Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved with the2013-14 budget allowance:
2011-12 2012-131 2013-14
Residents who receive landlord/tenant counseling 6,003 6,000 6,000
Number of residents provided technical assistance and education on available city services, programs, tools and other community resources 3,280 1,000 1,000
Sites where graffiti was removed through the Graffiti Busters Program 80,559 80,000 86,000
Projects completed through housing rehabilitation programs2 1,137 1,500 500
Neighborhood Preservation cases opened annually 62,882 65,000 65,000
Neighborhood Preservation average case 45 days 45 days cycle time3 49 days or below or below
Percent of Neighborhood Preservation cases 92% 91% or 91% or resolved voluntarily4 above above
1Based on 10 months actual experience.2Includes units remediated through the lead hazard control and weatherization programs aswell as owner occupied units and rental rehabilitation projects completed. TheNeighborhood Services Department received additional funding through federal stimulus.3This measure includes all administrative, adjudicated and standard cases and the averagetime taken to achieve compliance at properties reported with code violations. 4This measures the volume of cases that were voluntarily brought into compliance with theappropriate city ordinances without court or abatement action.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $57,657,000 $66,644,000 $71,116,000
Total Positions 212.5 214.5 212.5
Source of Funds:
General $10,695,000 $11,604,000 $12,337,000
Other Restricted 95,000 287,000 227,000
Public Housing 2,186,000 1,521,000 855,000
Federal and State Grants 30,600,000 37,519,000 30,904,000
Community Development
Block Grant 14,081,000 15,713,000 26,793,000
137
138
In the fiscal year endi
ng June 30, 2012, more than 4.
6 million people visited
Burton Barr Central L
ibrary and 16 branch
locations and they che
cked out more
than 14.4 million books
, DVDs and CDs.
PARKS AND RECREATION
Program Goal
The Parks and Recreation Departmentprovides and maintains a diverse parksand recreation system available andaccessible to all, which contributes to thephysical, mental, social and cultural needsof the community and permits outlets thatcultivate a wholesome sense of civic prideand social responsibility.
Budget Allowance Explanation
The Parks and Recreation Department2013-14 budget allowance of $111,344,000 is$5,202,000 or 4.9 percent more than 2012-13 estimated expenditures. The increase isprimarily due to greater costs for generaland automotive liability insurance, facilityand equipment maintenance due to agingvehicles and infrastructure, and additionsin the 2013-14 budget. The additions to theGeneral Fund include the restoration ofeight Phoenix Afterschool Center (PAC)sites, restoration of funding for youthrecreation programs, additional ParkRangers for enforcement and security atmountain parks, and annual operatingcosts, net of revenue, for the Phoenix GolfProgram as part of reclassifying the GolfFund as a non-enterprise fund. Landscapemaintenance for the new PHX Sky Train
Community Enrichment
139
The Community Enrichment ProgramRepresents 10.0% of the Total Budget.
The Community Enrichment programbudget includes Parks and Recreation,Library, Phoenix Convention Center, HumanServices and the Phoenix Office of Arts andCulture.
Fiscal Year2009-10
Parks and Recreation –Recreation Facility Attendance
Thousands800
600
400
200
0
645
*Estimated2010-11
644
2011-12
619
2012-13*
475
2013-14*
500
The decrease in recreation facilit attendance in fiscal year 2012-13 is due to membership cards no longer being required at various recreational facilities, which is how attendance is recorded. Theanticipated increase in fiscal year 2013-14 is due to the opening ofthe newly expanded Hermoso Recreation Facility.
facility funded by the Aviation Departmentwas also added. The 2013-14 budgetincreases the Phoenix Parks and PreservesInitiative (PPPI) funding to provide staffand supplies to protect and maintain 1,546acres of Sonoran preserves, new Tres RiosWetlands recreational amenities, the firstmile of the Rio Salado Habitat RestorationPeace Path, and the Echo Canyon trailheadexpansion. Also included in the PPPIproposed 2013-14 budget is funding forstaff and supplies to operate a new dogpark at Margaret T. Hance Park, re-openingof the Hermoso Recreation Center andrestored Winship House, and the newlyrenovated Cortez Pool. The increase ispartially offset by administrative efficiencysavings that include the outsourcing ofjanitorial services at the remaining sevencommunity centers and eliminating variousvacant positions.
140
Parks and Recreation Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Construction projects completed 79% 75% 75%
Percentage of safe and clean park facilities 81% 80% 80%
Fill 80% or more of all non-team sport registration openings. 73% 75% 75%
Recreation Facility Attendance2 618,759 475,000 500,000
Usage of athletic field’s available programmable time 50% 50% 52%
Community usage of facility’s available programmable time 38% 40% 40%
Number of Golf Rounds 253,288 254,000 260,000
1Based on 10 months actual experience.2The decrease in recreation facility attendance in fiscal year 2012-13 is due to membershipcards no longer being required at various recreation facilities, which is how attendance isrecorded.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $103,829,000 $106,142,000 $111,344,000
Total Positions 1,118.3 1,134.2 1,141.0
Source of Funds:
General $89,564,000 $89,289,000 $94,371,000
Other Restricted 2,947,000 2,452,000 2,396,000
City Improvement 170,000 1,860,000 1,900,000
Federal and State Grants 717,000 891,000 888,000
Convention Center 115,000 39,000 —
Parks and Preserves 2,056,000 1,888,000 3,005,000
Golf1 8,260,000 9,723,000 8,784,000
1In 2011-12, Papago Golf Course was still contracted out to aprivate vendor and was not included in the Parks andRecreation Department budget. The decrease in 2013-14reflects the portion of the Phoenix Golf programexpenditures being paid by the General Fund.
LIBRARY
Program Goal
The Library provides information andresources that are relevant, accessible andresponsive to the intellectual needs andinterests of the community.
Budget Allowance Explanation
The 2013-14 Library operating budgetallowance of $35,798,000 is $394,000 or 1.1percent less than 2012-13 estimatedexpenditures. The decrease is primarilydue to a reduction in projected grantfunding and is offset by normal inflationaryincreases. The 2013-14 budget alsoincludes a General Fund efficiency savingsfrom transitioning library inventory to bein alignment with customer demand,eliminating redundant databases, andrealizing efficiencies in cataloging servicesand facility maintenance operations. Alsoincluded are additions for increasedfunding for e-books and providing thecapability for online library cardregistration and online meeting roomreservations, and to continue the existingCollege Depot program as a result ofanticipated expiration of private funding.
141
18
12
6
0
Millions
Fiscal YearThe projected decrease is due to a change in lending policy that increases the loan period from one to three weeks, thereby decreasing the number of items circulated.
*Estimated2009-10
Library _ Library Material Circulation
(Items circulated)
14.4
2012-13*
11.1
2013-14*
11.3
2011-12
14.5
2010-11
13.8
Library Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Early literacy program attendance2 102,482 139,000 142,000
Customer satisfaction with workforce readiness 96% 90% 90%
Library’s home-page “hits” 27,576,224 27,500,000 27,500,000
Library material circulation3 14,464,958 11,066,000 11,295,000
1Based on 10 months actual experience.2Beginning in fiscal year 2012-13, First Things First outreach program participation wasincluded in early literacy program statistics. 3The projected decrease is due to a change in lending policy that increases the loan periodfrom one to three weeks, thereby decreasing the number of items circulated.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $33,488,000 $36,192,000 $35,798,000
Total Positions 357.6 374.8 374.8
Source of Funds:
General $32,578,000 $35,228,000 $35,478,000
Federal and State Grants 748,000 757,000 138,000
Other Restricted 162,000 207,000 182,000
142
PHOENIX CONVENTION CENTER
Program Goal
The Phoenix Convention Center andVenues hosts a diverse range ofconventions, trade shows, meetings andentertainment events in one of the premierconvention facilities in the United States.The department is committed to deliveringthe highest levels of customer service andguest experience in the industry. ThePhoenix Convention Center and Venuesenhances the economic vitality of thedowntown area, the city of Phoenix and thestate of Arizona by supporting tourism-related industries, businesses and culturalorganizations.
Budget Allowance Explanation
The Phoenix Convention Center 2013-14operating budget allowance of $47,194,000is $2,893,000 or 6.5 percent more than2012-13 estimated expenditures. Theincrease is primarily due to an expecteddecline in the number of vacant positions,increased costs for the Greater PhoenixConvention and Visitors Bureau services,increased capital outlay funding forparking garage maintenance and normalinflationary factors.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $41,852,000 $44,301,000 $47,194,000
Total Positions 262.6 252.0 252.0
Source of Funds:
Convention Center $40,181,000 $42,407,000 $45,218,000
General 1,126,000 1,318,000 1,375,000
Other Restricted 75,000 76,000 101,000
Sports Facilities 470,000 500,000 500,000
Phoenix Convention Center Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Estimated direct spending impact from conventions (millions)2 $370.0 $277.8 $283.0
Number of convention delegates 261,701 191,500 195,000
Number of conventions 58 58 53
Number of local public shows 40 29 32
Percent square feet occupancy (average of all event types) 35% 31% 42%
Number of theatrical performances 260 241 240
Total theater attendance 275,000 260,000 265,000
Total parking revenue (millions) $4.86 $4.36 $4.35
Revenue per parking space $1,078 $969 $993
Operating expense per parking space $741 $747 $766
1Based on 10 months actual experience.2Estimated direct spending impact is reported by the Greater Phoenix Convention andVisitors Bureau.
143
HUMAN SERVICES
Program Goal
The Human Services Department promotesself-sufficiency by providing a wide array ofservices that foster the economic, physicaland social well-being of residents.
Budget Allowance Explanation
The Human Services 2013-14 operatingbudget allowance of $62,724,000 is$151,000 or 0.2 percent less than 2012-13estimated expenditures. The decrease isprimarily due to a reduction in federal andstate grant funding for the WatkinsHomeless Shelter, case managementservices at Family Service Centers, and theLow Income Home Energy AssistanceProgram (LIHEAP). The 2013-14 budgetalso includes a General Fund efficiencysavings resulting from the elimination of aHuman Resources Clerk and a Lead UserTechnology position.
The decrease is partially offset byproposed General Fund increases forenhanced Senior Center access totechnology and increased programmingthrough technology based services, supportto the Domestic Violence Workgroup toimplement the "Roadmap to Excellence"project, restoration of funding to theCentral Arizona Shelter Services (CASS)contract, and funding for Childhelp, Inc. toprovide services for neglected and abusedchildren. Additional Water funds are alsoincluded to increase the Low IncomeWater Assistance funding provided forhouseholds in crisis.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $65,298,000 $62,875,000 $62,724,000
Total Positions 399.2 366.2 365.2
Source of Funds:General $16,141,000 $18,147,000 $18,711,000
Human ServicesGrants 47,883,000 43,206,000 42,441,000
Community Development
Block Grant 615,000 578,000 556,000
Federal and State Grant 12,000 11,000 10,000
Water 250,000 250,000 210,000
Wastewater — — 140,000
Other Restricted 341,000 404,000 358,000
City Improvement 56,000 279,000 298,000
Human Services Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Percentage of families served at the Watkins Overflow Shelter moved into permanent housing 79% 75% 75%
Number of households servedat family service centers 24,883 24,937 24,937
Percentage of school attendance for Head Start 89% 89% 85%
Medical and dental exams completed for Head Start 6,859 6,800 6,800
Number of meals served to seniors2 620,951 655,000 744,140
Number of victim services provided 7,372 9,000 9,000
1Based on 10 months actual experience.2During fiscal year 2012-13, the meal program transitioned to an outside provider. Theoutside provider contract now includes healthy breakfasts and snacks in addition tocongregate and home delivered meals. This increase is reflected partially in fiscal year2012-13 and fully in fiscal year 2013-14.
Fiscal Year *Estimated
Thousands
2012-13*2009-10
800
600
400
200
0
Human Services _
Meals Served by Senior Nutrition Program
655
2013-14*
744
613
2010-11
596
2011-12
621
During fiscal year 2012-13, the meal program transitioned to an outside provider. The provider contract now includes healthy breakfast and snacks in addition to congregate and home-delivered meals. This increase is reflected partially in fiscal year 2012-13 and fully in fiscal year 2013-14.
144
PHOENIX OFFICE OF ARTS AND CULTURE
Program Goal
The Phoenix Office of Arts and Culturesupports the development of the arts andcultural community in Phoenix, and seeksto raise the level of awareness andparticipation of city residents in thepreservation, expansion and enjoyment ofarts and culture.
Budget Allowance Explanation
The Phoenix Office of Arts and Culture2013-14 operating budget allowance of$1,630,000 is $408,000 or 33.4 percentmore than 2012-13 estimated expenditures.The increase is mainly due to partialfunding restoration of community artsgrants, rental support for nonprofit artsand cultural organizations that perform atthree city-owned venues, and funds tomaintain aging public art. Reduced workorder credits from capital projects and anexpected decline in the number of vacantpositions also contribute to the increase.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $639,000 $1,222,000 $1,630,000
Total Positions 11.0 11.0 11.0
Source of Funds:
General $617,000 $1,111,000 $1,567,000
Federal and State Grants 12,000 86,000 38,000
Other Restricted 10,000 25,000 25,000
Phoenix Office of Arts and Culture Major Performance Measures and ServiceLevels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance.
2011-12 2012-131 2013-14
Grant applications processed to support arts activities through schools and nonprofit organizations2 18 55 60
Grant awards administered to support arts activities through schools and nonprofit organizations2 18 46 55
Completed Percent-for-Art projects to enhance city capital improvement projects with artwork3 7 12 6
Local artists/arts organizations training workshops4 14 7 10
Percent of projects in Art Plan being implemented3 72% 75% 65%
Community presentations 49 49 49
1Based on 10 months actual experience.2Projected increases due to increased grants funding in 2012-13 and 2013-14.3Increase in 2012-13 is mainly due to the opening of PHX Skytrain. 2013-14 decreases areexpected due to deferred capital projects.4Numbers reflect presentations and workshops to local artists as well as the annual grantworkshop training for arts organizations. The number of workshops is expected to declinein 2012-13 due to the delayed award of state grants which fund workshop speakers.
145
146
The Same Day Collection proje
ct was the largest rero
uting project ever
undertaken. The chang
e in residential garbag
e and recycling collect
ion days
impacted 395,000 Phoeni
x households. The more efficien
t routing of collection
s
corresponds to estimated annua
l savings of $2.3 million to the
Solid Waste Fund.
WATER SERVICES
Program Goal
The Water Services Department isresponsible for the Water and Wastewaterprograms. The Water Program provides asafe and adequate domestic water supplyto all residents in the Phoenix waterservice area. The Wastewater Programassists in providing a clean, healthyenvironment through the effectivemanagement of all waterborne wastesgenerated within the Phoenix drainagearea.
Budget Allowance Explanation
The Water Services 2013-14 operatingbudget allowance of $262,815,000 is$5,998,000 or 2.3 percent more than 2012-13 estimated expenditures. The increaseis primarily due to increases in the cost ofchemicals and normal inflationaryincreases and is partially offset bydecreases in consultants and professionalservices, computer services and sewerservices.
Environmental Services
147
The Environmental Services Program Represents 16.1% of the Total Budget.
The Environmental Services programbudget includes Water Services, SolidWaste Management, Public Works andEnvironmental Programs.
Fiscal Year *Estimated2009-10
100%
80%
60%
40%
20%
0%
Water ServicesWaterline Leaks Repaired
(Percent repaired within 48 hours)
96% 97%
2010-11 2011-12
98%98% 98%
2012-13* 2013-14*
148
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $247,667,000 $256,817,000 $262,815,000
Total Positions 1,463.1 1,474.1 1,474.1
Source of Funds:
Water $160,824,000 $168,038,000 $170,674,000
Wastewater 85,107,000 $87,091,000 89,795,000
Federal and State Grants 59,000 30,000 —
Other Restricted 1,677,000 1,658,000 2,346,000
Water Services Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14Water main break/leaks per year 180.0 216.0 204.0
Waterline leaks repaired within 48 hours 98% 98% 98%
Percent of miles of sewer cleaned per year 32.0% 27.0% 27.0%
Sanitary sewer overflows per 100 miles 0.90 0.90 0.90
Gallons of water produced system wide (billions) 110.3 110.1 110.6
Gallons of wastewater treated (billions) 62.5 61.8 61.0
Telephone Calls-Received 1,295,026 1,424,167 1,424,167
Telephone Calls-Percent Answered2 88.8% 97.0% 97.0%
1Based on 10 months actual experience.2Percent answered is calculated based on total calls logged into the queue and callsanswered. Callers can elect to end their call before receiving assistance and would not becounted as “answered.” Additional resources were allocated as a result of a consultant’soperational study of the department, thereby increasing the telephone calls answered.
149
SOLID WASTE MANAGEMENT
Program Goal
The Solid Waste Management Programassists in providing a safe and aestheticallyacceptable environment through effective,integrated management of the solid wastestream, including collection, disposal,source reduction and recycling activities.
Budget Allowance Explanation
The Solid Waste Management 2013-14operating budget allowance of$129,639,000 is $9,330,000 or 7.8 percentmore than 2012-13 estimated expenditures.This increase reflects increased equipmentreplacement costs, increased personalservices costs, and other normalinflationary increases.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $109,101,000 $120,309,000 $129,639,000
Total Positions 610.5 596.5 596.5
Source of Funds:
Solid Waste $109,101,000 $120,309,000 $129,639,000
_______________________________________________________________________Solid Waste Management Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved with the2013-14 budget allowance:
2011-12 2012-131 2012-14
Residential households served with twice-per-week contained solid waste and recyclable material collections 395,785 397,000 400,000
Tons of residential recyclable materials collected 105,695 110,000 110,000
Tons of total solid waste disposed at city landfills2 896,766 754,000 769,000
Tons of solid waste from city residences disposed 563,529 465,000 476,000
1Based on 10 months actual experience.2Tonnage is down from prior year due to the department’s efforts to increase recyclingprograms.
Fiscal Year *Estimated
Solid Waste — Recyclable Material Processed
150
125
100
75
50
25
0
Thousands of Tons
2009-10
112.8
2010-11
109.8
2011-12
105.6
2012-13*
110.0
2013-14*
110.0
PUBLIC WORKS
Program Goal
The Public Works Department providesmechanical and electrical maintenanceand energy conservation services for cityfacilities; procures, manages andmaintains the city’s fleet of vehicularequipment; and provides for theeconomical, safe and aesthetic design andconstruction of facilities on city property.
Budget Allowance Explanation
The Public Works 2013-14 operatingbudget allowance of $22,864,000 is$251,000 or 1.1 percent more than 2012-13estimated expenditures and is due tonormal inflationary increases.
This increase is partially offset byadministrative efficiencies totaling$323,000, which includes the eliminationof an auto technician position and theelimination of vehicle accidentreplacement funding in the Fleet ServicesDivision. Also reflected are reduced costsfor landscaping and operating costs forseveral city facilities, the reallocation oftwo electricians to apprentice positions,and a reduction in funding for thedepartment’s project managementinformation system.
150
Public Works Major Performance Measures and Service Levels
The following significant performance measures and service trends will be achieved withthe 2013-14 budget allowance:
2011-12 2012-131 2013-14
Square footage of buildings maintained 9,885,000 10,618,000 10,618,000
Facility service requests completed2 19,412 18,000 18,000
Fleet vehicles per mechanic 39.6 39.8 39.8
Units of equipment for which fleet management is provided3 7,397 7,300 7,300
Annual miles of fleet vehicle utilization (in millions)3 48.6 47.6 47.6
1Based on 10 months actual experience.2 Fiscal year 2012-13 and 2013-14 are lower due to implementation of new PM Program,which will consolidate similar equipment under one work order.
3 Units of equipment and utilization are lower in 2012-13 due to citywide turn in ofunderutilized vehicles.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $16,292,000 $22,613,000 $22,864,000
Total Positions 506.0 505.0 504.0
Source of Funds:
General $14,968,000 $15,701,000 $16,555,000
City Improvement 855,000 5,668,000 5,164,000
Other Restricted 78,000 606,000 661,000
Solid Waste — 147,000 181,000
Federal and State Grants 391,000 491,000 303,000
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ENVIRONMENTAL PROGRAMS
Program Goal
The Office of Environmental Programsprovides coordination and monitoring forthe city’s environmental programs andactivities, and develops and implementsregulatory policies and programs.
Budget Allowance Explanation
The Office of Environmental Programs2013-14 operating budget allowance of$1,486,000 is $89,000 or 6.4 percent morethan the 2012-13 estimated expendituresand reflects the addition of the citywideillegal hazardous waste dumping program.This increase is partially offset by sharingsecretarial staffing with the Budget andResearch Department.
Expenditure and Position Summary
2011-12 2012-13 2013-14
Operating Expense $1,263,000 $1,397,000 $1,486,000
Total Positions 12.0 12.0 12.0
Source of Funds:
General $755,000 $871,000 $984,000
Federal and State Grants 110,000 28,000 —
Water Fund 230,000 274,000 276,000
Capital Construction 64,000 70,000 70,000
Other Restricted
Funds 104,000 154,000 156,000
3,000
2,000
1,000
0
Fiscal Year *Estimated
Number Trained
Environmental ProgramsTotal Training Provided to Employees/Consultants
on Environmental Issues
2,417
876859
2009-10 2010-11
1,626
2011-12
420
2013-14*2012-13*
The fluctuations reflect budget reductions to general training, mandatory stormwater training and Maricopa County assuming dust control training.
Environmental Programs Major Performance Measures and Service Levels
The following significant performance measures and service level trends will be achievedwith the 2013-14 budget allowance:
2011-12 2012-131 2013-14
Number of facility assessments and technical assistance visits conducted2 102 70 90
Number of Brownfields projects implemented 0 0 0
Pollution prevention and hazardous materials/hazardous waste compliance assistance provided3 110 78 50
1Based on 10 months actual experience.2Departments are assessed on a cyclical basis. The annual variance reflects differentdepartments which have a varying number of facilities.3Projection based on historical data and available funding.
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The Contingency Fund (also commonlyreferred to as a “rainy day fund”) providesfor possible revenue shortfalls andunanticipated costs that may occur afterthe budget is adopted. The possibility ofnatural disasters, public or employeesafety emergencies or up-front costs forproductivity opportunities necessitates theneed for adequate contingency funds. Useof these contingency funds requires therecommendation of the City Manager andCity Council approval.
GENERAL FUND CONTINGENCY
The budget reflects an increase in theGeneral Fund contingency from the 2012-13 budgeted level of $40,658,000 plus$2,000,000 in set asides. The GeneralFund contingency in 2013-14 will be$43,658,000 and 3.9 percent of GeneralFund operating expenditures. The 2012-13contingency of $40,658,000 was equal to 3.7percent of General Fund operatingexpenditures. Over the last 10 years, theGeneral Fund contingency has been as lowas 2.6 percent and will be at its highestlevel in 2013-14 at 3.9 percent.
The 2013-14 Budget continues theplanned gradual increase of thecontingency percentage of operatingexpenditures. In March 2010, the Councilagreed to increase the Contingency Fund
each year for the next several years, withthe goal of achieving a fund that equals 5.0percent of General Fund operatingexpenditures. This higher contingencypercentage will improve the city’s ability towithstand future economic cycles. In the2013-14 budget, $3,000,000 was addedabove the 2012-13 amount. This increasesthe contingency percentage to 3.9 percentfor 2013-14.
The following table shows contingencyfunding and set-aside amounts over thepast 10 years. Set-asides have been used inthe past to prepare for known future costssuch as declining grant funding and newcapital project operating costs.
Contingencies
153
Comparison of Annual Budget for General Fund Contingency Amount
to Operating Expenditures (000’s)
General Fund Contingency Percent of Fiscal Operating and Set-Aside OperatingYear Expenditures Amounts Expenditures
2004-05 925,603 23,800 2.6%
—
2005-06 968,051 24,740 2.6
—
2006-07 1,083,304 28,860 2.7
—
2007-08 1,184,192 34,230 2.9
—
2008-09 1,177,763 31,900 2.7
—
2009-10 1,110,780 29,800 2.7
—
2010-11 1,012,414 31,000 3.1
3,000
2011-12 1,059,115 35,840 3.4
2,050
2012-13 1,109,322 40,658 3.7
2,000
2013-14 1,125,373 43,658 3.9
—
OTHER FUND CONTINGENCIES
Similar to the General Fund, other fundsalso include contingency amounts. Thecontingency amounts and percentages oftotal operating expenditures vary toaccommodate differences in the volatilityof operations and revenues. Use of theseamounts requires City Council approval.The following table shows the contingencyamount for each of the other funds.
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2013-14 Other Fund Operating Expenditure and Contingency Amount (000’s)
Operating Contingency Percent of OperatingFund Expenditures Amount Expenditures
Transit 2000 $146,341 $10,000 6.8%
Planning and Development 37,161 3,000 8.1
Aviation 243,951 14,000 5.7
Water 181,834 9,000 5.0
Wastewater 95,173 4,500 4.7
Solid Waste 133,820 4,000 3.0
Convention Center 48,651 3,000 6.2
Golf 8,834 50 0.6
Debt service expenditures includepayments of principal, interest, sinkingfund transfers, costs of issuance and bondreserve requirements for bonds issued. Thedebt service allowance in 2013-14 forexisting debt and future bond sales is$535,785,000. As shown in the followingpie chart, the $535.8 million is funded byWater, Wastewater, City Improvement,Aviation, Secondary Property Tax,Passenger Facility Charges, ConventionCenter, Sports Facilities, Solid Waste andother various funds. City Improvementincludes $84.2 million in generalgovernment nonprofit corporation bondsdebt service payments funded by GeneralFund ($30.5 million), Transit 2000 ($53.4million), Housing ($0.1 million) andcapital funds ($0.2 million).
Secondary Property Tax shown in thepie chart represents the annual tax levy fordebt service, federal subsidy and relatedinterest earnings.
Types of Bonds Issued and Security
Under Arizona law, cities are authorized toissue voter-approved general obligation,highway user revenue and utility revenuebonds. For the city of Phoenix, thisincludes property tax-supported bonds andrevenue bonds (such as water revenue andairport revenue bonds).
The city’s general obligation bonds are“full faith and credit” bonds. This meansthey are secured by a legally bindingpledge to levy property taxes without limitto make annual bond principal andinterest payments. Revenue bonds (suchas water revenue and airport revenuebonds) are secured by a pledge of theseenterprises’ net revenues (revenues net ofoperation and maintenance expenses) anddo not constitute a general obligation ofthe city backed by general taxing power.Highway user revenue bonds are secured
by state-shared gas taxes and otherhighway user fees and charges and also arenot general obligations of the city.
Debt Management
In general, the city has used generalobligation bonds to finance capitalprograms of general government (non-enterprise) departments. These includeprograms such as fire protection, policeprotection, libraries, parks and recreation,service centers and storm sewers. The debtservice on these bonds is paid from thesecondary property tax levy. By state law,the city can only use its secondaryproperty tax levy to pay principal andinterest on long-term debt.
Currently, to finance the capitalprograms of enterprise departments, thecity has used revenue bonds secured byand repaid from the revenues of theseenterprises. In the past, the city also hasused general obligation bonds for water,airport, sanitary sewer and solid wastepurposes when deemed appropriate.
Since the 1950s, the city has used acommunity review process to develop andacquire voter approval for generalobligation bond programs. At a bondelection held on March 14, 2006, votersapproved all of the $878.5 million of the2006 Citizens’ Bond Committee
recommended bond authorizations. Theseauthorizations provided funding toconstruct capital improvements in thefollowing areas:
n Police and Fire Protection
n Police, Fire and Computer Technology
n Parks, Recreation and MountainPreserves
n Education Facilities
n Library Facilities
n Street Improvements
n Storm Sewers
n Senior Facilities
n Cultural Facilities
n Affordable Housing NeighborhoodRevitalization
In December 2011, the City Counciladopted a policy to delay lower prioritybond projects subject to an annual reviewof property values and financial conditions.In addition, General Obligation debt hasbeen restructured and refinanced to takeadvantage of favorable market rates. Theproperty tax reserve fund is utilizedstrategically to pay down debt service tothe staff recommended balance whilepreserving the AAA bond rating.
Debt Service
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Aviation 14.4%
Secondary Property Tax 7.6%
Water 25.0%
Wastewater 13.9%
Solid Waste 2.6%Sports Facilities
4.1%
Passenger Facilities Charges 8.2%
City Improvement* 15.7%
2013-14 Debt Service
Convention Center 3.5%
Other 5.0%
*Funded by General, Transit 2000 taxes, various operating and capital funds.
Bond Ratings
As shown in the chart below, the city’sbonds are rated favorably by the majorbond rating agencies, Moody’s InvestorsService and Standard and Poor’s. The city’sgeneral obligation bonds are rated Aa1 andAAA, respectively. Standard and Poor’s alsohas assigned a Financial ManagementAssessment (FMA) score of “strong.”
Maintaining high bond ratings hasresulted in a broader market for the city’sbonds and lower interest costs to the city.The following table is a statement of thecity’s bonded indebtedness.
Debt LimitationUnder the provisions of the ArizonaConstitution, outstanding generalobligation bonded debt for combinedwater, sewer, light, parks, open spacepreserves, playgrounds, recreationalfacilities, public safety, law enforcement,fire emergency, streets and transportationmay not exceed 20 percent of a city’s netsecondary assessed valuation, nor mayoutstanding general obligation bondeddebt for all other purposes exceed 6percent of a city’s net secondary assessedvaluation. Unused borrowing capacity as ofDec. 1, 2012, is shown below, based upon2012-13 assessed valuation.
Debt Burden
Debt burden is a measurement of therelationship between the debt of the citysupported by its property tax base (netdirect debt) to the broadest and mostgenerally available measure of wealth inthe community: the assessed valuation ofall taxable property and the assessedvaluation adjusted to reflect market value.In addition, net debt can be compared topopulation to determine net debt percapita. The city makes these comparisonseach time it offers bonds for sale. They areincluded in the official statements (bondprospectuses) that are distributed toprospective investors. The following tableprovides debt burden ratios as of Dec. 1,2012.
The city’s debt burden remains in thelow-to-moderate range. This means theamount of net debt supported by the city’sproperty tax base is moderate relative tothe value of that tax base.
The city has considerable bonded debtoutstanding. However, the use of revenuebonds for enterprise activities andenterprise-supported general obligationbonds, in combination with a well-managed, property tax-supported bondprogram, has permitted the maintenanceof a low-to-moderate debt burden.
General Government NonprofitCorporation Bonds
In addition to bonded debt, the city usesnonprofit corporation bonds as a financingtool. This form of financing involves theissuance of bonds by a nonprofitcorporation for city-approved projects. Thecity makes annual payments equal to thebond debt service requirements to thecorporation.
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City of Phoenix Bond Ratings
Rating(1)
Moody’s Standard & Poor’s
General Obligation Aa1 AAASenior Lien Water Revenue(4) Aa2 AAAJunior Lien Water Revenue(2) Aa2 AAASenior Lien Airport Revenue(2) Aa3 AA-Junior Lien Airport Revenue(2) A1 A+Senior Lien Street and Highway User Revenue Aa3 AAAJunior Lien Street and Highway User Revenue Aa3 AASenior Lien Tax Excise Tax Revenue(2) Aa2 AAAJunior Lien Tax Excise Tax Revenue(3) Aa3 AASubordinated Excise Tax Revenue(2) Aa3 AASenior Lien Wastewater System Revenue(2) Aa2 AAAJunior Lien Wastewater System Revenue(2) Aa2 AA+Rental Car Facility Charge Revenue Bonds(2) A3 A-Transit Excise Tax Revenue Bonds (Light Rail)(2) Aa2 AAState of AZ Distribution Revenue Bonds(2) Aa3 AASenior Hotel Revenue Bonds(5) Ba1 BB+Subordinate Hotel Revenue Bonds(5) A2 BBB+
(1) Represents underlying rating, if insured.(2)Issued by the City of Phoenix Civic Improvement Corporation.(3)There are currently no outstanding junior lien non-sports facilities backed bonds.(4)No bonds are currently outstanding.(5)Issued by the Downtown Phoenix Hotel Corporation.
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Statement of Bonded Indebtedness
General Obligation Bonds (In Thousands of Dollars)(1)
Non-Enterprise Revenue TotalGeneral Supported General GeneralObligation Obligation Obligation Revenue Total
Purpose Bonds Bonds Bonds Bonds Bonds
Various $1,505,350 $ — $1,505,350 $ — $1,505,350Airport — 9,615 9,615 — 9,615Sanitary Sewer — 19,638 19,638 — 19,638Solid Waste — 10,385 10,385 — 10,385Water — 43,287 43,287 — 43,287Public Housing — — — — —Street and Highway — — — 5,875 5,875
Subtotal $1,505,350 $ 82,925 $1,588,275 $ 5,875 $1,594,150Less: Restricted Funds (321,573) — (321,573) — (321,573)
Direct Debt $1,183,777 $ 82,925 $1,266,702 $ 5,875 $1,272,577Less: Revenue Supported — (82,925) (82,925) (5,875) (88,800)
Net Debt $1,183,777 $ — $1,183,777 $ — $1,183,777(1)Represents general obligation bonds outstanding as of Dec. 1, 2012. Such figures do not include the outstanding principal amounts ofcertain general obligation bonds and street and highway user revenue bonds which have been refunded or the payment of which has beenprovided for in advance of maturity. The payment of the refunded debt service requirements is secured by obligations issued or fullyguaranteed by the United States of America which were purchased with proceeds of the refunding issues and other available moneys andare held in irrevocable trusts and are scheduled to mature at such times and in sufficient amounts to pay when due all principal, interestand redemption premiums where applicable, on the refunded bonds.
Water, Sewer, Light, Parks, Open Spaces, Playgrounds, Recreational Facilities, Public
Safety, Law Enforcement, Fire Emergency, Streets and Transportation Purpose Bonds
20% Constitutional Limitation $2,169,948,731Direct General Obligation Bonds Outstanding(1) (1,218,080,205)
Unused 20% Limitation Borrowing Capacity $ 951,868,526
All Other General Obligation Bonds
6% Constitutional Limitation $ 650,984,619Direct General Obligation Bonds Outstanding 370,195,000(1)
Less: Principal Redemption Funds held in Restricted Fund as of December 1, 2011 (321,572,601)
Direct General Obligation Bonds Outstanding (48,622,399)
Unused 6% Limitation Borrowing Capacity $602,362,220
(1)Represents general obligation bonds outstanding as of December 1, 2012.
The city’s payments to the corporationare guaranteed by a pledge of excise taxesor utility revenues generated by the city’sairport, water system or wastewatersystem. Pledged excise taxes may includecity sales, use, utility and franchise taxes;license and permit fees; and state-sharedsales and income taxes.
The city has used nonprofit corporationfinancing selectively. In general, it hasfinanced only those projects that willgenerate revenues adequate to support theannual debt service requirements or thatgenerate economic benefits that more thanoffset the cost of financing. The city alsohas used nonprofit corporation financingfor projects essential to health and safety:e.g., police precinct stations. Similar tobonded debt, these financings are rated bybond rating agencies.
158
Debt Service by Source of Funds and Type of Expenditure(In Thousands of Dollars)
2011-12 2012-13 2013-14Fund Actual Estimate Budget
Secondary Property Tax $ 99,861 $ 68,149 $ 40,581
Aviation 82,025 76,712 77,160
Arizona Highway User Revenue 22,000 22,001 1
Convention Center 19,360 18,591 18,584
General 6,151 29,354 30,540
Golf 1 1 1
Housing 72 71 70
Passenger Facility Charges 32,384 44,095 44,092
Solid Waste 14,630 13,387 13,911
Sports Facilities 9,514 22,803 21,881
Transit 2000 48,394 50,892 53,366
Wastewater 70,714 71,683 74,494
Water 105,287 121,492 134,066
Other Funds - Various Sources 30,216 98,169 27,038
Total $540,609 $637,400 $535,785
Type of Expenditure
Principal $208,719 $313,151 $226,617
Interest 324,478 318,498 300,825
Other 7,412 5,751 8,343
Total $540,609 $637,400 $535,785
Net Direct General Obligation Bonded Debt Ratios
SecondaryPer Capita Debt Assessed Full
Pop. Est. Valuation Cash Valuation(1,464,405)1 ($10,849,743,656) ($103,538,836,913)
Direct General Obligation Bonded Debt Outstanding as of December 1, 2011 $864.99 11.67% 1.22%
Net Direct General Obligation Bonded Debt Outstanding as of December 1, 2011 $808.37 10.91% 1.14%
1Population estimate obtained from the city of Phoenix Planning and DevelopmentDepartment as of July 1, 2011.
The Capital Improvement Program is afive-year plan for capital expendituresneeded to replace, expand and improveinfrastructure and systems. Other planningprocesses, the most significant of whichare explained in this section, identify theneed and provide funding for capitalprojects and related operating costs.
On April 9, 2013, the City Councilreviewed the Preliminary 2013-18 CapitalImprovement Program. The CapitalImprovement Program reflected hereincludes the preliminary plan presented toCouncil, with a $1.5 million adjustmentfrom the Arizona Highway User CapitalReserve Fund for street bicycleinfrastructure and street repair. Thepreliminary plan, as adjusted, has beenupdated to reflect cost or timing changesidentified since the preliminary programwas developed.
2013-18 Capital Improvement ProgramDevelopment
The annual citywide Capital ImprovementProgram update process began in Januarywhen departments prepared revised 2012-13 estimates and updated their five-yearcapital improvement programs. The 2012-13 estimates reflect updated constructioncost estimates, project delays, awardedcontract amounts, project carry-overs andother program changes. The 2013-18program includes projects planned forauthorized bond funding and the latestestimates for pay-as-you-go projectsfunded with operating funds, federal funds,impact fees and other sources. Alsoincluded are net new operating costsand/or savings. Budget and Research staffreviewed the departments’ programs forfunding availability, reasonableness andtechnical accuracy.
Presented in this citywide program areprojects reviewed and adopted throughseveral planning processes. These includecapital projects funded through the mostrecently adopted multi-year rate plans forEnterprise funds such as Water,Wastewater and Solid Waste, and fromother planning processes includinginfrastructure financing plans for impactfees and various multi-year facilitymaintenance plans. Also reflected arecapital projects from sales tax and voter-approved bond programs including the2006 Bond Program approved by Phoenixvoters in March 2006.
In conjunction with the CIP process,city engineering staff work withdepartments to level design andconstruction bid award dates evenlythroughout the fiscal year. By avoidingbidding capital projects during the lastquarter of the fiscal year, the city hascontrolled construction costs andincreased project quality by making betteruse of locally available constructionresources.
As projects to construct buildingfacilities are designed, they are reviewedby a Facilities Review Team made up ofrepresentatives from the Public Works,Information Technology, Planning andDevelopment, Parks and Recreation, andBudget and Research departments. Thisteam reviews project designs forcompliance with city standards forsustainability, maintainability andcompatibility with enterprise-wide systemsand to determine that the project is beingdesigned within funding limitations.Information on the capital and operatingcosts and timelines are closely monitoredand linked to the citywide annualoperating budget through these reviews.
Overview of Capital Improvement Program Process
159
2006 Citizens’ Bond Committee Program
Voter-approved bond authorizations are themajor funding source for the generalgovernment portion of the CapitalImprovement Program. The city generallyseeks new voter-approved programs onfive-year cycles. Consistent with thatplanning cycle, a Citizens’ BondCommittee process was initiated by theCity Council in June 2005. More than 700community volunteers were appointed bythe City Council to serve on 17 bondsubcommittees to help shape the program.
Two of the committees evaluated thecity’s capacity to service new debt and tofund the operating costs of new capitalfacilities. These committees reviewedmulti-year forecasts for assessed valuationand property tax levies, and for GeneralFund revenues and expenses. Theyrecommended annual bond and operatingcost capacities before 14 service-relatedcommittees began their work to evaluatefive-year capital facility needs identified bycity departments as well as capital projectfunding requests by community nonprofitorganizations.
The City Council formed the $878.5million in projects into seven propositionsall of which were approved by voters inMarch 2006. The decline in the local realestate market from the recent recessionresulted in a decline in property taxrevenue, which placed a strain on theproperty tax supported GO Bond Program.As a result, a portion of this program isindefinitely deferred until the city has thebond capacity to move forward with theseprojects.
Enterprise Funds
Fees for the Water, Wastewater and SolidWaste enterprise funds are billed tocustomers on a single billing. As a result,all three of these enterprise fundscomplete annual updates to their multi-year rate plans on a similar timeline.These plans are first reviewed by the CityCouncil Transportation and InfrastructureSubcommittee prior to action on the plansby the full City Council. Bond and pay-as-you-go funded capital projects, debtservice, and operating and maintenancecosts of existing services and plannedcapital projects are all provided for inthese multi-year rate plans. If necessary,user fee rate changes are typicallyimplemented in March of each year tosupport the updated plans. The PhoenixConvention Center enterprise fundreceives most of its resources fromearmarked sales taxes. To support asignificant expansion and renovation of thePhoenix Convention Center which wascompleted in 2008, an extensive multi-yearforecast was developed to establish pay-as-you-go, bond and related debt service, andoperations and maintenance costcapacities without a tax rate increase. Thecapital and financial plan was critical tosecuring $600 million in bond funding splitequally between the city and state ofArizona to expand and modernize thefacility.
Capital Construction Funds
The Capital Construction fund wasestablished in 1998-99 and provides about$20 million each year for criticalinfrastructure improvements in the right-of-way. Citizen input from a series ofpublic meetings supported using thesefunds for neighborhood streetrehabilitation, sidewalks and wheelchairramps, traffic safety and traffic calmingprojects, and neighborhood trafficmitigation projects. Funds areprogrammed in these project categories foreach year of the Capital ImprovementProgram. Individual projects will bedetermined during the first year of theprogram based on traffic engineering dataand neighborhood input.
Parks and Preserves Funds
In September 1999, the voters approved a10-year, one-tenth of one percent sales taxto purchase state trust lands for theSonoran Desert Preserve, and for thedevelopment and improvement of regionaland neighborhood parks. This tax wasrenewed by voters in May 2008 for 30 years.The 2013-18 Capital Improvement Programincludes $37.8 million of these funds,which are programmed for regional,community and neighborhood parks, andSonoran Preserve land acquisition. Landacquisitions are planned and timed to takeadvantage of state grant fundingopportunities.
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161
Transit 2000 Funds
The voters approved Proposition 2000 onMarch 14, 2000. This initiative authorizeda four-tenths of one percent sales tax for aperiod of 20 years to implement the Transit2000 plan. The plan provides funding forlight rail, buses, right of wayimprovements, passenger facilities andrelated operating costs. The 2013-18Capital Improvement Program includes$42.3 million of these funds, which areprogrammed for:
n Additional vehicles and upgrades toexisting vehicles ($1.3 million)
n New and expanded passenger,maintenance and administrativefacilities ($24.3 million)
n Bus pullouts ($5.2 million)
n Technology upgrades ($9.7 million)
n Light rail, bus rapid transit and relatedsupport services ($1.3 million)
n Contingencies ($0.5 million)
Five-Year Arterial Streets Plan
Each year the Street TransportationDepartment updates its five-year plan andfunding for major street and storm drainconstruction. This program is primarilyfunded through Arizona Highway UserRevenue (AHUR) including state-sharedrevenue from gas taxes and vehicle licensetaxes. The update begins with the Budgetand Research Department providing anupdated current year and five-year forecastof AHUR revenue, and requirements forAHUR to support operating expendituresand debt service to determine the amountsavailable for pay-as-you-go capital projects.Also included in the plan are any neededupdates to voter-approved bond projects aswell as funding sources from othergovernment agencies in projects such asflood control.
Programming of Impact Fees
In 1987, the City Council adopted anordinance requiring new development inthe city’s peripheral planning areas to payits proportionate share of the costsassociated with providing publicinfrastructure. The impact fee program isalso regulated by state law. The impact feeprogram was developed to addressprojected infrastructure requirementswithin several planning areas. Impact feescollected for a specific planning area mustbe expended for capital infrastructure inthe plan for that area and may not be usedfor any other purpose. In addition, impactfee-funded projects must directly benefitthe parties that paid the fees.
Only impact fee revenues that havebeen collected are planned in the CapitalImprovement Program.
Operating costs for impact fee-fundedprojects are included in the rate planningprocess for Water, Wastewater and SolidWaste. Operating costs for the otherimpact fee programs are identified in theCapital Improvement Program and arefunded through the annual operatingbudget as costs for operating andmaintaining new capital projects. Budgetand Research staff has worked with thePlanning and Development Department aswell as operating department staff toappropriately program $112.6 million inavailable impact fees in the 2013-18Preliminary Capital Improvement Program.Additional impact fees will be programmedin future capital improvement programs asthese fees are collected.
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164
The Capital Improvement Program (CIP)totals $3.2 billion over the next five years.As shown in the pie chart below, fundingfor the 2013-18 program comes from fivemain sources: $0.2 billion in 1988, 2001and 2006 voter-approved bond funds, $1.9billion in pay-as-you-go operating funds,$0.4 billion in various enterprise bonds,$0.2 billion in Transit 2000 and Parks andPreserve Initiative funds, and $0.7 billionin other funds. The $0.7 billion in otherfunds includes $112.2 million in paymentsby other cities and agencies forparticipating in projects in programs suchas Water and Wastewater, $181.7 million incapital grants, $112.6 million indevelopment impact fees, $74.6 million inpassenger facility charges, $101.3 millionin government and other participation,$57.0 million in capital reserves, $4.1million in Solid Waste remediation fundingand $35.4 million from miscellaneouscapital sources.
Projects in the first year total $1.2billion and are funded from pay-as-you-gooperating funds ($530.7 million), bondfunds ($248.4 million) and other capitalfinancing ($426.0 million). A financialorganization chart at the end of thissection presents a visual overview of thefirst year by source of funds and additionalschedules summarize the 2013-14 CapitalBudget by source of funds and the 2013-14Capital Improvement Program by fundgroup and program. A brief overview ofthe five-year plan for each programfollows.
Arts and Cultural Facilities
The $1.8 million Arts and CulturalFacilities program is funded with 2001 and2006 bonds of which $0.4 million is beingdelayed indefinitely due to reductions inproperty tax revenue.
Bond funded projects scheduled to moveforward include:
n Construct or renovate a facility for aHispanic cultural center
n Complete remodel and expansion ofPhoenix Theater
Bond funded projects that were delayedindefinitely include:
n Additional construction andimprovements to the Hispanic culturalcenter
n Study to renovate Santa Rita Hall,Chicanos por la Causa
Aviation
The Aviation program totals $497.0 millionand includes projects for Phoenix SkyHarbor International Airport and satelliteairports including Phoenix Deer Valley,Phoenix Goodyear and Phoenix MesaGateway. The Aviation program is fundedwith Aviation operating revenue, capitalgrant funds, Aviation nonprofit corporationbonds and Passenger Facility Chargefunds.
Major improvements for Sky HarborInternational Airport include the following:
n Complete phase I construction of thePHX Sky Train™ system and constructsegment form Terminal 4 to Terminal 3at Phoenix Sky Harbor InternationalAirport
n Restore roadway, hold bays, aprons andairfield pavement areas
n Acquire and maintain properties for theCommunity Noise Reduction Program
n Conduct various studies and provideservices
n Construct various improvements atTerminal 3 and 4 including restroomremodels, terrazzo floor installation,garage lighting and international spaceimprovements
2013-18 Capital Improvement Program Highlights
165
EnterpriseBonds
$0.4 Billion
Property Tax Bonds$0.2 Billion
Pay-As-You-Go$1.8 Billion
Transit 2000 andParks and Preserves
$0.1 BillionOther
$0.7 Billion
2013-18 Capital Improvement ProgramSources of Funds
Facilities Management
The Facilities Management program totals$21.6 million and is funded with 2001 and,2006 bonds, General Funds, nonprofitcorporation bonds and other restrictedfunds. Bond funded projects totalapproximately $7.9 million, of which over$6.7 million is being delayed indefinitelydue to reductions in property tax revenue.
General Fund projects include:
n Phoenix City Hall - Life and SafetySystem
n Emergency Repairs to City of PhoenixFacilities
n Adam Street Garage – Replace Chillers
n Replace fire control panel at MunicipalCourt Building
Bond funded projects that continue to bedelayed indefinitely include:
n Phoenix City Hall – SystemModernization
n Reconfigure Phoenix City Hall toincrease work space efficiency
n Brownfields Redevelopment forenvironmentally-impaired properties
Also included in the program is fundingfor remediation of contaminated soil fromleaking underground storage tanks, majorfacility repairs and maintenance forservice centers maintenance shops andoffice buildings according to the facilitymanagement plan.
n Construct security improvementsincluding an emergency operationscenter expansion and explosivedetection system equipmentenhancement
n Provide soundproofing to non-residential qualified establishmentswithin airport proximity
n Design terminal redevelopmentconcepts
n Provide for contingency project funding
The Aviation program also includesrunway, taxiway and structureimprovements at the Phoenix Goodyearand Phoenix Deer Valley airports andsupport for development projects atPhoenix-Mesa Gateway Airport.
Economic Development
The $53.6 million Economic Developmentprogram is funded with 2006 bonds, otherrestricted funds and DowntownCommunity Reinvestment funds. Projectsinclude:
n Arizona State University Center for Lawand Society
n Repair and maintenance of the PhoenixBiomedical Campus
n West Phoenix Revitalization activity
n Improving connectivity between theNational Institute of Diabetes andDigestive and Kidney Diseases(NIDDK) and the TGen Facilities.
n Knipe House Rehabilitation
n Maryvale Streetscape Improvements
All projects utilizing 2006 bond fundingin the amount of $17.0 million are delayedindefinitely due to reductions in propertytax revenue.
Bond funded projects that continue to bedelayed indefinitely include:
n Revitalize public infrastructure
n State Fair Redevelopment
n West Phoenix Revitalization
n Downtown land acquisition
n ASU Post Office Improvements
n HOPE VI/Rio Salado DowntownConnectors
n Life Science Research Park
n Future improvements to the PhoenixBiomedical Campus
n Construct downtown infrastructureimprovements to sidewalks,landscaping and lighting
Energy Conservation
The $8.5 million Energy ConservationProgram is funded with General, Water andWastewater operating funds and federalgrant funds. This program includes capitalprojects to continue the city's energyconservation efforts and also includesenergy efficient retrofit cost reductionefforts at various city facilities.
The city's Energy ConservationProgram has been in place for more than20 years. Through the program's efforts inaddressing energy efficient retrofits,energy efficient design and management,metering for efficient operations andimplementation of new technology.
Energy saving retrofits have beencompleted for lighting, heating,ventilation, air conditioning and controlsystems.
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Fire Protection
The $23.2 million Fire Protection programis funded with 2001 and 2006 bonds,impact fees and nonprofit corporationbonds. Bond funded projects totalapproximately $13.9 million, which is beingdelayed indefinitely due to reductions inproperty tax revenue.
Major Projects scheduled to move forwardinclude:
n Fire communications systemenhancements
n Purchase Fire protection vehicles
n Complete construction of Dispatch andEmergency Operations and EmergencyManagement Center
n Install traffic signal preemptionequipment
Bond funded projects that continue to bedelayed indefinitely include:
n New Station 55 near the borders of theDeer Valley and North Gateway villagesalong the I-17 corridor
n New Station 59 in Estrella Village
n New Station 74 in West AhwatukeeFoothills
n Station 62 in Southwest Phoenix –additional equipment for station
Historic Preservation
The Historic Preservation program totals$3.2 million and is funded 2001 and 2006bonds of which $1.5 million is beingdelayed indefinitely due to reductions inproperty tax revenue.
The following projects are scheduled tomove forward:
n Provide grants for low incomehomeowners to complete exteriorrehabilitation work on their homes
n Provide matching grants for residentialand commercial historic propertyowners to rehabilitate historicproperties in exchange for conservationeasements
n Provide funds to rehabilitate city-owned historic buildings and facilities
Bond funded projects that continue to bedelayed indefinitely include:
n Rehabilitate historic buildings at SouthMountain Park
n Rehabilitate historic buildings at theMatthew Henson HOPE VI project
167
Housing
The Housing program totals $74.6 millionand is funded with 2006 bonds and publichousing federal grant funds. Bond fundedprojects total $1.2 million which delayedindefinitely due to reductions in propertytax revenue.
Housing projects using 2006 bond fundsdelayed indefinitely relate to the UnitedMethodist Outreach Ministries New DayCenter homeless shelter for families.
Projects funded with grant fundinginclude:
n Frank Luke Addition
n Fillmore Gardens Apartments
n Sunnyslope Manor Apartments
n Victory Place Acquisition Assistance
n North Mountain Village ApartmentsAcquisition Assistance
n Affordable Housing Development
n HOME Community HousingDevelopment Organization
n HOME Multifamily and Special ProjectLoan Program
Projects funded using Capital ProjectFunds include:
n Foothills Village Family Apartments
n Maryvale Terrace Senior Apartments
n Single family public housing units
n Various family apartment complexes
n Washington Manor Senior Apartments
n Pine Tower Senior Apartments
Modernization projects for publichousing units are proposed based on theavailability of grant funds. Modernizationprojects for public housing units areproposed based on the availability of grantfunds.
Human Services
The $13.6 million Human Services programis funded with 2001 and 2006 bonds ofwhich $12.6 is being delayed indefinitelydue to reductions in property tax revenue.
Major projects for 2006 bond fundingscheduled to move forward include:
n Design 51st Avenue Senior Center
Bond funded projects that continue to bedelayed indefinitely include:
n Begin construction of 51st AvenueSenior Center
n Design North Family Services Center
n Design and construct South FamilyServices Center
n Remodel Family Advocacy Center
n Purchase land for 16th Street SeniorCenter
n Assist with acquiring property forNative American Cultural Center
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Information Technology
The $60.2 million Information Technologyprogram is funded with 2001 and 2006bonds, Water, Wastewater, Solid WasteDisposal and Aviation revenues, NonprofitCorporation Bonds, general funds andother restricted funds. All InformationTechnology projects funded with 2001 and2006 bonds are being delayed indefinitelydue to reductions of property tax revenue.
Projects planned utilizing funds other than2001 and 2006 bond funds include thefollowing:
n FCC mandate to use 700 MHz radiosand consoles
n Acquire electronic equipment toprovide improved customer service
n Establish and equip an alternateinformation technology operationscenter to ensure business continuity
Projects utilizing 2001 and 2006 bondfunding, are delayed indefinitely due toreductions of property tax revenue, includethe following:
n Integrate E-government telephone andonline services
n Deploy voice/data convergence-readyequipment to upgrade and enhancestaff connectivity
n Improve the city’s GeographicInformation System
n Accessible voting improvements
Libraries
The Libraries program totals $15.8 millionand is funded with 2001 and 2006 bonds,impact fees and general funds. Bondfunded projects total approximately $7.5million, of which more than $5.7 million isbeing delayed indefinitely due toreductions in property tax revenue.
Impact fees are to design and/orconstruct new libraries in West Ahwatukee,North Gateway area, Desert View andEstrella area. General funds are used tomaintain current standards at citylibraries.
Bond Funded projects scheduled include:
n Complete construction on SouthMountain Regional Branch Library
n Library Technology Improvements
n Install Automated Material HandlingSystem at Mesquite Branch Library
Bond funded projects that continue to bedelayed indefinitely include:
n New city libraries
n Improvements to Ironwood BranchLibrary
n Replace the central heating and coolingsystem at Burton Barr Library
n Library technology improvements
Neighborhood Services
The Neighborhood Services program totals$14.6 million and is funded withCommunity Development Block Grants,various operating grants, other agencyparticipation funds 2001 bonds and 2006bond funds, $6.9 million of bond fundedprojects is delayed indefinitely due toproperty tax revenue reductions.
Projects include:
n Acquire properties to revitalizeneighborhoods and reduce blight
n Purchase and develop foreclosedproperties to improve neighborhoodstabilization
n Participate with infrastructureenhancements including sidewalks,lighting, landscapes and other capitalimprovements
Bond funded projects that are delayedindefinitely include:
n Infrastructure development on theRoberta Henry Plat
n Various neighborhood projects toenhance neighborhoods
n Property acquisition to reduce blightand revitalize neighborhoods
n Sidewalks, lighting and landscapingimprovements to enhanceneighborhoods
n Small Phoenix high schools programdevelopment focused on high-demandcareer fields
169
Parks, Recreation and MountainPreserves
The Parks, Recreation and MountainPreserves program totals $82.7 million andis funded with 2001 and 2006 bonds, impactfees, grants, Nonprofit Corporation Bonds,Parks and Preserves Initiative and otherrestricted funds. Bond funded projectstotal $25.3 million, of which $19.0 is beingdelayed indefinitely due to reductions inproperty tax revenue.
The program provides for acquisitionand development of new park sites,preserves, specialty areas andimprovements to existing parks.
Major Parks projects funded with 2006and/or 2001 bonds that are being delayedindefinitely include:
n HOPE VI Park Development
n Coronado Park
n Park at 32nd Avenue and McDowellRoad
n Papago Park
n Heritage Square
n Sports field lighting
n La Pradera Community Center
n Phoenix Center for the Community Arts
n Park acquisition funds
Projects funded using Parks and PreservesInitiative funding include:
n Cielito Park improvements
n Coronado Park improvements
n Cortez Pool renovations
n Del Rio Park improvements
n Encanto Park improvements
n Hance Park improvements
n Moon Valley Park improvements
n Roadrunner Park improvements
n Verde Park
n Construct, improve and renovate parkscitywide
n Acquire land for the Sonoran Preserve
n Assist in the design and construction ofa multi-use environmental andeducation facility
n Phoenix Tennis Center
Projects funded using Impact Fees include:
n Cesar Chavez Community Center
n REACH 11 Soccer Fields
n Sonoran Foothills acquisition
n South Mountain Park entry
Projects funded using Bond Funds include:
n ADA modifications
n Cielito Park improvements
n Rio Salade Oeste
Phoenix Convention Center
The $43.0 million Phoenix ConventionCenter program is funded with ConventionCenter operating revenue, 2001 and 2006bonds, and general funds. In addition tothe Convention Center, this programincludes projects and improvements forthe Herberger and Orpheum Theaters,Symphony Hall plus the Regency, Heritageand Convention Center parking garages.
Police Protection
The Police Protection program totals $31.9million and is funded with 2001 and 2006bonds, of which $22.8 million are beingdelayed indefinitely due to reductions ofproperty tax revenue. Upgrading orreplacing the Police Automated ComputerEntry (PACE) System project for $6.0million is scheduled to move forward. Theprogram is also funded with nonprofitcorporation bonds.
Major Police Protection program projectsdelayed indefinitely include the following:
n Design and construct aircraft hangarfacilities at the Deer Valley Airport
n Acquire land for a new northwestprecinct
n Renovate buildings for use as theCactus Park Precinct
Public Transit
The $266.2 million Public Transit programis funded with Transit 2000 revenue,regional transportation revenue includingthe half-cent countywide sales tax, ArizonaHighway User Revenue and grants fromvarious sources.
Phoenix voters approved Transit 2000,a 0.4 percent sales tax, on March 14, 2000,to fund extensive improvements to thecity’s public transit system. Projects in thePublic Transit program include thefollowing:
n Acquire buses and purchase Dial-A-Ride replacement vans
n Improve and maintain bus stops, buspullouts, Park-And-Ride locations andtransit centers
n Construct and equip various facilityupgrades including renovations to theSouth Transit Maintenance Facility,Public Transit headquarters buildingand North Transit Facility expansion
n Implement technology enhancementsincluding wireless communicationsand fare collection systems for theregional bus system
n Acquire and maintain land andconstruct Light Rail northwestextension
n Develop Desert Sky, Laveen/59thAvenue and East Baseline Park-And-Ride facilities
Regional Wireless Cooperative (RWC)
The RWC program totals $45.1 million andis funded with nonprofit corporationbonds, other restricted funds, and grants.
Major RWC program projects include thefollowing:
n FCC mandated 700 MHz Narrow-Banding hardware upgrade
n Transition other cities onto the RWCsystem
Solid Waste Disposal
The $88.7 million Solid Waste Disposalprogram includes projects at the city’sopen landfill, closed landfills and transferstations, and is funded with Solid Wasterevenue, Solid Waste Remediation fundsimpact fees and nonprofit corporationbond funds.
Projects planned in the Solid WasteDisposal program include:
n Construct drainage and methane gasextraction system at State Route 85Landfill
n Replace aging recycling equipment at27th Avenue and North GatewayTransfer Station Material RecoveryFacilities (MRF)
n Refurbish the North Gateway TransferStation EMD repair shop
n Monitor and maintain methane gascollection systems at landfillsthroughout the City
n Perform various maintenance atlandfill sites
n Erosion repair/maintenance at 27thAvenue and Skunk Creek landfills
n Relocate utilities at State Route 85Landfill
n Cap cells at 19th Avenue Skunk Creekand State Route 85 landfills
170
Street Transportation and Drainage
The Street Transportation and Drainageprogram totals $581.9 million and isfunded with Arizona Highway UserRevenues, and 1988, 2001, and 2006 bonds,Capital Construction funds andparticipation from other agencies.Included in the program are major street,storm drainage, traffic improvement andother street maintenance andimprovement projects. Projects in thecombined amount of $26.1 million fundedwith 1988, 2001 and 2006 bonds aredelayed indefinitely due to the reductionsof property tax revenue.
Major street and storm drainage projectsfor 2006 bond funding scheduled to moveforward include:
n Expand city of Phoenix wirelessnetwork for connections to on-streetdevices for traffic signal coordination
n Construct a downtown storm drainrelief system
n Storm drain rehabilitation
n Construction local drainageimprovements
Major street projects for AHUR fundinginclude the following projects:
n Design, acquire right-of-way andconstruct major street at CamelbackRoad from 44th to 56th street
n Construct major street at PinnaclePeak Road from 43rd to 35th avenues
n Construct major street at SeventhAvenue from Southern Avenue to theSalt River
n Design and acquire right-of-way formajor street at Happy Valley Road from55th to 43rd avenues
n Design, acquire right-of-way andconstruct major street at 91st Avenuefrom Indian School to Camelback roads
n Design, acquire right-of-way andconstruct major street at Cave CreekRoad from Union Hills Drive to PimaFreeway
n Construct major street at 32nd Streetfrom Southern Avenue to BroadwayRoad
n Construct major street at 75th Avenuefrom Lower Buckeye to Buckeye roads
n Acquire right-of-way and constructmajor street at Buckeye Road from67th to 59th avenues
n Complete the design, acquire land andconstruct Avenida Rio Salado Parkway
n Design, acquire right-of-way andconstruct major street at 27th Avenuefrom Pima Freeway to Deer Valley Road
n Design, acquire right-of-way andconstruct major street at 32nd Streetfrom Vineyard Road to SouthernAvenue
n Design, acquire right-of-way andconstruct major street at 83rd Avenuefrom Lower Buckeye to Buckeye roads
n Acquire right-of-way and constructmajor street at Baseline Road from59th to 51st avenues
n Design, acquire right-of-way andconstruct major street at Happy ValleyRoad from 67th to 55th avenues
n Design, acquire right-of-way andconstruct major street at 35th Avenuefrom Olney Drive to Dobbins Road
n Construct major street at 56th Streetfrom Deer Valley to Pinnacle Peakroads
n Design, acquire right-of-way andconstruct major street at 35th Avenuefrom Dobbins to Baseline roads
n Acquire right-of-way on 64th Streetfrom Utopia Road to Loop 101
n Design, acquire right-of-way andconstruct major street at 27th Avenuefrom Lower Buckeye to Buckeye roads
n Design, acquire right-of-way andconstruct major street at Buckeye Roadfrom Seventh to 16th streets
n Design, acquire right-of-way andconstruct major street at Buckeye Roadfrom Central Avenue to Seventh Street
n Design, acquire right-of-way andconstruct major street at 51st andSouthern avenues IntersectionImprovements
n Retrofit landscaping on existing majorstreets
n Major street overlay
n Major street slurry seal and crack seal
n Expand bike lane capacity andinfrastructure
Capital Construction funding is plannedfor the following types of projects:
n Local paving and drainage projects
n Residential street resurfacing
n Landscaping along freeways
n Sidewalks
n Sidewalk ramps
n Dust control
n Traffic calming
171
Wastewater
The Wastewater program totals $497.6million and is funded with Wastewateroperating revenue, impact fees,Wastewater non-profit corporation bondsand other cities' share in joint venturesfunds.
Major Wastewater projects include thefollowing:
n Implement improvements atwastewater treatment plants includingoperational and solid streamimprovements at the 91st AvenueWastewater Treatment Plant
n Design and construct SROG InterceptorCapacity improvements
n Construct relief sewers citywide
n Expand, improve and replace sewer liftstations
n Assess, rehabilitate and/or relocatesewers of various sizes and materialsthroughout the city
n Improve technology includingautomatic meter reading and billingsystem upgrade
n Construct pump station
n Conduct various Wastewatermanagement studies, improve securityat remote facilities and provide forstaff charges and consultant fees
n Complete the Tres Rios Flood Controland Ecosystem Restoration
n Improve various odor control facilities
n Construct growth-related wastewaterinfrastructure in impact fee areas
Water
The $726.7 million Water program isfunded with Water operating revenue,nonprofit corporation bonds, impact feesand city of Mesa participation in the ValVista Water Treatment Plant joint venture.
Major projects include the following:
n Acquire and construct new wells andrehabilitate existing wells
n Construct new reservoirs andrehabilitate existing reservoirs andbasins
n Rehabilitate existing booster stations
n Replace and rehabilitate portions of theVal Vista Transmission Main from theVal Vista Water Treatment Plant to 48thStreet
n Rehabilitate the Val Vista, Deer Valley,Union Hills Water Treatment and CaveCreek Water Reclamation Plants
n Design and construct improvementsfor solids handling facility for UnionHills Water Treatment Plant
n Construct improvement in the energyefficiency and optimization of electricaldemand as recommended in theInnovation and Efficiency Study forWater Services Department
n Construct production improvements towater treatment and reclamationplants, reservoirs, wells and boosterstations such as treatment processes,chemical facilities, equipment andfacility improvements
n Install new service meters andconstruct plumbing connections foralley service relocations
n Repair and replace leaking waterservices
n Construct water main improvementsrecommended in the integrity studyand rehabilitate existing mainscitywide
n Construct new mains in growth areas
n Relocate water lines for light railnorthwest extension
n Replace or rehabilitate high-prioritywater transmission mains
n Design and construct new water mainsand install new fire hydrants in theGarfield Neighborhood (Seventh to16th streets and Van Buren Street toMcDowell Road
n Complete installation of software andhardware to automate meter reading
n Conduct various water system studies
n Construct security upgrades at remotefacilities
172
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174
175
2013-14 Capital Improvement Program$1,205,252,000
Bond Funds$248,449,000
Other Capital$426,098,000
Operating Funds$530,705,000
Aviation$158,680,000
2006 G.O.Various Purpose
$40,589,000
Other Bonds$21,905,000
Solid Waste$685,000
Water$3,545,000
Phoenix Convention Center
$20,449,000
Wastewater$1,302,000
Other Cities’ Participation$9,195,000
Impact Fees$95,623,000
Passenger Facility Charge
$56,779,000
Capital Grants$116,522,000
Other Agency and Private Participation
$78,185,000
Solid Waste Remediation$4,050,000
Other Capital$11,377,000
Capital Reserves$54,307,000
Parks and Preserves$33,710,000
General Fund$2,442,000
Capital Construction$20,285,000
Transit 2000$27,037,000
Public Transit$19,719,000
Arizona Highway User Revenue$59,323,000
Other Restricted$5,818,000
CommunityReinvestment$5,890,000
Aviation$35,631,000
Grants$63,226,000
PPhoenixhoenix ConvConveention ntion Center
$3,371,000
Wastewater$58,588,000
Solid Waste$19,228,000
Water$173,838,000
DevelopmentServices$59,000
Sports Facilities$2,540,000
2001 G.O. Various Purpose
$1,294,000
Parks Capital Gifts$60,000
2013-14 Capital Improvement Program Organizational Chart
176
177
Capital facilities include the police andfire stations, senior centers, parks,swimming pools, libraries, culturalfacilities and customer service centersneeded to deliver services to our residents.Capital improvements also includeinvestment in infrastructure, commercialand neighborhood development,redevelopment and revitalization. Sincethese types of capital projects are assetswith a multi-year life, issuing bonded debtis an appropriate way to pay for theseexpenses. It will allow the initial costs tobe repaid over the years the investment isused. The service delivery costs and day-to-day operating expenses such as staffsalaries or supplies are not capital assets.These costs are not funded with bondeddebt and must be paid from the city'sannual operating funds.
New Facilities Funding and TheirOperating Costs
In accordance with Bond Committeerecommendations and property tax policyadopted by the City Council in December2011, the primary property tax levy ismaximized to ensure its stability as a sourceof General Fund revenue and to help pay foroperation and maintenance of capitalfacilities. On March 14, 2006, Phoenixvoters approved an $878.5 million bondprogram. Estimated General Fundexpenditures to operate bond fundedprojects are updated annually. Forenterprise fund operations, multi-year rateplanning processes are used to provide theCity Council with the effects new capitalfacilities will have on future rate-payers.Each year, the City Council considers theimpact of future capital facilities as it setsannual utility rates. Finally, for more than20 years, the energy conservation programhas generated annual cost savings in excessof the funds invested. This programprovides for energy efficient retrofits, energyefficient design and metering for efficientoperations.
Identifying Operating Costs
Each fall, departments are asked to reviewall capital projects, their estimatedcompletion dates, any costs associatedwith operating new facilities and systems,and the funding source(s) for these costs.These costs are reviewed jointly by theBudget and Research and Public Worksdepartments. The 2013-14 budget includes$1,278,000 in new operating andmaintenance costs for new facilities andsystems. The funding sources for 2013-14operating costs include General, Aviationand Phoenix Parks and Preserve Initiativefunds. The schedule on the next pageprovides project operating andmaintenance costs for 2013-14, the full-year operating and maintenance costs for2014-15, and the source of funds that willbe used for these costs.
Operating Costs for New Capital Facilities
OPERATING COSTS FOR NEW CAPITAL FACILITIES
Project Name and # of 2013-14 2014-15Operating Fund Source FTEs Costs Costs
Aviation / Parks and RecreationPHX Sky Train Facility(Aviation Fund)
2.0 Add staff and materials for the Parks andRecreation Department to provide landscapemaintenance at the new PHX Sky Train facilitythat includes more than 11 acres of desertxeriscape with over 500 trees and 2,000 plants.
$115,000 $89,000
178
New Sonoran PreserveAcreage (Phoenix Parks andPreserve Initiative (PPPI)Fund)
2.0 Add staff to protect and maintain 1,546 acres ofnew preserve property.
$194,000 $164,000Parks and Recreation
Tres Rios Wetlands (PPPI) 3.0 Add staff and materials to operate and maintainthe recreational area around the wetlandsbeginning in October 2013.
$220,000 $208,000
Dog Park at Margaret T.Hance Park (PPPI)
0.5 Add staff and materials to operate and maintainthe new dog park opening in the summer of2013.
$35,000 $23,000
Echo Canyon Trailhead(PPPI)
0.5 Add staff and materials to operate and maintainthe trailhead expansion opening in September2013.
$46,000 $46,000
Cortez Pool(PPPI)
4.6 Add staff and materials to reopen the renovatedand expanded pool opening in May 2014.
$88,000 $190,000
Hermoso Recreation Facility (PPPI)
2.9 Add staff and materials to operate and maintainthe renovated and expanded facility offeringyouth programs, classes for seniors, a computerlab and other recreation activities. The facilityis scheduled to open in September 2013.
$162,000 $187,000
Winship House (PPPI)
1.0 Add funding to operate and maintain therenovated Winship House that will house Parks-affiliated nonprofit organizations includingJapanese Friendship Garden Inc., Phoenix ParksFoundation, the Camp Colley Foundation, andParks and Recreation Department staff.
$102,000 $82,000
Rio Salado Peace Path(PPPI)
— Add funding for contracted landscapemaintenance for the first mile of the new three-mile long Rio Salado Peace Path. The path willprovide a link between Rio Salado at 24th Streetand the city of Tempe at 48th Street. The pathwill complete a link to the regional pathwaysystem that will ultimately connect the WestValley Recreation Corridor at the Agua FriaRiver on the west to the Indian Bend WashRecreation Corridor to the east.
$28,000 $28,000
OPERATING COSTS FOR NEW CAPITAL FACILITIES (continued)
Project Name and # of 2013-14 2014-15Operating Fund Source FTEs Costs Costs
179
Freeway Landscape ContractManagement (General Fund)
— Add funding for contracted landscapemaintenance for an additional nine miles offreeway landscape on I-17 in Phoenix.Maintenance activities include: trash pick-up,watering, vegetation replacement, irrigationrepair and graffiti removal.
$288,000 $288,000Street Transportation
OPERATING COSTS FOR NEW CAPITAL FACILITIES (continued)
Project Name and # of 2013-14 2014-15Operating Fund Source FTEs Costs Costs
Net Total Costs $1,278,000 $1,305,000
Source of Funds
Aviation $115,000 $89,000
General $288,000 $288,000
Phoenix Parks and Preserve Initiative (PPPI) $875,000 $928,000
Total Source of Funds $1,278,000 $1,305,000
180
181
Summary Schedules
182
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198
Accrual Basis Accounting – The mostcommonly used accounting method, whichreports income when earned and expenses whenincurred, as opposed to cash basis accounting,which reports income when received andexpenses when paid. For the city'sComprehensive Annual Financial Report(CAFR), Phoenix recognizes grant revenues ona modified cash basis. Generally AcceptedAccounting Principles (GAAP) recognizes grantrevenues on an accrual basis.
Airside – Aircraft movement areas that includeramps, aprons, taxiways and runways.
Appropriation – An authorization granted bythe City Council to make expenditures and toincur obligations for purposes specified in theappropriation ordinances. Three appropriationordinances are adopted each year: 1) theoperating funds ordinance 2) the capital fundsordinance 3) the re-appropriated fundsordinance.
Arizona Highway User Revenue (AHUR) –Various gas tax and vehicle licensing feesimposed and collected by the state and sharedwith cities and towns. This revenue must beused for street or highway purposes..
Balanced Budget – Arizona law (Title 42Arizona Revised Statutes) requires the CityCouncil to annually adopt a balanced budget bypurpose of public expense. State law definesthis balanced budget as “the primary propertytax levy, when added together with all otheravailable resources, must equal theseexpenditures.” Therefore, no General Fundbalances can be budgeted in reserve forsubsequent fiscal years. Instead, an amount forcontingencies (also commonly referred to as a“rainy day fund”) is included in the budget eachyear. The City Charter also requires an annualbalanced budget. The charter further requiresthat “the total of proposed expenditures shallnot exceed the total of estimated income andfund balances.”
Base Budget Allowances – Funding forongoing expenditures for personnel,commodities, contractual services andreplacement of existing equipment previouslyauthorized. The base budget provides funding tocontinue previously authorized services andprograms. The city of Phoenix process fordeveloping the base budget is “Zero BaseBudgeting.”
Block Watch Fund – This fund is the BlockWatch portion of the Neighborhood ProtectionFund. This fund is a portion of a voter-approved0.1 percent sales tax increase approved inOctober 1993. Grant funds are awarded tocommunities for innovative methods to detercrime-related problems in their neighborhoods.The city disburses these funds through anannual application process.
Bonds – Debt instruments that requirerepayment of a specified principal amount on acertain date (maturity date), along with interestat a stated rate or according to a formula fordetermining the interest rate.
Bond Rating – An evaluation of a bond issuer'scredit quality and perceived ability to pay theprincipal and interest on time and in full. Twoagencies regularly review city bonds andgenerate bond ratings - Moody's InvestorsService and Standard & Poor's Ratings Group.
Budget – A plan of financial operation for aspecific time period (the city of Phoenix'sadopted budget is for a fiscal year July 1 – June30). The budget contains the estimatedexpenditures needed to continue the city'soperations for the fiscal year and revenuesanticipated to finance them.
Capital Budget – See Capital ImprovementProgram.
Capital Funds – Resources derived fromissuance of bonds for specific purposes, relatedfederal project grants and participation fromother agencies used to finance capitalexpenditures.
Capital Improvement Program (CIP) – Aplan for capital expenditures needed tomaintain and expand the public infrastructure(for example, roads, sewers, water lines orparks). It projects these infrastructure needsfor a set number of years and is updatedannually to reflect the latest priorities, costestimates or changing financial strategies. Thefirst year of the adopted Capital ImprovementProgram becomes the Annual Capital Budget.
Capital Outlay – Items that cost more than$5,000 and have a useful life of more than twoyears.
Capital Project – New facility, technologysystem, land acquisition or equipmentacquisition, or improvements to existingfacilities beyond routine maintenance. Capitalprojects are included in the CapitalImprovement Program and become fixed assets.
Carryover – Expenditure originally planned forin the current fiscal year, but because of delays,is postponed to the following fiscal year.
CDBG – See Community Development BlockGrant.
Central Service Cost Allocation – Themethod of distributing expenses for general staffand administrative overhead to the benefitingactivity.
CIP – See Capital Improvement Program.
City Connection – Weekly employeenewsletter containing information about theorganization, news about employees, andpersonnel and benefits updates.
City Manager’s Budget – See PreliminaryBudget.
City of Phoenix Employees’ RetirementSystems (COPERS) – A pension plan forfull-time employees who retire from service withthe city of Phoenix.
Glossary
199
Civic Improvement Corporation (CIC) – Non-profit corporation established in1973 as the main financing arm of the city ofPhoenix to issue debt obligations secured byenterprise fund revenues or excise tax pledges.
Commodities – Consumable goods such asoffice supplies, repair and replacement parts,small tools and fuel, which are not of a capitalnature.
Community Development Block Grant(CDBG) – Grant funds allocated by the federalgovernment to the city of Phoenix to use for theprevention and removal of slum and blight, andto benefit low- and moderate-income persons.The city disburses these funds through anannual application process open to all nonprofitorganizations and city departments.
Comprehensive Annual FinancialReport (CAFR) – Official annual report ofthe city of Phoenix which includes statements ofrevenue, expenditures and changes in fundbalances.
Contingency – An appropriation of fundsavailable to cover unforeseen events that mayoccur during the fiscal year, such as floodemergencies, federal mandates shortfalls inrevenue and similar eventualities.
Contractual Services – Expenditures forservices performed by firms, individuals or othercity departments.
Council-Manager Form of Government – Anorganizational structure in which the Mayor andCity Council appoint an independent citymanager to be the chief operating officer of alocal government. In practice, a City Councilsets policies and the city manager is responsiblefor implementing those policies effectively andefficiently.
Court Awards Fund – Revenues provided bycourt awards of confiscated property under boththe federal and state organized crime acts.These funds are used for additional lawenforcement activities in the Police and Lawdepartments.
Cycle Time – The amount of time, from thecustomer’s perspective, it takes to complete adefined task, process or service.
Debt Service – Payment of principal andinterest on an obligation resulting from theissuance of bonds.
Depreciation – The decline in the value of anasset due to general wear and tear orobsolescence.
DBE – Disadvantaged Business Enterprise.
Encumbrance – A reservation of funds to coverpurchase orders, contracts or other fundingcommitments that are yet to be fulfilled. Thebudget basis of accounting considers anencumbrance to be the equivalent ofexpenditure.
Enterprise Funds – Funds that are accountedfor in a manner similar to a private business.Enterprise funds usually recover their costs(including depreciation) through user fees. Thecity has four such self-supporting funds:Aviation, Water, Wastewater and Solid Waste. Inaddition, the Phoenix Convention Center Fund,which is primarily supported by earmarkedexcise taxes, uses enterprise fund accounting toprovide for the periodic determination of netincome.
Estimate – The most recent prediction ofcurrent year revenue and expenditures.Estimates are based upon several months ofactual expenditure and revenue information andare prepared to consider the impact ofunanticipated costs or other economic changes.
Excise Tax Fund – This fund is used toaccount for tax revenues ultimately pledged topay principal and interest on various debtobligations. This fund includes local sales taxes,state-shared sales taxes, state-shared incometaxes and sales tax license fees.
Expenditures – Refers to current cashoperating expenses and encumbrances.
Expenditure Limit – See State ExpenditureLimit.
Fiduciary Funds – Funds used to account forassets held by the city of Phoenix as a trustee oragent. These funds cannot be used to supportthe city’s own programs.
Fiscal Year – The city’s charter designates July 1 to June 30 as the fiscal year.
FTE – See Full-Time Equivalent Position.
Full-Time Equivalent Position (FTE) – Aposition converted to the decimal equivalent ofa full-time position based on 2,080 hours peryear. For example, a part-time clerk working for20 hours per week would be equivalent to onehalf of a full-time position or 0.5 FTE.
Fund – An independent governmentalaccounting entity with a self-balancing group ofaccounts including assets, liabilities and fundbalance, which record all financial transactionsfor specific activities of government functions.
Fund Balance – As used in the budget, theexcess of resources over expenditures. Thebeginning fund balance is the residual fundsbrought forward from the previous fiscal year.
GAAP – See Generally Accepted AccountingPrinciples.
General Obligation Bonds (G.O. Bonds) –Bonds that require voter approval and finance avariety of public capital projects such as streets,buildings, parks and improvements. The bondsare backed by the “full faith and credit” of theissuing government.
General Funds – Resources derived from taxesand fees that have unrestricted use, meaningthey are not earmarked for specific purposes.
Generally Accepted Accounting Principles(GAAP) – Uniform minimum standards offinancial accounting and reporting that governthe form and content of basic financialstatements. The city's Comprehensive AnnualFinancial Report (CAFR) outlines adjustmentsneeded to convert Phoenix's budget basis ofaccounting to a GAAP basis.
GFOA – Government Finance OfficersAssociation
Goal – A statement of broad direction, purposeor intent based on the needs of the community.A goal is general and timeless; that is, it is notconcerned with a specific achievement in agiven time period.
G. O. Bonds – See General Obligation Bonds.
200
Grant – A contribution by one government unitor funding source to another. The contributionis usually made to aid in the support of aspecified function (e.g., library materials ordrug enforcement, but it is sometimes forgeneral purposes).
HUD – U.S. Department of Housing and UrbanDevelopment.
Impact Fees – Fees adopted by the CityCouncil in 1987 requiring new development inthe city's outlying planning areas to pay itsproportional share of the costs associated withproviding necessary public infrastructure.
Improvement Districts – Special assessmentdistricts formed by property owners who desireand are willing to pay for mutually enjoyedimprovements such as streets, sidewalks, sewersand lighting.
Infrastructure – Facilities that support thedaily life and growth of the city, for example,roads, water lines, sewers, public buildings,parks and airports.
Interceptor Capacity – The amount of flowper unit of time that the interceptor sewers cancarry under gravity flow conditions.
Interceptor Sewers – Interceptor Sewers arethe largest size sanitary sewer mains in thewastewater collection system which collect theflow from main and trunk sewer lines and carryflow to the wastewater treatment plants.
In Lieu Property Taxes (or In Lieu Taxes) –An amount charged to certain city enterpriseand federally funded operations that equal thecity property taxes that would be due on plantand equipment if these operations were for-profit companies. This includes the Water,Wastewater, Solid Waste and Public Housingfunds.
Levy – See Tax Levy.
Mandate – Legislation passed by the state orfederal government requiring action or provisionof services and/or programs. Examples includethe Americans with Disabilities Act, whichrequires actions such as physical facilityimprovements and provision of specializedtransportation services.
M/W/SBE – Minority, Women and SmallBusiness Enterprise.
Modified Accrual Basis – Method underwhich revenues are recognized in the periodthey become available and measurable, andexpenditures are recognized in the period theassociated liability is incurred. Mostgovernment accounting follows this method.
Neighborhood Protection Fund – This fund,also referred to as Proposition 301, is used toaccount for the funds generated by the 0.1percent increase in the sales tax approved byvoters in October 1993. The funds are to be usedfor the expansion of police, fire, and blockwatch programs. The breakdown of funding is asfollows: Police 70 percent, Fire 25 percent andBlock Watch 5 percent.
Net Direct Debt Ratio – The ratio betweenproperty tax-supported debt service andsecondary-assessed valuation. The Net DirectDebt Ratio is one way to gauge the ability of alocal property tax base to support generalobligation debt service.
Objective – Desired output-orientedaccomplishments that can be measured andachieved within a given time frame, andadvance the activity and organization toward acorresponding goal.
Operating Funds – Resources derived fromcontinuing revenue sources used to financeongoing operating expenditures and “pay-as-you-go” capital projects.
Ordinance – A formal legislative enactment bythe City Council. If it is not in conflict with anyhigher form of law, such as a state statute orconstitutional provision, it has the full force andeffect of law within the boundaries of the city.
Outstanding Bonds – Bonds not yet retiredthrough principal and interest payments.
Parks and Preserves Fund – This fund isused to account for the funds generated by the0.1 percent increase in the sales tax approved byvoters in 1999 and reauthorized in 2008. Thefunds are to be used for the purchase of statetrust lands for the Sonoran Desert PreserveOpen Space, and the development of regionaland neighborhood parks to enhance communitysafety and recreation.
Pay-As-You-Go Capital Projects – Capitalprojects whose funding comes from day-to day city operating revenue sources.
Percent-for-Art – An ordinance that allocatesup to 1 percent of the city's capitalimprovement budget to fund public art projects.
Personal Services – All costs related tocompensating city employees includingemployee benefits costs such as contributionsfor retirement, social security, and health andindustrial insurance. It also includes fees paidto elected officials, jurors, and election judgesand clerks. It does not include fees forprofessional or other services.
Plan Six Agreements – Agreements to providefunding to accelerate the construction of theWaddell and Cliff dams, and modification of theRoosevelt and Stewart dams, for the benefit ofthe city of Phoenix. These benefits include theuse of additional unappropriated water,controlling floods, improving the safety ofexisting dams, and providing new and improvedrecreational facilities.
PLT – See Privilege License Tax.
Preliminary Budget – A balanced budgetpresented to the City Council by the citymanager (sometimes referred to as the CityManager's Proposed Budget) based upon anearlier Trial Budget, City Council andcommunity feedback and/or changing economicforecasts. Any City Council changes to thePreliminary Budget are incorporated into thefinal adopted budget.
Primary Property Tax – A property tax levyrestricted by state law and city charter that canbe used to support any public expense.
Privilege License Tax (PLT) – The city ofPhoenix's local sales tax, made up of more than14 general categories.
Privilege License Tax Fees – Includes feescharged for Privilege License Tax (PLT) licensesand the annual fee per apartment unit on therental of non-transient lodging. Fees recover thecosts associated with administering an efficientand equitable system. A PLT license allows thelicensee the privilege to conduct taxablebusiness activities and to collect and remitthose taxes.
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Program – A group of related activitiesperformed by one or more organizational units.
Property Tax – A levy upon each $100 ofassessed valuation of property within the city ofPhoenix. Arizona has two types of propertytaxes. Primary property taxes support the city'sGeneral Fund and secondary property taxes paygeneral obligation debt.
Proposition 1 – See Public Safety ExpansionFund.
Proposition 301 – See NeighborhoodProtection Fund.
Public Safety Enhancement Funds – ThePublic Safety Enhancement funds are used toaccount for a 2.0 percent increment of the 2.7 percent sales tax on utilities with franchiseagreements. The Police Public SafetyEnhancement Fund is dedicated to Police andEmergency Management needs and receives 62 percent of the revenues generated. The FirePublic Safety Enhancement Fund is dedicatedto Fire needs and receives 38 percent of therevenues generated.
Public Safety Expansion Funds – This fundis used to account for the 0.2 percent increasein sales tax approved by Phoenix voters in 2007.The funds will be used to add 500 policepersonnel and 100 firefighters to the city ofPhoenix. The Police Department receives 80percent of revenues and the Fire Departmentreceives 20 percent.
Reappropriated Funds – Funds for contractsentered in a previous fiscal year but which arestill in progress.
Recoveries – Canceled prior yearencumbrances.
Regional Wireless Cooperative (RWC) – Anindependent, multi-jurisdictional organizationthat manages and operates a regional radiocommunications network built to seamlesslyserve the interoperable communication needs offirst responders and other municipal radio usersin and around Central Arizona’s Valley of theSun.
RPTA – Regional Public TransportationAuthority.
Resources – Total amounts available forappropriation including estimated revenues,recoveries, fund transfers and beginning fundbalances.
Restricted Funds – See Special Revenue Fund.
Salary Savings – Budget savings realizedthrough employee turnover or vacant positions.
Secondary Property Tax – A property tax levyrestricted by state law and city charter to thepayment of debt service on bonded debt.
Self-Insurance – Self-funding of insurancelosses. With the exception of airport operations,police aircraft operations, and excess generaland automobile liability for losses in excess of$7.5 million, the city is self-insured for generaland automobile liability exposures.
Special Revenue Fund – A fund used toaccount for receipts from revenue sources thathave been earmarked for specific activities andrelated expenditures. Examples include ArizonaHighway User Revenue (AHUR) funds, whichmust be used for street and highway purposes,and secondary property tax, which is restrictedto general-bonded debt obligations.
Sports Facilities Fund – A special revenuefund established to account for revenue raisedfrom a designated portion of the hotel/motel taxand tax on short-term motor vehicle rentals.These funds pay the city's portion of the debtservice and other expenditures related to thedowntown sports arena.
State Expenditure Limit – A limitation onannual expenditures imposed by the ArizonaConstitution as approved by the voters in 1980.The limitation is based upon a city's actual1979-80 expenditures adjusted for interimgrowth in population and inflation. Certainexpenditures may be exempt by the StateConstitution or by voter action.
State-Shared Revenues – Revenues levied andcollected by the state but shared with localgovernments each year as determined by statelaw. In Arizona, a portion of the state's sales,income and vehicle license tax revenues aredistributed on the basis of a city's relativepopulation percentage.
Supplemental – Resources to provide new orenhanced programs or services over the basebudget allocation.
Tax Levy – The total amount to be raised bygeneral property taxes for purposes specified inthe Property Tax Levy Ordinance.
Technical Review – A detailed line-item reviewof each city department's budget conducted bythe Budget and Research Department.
Transit 2000 Fund – This fund is used toaccount for the 0.4 percent sales tax dedicatedto transit approved by voters on March 14, 2000.Also included in this fund are fare boxcollections.
Trial Budget – Also known as the CityManager’s Trial Budget, a budget developed inearly spring that presents a proposed balancedbudget for discussion by the City Council andthe community before the city manager submitshis or her Preliminary, or City Manager’sProposed Budget, in late spring.
User Fees or User Charges – A fee paid for apublic service or use of a public facility by theindividual or organization benefiting from theservice.
Zero Base Budgeting – A process whereby abudget is developed at the program level, andstarting from zero the next year’s budget isestimated assuming only those costs necessaryto provide the currently approved level ofservice. This initial estimate is referred to asthe “base budget.” The estimated cost forproviding each program is reviewed and justifiedon an annual basis. The process includes theidentification of potential reductions andadditions, which are ranked in priority order.Presentation of the budget also is provided on aprogram basis.
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