Title
FY2008 2nd Amendatory and Final Budget (B)
Explanation
On September 17, 2007 an FY2008 Amendatory Budget was adopted by the CRA with total revenue of $4,335,990, which included projected TIF revenues of $4,175,661 and an additional $160,329 in FY2007 carryover from operating (fund 111) due to vacancies in staffing.
In December 2007, the actual TIF receipt totals for FY2008 deposits were determined to be $4,496,961, an increase of 7.4%. Including the $160k FY2007 operating fund balance, total revenues are for FY2008 are $4,657,291. With this 2nd Amendatory Budget (see Exhibit B), we cover unanticipated operating expenses and appropriate the remaining unexpended funds to existing or new projects.
Below are highlights of the changes in the 2nd FY2008 Amendatory Budget vs. the 1st FY2008 Amendatory Budget adopted on September 17, 2007:
Payroll/Org Changes
Changes to Operating Expenses
Operating Expense to TIF Ratio
Changes in Debt Service
Appropriation of unexpended TIF revenue based on FY2008 receipts
Payroll/Org Changes
Overall, proposed changes to the budget result in less than $500 in additional payroll expenses.
However, significant changes were made internally to re-align staff in order to gain operational efficiencies and have increased accountability for project work internally. For example, historically staff has been aligned by District (i.e. Downtown, Eastside, etc.) and had geography-specific accountability. Now, staff has been reorganized to align by functional expertise (i.e. Planning, Engineering, Finance, Project Management, etc.) as these functions are required for most projects; regardless of the District for which the project is undertaken. For communication and coordination with our external stakeholders, we will continue to have some staff that have geography-specific job titles (e.g. Project Coordinator Fifth Ave/Eastside), but internally do work for all Districts.
As a result of staff’s re-alignment, changes were made to the way we allocate FTEs and therefore payroll expenses across districts. See Exhibit C for more detail.
Additionally, for the first time in over two years, we are completely staffed to the approved headcount plan. An Engineer was added in January and a Management Analyst Senior was added this month (March). Both positions were already included in the 1st FY2008 Amendatory Budget.
Changes to Operating Expenses
The City Attorney’s office requested an additional $25,514 in funding to cover proportional hours spent supporting CRA staff.
Additionally, with internal re-alignment changes, new staff members, and a general need to upgrade our infrastructure, we have a need for additional computers, software upgrades, new project management software, office furniture, and other build out expenditures.
Operating Expenses to TIF Ratio
Even with the additional payroll and operating expenses factored into the budget, our overall Operating Expenses to TIF ratio is 17.4%, well below the self-imposed 25% threshold. In addition, 3 of the 4 Districts are each below the self-imposed 25% threshold (CPUH 14.4%, Downtown 19.4%, and Eastside 20.5%). The Fifth Ave/Pleasant Street District is just slightly above threshold at 26.6%.
Changes to Debt Services/TIF Payment
Debt Service and TIF payments increased approximately $35,000 or 5% of total re-payment obligations. The change was driven by increases the College Park/University Heights District (+$31,223), Downtown (+$1,955), and FAPS (+$2,000). See Exhibit E for more detail.
Appropriation of unexpended TIF revenue based on final FY2008 receipts
Approximately $261,666 or 81.4% of the incremental TIF revenue will go to provide additional funding to existing projects or new projects. See Exhibit F for more detail.
Fiscal Note
Budgets were prepared for Eastside, FAPS, CPUH, and Downtown Advisory Boards. The Eastside Board did not have a quorum. The Downtown budget was accepted as presented, but has been modified since acceptance. The FAPS budget was approved, but without additional project funding for A. Quinn Jones. Staff recommends supporting A. Quinn Jones with $10,482 in funding. A written budget was presented to the CPUH Advisory Board and no new project funds were requested and no vote was taken.
Recommendation
Executive Director to the CRA: Recommend the CRA adopt Resolution #071017, thus approving an amendatory budget for FY2008 as described above.