DEPARTMENT: Office of Management and Budget
DEPARTMENT HEAD: Justina Tate
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
City Council Worksession on the FY 2018 Proposed Budget
SUMMARY:
Staff presentation on the FY 2018 Proposed Budget focusing on, but not limited to, the following City policies and initiatives:
A. Airport Operations
B. Administration of the City
C. General Fund Revenues
BACKGROUND INFORMATION:
The FY 2018 Proposed Budget was presented to the Mayor and City Council on August 10, 2017. The budget is balanced as required by law and reflects the City Council policy direction of budgeting through an equity lens. The City’s Fiscal Year begins October 1.
Equity and equality are two strategies that can be used in budgeting. Equity aims to understand the needs of the community and fairly distribute resources. Equality involves ensuring all parts of the community get similar amounts of resources regardless of need. In the context of the proposed budget, decisions made through an equity lens matter because it determines how the City will allocate resources and set priorities to meet the social and economic needs of San Antonio residents. This Budget proposes an equity approach.
The FY 2018 Proposed Budget includes investments in streets, public safety, and neighborhood services that have the potential to make a significant difference in the quality of life of our community while maintaining a strong financial position.
A total of 10 City Council work sessions are scheduled prior to budget adoption on September 14 to present the budget in detail to the City Council. Since August 10 seven budget work sessions haven been held. Three sessions were held during the week of August 14: Transportation and Capital Improvements Department (August 15), Fire and Police Departments (August 16), and the proposed City Debt Plan (August 17). Four additional work sessions were held during the week of August 21 and August 28: Planning, Neighborhood & Housing Services, Historic Preservation, Health, Sustainability, Human Services and Delegate Agencies (August 22); Parks, Library and Municipal Court (August 23); Solid Waste Management, Development Services/Code Enforcement, Animal Care Services, Economic Development, Center City Development & Operations, Eastpoint, and World Heritage Office (August 29); and Convention & Sports Facilities, Arts & Culture, and Tricentennial Office (August 30).
In addition to the budget work sessions a total of six community budget open houses and two public hearings have been scheduled to obtain input from the community about the proposed FY 2018 budget. The final public hearing on the FY 2018 Proposed Budget will be held on Wednesday, September 6 and the final Budget Open House will be held on Thursday, September 7.
ISSUE:
A budget Worksession is scheduled for Wednesday, September 6 from 2:00 P.M. to 5:00 PM at the Municipal Plaza “B” Room. At this session, the City Council will be presented with the FY 2018 Proposed Budgets for Aviation, an overview of the administrative departments for the City, and General Fund revenues.
Airport Operations
The Proposed FY 2018 Budget for the Airport Department includes funding from Restricted Funds. Below is a summary of the funding and position counts that would be authorized by the FY 2018 Proposed Budget.
|
FUND |
FY 2018 PROPOSED BUDGET |
AUTHORIZED POSITIONS |
|
Airport Operating & Maintenance Fund |
$100,286,128 |
486 |
|
Customer Facility Charge |
$12,988,735 |
0 |
|
Passenger Facility Charge |
$17,064,448 |
0 |
|
Capital Projects |
$86,375,689 |
0 |
|
Total |
$216,715,000 |
486 |
The FY 2018 Proposed Budget for the Airport Department includes a number of improvements designed to enhance customer experience, public safety and operational efficiencies. For the last year, the Airport System has been focused on branding San Antonio’s rich cultural heritage and aviation history at both airports. The proposed budget adds $44,818 and one Art, Music, Culture, History Curator who will work in collaboration with other departments and outside stakeholders to reflect San Antonio at both airports through artwork and events. This position is similar to others at airports throughout the nation that are committed to making their airports a true gateway to the city and region.
In terms of public safety, the budget proposes funds in the amount of $313,159 and six additional positions at San Antonio International Airport: two Airport Police officers are included to increase coverage during overnight hours, two telecommunicator positions are to be added to the Integrated Control Center to aid in public safety dispatch as well as monitoring of the airport’s access points and one Uniform position is added to oversee training the Aircraft Rescue and Fire Fighting unit. In addition, the budget will add one fire protection specialist position to replace work currently done by an outside contractor related to the fire control system at both airports.
In order to enhance the operational efficiency the airport system, funds in the amount of $203,034 and six additional positions are proposed. With over 8,600,000 passengers per year, the San Antonio International Airport is a 24/7 operation that requires constant attention to maintenance (both janitorial and facility systems such as electrical, plumbing, and HVAC). The budget proposes adding four positions for janitorial maintenance and two supervisory positions for facilities maintenance. These positions will enable the airport to increase the amount of proactive work orders by 50% as well as provide a higher level of coverage for janitorial service during the overnight hours when passenger volumes are lower.
Administration of the City
The City of San Antonio is a large municipal government corporation with more than 30 departments serving the seventh largest city in the United States with over 1.4 million residents. The budget worksessions to date have centered on those departments which provide direct service to our residents and visitors. In support of those departments, the City has internal service functions which provide service essential to the efficient operation of the City including financial management, human resources, legal services, audit, public relations, record keeping, risk management, support for Mayor & Council, and facilities/fleet maintenance.
The Proposed FY 2018 Budget for the Administration of the City includes funding from both the General Fund and Restricted Funds. Below is a summary of the funding and position counts that would be authorized by the FY 2018 Proposed Budget.
|
FUND |
FY 2018 PROPOSED BUDGET |
AUTHORIZED POSITIONS |
|
General Fund |
|
|
|
City Attorney |
$8,681,322 |
65 |
|
City Auditor |
3,083,248 |
23 |
|
City Clerk/Municipal Elections |
4,047,947 |
33 |
|
City Manager |
3,979,934 |
19 |
|
Finance |
12,338,475 |
103 |
|
Government & Public Affairs |
5,025,163 |
34 |
|
Management & Budget |
2,914,695 |
19 |
|
Mayor & Council |
8,578,171 |
18 |
|
Restricted Funds |
|
|
|
Building & Equipment Services-Facility Services Fund |
$16,179,949 |
117 |
|
Building & Equipment Services Fund-Fleet Services Fund |
21,457,953 |
68 |
|
Building & Equipment Services Fund-Equipment Renewal & Replacement Fund |
38,466,360 |
0 |
|
Finance-Purchasing & General Services Fund |
6,727,555 |
41 |
|
Risk Management/City Attorney-Liability Fund1 |
9,676,892 |
22 |
|
Risk Management/City Attorney-Workers Compensation Fund2 |
16,206,547 |
21 |
1) Includes $6.8 Million in estimated liability claims payment in FY 2018
2) Includes $12 Million in estimated worker’s compensation claims payments in FY 2018
General Fund Revenues
The General Fund of $1.19 Billion is supported by four revenue sources: Property Tax at $342.2 million, City Sales Tax at $285.2 million, CPS Energy at $352.5 million, and other miscellaneous revenues of $213.5 million.
The FY 2018 Budget does not recommend an increase in the Property Tax Rate of $0.55827 and the City’s Sales tax rate is at capacity. As requested by the City Council, at this presentation SAWS and Property Tax revenues will be discussed.
ALTERNATIVES:
This item is a scheduled worksession for the FY 2018 Proposed Budget.
FISCAL IMPACT:
This presentation provides a briefing on the major initiatives within Aviation and the Administration of the City as well as General Fund revenues. The FY 2018 Budget is scheduled to be adopted by City Council on September 14, 2017.
RECOMMENDATION:
This item is a worksession for discussion of the FY 2018 Proposed Budget and is for briefing purposes only.