2012 Operating Budget

Download the 2012 Operating Budget

The 2012 Operating Budget is balanced and was developed in accordance with the City Charter, the annual budget calendar, the stated financial management policies and guidelines of the City, and the City Council’s adopted goals.  This budget also recognizes the external economic conditions that demand conservative approaches to managing expenses while continuing to deliver high quality services to residents and corporate citizens.

In accordance with the City’s financial management policies, the Operating Budget has been developed to maintain a minimum General Fund balance of at least 50% of General Fund expenditures, including operating transfers.   The City has met or exceeded the threshold for several years, allowing the City to have sufficient fund balances and cash flow for unanticipated needs and to seize opportunities as they become available.   The General Fund balance, as a percentage of expenditures and operating transfers, has grown from 59.8% in 2008, to 64.9% in 2009, and 75.9% in 2010.

The success of our local businesses is commensurate to the City’s success in that approximately 80% of the City’s total tax revenue is derived from withholding accounts, or the taxes withheld by employers from their employees’ wages. Throughout 2011, the City again experienced growth in income tax revenues.  The total income tax collections through the third quarter 2011 were up 4.06% when compared to collections through the third quarter 2010.  This increase was driven by a 6.81% increase in income tax revenues derived from withholding accounts.  Taking a conservative position for budgeting purposes, the Administration has projected the total income tax revenues for 2011 will be up 2% as compared to the total income tax revenues for 2010.

As a result of the increase in income tax revenues in 2011 and the continued close scrutiny of operating expenditures, the City’s unexpended General Fund balance, which accounts for the majority of the City’s reserves, is projected to be $42.8 million at year-end 2011.  The 2011 projected General Fund balance, as a percentage of projected expenditures and operating transfers is approximately 77.68%.  This level of reserve is looked upon extremely favorably by the rating agencies and has been highlighted by both Moody’s Investors Service and Fitch Ratings as a rationale for the City’s Aaa/AAA bond rating, the highest rating available from both agencies.

Due to the continued unpredictable state of the global and national economies and in keeping with the City’s financial management policies, it is conservatively estimated that 2012 income tax revenues will remain consistent with 2011 projected income tax revenues.  

The City’s strong tax base and conservative budget philosophy have resulted in operating revenues exceeding operating expenditures for many years. The exception occurred in 2009 as a result of a 6.14% decrease in income tax revenues.  In 2011, the actual operating revenues are expected to exceed the budgeted operating revenues by approximately $6.2 million.

 

Operating Revenues (in millions)

	2007	2008	2009	2010	2011 (Estimated)	2012 (Projected)
Budgeted Revenues	$59.69	$64.94	$67.69	$60.75	$62.84	$65.75
Actual Revenues	$68.79	$70.96	$66.57	$68.32	$69.07	-

 

The philosophy of conservatively estimating revenues has been followed over the years because of the limited control the City has over revenues as evidenced by the 2009 decline in income tax revenues.  Operating revenues other than income taxes have continued to exceed the amount budgeted.  For 2012, budgeted operating revenues are projected to be $65.75 million, which represents a 4.63% increase over 2011 budgeted operating revenues.  As previously stated, income tax revenues for 2012 have been projected to be equal to 2011 estimated income tax revenues. Non-income tax operating revenues are projected to decrease 2.63% over 2011 budgeted amounts, which are less than the 2011 current year estimates of $16.4 million.

The budget development was driven by the five strategic focus areas and goal statements originally adopted by City Council in 2010 and reaffirmed in 2011.  The 2012 Operating Budget reflects funding requests totaling $68.1 million for operating expenditures.  This reflects a 2.1% increase compared to the 2011 Operating Budget.  The budget includes a salary increase of 2% for non-bargaining unit employees.  Negotiated wage increases have also been included for those employees covered by the United Steelworkers of America and Fraternal Order of Police – City Lodge #9 (Police) contracts. Currently being negotiated is the contract with the Fraternal Order of Police – Ohio Labor Council (Communications Technicians).  An allocated salary increase has been included in anticipation of reaching a settlement.  In addition, approximately $170,000 in operating expenditures related to the Bridge Street Corridor has been included as well as additional funding in Parks & Open Space in order to meet the increasing maintenance needs throughout the City parks.

While the 2012 estimated expenditures exceed the 2012 budgeted operating revenue, it is anticipated the difference or the “gap” at the end of the year will likely be less than projected or what typically has occurred, with the exception of 2009, is the operating expenditures will actually be less than the operating revenue. 

From the standpoint of maintaining a sufficient level of reserves, if the operating revenues and operating expenditures in 2012 are consistent with the budgeted amounts, the 2012 General Fund year-end balance is projected to be approximately

69.7% of the 2012 General Fund expenditures and operating transfers, exceeding the 50% target balance by approximately $11.4 million.  The following table provides a history of the approved budget for operating expenditures as compared to actual expenditures and encumbrances and the projected expenditures for 2011. 

 

Operating Expenditures (in millions)

	2007	2008	2009	2010	2011 (Estimated)	2012 (Adopted)
Budgeted  Expenditures (1)	$63.59	$68.68	$71.54	$65.10	$66.68	$68.10
Actual Expenditures/Encumbrances	$60.21	$66.33	$63.60	$65.33	$65.95 (2)	–
Actual Expenditures/Encumbrances	$2.37	$2.99	$3.06	$3.07	–	–

(1) Does not include encumbrances carried forward. (2) Includes encumbrances at year-end.

As has been the practice, the financial activity in 2012 will be closely monitored and adjustments made as necessary.  Operations and services will continue to be reviewed and analyzed to better understand the cost of service delivery and to identify potential savings with minimal or no service reduction.

The 2012 Operating Budget also appropriates funds to implement the first year of the five-year Capital Improvements Program (CIP), funds to implement a phase of a major, multi-year project, and funds for non-major capital expenditures, including those of a continuing nature.  Along with Bridge Street Corridor, other capital improvements funded from the Capital Improvements Tax Fund include the Coffman Park expansion, Emerald Parkway Bridge Park, infrastructure maintenance and major multi-use paths/bike lanes.  Details are included, beginning on page 220 of the budget. 

As previously stated, the 2012 Operating Budget includes allocations focused on Dublin City Council’s adopted goals.   The allocations include:

• Economic Development - The City’s solid tax base is a direct result of the success of our local businesses.  For this reason, the City remains focused on understanding the local economy and capitalizing on opportunities to support the retention, expansion and attraction of businesses.  In 2011, the City completed the Battelle Study which provided a comprehensive business cluster analysis of Dublin’s economic sectors. The results of this study will allow the City to focus on fostering business growth in targeted sectors.

• The 2012 Operating Budget also includes allocations to continue updating zoning codes and related zoning of land for additional “business neighborhoods.” These allocations will also be used towards the implementation and promotion of the City’s recently adopted Economic Advancement Zone (EAZ) and TechFlex districts. Modernization of the Code and related zoning in these areas will be a key focus of economic development activities in 2012.  

• 21st Century Learning Environment - City Council has also taken the lead in creating a 21st century learning environment by initiating conversation about the formal and informal learning opportunities in Dublin.  These conversations with community partners, including the library system, private non-profit institutions, and higher education institutions, are setting the foundation for a focused effort meeting future workforce development needs and reaffirming Dublin as a smart community of talented citizens.  The 2012 Operating Budget provides the staffing resources needed to advance these conversations and planning efforts.

• Bridge Street Corridor - Approximately $420,000 in operating and capital expenditures are allocated for continued refinement to the Bridge Street Corridor Plan.  As part of the five-year CIP, an amount has been programmed for future debt payments in anticipation of infrastructure improvements within the Corridor. Furthermore, initial implementation of a new form-based zoning code as well as an additional $250,000 in capital expenditures for the Historic District has been included within the operating budget. 

• Shared Services - The Administration also continues to closely examine services and to capitalize on opportunities to work with other jurisdictions and organizations to share services. In 2012, the Administration will continue to evaluate opportunities for shared emergency call dispatching, information technology, economic development, and street and traffic sign production. 

• Wellness - The budget incorporates continued funding for community and employee health and wellness initiatives.  A part-time year-round intern has been added for wellness program planning, as well as funding for the highly successful Healthy Dublin initiative.  These efforts are working to improve the health of employees and residents. 

• Employee Development - There remains an emphasis on employee development with funding of citywide and specialized learning opportunities. 

In 2012 emphasis is placed upon increasing the skills and knowledge of supervisors through a supervisory basics program and implementation of Dublin-specific customer service training designed to reinforce the City of Dublin brand. 

There are new programs recommended in the 2012 Operating Budget, which are focused on meeting resident requests and building community.   In 2012 the City will conduct the first Dublin Police Citizens Academy to educate adults on the operations and the management of policing activities.  It is anticipated that this program will result in a group of highly trained and knowledgeable citizens who can serve as ambassadors for community safety initiatives.

Further, the Dublin Irish Festival celebrates its 25th anniversary in 2012. The special occasion will be marked with exciting new activities for festival guests, including the 2012 International Highland Games Federation (I.H.G.F.) Woman’s Professional World Team Championship, world-renowned Irish author visits, and historical displays.

The City can provide these quality services and experiences because of its continued diligence in determining appropriate staffing levels.  In an effort to best utilize the City’s resources effectively and efficiently while providing high quality services to its customers, the City has steadily adjusted the full-time workforce to more closely match the needs of the community.  This has resulted in an overall decrease from 399 full-time authorized positions in 2009 to a level of 369 full-time authorized positions in 2012, 368 of which are recommended for funding. This results in the net reduction of 31 full-time funded positions over three years without a reduction in service levels.

The Administration has accomplished this staff reduction through careful analysis of current and future needs, the introduction of new technology, streamlining service delivery, and the reassignment of staff to services in greatest need for additional staffing. This analysis also supported that one previously authorized but unfunded position, a GIS Analyst, be recommended for funding to advance further the City’s GIS system and the applications that GIS supports.

In addition to close examination of full-time staffing, the Administration closely reviewed part-time and seasonal staffing needs.   This review resulted in the transfer of some responsibilities from Dublin Community Recreation Center (DCRC) Facilities to DCRC Recreation, the addition of a part-time zoning inspector, the addition of two seasonal maintenance workers and a horticulture intern in Parks and Open Space, and the addition of a wellness intern.  Reductions were made in part-time staffing in Finance, Facilities, and the outdoor pools. These changes result in the net reduction of 5.8 FTE part-time and seasonal positions in the organization. 

The Administration is committed to meeting the goals established by City Council and to ensuring that high quality services remain a community hallmark. The 2012 Operating Budget allocates resources recognizing these commitments while exercising strong fiscal responsibility demanded, and deserved, by the community.