1. FY 2013
Proposed Annual
Operating and
Capital Budget
Presented by City Manager
Sheryl Sculley
City of San Antonio August 9, 2012

2. Budget Summary
• FY 2013 Budget is balanced
• No City Property Tax Rate
Increase
• Focuses on Community and
Council Priorities
– Provides more Streets and
Sidewalks
– Enhances Code Enforcement
– Increases Animal Care Services
– Targets Neighborhood
Revitalization
– Adds Police Officers through
Civilianization
– Budget Spending aligned with
SA2020 Goals
2

3. San Antonio Economy
• San Antonio economy is growing
• 1.5-2.0% employment growth anticipated
in 2012
• Consumer Confidence has improved as
Sales Tax Revenues are above projections
• Housing market shows
improvement, however
2013 existing property tax
values slightly below 2012
3 Source: Dr. Steven Nivin SABER Institute

4. City Council Policy Vision Areas and
Strategic Goals
• On June 6, 2012 a Policy Goal Setting Session
was held for the City Council to develop
strategic goals and service delivery priorities
for the next three to five years
• City Council Policy Vision areas include:
– Economic Development
– Education/Workforce
Development
– Neighborhood
Revitalization
– “Best in Class”
Public Services
– Transportation
– Governance
4

5. Community Input Before Budget
Development
• 5 area budget hearings held prior to
Budget Preparation
– May 21 through May 24
• Provided opportunities for residents to
identify service priorities for Proposed
Budget
5

6. Community Service Delivery
Priorities
Police & Fire
Streets &
Animal Care
Sidewalks
COMMUNITY
PRIORITIES
Early
Code
Childhood &
Enforcement
Education
6

7. Budget Summary
City of San Antonio

8. All Funds Budget Summary
$977 Million
General Fund
Total
$665 Million
Consolidated
Restricted City Budget
Funds (All Funds)
$2.3 Billion
$636 Million
Capital Budget
8

9. City Authorized Positions
12,057 11,888 12,032 11,878 11,622 11,531 11,409 11,377
3,551 3,652 3,766 3,926 4,005 4,030 4,033 4,034
8,506 8,236 8,266 7,952 7,617 7,501 7,376 7,343
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Civilian Uniform
9

10. General Fund Budget Year over Year
Change
Budget Budget Percent
FY 2012 FY 2013 Change
General Fund Total
Expenses ($ in Millions)
$948 $977 3%
10

11. GENERAL FUND AVAILABLE RESOURCES
DISTRIBUTED OVER MAJOR SPENDING AREAS
($ IN MILLIONS)
Other Property Tax
Resources Revenues
$226 $243
23.1% 24.9%
Other
Expenditures
$243 Police*
$373
Parks & Rec
$47
CPS Public Works
$63 Fire
Revenues
$251 Sales Tax
$286
Revenues
29.3%
$222
22.7%
* Police Budget includes Parks Police
FY 2013 TOTAL PROPOSED BUDGET: $977 Million
11

12. General Fund Other Expenditures
FY 2013
Department Proposed Budget
($ in Millions)
Human Services w/ Delegate Agencies $ 37.7
Library 33.4
Municipal Courts 13.3
Code Enforcement Services 11.4
Health 11.1
Animal Care 10.9
Economic Development & Incentives 6.4
Downtown Operations 6.0
Customer Service/311 3.3
General Administration / Non-Departmental 109.8
Total Other Expenditures $ 243.3
12

13. General Fund
Revenues
City of San Antonio

14. General Fund Revenues
$ in Millions
Total Proposed General Fund Revenues: $918 Million
$300
$290 $286
$250
$243
$239 $222
$200
$199
$150 1.5% $167 $168
11% -1.4%
$100
0.6%
$50
$0
Property Tax Sales Tax CPS Other
14 FY 2012 Adopted Budget FY 2013 Proposed

15. General Fund Other Revenues
$ in Millions
FY 2013
Revenues Proposed Budget
($ in Millions)
Public Safety including EMS Transports $29.4
Business Franchise Tax (Telecommunications) 36.0
Fines 14.6
Payment from SAWS 11.0
Recreation and Culture 10.9
HOT Tax reimbursement for History and
7.9
Preservation activities
Outside Agencies including County Reimbursement
7.7
for City Services
Licenses and Permits 7.2
Sale of Property, Interest Earnings, Recovery of
43.3
Expenditures, Other
Total Other Revenues $168.0
15

16. Sales Tax – 10 Year History
($ in Millions)
$250
$222
$200 $215
$200 $199
$196
$190 $187 $189
$178
$150 $163
$139 $149
$140
$100 FY 2013 is 11% higher
Average annual increase
for prior 10 years = 4% than FY 2012
Adopted Budget
$50
$-
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 2013
Budget Estimate Projection
Actuals
16

17. Property Tax – 10 Year History
($ in Millions)
$300
$250
$245 $244
$240 $239 $239 $243
$230
$200
$202
$180
$150 $167
$160
$137 $147
$100
Average annual increase FY 2013 is 1.4% higher
$50 for prior 10 years = 6.9% than FY 2012 Adopted
Budget
$0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 2013
Budget Estimate Projected
Actuals
City Tax Rate decreased
City Current Tax Rate 56.569 cents / $100 taxable valuation
17

18. Property Tax Valuation
Percent Change
in Property Taxable Valuation
FY 2013
F Y 2010 F Y 2011 F Y 2012
Proposed
Budget Budget Budget
Budget
Existing Value -1.87% -3.78% -1.69% -0.43%
New Value 2.70% 1.68% 1.15% 1.26%
Taxable Value 0.83% -2.10% -0.54% 0.84%
18

19. Historical Growth in
Property Values
16%
14%
10% 10%
7% 7%
5% 4% 0.83% 0.84%
-0.54%
-2%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
19

20. Property Tax Bill
K-12 Bexar County & City of
Other*
Public School District Hospital System San Antonio
8%
46% 23% 23%
* Note: Includes Community College District (6%) and River Authority (2%)
• School Districts Taxing Units represent close to half of annual tax bill
20 • City represents less than 25% of annual tax bill

21. Property Tax Relief
• City continues commitment to provide Tax
Relief to Seniors and Disabled Property
Owners
• FY 2013 Budget foregoes $30.1 Million in
property tax revenue from Senior and
Disabled Homestead Exemptions and Frozen
City Tax Payments
– Over 79,000 Senior and nearly
10,000 Disabled Homestead
Exemptions
• Approximately 27,000 Senior
and disabled homeowners pay
zero City Property Taxes
21

22. CPS Revenues
($ in Millions)
$350
$300
$294 $298 $290 $293
$284 $286
$250 $265
$246 $249
$200 $213
$204
$190
$150 $165
$100 Average annual increase FY 2013 is 1.4% lower
for prior 10 years = 5.3% than FY 2012 Adopted
$50 Budget
$-
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 2013
Budget Estimate Projection
22

23. CPS Revenue – Volatility
30%
CPS Payment to City
25% % Change from Prior Year’s Actual Payment
24%
20%
15% 20%
15%
13%
11% 12% 11%
10%
7%
9% 6%
5% 7%
1% 2%
-1% 0%
0% 1% 1%
0% -4%
-5%
-10% -7% -8%
-9% -10%
-15%
1990
1999
2008
1991
1992
1993
1994
1995
1996
1997
1998
2000
2001
2002
2003
2004
2005
2006
2007
2009
2010
2011
2012
23

24. Budgeted Financial Reserves
• Reserves maintained at 9% ($88 Million in
FY 2013)
• Critical to prudent financial management
• Increase City’s credit worthiness resulting in
higher credit ratings
• Measure of last resort to
provide budgetary
stability for unexpected
events
– Natural disasters
– Catastrophic change in
City’s financial position
24

25. General Fund
Improvements
City of San Antonio

26. FY 2013 Budget Strategy
Preparing for the Road Ahead
26

27. Public Safety – Police
• Civilianizes 5 Police Officers from
Communications and Enhances Gang Unit -
$380,000
– Allows further investigation of gang related
activity
– 5 civilian positions added to backfill duties of
police officers
• Resources added to
augment Narcotics
Unit - $150,000
– 5 Police Officers will be
promoted to Detectives
and assigned to Narcotics
27

28. Public Safety – Police Positions
2,500
2,352 2,374 2,375 2,375
2,302
2,300 2,202
2,122
2,069
2,100 2,054 2,053 2,054 2,054
1,900
1,700
1,500
FY FY FY FY FY FY FY FY FY FY FY FY
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
• 306 police officers added and 85 positions civilianized over the past 7
years for a total of 391
28

29. Public Safety – Fire
• $260,000 added to create a Technical
Services Division
– 1 uniform and 1 Civilian positions added to
expedite emergency response of specialized
vehicles
• $50,000 to enhance diversity program
– Marketing and training to promote
department’s goal of attracting
firefighters that reflect our City’s
diverse community
29

30. Public Safety – Firefighter Positions
1,700
1,653 1,657 1,658 1,659
1,624
1,600 1,564
1,529
1,493
1,500
1,449 1,443 1,442 1,442
1,400
1,300
1,200
FY FY FY FY FY FY FY FY FY FY FY FY
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
30
• 166 firefighters/paramedics added over past 7 years

31. Streets and Sidewalks
• $4.5 Million in additional funding from
ATD funds is allocated for Streets and
Sidewalks
• $8 Million from bond fund balances is
included in Budget for infrastructure
improvements
– $800,000 per
City Council District
31

32. Streets and Sidewalks
• Traffic Signal System Modernization
substantially completed in FY 2012
– System allows traffic to move efficiently through
existing roadways through traffic signal
synchronization
– Benefits include:
• Maximized flow of traffic
• Reduced traffic delay
• Reduced fuel consumption
and emissions
• Fewer accidents
– Program saves an average
of 2.2 Million in vehicle delay hours annually*
*Formula Based on Urban Mobility Report
32

33. Neighborhoods – Animal Care
• $1.1 Million added to continue and
enhance successful FY 2012 initiatives
– Education Awareness
– High Volume Pet Placement
Partner Program
– Pet Licensing Awareness
– 4 additional Veterinarian
Technicians and 3 additional
Live Release Positions
• Live release goal anticipated
to increase from 58% to 70%
in FY 2013
33

34. Neighborhood Code Enforcement
• Adds $500,000 for 7 positions to enhance
proactive code enforcement
• Improves supervision
for better accountability
and performance of Code
Enforcement Officers
34

35. Neighborhood Revitalization
• $150,000 allocated for Fitness in the Park
Program expansion and to continue
Saturday hours at Open Play Centers
• $250,000 reserved for fitness initiatives
35

36. Economic Development
• $4 Million maintained for Economic
Development City-wide
– Over 5,400 jobs added in FY 2012
• $3 Million maintained
to stimulate downtown
commercial, retail and
housing development
36

37. Library
• Budget adds $250,000 for library books
and materials
• $1.5 Million included in capital and
operating budget for maintenance
improvements at
several branch libraries
• $180,000 for
replacement of furniture
at several branch
libraries
37

38. FY 2013 Budget Alignment with SA 2020
• Operating Budget
includes funding and
programs that support
the goals of SA2020
• 2012 Bond Program
includes projects totaling
$500 Million that align
with SA 2020 Goals
38

39. General Fund
Efficiencies
City of San Antonio

40. Efficient Operations
• $8 Million in Budgeted Reductions
– Improved Service Delivery Models
– Better Utilization of City Facilities
– Operational Efficiencies
– Reduction of Administrative Overhead
40

41. Administrative Overhead
• Eliminates non-critical cell phones
$500,000
• Eliminate 3 Positions in City Manager’s
Office - $340,000
– 1 Assistant City Manager
– 2 vacant positions in the
Council Action Team
41

42. Operational Efficiencies
• $580,000 in Park Services Operational
Efficiencies
– Right sizes staffing levels as a result of
department restructuring
• $165,000 Provided for Athletic Program
by partnering with outside management
– Transferred
management of
Adult softball program
to contract agency
resulting in savings
42

43. Process Improvement
Civilian Recruitment Process
• Current recruitment process takes up to
105 steps and 175 business days per hire
• Process reviewed and improvements
identified to reduce steps and business
days for hiring to between 18 to 46 days
• Improvements possible with existing
technology and will be implemented in
October
43

44. Process Improvement
Facility Analysis
• Phase I completed FY 2012
– Sale of surplus properties
– Vacate and transfer
facilities
– Improve office space use
at existing administrative
facilities
• Phase II – FY 2013
– Strategic use of facilities to improve service
– Opportunities for further consolidations
44

45. Process Improvements
Facility Analysis
• Implements new Community Link Service
Center structure saving $795,000
– Transfers services from underutilized leased
facilities to Libraries
45

46. Reorganizations
Downtown Operations
• Department to focus on core downtown
functions of Riverwalk
operations, parking operations, and
special events
• Other departments
with experience and
resources to absorb
functions such as
park maintenance,
facility programming,
46 and sanitation

47. Reorganizations
Planning & Community Development
• Centralizes and Enhances Planning
Functions based on Best Practices and
focusing on:
– Strategic Comprehensive Planning
– Transportation Planning
– Urban Design
– Housing & Community Development
– Administration of Federal Grants focusing on
strategic investments of funds
47

48. FY 2013 Delegate Agencies
• Recommended funding allocation based
on proposal scoring, alignment with SA
2020, and agency past performance
• FY 2013 Proposed Budget maintains
current funding for After School
Challenge Program and Haven for Hope
48

49. FY 2013 Delegate Agencies
• $23.1 Million included in Budget
• Funding recommendations guided by City
Council Ballot priorities
Delegate Agency City Council Ballot Results
FY 2013
FY 2012
SA 2020 Vision Area Priority Variance
Allocation
Distribution
Education 27% 32% +3
Family Well-Being 50% 51% +1
Community Safety Net 12% 10% 0
Economic
11% 7% -4
Competitiveness
TOTAL 100% 100% 0
49

50. Employee
Compensation &
Benefits
City of San Antonio

51. Employee Compensation Principles
• Historically City of San Antonio wages
below market rate and benefit package
exceeded industry trends
• In last 6 years, wages
increased to be consistent
with market competitive
rates
– Benefits adjusted to increase
employees’ share in cost and align with
industry trends
51

52. Employee Compensation Summary
• $9.9 Million for Civilian increases – All
Funds
– Final phase of Step Pay Plan Implementation
– 2% allocation for Cost of Living Adjustment
– Living Wage to increase
from $10.75 to $11.08
– 2% COLA for Retirees
52

53. Employee Compensation Summary
• $15 Million for Police and Fire Collective
Bargaining Contract Increases
F Y 2013 F Y 2014
Police 3% 3%
Fire 3.4% 3.4%
53

54. Civilian Step Pay Plan
• FY 2013 implements 6th and final phase of
Civilian Step Pay Plan
• 2,421 employees with average salary increase
of 5.2%
54

55. Employee Healthcare
• Budget addresses employee health care needs
and manages cost
• Promotes wellness by enhancing rewards
programs
• Introduces a Consumer Driven Health Care Plan
(CDHP) as fourth choice
– Four Plans available: CDHP, Value, Standard and
Premier)
• Increases Employee Contributions to Health Care
Cost
– No premium increases to the Value Plan
– Aligns prescriptions, deductibles, and office co-pay
maximums with industry standards
– Introduces a tobacco user surcharge as discussed in
FY 2012 budget
55

56. Employee Wellness
Create Corporate Culture of Wellness
• Helping employees meet their optimum health goals
• Incentivizing increased engagement in healthy lifestyle choices
• Focusing on increased claims costs through preventative measures
Continued Employee Wellness Program
Initiatives
• 100% coverage for preventive care
• Employee Health Stations
• Healthy Vending Machine options
• Weight Watchers at Work
• City Employee Health & Wellness Clinic
• City Manager’s 5K
• Onsite Wellness Coaching
New Initiatives
• Outcome Based Rewards Program
• Virgin HealthMiles Pedometer Program
56

57. Legacy Costs
Cumulative Growth in Uniform & Civilian Legacy Expenditures,
FY 2007 to FY 2012
• Uniform 60%
52%
legacy costs
50%
have
increased 52%
40%
since FY 2006
30%
30%
• General Fund
appropriations
20%
have
increased 30% 10%
over the same
period 0%
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Actual Budget
57
57

58. Solid Waste
City of San Antonio

59. Solid Waste Fund
• Solid Waste Enterprise Fund Budget:
$91.7 Million
• City guided by 10 Year Recycling Plan
– Adopted by City Council in June 2010
– Establishes recycling goal of 60% of residential waste
by 2020; rate currently at 27%
• FY 2013 Budget expands recycling opportunities
and continues focus on customer convenience
– Organics Recycling Program
– Neighborhood Drop Off
Collection Centers
• No rate increased
proposed in FY 2013
59

60. Organics Recovery Program
Organics Recycling is a
critical component of
the 60% recycling goal + 15-17%
+ 15-17%
Utility
+ 2%
Organics Based
Recycling Pricing
+ 8% (2011-14) (PAYT)
Education and
Outreach (2014-20)
Brush and (2010-20)
18% Bulky
Redesign Organic materials comprise 1/3
FY 2010 (2011-12) of all residential waste
FY 2012 Recycling Rate: 27%
60
FY 2006 Recycling Rate: 6.6%

61. Organics Recovery Program
• Pilot program for 30,000 homes in FY 2012
– Positive results yielded; data collection ongoing
through Summer months
– Final pilot results to be presented to City
Council during Proposed Budget Worksessions
• Based on positive pilot results, implementation
of three-year City-wide expansion of
Organic Recycling Program is
recommended
61

62. Hotel Occupancy
Tax
City of San Antonio

63. HOT Tax Revenue History
($ in Millions)
$53 $55
$52
$50 $49 $49
$46 $46 $46
$40
$35 $35 $36
Actuals
• FY 2013 Budget estimated to exceed FY 2008
63 Collections

64. Hotel Occupancy Tax Fund
City’s HOT Tax Distribution
16.75% Total Rate
History &
Preservation
15% Convention
Facilities¹
Arts Funding 35%
15%
Convention
& Visitors
Bureau
35%
¹Includes funding for International Relations and Hosting Obligations
64

65. Hotel Occupancy Tax Fund
• Tourism and Conventions
• Estimated FY 2012 room nights sold to exceed
$9 Million, 7% higher than FY 2011
– Launched “Remember the…” Campaign
– Top Chef Texas Aired on
Bravo
– People en Español Being
Hosted at Alamodome in
September
• Arts and Cultural
Programming
– FY 2013 2nd year of 2-year
funding cycle
– Funding to arts agencies
remain at 2012 levels
65

66. Aviation
City of San Antonio

67. Aviation
• FY 2013 Aviation Fund Budget totals
$88 Million
• Signed New Airline Lease in November 2011
• 1,480 more international flights in
FY 2012 than in FY 2011 or 176% increase
• Terminal A renovations currently underway
with construction
scheduled to begin
October 2012
• Consolidated Rental Car
Facility
– Design to begin in FY 2013
67

68. Aviation
Enplanement History and Projection
# of passengers departing San Antonio
(in thousands)
5,000
1.5%
1.6% 1.5%
4,000
3,000
2,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Estimate Projected
Actuals
• FY 2013 Projected Enplanements estimated at 4.2 Million
68 or 1.5% higher than FY 2012

69. Development
Services
City of San Antonio

70. Development Services Fund
• FY 2013 Development Services Fund
Budget totals $27.3 Million
• FY 2013 Total Permits
expected to increase
slightly over FY 2012
levels as development
activity begins to improve
• Budget adds 4 new positions to maintain
permit review cycle time for complex
commercial permits
70

71. Permitting
New Permit History
10,000
8,000
6,000
3,086 3,263
3,199
4,000
2,000
1,979
1,642 1,940
-
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Estimate Projection
Commercial Residential
• New Residential Permits have declined 75% since FY 2005
• New and Existing Commercial Permits have increased by 3% since
FY 2005
71

72. Storm Water
Operations
City of San Antonio

73. Storm Water Operations
• FY 2013 Storm Water Operations Budget
totals $46 Million
• Storm Water Fund is supported by the
Storm Water Fee and provides:
– River Maintenance
– Vegetation Control
– Tunnel Operations
– Floodplain Management
73

74. Storm Water Operations
• Recommend $0.50 adjustment to monthly
residential storm water fee
– From $4.25 to $4.75
• Rate not adjusted since FY 2008
• Adjustment projected to generate additional
$4.5 Million in revenue and allow for:
– Additional mowing of drainage
channels and medians
– More street cleaning
– Improved heavy equipment
service facilities
74

75. Capital Budget
City of San Antonio

76. Capital Improvements
• FY 2013 Capital Program
$636 Million
– 2012-2017 Bond
Program
Year 1: $72.2 Million
– Airport Improvements
Year 1: $69 Million
– Convention Center
Expansion
Year 1: $45 Million
76

77. Capital Improvements
• Proposed Budget Includes $18 Million
from pre-2007 Bond Balances
– $8 Million for Infrastructure Improvements
($800,000 per Council District)
– $8 Million for Education
Excellence Facilities
– $2 Million for
Fire Station 32
77

78. Budget
Communication
City of San Antonio

79. Budget Communication
• Highlights Brochure
– Printed in English and Spanish
• Employee Highlights Pamphlets
• Newspaper Inserts for Residents
– San Antonio Express News
– La Prensa
• Budget Video
• Budget Document
• Individual Council District Hearings
79

80. Five Community Budget Hearings
& Two City-Wide Public Hearings
All area meetings to begin at 6:30 PM
Date Area
Monday, August 20 North
Tuesday, August 21 Central
Wednesday, August 22 West
Thursday, August 23 Southeast and Northwest
All Citywide meetings to begin at 6:00 PM in City Council Chambers
Wednesday, August 29 Citywide
Wednesday, September 5 Citywide
80

81. Eight City Council Budget Worksessions
• Meetings held during City Council Budget
Worksessions to allow for presentation and
discussion of budget proposals
– Meetings in Municipal Plaza “B” Room at 2:00 PM
Date Date
Tuesday, August 14 Wednesday, August 29
Wednesday, August 15 Thursday, August 30
Tuesday, August 21 Wednesday, September 5
Wednesday, August 22 Wednesday, September 12
81

82. Budget Adoption
• 2 Budget Public Hearings at City Council
Chambers at 6:00PM
– Wednesday, August 29
– Wednesday, September 5
• Budget Adoption
– Thursday, September 13
– City Council Chambers
82

83. Budget Summary
• FY 2013 Budget is balanced
• No City Property Tax Rate
Increase
• Focuses on Community and
Council Priorities
– Provides more Streets and
Sidewalks
– Enhances Code Enforcement
– Increases Animal Care Services
– Targets Neighborhood
Revitalization
– Adds Police Officers through
Civilianization
– Budget Spending aligned with
SA2020 Goals
83

84. City of San Antonio, Texas
FY 2013
Proposed Annual
Operating and
Capital Budget
Presented by City Manager
Sheryl Sculley
City of San Antonio August 9, 2012