City of Peachtree Corners FY13 Budget Planning Review

1. City of Peachtree Corners Preliminary Expenditure Review May 22, 2012

2. Workshop Goals • Receive feedback and direction from Mayor and City Council as we begin to develop the FY13 Budget • Develop a consensus on short-term priorities and first year needs • Discuss and develop an understanding of FY13 planning assumptions

3. Agenda for Workshop • Discussion of Budget Principles and Goals • Discussion of Establishing an Undesignated Fund Balance Reserve • Discussion of Planning Assumptions • Review of Draft Expenditures

4. Budget Principles Conservatively determine revenue and expenses • Solid estimating effectively neutralizes pressures to inflate revenue estimates to cope with budgeting pressures Do not use one-time revenue sources for ongoing expenses • When a non-recurring source of revenue is used to fund an ongoing expense, an "automatic unfunded increase" is built into the budget for the following year • Recognize that there are numerous Unknowns when starting a new City

5. Draft Budget Goals Determine level of services Provide funding for Start-up Costs • Facility and Support Equipment • Call Taking Capability Provide funding for Must Do’s • Insurance • Finance and Accounting • Legal Services • Comprehensive Plan Provide Funding for Unforeseen Start-up Expenditures Establish a Fund Balance Reserve (Emergency Fund)

6. Level of Services • Determine what level of services to provide at start-up • What do we need to provide? • What do our customers expect?

7. Suggested Must Do’s • Key Staff • Legal Services • Facility and Maintenance • Furniture • Equipment (Computers, servers, copiers, scanners) • Support Services • Telephone, Internet, IT • General Liability Insurance • Accounting • Audit Report • Call Center • Comprehensive Plan

8. Contingency Budget • Provides funding for unforeseen operating expenditures that will occur when starting a new City

9. Fund Balance Reserve • Adopted as part of the approved Budgetary Policy • Fund Balance is the cash reserve and working capital to cover the following: • Expenditures caused by unforeseen emergencies • Shortfalls caused by revenue decline • Eliminate short-term borrowing for cash flow purposes • Best practices call for Reserve no less than three (3) months of operating expenditures (25%)

10. (Draft) Expenditure Planning Assumptions • City will hire key staff including: • City Manager • City Clerk • Accounting Manager • Planning and Zoning Manager • Administrative Assistant • City will provide Legal Services • City will provide Citizen response services via telephone and internet • City will provide funding for unforeseen expenses and emergencies (Contingency and Fund Balance Reserve) • City will lease office space with necessary equipment and systems to conduct business • City will engage a planning firm to assist with preparing a Comprehensive Plan

11. (Draft) Expenditure Planning Assumptions - Continued • City will prepare Comprehensive Annual Financial Report and provide funding for Audit Services • City will provide funding for the development of a Communications Plan and on-going activities necessary to effectively communicate with Neighbors and Businesses • City will provide funding for General Liability Insurance

12. Draft Expenditures for FY2013

13. Discussion