 I'd like to make some comments while Ratio gets set up. We're planning this year after the close of each quarter to bring a report to the council and let you know how we feel we're doing comparing our revenues to our expenses that we've put in our budget. The other thing you're going to see today is Ratio is going to show you the gap projected for next year and one of the things we're going to be doing is keeping the council up to date but we want to begin working on that gap now and try to get the revenue lines and the expense lines on top of each other so when we bring you the budget we won't be bringing it to you with that large gap if we can solve that problem. So we'll be doing this quarterly and update on where we are on our budget. So Ratio? Ratio. One of the members of City Council, Ratio Porter, the budget officer. Thanks for that introduction, Tom. This is the first of several quarterly reports that we'll be doing this fiscal year to highlight the results for the budget and also the results for the year. What we'll try to cover today real quickly is the strategic approach we'll take to the reporting that we currently do as well as we'll review the budget update for FY2011 and then we'll give a preliminary review of the budget gap for FY2012 and we'll spend just a few minutes talking about capital planning. As you know, we like to take a different approach towards the budgeting process this year and Tom alluded to this earlier. We spend an awful lot of time, spend six to nine months every year discussing the real tough decisions for the budget, the reductions that are necessary, the cuts that we have to make and the layoffs that may be impending and those oftentimes very difficult decisions. What we want to try to do going forward is not spend so much time focusing on the negative impact but also give the Council better information on what we are doing as a city. There's 6,000 employees that work here day in and day out providing services for the residents and we think we owe it to the Council and to the residents to do a better job of reporting what we are doing. Again, it's easy to focus on the 100 layoffs we had last year, the services that are getting eliminated or reduced. We want to try to do a better job of providing this Council and the residents more information throughout the year. So what we want to do is provide a quarterly report and every quarter as Tom mentioned, we'll come to you and give you financial update on where we stand. We'll also let the departments give you an operational update, some things that they're working on in their organizations that demonstrate their ability to deliver services throughout the city. And the other thing we want to try to do going forward is provide better information on capital programs. We haven't done a real good job of giving this Council updates on the various bond programs or critical capital campaigns. We want to try to do a better job of that going forward. On the financial updates we'll talk about, again, the FY 2011 update and we'll also talk about the preview for the 2012 and then our operational. Each department has various goals and objectives that they're working on and we feel we owe it to the Council to give you that information throughout the year. Oftentimes we try to cram that information into a budget retreat and we'll hold you up for two whole days and departments, right before you can give you all this information, it's difficult for you to try to process all that information and understand what that means for the budget. So we want to try to make sure we give you that information year round. As we move into the FY 2011 budget gap, if we look at just the revenues, we look at the revenues we started out with for FY 2011, significant changes we've seen already in revenues. One particular decline in revenues on auto power and towage and storage fees, as you know, we moved that location from the previous location to a new location and we're just not able to process as many vehicles as we originally planned so as a result of that, that revenue is down and it will be down, we anticipate for the rest of the fiscal year. We've also seen a reduction in traffic fines of about $370,000 in talking to courts. We've actually written fewer citations this year than we have last year so that's actually a good thing that there are fewer citations but the downside is we have fewer revenues and we had originally budgeted it. In addition, there's some other revenues that are down compared to the budget as well. There is one significant bright spot and you see the sales tax improvement. In our packet today, there is an IR on sales tax collections. For the month of December, we collected the highest sales tax ever in the city of Fort Worth. The highest sales tax ever in the city. Again, the highest sales tax we collected, $1.3 million more than we collected last year. Through the first three months of this fiscal year, just the first three months of this year, we're already $2.3 million ahead of where we budgeted in sales tax. So if those trends continue, sales tax will really be a positive impact for the city going forward. Again, we're 9% higher than we were last year, 9% ahead of budget. So again, sales tax really are pretty strong and it's in a lot of different categories and we can provide more detail on those categories. But on the revenue side, there are some shortfalls in our revenue that we're anticipating, but there's a pretty significant increase in our sales tax. We're forecasting sales tax to be pretty flat going forward, but that's conservative. We do anticipate sales tax to be significantly higher as new through the rest of the fiscal year. On the expenditure side, there are some expenditure changes that we've seen since the adoption of the budget. During the budget process last year, we were actually in the process of negotiating our electricity contract. That contract was finalized a few months ago. That yields a savings of $1.2 million. Additionally, we have some personnel-related costs. There's some positions that hadn't been filled. So there's some savings that the departments are actually capturing now in the budgets that are positive. And there's some other savings that we're seeing as well to the tune of $601,000. So all told, about $2.6 million with fewer costs that we're anticipating this upcoming fiscal year as opposed to the original budget that was adopted again in September. This slide is intended to give you an overview of the entire general fund. And I'll start at the very top here, the adopted budget. And as you know, the adopted budget for revenues for the general fund is $522 million, and the expenditures were $531 million. There are some reductions that this council didn't want to impose last year. We didn't want to close all the libraries. We didn't want to deactivate fire companies. There were some other reductions that the council chose not to take. So to offset that, we used excess fund balance. The decision made last year to use excess fund balance to the tune of $9 million to fund those critical programs that this council felt were important. Since the adoption of the budget, there have been some supplemental appropriations that this council has approved. $2.6 million of additional revenue, and there's also $17 million worth of additional expenditures that this council has approved in supplemental appropriations. And that uses additional $15 million of the excess fund balance. And we just talked quickly about the changes in the revenues and also the changes in expenditures. All told for the fifth of the year, based on the results through December, we have revenues of about $522 million, expenditures of about $546 million, which means we're going to use about $24 million of the excess fund balance. As of now, we have $35 million of excess fund balance available. So we have the funds to cover the supplemental appropriations that were approved, and the funding of the critical expenditures that were identified in Lash's budget. So again, we have $24 million of use of fund balance, and we have about $35 million of estimated excess fund balance to cover those costs. That leaves a remaining $11.2 million of savings in our fund balance, if you will, to cover future costs of future needs. This slide here shows the city-wide view of selected funds. You'll see again the journal fund. We'll focus on just this column here, the source and use of fund balance. Again, we talked quickly about the journal fund, $24.4 million of fund balance that we'll use, but again, there's $35 million of excess fund balance that we have available. On the enterprise funds, again, water, sewer, and those other funds, they're going to actually contribute to their fund balance to tune about $3.6 million, and their fund balance hadn't been calculated at this point. On the insurance funds, they're going to use about $1.8 million of fund balance, and this is in large part to workers' cost claims. They're definitely higher than we had anticipated. Now, although they're going to use $1.8 million of fund balance, they have $7.9 million available to use. Insurance funds, not a significant change. On the CCPD, or Crime Control Prevention District, they're anticipating using $1.7 million of their fund balance. As you know, much of that is to purchase the vehicles that were part of their budget last year. Again, they still have an excess of $6.1 million to cover that. Now, culture and tourism, they're doing some renovations at the Will Rogers and some other facilities to make up the facilities what they need to be. And they also have $12 million of excess. So, all told, the property's either within budget, the funds are within budget, or they have the available excess fund balance to cover the shortfall. This chart here, as we shift towards FR 2012, you were to call this chart last year. At the start of the budget process last year, we were anticipating a $73 million gap. It's a venture line growing significantly, and a revenue line not as significantly. We were anticipating a $73 million gap in the first year that rose to $100 million here, and ultimately to $142 million in the out years. Based on the decisions that the council made last year and some of the changes in the assumptions, we were able to close the FY20 budget gap. In large part, there's still use of fund balance here. We were able to close that budget gap, significantly bringing the old red line down to the new red line, and their green line of revenues up slightly, so the gap is now $31 million. It's a pretty dramatic reduction in the gap, and it stays pretty steady till FY 2015. What I'm going to do now is walk you through real quickly what gives rise to this $31 million gap so that we're all clear on the gap. Again, FY 2011, we adopted the budget, and we're assuming we're going to use $9 million of fund balance. We can total revenues of $522 million, fund balance of $9 million, and we had $531 million of expenditures, so that was a balanced budget with the use of fund balance. But with some everything else stays the same. We assume revenues stay the same. Initially, if we assume the revenues stay the same and expenditures stay the same, then we're $9 million. There's a $9 million delta. We've got to make up that $9 million delta going forward. Moving into the FY 2012, we start with $9 million that we've got to make up that's part of the expenditures. Here's some costs that we knew we were going to have last year, above and beyond the 2011 budget. The police and fire contract, we knew health insurance premium was going to go up about 12%, the fund retiree health care over 20 year horizon. That's that impact. And these are costs we knew above and beyond the budget. There are also some non-recurring costs that we won't see in FY 2012 to Super Bowl. We won't have another Super Bowl expenditure next year. We also won't have any election next year. We won't have the state legislative session next year. So those costs in FY 2011's budget we won't see again next year. So the baseline, if you will, the starting point is $23 million budget gap for FY 2012. In addition to that, what could happen or are likely to happen in FY 2012 that add to the gap? We've talked a little bit about sales tax. We anticipate sales tax revenue to continue to be strong as we move through this fiscal year but also through next year. There's also some incremental property tax revenue that we're anticipating. So about $7 million more than we adopted this year in additional revenue that we'll have. Now the recommendation made last year by the mayor's task force to move one penny of the tax rate from general fund to debt service to increase our debt capacity to deal with transportation issues. If we do that, they cost the general fund about $4 million. The next item here, $4.8 million for pay increases. General employees didn't receive a pay increase in the current budget year. There's actually a 3% pay reduction last year and it's the thought at this point that we need to begin to make some allowances, if you will, for pay increases for general employees. Police and fire both have their contracts but there also should be some consideration if you will for raises for general employees. This next item is just a placeholder for things that we don't know about, whether it's the state legislator or just new costs that we may have, whether it's park land maintenance, those kinds of things that we may incur in FY 2012. There was a decision made last year, a recommendation made last year to continue transferring costs from the CCPD fund to the general fund. That impacts about $1.2 million, almost $1.3 million in inflation and other costs. We're looking at which is significantly better than a $100 billion gap, which we were facing before we made those changes. A $31 billion gap is clearly better than a $7 billion gap that we saw last year. This last item on here is police and fire training facility. I believe you've been brief on that and the impact on that number, the impact on FY 2013 could be about $5.7 million going forward. The challenge, and Tom mentioned this earlier, how do we begin to tackle this $31 billion problem? So August and come back with recommendations that are oftentimes difficult and challenging and oftentimes painful. And the goal this year is to begin dealing with that as it goes throughout the fiscal year. We've already identified there's an estimate of about $11.2 million of excess fund balance that the council has that we could use to address FY 2011's 2012 budget gap. Additionally, the Aviation Fund will be reimbursing the general fund for fire services that have been provided throughout the city. That amount is not determined at this point, but there could be a potential source of funds that come through the general fund from the Aviation Fund. The other critical point and what staff will spend some time on over the next few months is identifying savings in the FY 2011 year to build into this, to add to these $11 billion. It'd be great if we can come back to this council, I don't think it'd be great. I think it's what we'll do. We'll come back to this council in August and say the budget has been closed, the gap has been closed, and here's what we've done to do so. So we'll create savings throughout the year and we'll manage those critical cost drivers. Whether it's vacant positions or there's contracts that hadn't been finalized or entered into yet, we'll do those kinds of things to make sure that we begin to build a savings that equates to about $31 billion so that we're not talking about draconian drastic budget reductions that we've seen before. In addition to that, and while this is critical, we'll also continue to make sure we revisit how we're doing with our services or our goals. Council has strategic goals and we're going to continue to revisit those. We want to make sure our programs are prioritized, our services are prioritized correctly, and we'll also make sure that we're effective in delivering those services to our residents. Those things that aren't effective, that aren't efficient, they could be candidates for reductions. Capital plan, I'll spend just a second on this one. We want to make sure we do a better job of reporting on the capital. We haven't done a good job of that, but we owe it to this council and to the residents to do so. In addition to the five-year forecast for the operating side, we want to have a five-year forecast for the capital side. We'll take all the departments' needs and their issues and their critical area and develop a way to evaluate how we fund those critical areas using all the sources of fundings we have available to do so. We also want to improve the reporting on what we're currently doing. Last slide here, I'm trying to brush quickly. To the timeline again, we've given you the first quarter report and again, on average we're about balanced for most funds. We want to come back to you in May and give you a second quarter report and it says where we are, budget versus actual, how we anticipate finish the rest of the fiscal year, and also give you an updated and hopefully a lower budget gap for FY20-2012. Again, now as we stand here, it's 31 million. The recommendation, when we come back to you in May, hopefully that number will be lower. Maybe 20 million dollars or 10 million dollars based on some things we're able to do this fiscal year. Then we'll come back in August with the city manager's proposed budget and it'll be balanced. We would have created some savings, created some opportunities, made some reductions during this current fiscal year so that when we present the budget to you in August, it is a balanced budget. We'll have a retreat, obviously in August and the budget is scheduled to be adopted in September. There are obviously a lot more meetings that will take place here. I'm just going to give you a highlight on some of the critical reporting dates and then we'll come back in November with the fourth quarter report and tell you how we finish FY20-11 and move into FY20-13.