City Budget Overview: Fiscal Years 2015 and 2016
Detailed presentation to the City Council regarding the budget updates, closeout of Fiscal Year 2015, and mid-year projection for Fiscal Year 2016. It includes revenue and expenditure breakdowns, surplus/deficit figures, supplemental sources, assigned fund balances, and future projections. The presentation outlines key financial allocations and decisions made by the Department of Finance.
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Budget Update Fiscal 2015 Closeout & Fiscal 2016 Mid-Year Department of Finance Presentation to City Council March 15, 2016
Fiscal 2015 Closeout
Fiscal 2015 Closeout Adopted Budget Adjusted Budget Surplus / (Deficit) Variance Actuals General Fund: Revenue 1,648.0 1,690.5 1,690.2 (0.3) 0.0% PAYGO Capital 25.7 25.7 25.7 0.0 0.0% Expenditures 1,622.3 1,664.8 1,651.1 13.7 0.8% Surplus / (Deficit) 0.0 0.0 13.4 13.4 0.8% Note: - Revenue actual includes transfer of $20M back to Rainy Day Fund to replenish for cost of civil unrest. 3
Supplementals Fiscal 2015 Amount Source Transfer Tax, Recordation Tax, Miscellaneous Revenue, Solid Waste Surcharge, and Off- Street Parking Police New FOP Contract and Overtime $16,000,000 Miscellaneous General Civil Disturbances Budget Stabilization Reserve $20,000,000 DOT Heavy Snow Income Tax $6,500,000 TOTAL $42,500,000 4
Assigned Fund Balance Beginning Assigned Fund Balance Fiscal Year Actions: Used in Fiscal 2015 Budget Operating Budget Surplus Net Change $ 46M $(7)M $13M $7M Projected Assigned Fund Balance $53M Notes: Used in Fiscal 2015 budget includes $5M for speed cameras and $2M for BHIP 5
Breakout of Assigned Fund Balance: Item F&P Litigation CUB/AFSCME Bonus Speed Cameras Freddie Gray settlement $ 6M supplemental pending before Council ($6.4M) DOJ Review $ 2M supplemental pending before Council ($1.2M) Officer Trial Preparation $ 6M equipment and overtime Total $53M Amount Notes: $30M $ 4M appropriated in FY16 budget $ 5M appropriated in FY16 budget 6
Fiscal 2016 Mid-Year Projection
Fiscal 2016 Mid-Year Projection (figures in $ millions) Adopted Budget 1,720.9 September Projection 1,730.5 Mid-Year Projection 1,756.4 Surplus / (Deficit) 35.5 Revenue PAYGO Capital Expenditures 21.8 21.8 21.8 0.0 1,699.1 1,715.0 1,736.7 (37.6) Surplus / (Deficit) 0.0 (6.3) (2.1) (2.1) Note: - - Recurring revenues are projected at $1,726.9M or $6M above the Adopted Budget. One-time revenues total $29.5M, including: - CSX ($5.9M) - Assigned Fund Balance ($13.6M) - Income Tax Reconciliation ($7M) - Billboard Tax Back Payment ($3M) 8
Projection assumes supplemental funding from one-time sources: CSX ($3.5M) CSX resident settlement, Office of Civil Rights, Crime Lab, and Human Services items Assigned Fund Balance Freddie Gray ($6.4M) Family settlement Assigned Fund Balance Legal Fees ($1.2M) Support for the Department of Justice review Assigned Fund Balance Trial Prep ($6.0M) Equipment purchases in Police and Sheriff Overtime for court security, Police heightened presence, and trial legal preparation 9
Revenue Surplus/Deficit by Key Categories (in $ millions) $35 Millions $25.1 $25 $15 $3.0 $1.9 $5 ($5) ($1.2) ($4.5) ($4.7) ($15) ($15.3) ($25) ($35) Real Property Other Property Tax Credits Traffic Cameras Taxi Cab Excise tax Rental of City Property Billboard Tax Income Tax 10
Key Revenue Trends Explanation Property Tax ($15.3M deficit) Small variances from assumptions for new construction, appeals, collection rate and contingency. Traffic Cameras ($4.5M deficit) Very little revenue expected in Fiscal 2016. New program phase-in to begin in FY17. Income Tax ($25.1M surplus) Modest growth from Fiscal 2015 actual level. One-time $7M from final reconciliation of Tax Year 2014 returns. 11
Expenditure Surplus/Deficit by Key Agencies (in $ millions) $5.0 $2.2 $0.7 $0.6 $0.0 ($3.2) ($5.0) ($10.0) ($11.9) ($15.0) ($20.0) ($19.6) ($25.0) Transportation Police Fire Human Resources Health Housing 12
Key Expenditure Issues Explanation Police ($12M deficit, after supplementals) Vacancy savings of $18M (307 vacant positions) is offset by $29M deficit from overtime and $3M deficit from severance. Non-personnel spending is projected at a $2M surplus. Supplementals total $14M. Fire ($3M deficit) High overtime and severance in Suppression due to final wave of retirements exercising their 6-month leave option. High vehicle maintenance and repair costs. Transportation($20M deficit) Historic January snowfall. 13
Fiscal Risks Short-Term Mid-Term/Long-Term Convention Center Hotel (up to 25% of Hotel Tax) FPERS litigation ($30M+) Debt service for vacated schools ($10- 20M) Teacher Pension Costs (if above normal cost in Fiscal 2017) Ten-Year Plan implementation (TBD) Grants Deficit ($62M) Traffic Cameras (TBD) Department of Justice review (TBD) Risk Management (liability of $202M) State Budget Issues (TBD) Landfill costs (TBD) 14
