2015 Year End Results General Fund Major Enterprise Funds

2015 Year End Results

General Fund

Major Enterprise Funds

1

City Commission Work Session

March 2, 2016

2015 Year End Results Summary 1. In 2015, total General Fund sources grew 2.6%

compared to 2014.

2. Total General Fund uses increased 2% ($3.2

million) when compared to the previous year and

were 4% under budget due to savings in several

categories, some attributable to lead time needed to

purchase equipment.

3. Note: The final revised budget included additional

budget margin to ensure that no department would

exceed its final budget.

4. We had a good year. While we were more than

successful in achieving our budget goals, we need

to remain mindful of our longer term challenges,

infrastructure in particular.

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Finance Committee Briefing 2015 General Fund Year End Results

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2015 Year End Statement Notes 1. Amounts may not sum due to rounding.

2. Does not include special projects, which are reported separately.

3. 2015 Budget includes adopted budget only and does not include prior year's encumbrances.

4. Actual amounts include expenditures against current year appropriation and against prior year's appropriation that carried forward.

5. Other Revenues includes interest earnings, special assessments and operating transfers in.

6. Other Uses include debt service and miscellaneous operating transfers out.

7. EMS (Emergency Medical Service) fees are reported on a cash basis in 2014.

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2015 Year End Tracking The tables below illustrate the significant variances

that can occur from month to month in the General

Fund. Strong growth in income tax, combined with

reduced spending, provided funding to address some

critical needs.

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2015 Income Tax Revenues 1. Income tax grew 4.6% or $4.8 million in 2015,

which was on target for the revised forecast.

a) Withholding collections were up a sizable $3.8M or 4.2%.

b) Taxes on business profits were down slightly, with the tax

on corporate profits climbing $657,700 while partnerships

sank almost $800,000.

c) The tax paid by individuals dropped about $50,000.

d) 2015 collections includes $312,700 in JEDD payments

from prior years.

e) Refunds were down $853,600 or 27% in 2015.

In 2015, Income Tax revenue enjoyed its highest

growth rate (not level of collections) since 1995, or

in 20 years!

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2015 General Fund Revenues 2. Property Tax and Other Tax revenues came in at the

estimate, reflecting a decline of 5% (or $300,000).

a) Property values declined 8.1% in the 2015 collection year

when compared to the previous year. Total property tax

revenue decreased a lesser 5.6% due to a higher

collection rate (the highest since 2008).

b) Total property taxes collected in the General Fund were

$5.35 million in 2015. (Property tax revenues of $6.5

million went to the Debt Retirement Fund.)

c) The 2015 millage distribution was maintained at the 2014

levels.

d) Hotel lodging tax receipts totaled $605,000 in 2015, an

increase of 7% over 2014.

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2015 Revenues Property Tax Collections – General and Bond Retirement Funds

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2015 General Fund Revenues

3. Waste Collection fees for 2015 totaled $9.1 million

and are at the same level as 2014.

4. EMS Fees are up 20% due, in part, to an extra

month’s billings being credited to 2015 (13

months). This also means 2016 will reflect 11

months. When the extra month is factored out,

collections grew 9% on increased transports and a

higher rate of collections.

5. Other Charges for Services came in 1%

($200,000) under budget but reflect growth of 2%

over 2014.

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2015 General Fund Revenues 6. Local Government Fund revenues also came in at

the revised estimate and increased 5% or $300,000

over 2014. This performance reflects the strong

growth in state revenue sources offset by the nearly

two-thirds cut to the municipal direct allocation.

7. Other Intergovernmental Revenues declined 22%,

reflecting $1.2 million less revenues largely due to

the Racino payment reduction ($1.0 million to

$250,000). In addition, the Inheritance Tax

declined $280,000.

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2015 General Fund Revenues

8. Fines and Forfeits decreased 26% ($900,000)

mostly due to the elimination of public safety photo

enforcement.

9. Revenues from licenses and permits grew 12%

reflecting increased construction activity.

10. Other revenue declined 11% when compared to

2014. Revenues in 2014 reflect a reimbursement of

$892,000 from BWC due to strong financial

performance. No reimbursement was received in

2015.

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2015 General Fund Expenditures 1. Personnel costs for 2015 were under budget by 2%

or $2.1 million. Personnel costs grew 4% in 2015

compared to 2014. Various factors were at work:

a) But for the 27th payroll ($2.7 million) in 2015, total growth

in personnel costs would have been 1.4%.

b) A 3% wage increase was given to all employee groups.

c) The average number of employees in the General and

Street Maintenance Funds decreased by 13 full-time

positions, or 1%, from 1,212 to 1,199.

d) Some departments experienced vacancy savings higher

than originally planned in the budget.

e) Uniform Fire personnel received their retro pay ($530,000)

in January, 2016 rather than in 2015 due to the timing of

the labor fact-finding process.

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2015 General Fund Expenditures 2. Contracts and materials costs declined 6% (or $2.1

million) from 2014. Expenditures in 2015 were also

8% below the revised budget (or $3.2 million).

Lower electricity costs

Lower maintenance agreement costs (full

implementation of VOIP resulted in additional savings

of $303,000), computer software maintenance costs

decline $111,000

Lower use of outside legal counsel (-$289,000)

3. Capital equipment expenditures planned for 2015

were $1.0 million less than planned due to the

acquisition time needed on larger pieces of

equipment. All purchases should be completed in

2016 ($979,000 in pending purchase orders).

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2015 General Fund Expenditures 4. The capital improvements transfer increased $4.7

million given due to favorable budget performance.

Several projects were funded that also help us

make progress toward our significant infrastructure

needs.

5. The Development Fund transfer totaled $2.5 million

reflecting a return to a more normal funding level,

from the $5.0 million allocated in 2014.

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2016 Cash Reserve: $23.2 million

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Note: The 2015 Cash Reserve before Use of Fund Balance was $24.3M. The $2.5M planned Use of the Reserve in 2015 was not used due to favorable budget performance.

General Fund Budget Metric One of our financial goals is to ensure major tax

sources meet or exceed personnel costs, the major

cost center of the General Fund budget. We have

met the goal in 2011, 2012, 2014, and 2015.

Note: Personnel costs in 2015 exclude the 27th pay costing $2.7 million.

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Summary of General Fund Transfers

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Additional Information on Capital Transfers

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Note: As a result of revenue exceeding our original estimates and under-

spending in other budget categories, we were able to transfer funds for critical

capital improvement and technology needs.

Various Updates 1. Golf Fund ended year with a small negative

balance (-$18,633) having withstood a rainy

season that significantly restricted play.

2. Fleet Management completed repayment of

General Fund loan.

3. Health Insurance Fund experienced higher than

planned claims expenditures – more detailed

analysis to follow.

4. The City experienced a decline in the State of Ohio

Bureau of Workers’ Compensation (BWC)

Experience Modifier (EM) rating for 2016 which will

reduce the City’s future premiums.

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Various Updates

5. Each Community Service Area (CSA) group has

met for an initial organizational meeting.

a) Chair or Co Chairs being identified

b) Departments asked to do additional review of measures

c) Each group discussed potential areas of additional

collaboration.

6. Planning meetings held regarding citizen

engagement related to 2017 budget (Budget

Games). OMB is working with department to

identify various budget options.

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Today’s Key Takeaways

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1. 2015 was a good year.

2. We took advantage of our positive budget variances and allocated dollars toward some critical needs in capital and technology.

3. We still have a long-term budget challenge, particularly in the area of infrastructure maintenance and replacement.

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2015 Year End Results General Fund Major Enterprise Funds

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