FY 2020 Budget Engagement
Madisonville Recreation Center, February 20th, 2019
Introductions
• Patrick A. Duhaney, City Manager
• Christopher Bigham, Budget Director
• Purpose of Meeting:
• Provide an update on the FY 2020 Budget
• Provide an overview on the budget process
• Budget Strategy and ‘Budget Basics’ brief
discussion
• Receive feedback from employees via online,
printed form and through discussion2
Fiscal Year 2020 Budget:
• FY 2020 Budget is a continuation budget of FY 2019
• Estimated Revenues: $406.2 million
• Estimated Expenditures based on a continuation budget:
$425 million
• Projected Deficit: $18.8 million
• Expenditures have outpaced revenues due to increased labor cost and a relatively flat income tax growth.
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Fiscal Year 2020 Budget:
• Administration has implemented fee increases the past two
years and are not recommending any substantial fee
increases for FY 2020.
• Shifting expenditures to other eligible restricted funds
(debt service payments, CPS payment) is already included
in the estimates.
• Without a new revenue source, balancing the budget will
fall on department reductions.
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Fiscal Year 2020 Budget:
• Exempting police and fire sworn strength, departments will
face an average 14% reduction.
• The FY 2020 base budget includes 2% COLAs for Public
Safety employees and 1% COLAs for all other staff.
• All union contracts are being renegotiated for FY 2020 and
the Administration will propose various contractual
changes to reduce costs to the City.
• The Administration will propose a structurally balanced FY
2020 Budget for approval prior to July 1, 2019.
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Budget Process
• Community Engagement
• Establish Revenue Estimates
• Establish Budget Targets by Department
• Departments Request Capital and Operating Budgets
• Reviewed by Budget Department and Ultimately
Recommended by the City Manager to the Mayor
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Budget Process
• Mayor has 15 days to Make Changes
• Transmits the Budget to Council
• Council Votes on Budget with any Proposed
Changes
• Budget Approved!
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Overall Budget Strategy
• Pass a structurally balanced
budget
• Revenues ≥ Expenditures
• Expand the tax base
• Economic Development &
Neighborhood Investment are focal
points
• Recruit and retain jobs
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Approved FY 2019 All Funds Budget Update
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2018-2019 Biennial From 2018 Approved From 2019 Biennial Approved
($ in Millions)
2018
Approved
2019
Approved
$
Change
%
Change
$
Change
%
Change
Operating Budget
General Fund $395.7 $393.2 $403.7 $8.0 2.0% $10.5 2.6%
Restricted Funds $674.4 $682.6 $692.1 $17.7 2.6% $9.5 1.4%
Subtotal Operating Budget $1,070.1 $1,075.8 $1,095.8 $25.7 2.4% $20.0 1.8%
Capital Budget
General Capital Budget $76.7 $64.1 $85.4 $21.3 33.2% $21.3 24.9%
Restricted Funds Capital $394.0 $200.3 $219.3 $19.0 9.5% $19.0 8.7%
Special Revenue/Matching Capital $34.1 $6.8 $16.0 $9.2 135.3% $9.2 57.5%
Subtotal Capital Budget $504.8 $271.2 $320.7 $49.5 18.3% $49.5 15.4%
Total All Funds Budget $1,574.9 $1,347.0 $1,416.5 $75.2 5.6% $69.5 4.9%
Table I - Approved FY 2019 All Funds Budget Update
Approved FY
2019 Update
General Fund Revenues of $404.7 million in FY19
So where does the money come from?
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General Fund Revenue
• Earnings Tax = 69.4% of Revenue
• 2.1% of gross salaries, wages, other personal services
compensation and business net profits
• All earnings derived in City regardless of residency. Rule is
first where you work, then where you live
• By Charter, split as follows:• 1.55% General Operating
• 0.30% Transit
• 0.15% Capital
• 0.10% Infrastructure
• General Fund Earnings Tax: $280.7 million
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Current Ohio Major City Income Tax Rates
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• City of Cleveland 2.50% -- Passed .5% increase 2016, effective 2017
• City of Dayton 2.50% -- Passed .25% increase 2016, effective 2017
• City of Columbus 2.50% -- Passed .5% increase 2009, effective 10/1/09
• City of Toledo 2.25% -- Renewed temporary levy of .75% effective 2017
• City of Cincinnati 2.10% -- Last increase 1988 for .1%
Current City Real Estate Tax Breakdown(Will be revised upon Hamilton County Auditor Updated Information)
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2018 Real Estate Tax Breakdown (Paid in CY2019)
$100,000 House Example
Tax DescriptionCurrent Dollars
Precentage of R/E Bill
School District $1,627.62 66.41%
Township $0.00 0.00%
City/Village
Debt Service 7.26 Mills $197.63 8.06%
General Operating 5.16 Mills $168.33 6.87%
Joint Vocational School $0.00 0.00%
County General Fund $68.70 2.80%
Public Library $29.04 1.18%
Family Service/Treatment $9.88 0.40%
HLTH/Hospital Care-Indigent $49.58 2.02%
Mental Health Levy $47.84 1.95%
Developmental Disabilities $114.68 4.68%
Park District $29.96 1.22%
Crime Information Center $4.84 0.20%
Children Services $54.64 2.23%
Senior Services $38.00 1.55%
Zoological Park $10.26 0.42%
Annual Real Estate Tax Bill $2,451.00 100.00%
*Other Departments includes: City Planning, Citizen Complaint Authority, Economic
Inclusion, Human Resources, and Transfers Out.14
Police 35.4%
Fire 26.3%
Police 35.4%
Fire 26.3%
FY 2019 OPERATING BUDGET
General Fund Expenditures – $406.3 million
Police36.1%
Fire28.9%
City Manager's Office4.8%
Health4.2%
Recreation4.0%
Public Services3.7%
Non-Departmental3.0%
Buildings & Inspections2.6%
Parks2.2%
Community & Economic Development
2.0%
Law1.9%
Finance1.8%
Other Departments*1.6%
Enterprise Technology Solutions
1.6%
Mayor, Council and Clerk0.9%
Transportation & Engineering0.8%
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OPERATING BUDGET
General Fund Expenditures
Public Safety67.9%
Non-Public Safety32.1%
General Fund ExpendituresWhere does the money go?
Personnel and Non-Personnel
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Personnel and Benefits84.0%
Non-Personnel16.0%
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OPERATING BUDGET
General Fund ExpendituresPersonnel Expenses represent 84.0% of the General Fund Budget
with 83.8% of employees represented by labor contracts.
FOP30.1%
IAFF24.1%
CODE9.8%
Building Trades0.2%
AFSCME19.6%
Non-Represented
10.0%
Part-Time6.3%
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General Capital Budget, FY 2019 $85.4 million
Transportation & Engineering
41.9%
Public Services26.6%
Community & Economic
Development17.1%
Recreation4.5%
Parks3.0%
Enterprise Technology Solutions
2.4%
Stormwater Management
Utility1.4%
Fire0.7%
Enterprise Services0.6%
Buildings & Inspections
0.6%
Police0.5%
All Other Departments
0.6%
Operating and Capital
Budget Comparison
Operating
• Day-to-day delivery of City Services
• Paying employees
• Covering the cost of supplies needed to offer services
• Cannot be financed with resources from the sale of permanent improvements
Capital
• Improvement, construction, or purchase of City assets
• Minimum $5,000 cost and 5 year useful life
• Financed with combination of cash and debt resources
Restricted Funds
• Not self supported (user fees
do not pay for 100% cost)
but restricted purpose
• General Fund may be used to
supplement
• Revenues generated stay
within the fund as mandated
by State law
• Parks and recreation special
activities funds, grant funds,
health center funds20
Restricted Funds Revenue
• Dedicated to a specific purpose by State Law or City
Charter
• Income Tax Distribution
• Transit
• Income Tax – Infrastructure
• Revenues generated stay within the fund as maintained
by State law
• Street construction & maintenance fund, Motor Vehicle
Tax, etc.
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Enterprise Fund Revenue
• Operates like a business, user
fees support 100% of operation
• No tax dollars associated with
operation
• Revenues generated stay within
the fund as mandated by State
law
• Water Works, Sewers,
Stormwater, Convention
Center, Golf and Lunken
Airport
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Fiscal Year 2020 Budget:
• Next Steps:
• Employee Engagement- The Administration is looking for
ideas from employees on efficiency and effectiveness
measures that could generate additional revenues or
expenditure savings
• Employee Suggestion form – online form and included in
this session for you to fill out
• After a short break, you can stay and participate in a
question and answer session as well as discuss any topics
related to the budget including your ideas
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QUESTIONS? COMMENTS?
Please visit our website:
http://www.cincinnati-oh.gov/finance/cincinnati-budget-engagement/
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