Fiscal Year 2018 Proposed Budget Central Health Board of Managers - - PowerPoint PPT Presentation

Fiscal Year 2018 Proposed Budget

Central Health Board of Managers Budget and Finance Committee July 19, 2017 Lisa Owens, Interim Deputy CFO

Central Health Tax Rate per $100 of Taxable Valuation

2 7.79 7.79 7.34 6.93 6.79 6.74 7.19 7.89 7.89 12.9 12.64 11.78 11.05 10.74 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cents Fiscal Year

FY 2018 Estimated 4.5%

• ver Effective Rate

FY 2017 Year-End Estimate (in millions)

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Fiscal Year 2017

Sources of Funds Approved Estimate Variance Property Tax Revenue $169.8 $169.8 $0.0 Seton Lease Revenue 31.5 29.3 (2.2) Other Revenue 2.2 2.2

• Total Revenue

203.5 201.3 (2.2) Contingency 36.6 51.9 15.3 Total Sources 240.1 253.2 13.1 Uses of Funds Intergovernmental Transfers 141.6 130.5 11.1 Indigent Care Payment to CCC 26.2 26.2

• Charity Care

4.3 4.3

• ACA Education and Enrollment

2.7 2.0 0.7 Health Promotion 0.4 0.4

• UMCB Redevelopment

2.0 2.0

• Service Expansion Funds

2.0 1.0 1.0 Personnel & Operating 8.3 8.3

• Transfer to capital Reserve

1.5 1.5

• Sendero Risk-based capital

6.0 6.0

• Transfer to Emergency Reserve

1.4 1.4

• Contingency

32.0

• 32.0

Debt Service 1.4 1.4

• Administration

8.9 8.9

• Tax collection

1.5 1.5

• Total Uses

240.1 195.4 44.8 Ending Balance - Contingency Reserve $57.9

Recap of FY16 IGT Payments


Actuals Through September 30, 2016

www.CentralHealth.net 4

(1) Allocated por/on of the con/ngency reserve appropria/on, for IGT /ming differences.

$ in millions

Fiscal Year Budget This Month Fiscal Year-To-Date Over (Under)

Private UC 27.9 12.8 23.4 (4.5) UMCB UC 28.7 11.1 19.6 (9.1) DSH 23.3 - 31.0 7.7 DSRIP - CCC 28.5 - 27.7 (0.8) DSRIP - UMCB and Dell 25.7 - 22.4 (3.3) DSRIP - St. David's 0.6 - 0.5 (0.1) Contingency Reserve: (1) UC (DY4) 52.9 - 46.2 (6.7) DSH (DY4) 15.5 - 15.1 (0.4) Total 203.1 23.9 185.9 (17.2)

Central Health FY 2018 Proposed Budget Tax Revenue Scenarios

Final taxable assessed value numbers have been received
 Each 1% increment over effective tax rate is approximately $1.7M Three scenarios for demonstration, using proposed budgeted sources and uses:

❍

4.5% over effective next year, 4.5% thereafter

❍

3.5% over effective next year, 4.5% thereafter

❍

2.5% over effective next year, 4.5% thereafter

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Significant Proposed FY18 Budgeted Expenses

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CCC Member Payment $29.2 million Sendero Risk Based Capital $4 million Proposed Capital Projects

• UMCB Infrastructure $2.6 million
• East Side Collaboration $1.5 million

ACA Subsidy Program $2.7million Consulting Fees $1.2 million Legal Fees $926K New Healthcare Initiatives $500K

• Women’s Health, Cancer Care, Workforce Development

Personnel 3% Performance Increase $150K 3.4 FTE New Positions $350K

• RHP 7 Waiver, Policy, Records Management, PT Benefits

5-Year Forecast: 4.5% Over Effective Property Tax Rate (in millions)

*Updated Sources and Uses

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FY18 FY19 FY20 FY21 FY22 Total Sources

194.0 205.2 216.4 228.1 240.1

Total Uses

222.7 216.3 222.6 228.9 234.7

Total Reserves

61.0 49.9 44.2 44.7 51.0

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 $260 FY18 FY19 FY20 FY21 FY22

4.5% Over Effec8ve Property Tax Rate YOY

Total Sources Total Uses Total Reserves Emergency Reserve

5-Year Forecast: 3.5% Over Effective Property Tax Rate FY18, 4.5% over effective thereafter

*Updated Sources and Uses

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FY18 FY19 FY20 FY21 FY22 Total Sources

192.3 203.4 214.5 226.0 237.9

Total Uses

222.7 216.3 222.6 228.9 234.7

Total Reserves

59.2 46.4 38.7 37.1 41.3

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 $260 FY18 FY19 FY20 FY21 FY22

3.5% Over Effec8ve Property Tax Rate FY18, 4.5% ThereaLer

Total Sources Total Uses Total Reserves Emergency Reserve

5-Year Forecast: 2.5% Over Effective Property Tax Rate FY18, 4.5% over effective thereafter

*Updated Sources and Uses

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FY18 FY19 FY20 FY21 FY22

Total Sources

190.5 201.6 212.6 224.0 235.8

Total Uses

222.7 216.3 222.6 228.9 234.7

Total Reserves

57.5 42.8 33.2 29.6 31.5

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 $260 FY18 FY19 FY20 FY21 FY22

2.5% Over Effec8ve Property Tax Rate FY18, 4.5% ThereaLer

Total Sources Total Uses Total Reserves Emergency Reserve

Next Steps

ü May 24 — Central Health Board of Managers (5-year forecast) ü May 30 — Travis County Commissioners Court (FY 2017 update and FY 2018 budget guidelines) ü June 21 — Central Health Budget and Finance Committee (budget update) ü June 28 — Central Health Board of Managers (proposed budget)

• July 19 —

Central Health Budget and Finance Committee (FY 2018 CCC proposed budget)

• July 26 —

Central Health Board of Managers (FY 2018 CCC proposed budget and Central Health budget update)

• Aug. 9 —

Central Health Budget and Finance Committee (FY 2018 Central Health proposed budget and property tax rate)

• Aug. 16 — Central Health Board of Managers (FY 2018 Central Health proposed budget and

property tax rate)

• Aug. 22 — Travis County Commissioners Court (Central Health proposed budget and property

tax rate)

• Aug. 30 — First public hearing
• Sept. 6 —

Second public hearing

• Sept. 13 — Central Health Board of Managers (FY 2018 budget adopted)
• Sept. 19 — Travis County Commissioners Court (FY 2018 Central Health proposed

budget and property tax rate)

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(512) 978-8000 www.centralhealth.net @centralhealthtx