FY2018 BUDGET PRESENTATION Talia Lomax- Odneal Finance Director - - PowerPoint PPT Presentation

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FY2018 BUDGET PRESENTATION Talia Lomax- Odneal Finance Director - - PowerPoint PPT Presentation

Aug 23, 2023 242 likes •672 views

FY2018 BUDGET PRESENTATION Talia Lomax- Odneal Finance Director April 26, 2017 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry Department of Finance FY2017 CURRENT YEAR STATUS Operating within overall

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Talia Lomax-O’dneal

Finance Director April 26, 2017

FY2018 BUDGET PRESENTATION

Metropolitan Government of Nashville and Davidson County Department of Finance

Mayor Megan Barry

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2 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

FY2017 – CURRENT YEAR STATUS

  • Operating within overall budget allocations
  • Meeting property and sales taxes revenue estimates
  • Strong economy
  • Maintaining bond rating
  • Maintaining reserves
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3 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

FY2018 BUDGET INSTRUCTIONS

  • No tax increase
  • No reduction scenario
  • Long term financial planning
  • Public Investment Plans
  • Collaboration and innovation
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4 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

MAYOR BARRY’S PRIORITIES

  • Education
  • Transportation and Infrastructure
  • Affordable Housing/Homelessness
  • Community and Economic Development
  • Public Safety and Justice Initiatives
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5 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

RECOMMENDED BUDGET

$2,209,690,100 5.86% increase over FY2017

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6 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

TOTAL BUDGET GROWTH

1.40 1.60 1.80 2.00 2.20 2.40 FY14 FY15 FY16 FY17 FY18

1.81 1.89 1.97 2.09 2.21

Budget amounts taken from Substitute Budget Ordinances as approved by Metro Council

FY17 to FY18 = 5.86% growth Amounts in billions

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7 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

WHERE THE MONEY COMES FROM

Property Taxes 46% Local Option Sales Tax 19% Grants & Contributions 19% All Other Revenues 13% Fund Balance Appropriated 3%

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8 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

TOTAL REVENUE GROWTH $119.1 MILLION

  • Property Taxes - $49.2 million
  • Local Option Sales Tax ‐ $25.0 million
  • Grants and Contributions ‐ $26.6 million
  • All Other ‐ $18.3 million
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9 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

BUDGETED REVENUE GROWTH BY FISCAL YEAR

Amounts in millions

30 60 90 120 150 FY14 FY15 FY16 FY17 FY18

55.3 51.9 75.2 121.5 119.1

GSD/USD/MNPS General Funds

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10 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

PROPERTY TAX TRENDS

800 850 900 950 1,000 1,050 1,100 FY14 FY15 FY16 FY17 Budget FY18 Budget

912 933 939 972 1,021

Amounts in millions FY17 to FY18 = 5.07% growth

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11 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

MAJOR CITY/COUNTY FY2017 PROPERTY TAX RATES

$4.52 $5.07 $5.05 $7.77 $3.89 $3.51

$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 Nashville* Davidson Chattanooga* Hamilton Knoxville* Knox Memphis* Shelby Murfreesboro Rutherford Lebanon Wilson

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* Will have reappraisal in 2017

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12 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

PRELIMINARY CERTIFIED TAX RATE

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GSD USD

(additional rate)

COMBINED Current Tax Rate $3.924 $0.592 $4.516 Preliminary Certified Tax Rate $2.753 $0.402 $3.155 Net Change $(1.171) $(0.190) $(1.361)

Lowest combined tax rate in the history of Metro Government

(1984 @ $3.17)

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13 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

SALES TAX TRENDS

100 200 300 400 500 FY14 FY15 FY16 FY17 Budget FY18 Budget

315 325 361 388 413

Amounts in millions FY17 to FY18 = 6.45% growth

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14 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

RECOMMENDED USE OF FUND BALANCE

Fund Appropriated for use in FY18 Budget Estimated June 30, 2018 Balance as a Percent of FY18 Budget OPERATING FUNDS: GSD* General Fund $49,809,300 5.9% USD** General Fund $0 5.5% Schools Fund $19,059,900 5.7% DEBT SERVICE FUNDS: GSD* Debt Service Fund $900,000 5.3% USD** Debt Service Fund $4,080,400 9.5% Schools Debt Service Fund $1,400,000 5.8%

*GSD - General Services District **USD - Urban Services District

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15 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

BUDGETED FUND BALANCE

20 40 60 80 100 120 FY14 FY15 FY16 FY17 FY18

45.0 72.5 73.9 71.9 75.2

Amounts in millions

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16 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

WHERE THE MONEY GOES

General Government 12% Public Safety 21% Other 2% Health & Social Services 4% Recreation & Culture 4% Infrastructure & Transportation 5% Education 40% Debt Service 12%

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17 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

WHERE THE MONEY GOES $119.1 MILLION

  • Debt Service - $40.6 million
  • $29.2 million in normal operating debt service
  • $11.4 million in reserves for future debt service
  • Schools - $36.0 million
  • Compensation - $18.1 million (GSD/USD)
  • Operations - $24.4 million*

* Net change

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SELECTED RECOMMENDATIONS BY PRIORITY AREA

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19 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

EMPLOYEE INVESTMENTS*

Total Pay Plan Increase - $18.1 million*

  • Increments for eligible employees (effective increment date)
  • 2% for open range increases (effective July 1)
  • 2% COLA (effective July 1)

Metro Council/Vice Mayor Improvements

  • $7,000 per member increase effective after the next election

(as recommended by the Civil Service Commission)

*GSD/USD and subsidized accounts and internal service funds

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20 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

EMPLOYEE INVESTMENTS

Three Year Pay Plan Recommendation

Increments COLA Open Range FY2018 Y 2% 2% FY2019 Y 3% 3% FY2020 Y 3% 3%

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21 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

OTHER EMPLOYEE INVESTMENTS

  • Health and Dental Benefits
  • Paid Family Medical Leave
  • Employee Financial Wellness Counselor
  • Tuition Assistance Pilot
  • Shift Differential Pay Increase of 10¢
  • $100 Increase in Uniform Allowance for Police and Fire
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22 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

SCHOOLS

$879,299,700 Operating $94,371,300 Debt Service

$36 million and 4.3% over FY17 $10 million and 11.8% over FY17

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23 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

SCHOOLS OPERATING BUDGET

$36 million

  • Employee Compensation and Benefits - $16 million
  • COLA, step increases, and benefits
  • Other - $20 million
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24 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

SCHOOLS OPERATING & DEBT SERVICE

620.8 633.3 674.0 720.4 746.4 790.1 810.0 843.3 879.3 58.2 32.4 42.6 53.6 69.6 76.4 78.0 84.4 94.4

678.9 665.8 716.7 774.0 816.0 866.4 888.0 927.7 973.7 200 400 600 800 1000 1200 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Operating Debt Service

Amounts in millions

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25 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

TRANSPORTATION & INFRASTRUCTURE

  • MTA - $49 million
  • $7 million improvement
  • Eliminates transfer fees, grant matching, local bus passes for residents experiencing

homelessness, access ride and mobility on demand pilots including crosstown connections and after hours service, extension of the Music City Circuit to TSU campus along the Jefferson Street corridor to promote economic revitalization

  • Public Works - $1.5 million
  • Annexation, roving trash truck, downtown glass recycling, contractual increases
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26 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

METRO TRANSIT AUTHORITY SUBSIDY

Amounts in millions

10 20 30 40 50 60 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

17.5 19.1 23.0 26.3 29.4 33.4 36.4 40.0 42.0 49.0

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27 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

AFFORDABLE HOUSING & HOMELESSNESS

  • Barnes Fund - $10 million (continuing commitment)
  • Housing Incentive Pilot Program - $2 million
  • Veterans Affairs Supportive Housing Pilot - $165,000
  • Social Services - $404,000
  • Outreach workers, warming shelter, direct assistance, indigent burials
  • Local Bus Passes for Residents Experiencing Homelessness - $225,000
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28 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

COMMUNITY SUPPORT & ECONOMIC DEVELOPMENT

  • Arts - $500,000
  • Parks - $1 million
  • Codes - $1 million
  • Historic Preservation Trust Fund - $250,000
  • Public Health - $334,000
  • Create Conservation Assistance Commission
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29 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

PUBLIC SAFETY

  • Fire - $1.9 million
  • Full funding for EMS Medic units started in FY17
  • New fire recruits and inspectors (14 FTEs)
  • Police - $4.0 million
  • 70 new officers due to Nashville’s growth
  • 48 for precincts
  • 22 for community policing
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30 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

JUSTICE SYSTEM ENHANCEMENTS

  • Steering Clear - A drivers’ license diversion program
  • Veterans’ Treatment Court
  • Drug Treatment Court
  • Mental Health Court
  • Social Workers
  • Investigators
  • Domestic Violence Support
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31 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

HOSPITALS

  • General Hospital - $35 million
  • Bordeaux Nursing Home - $3.5 million
  • Funds contract with Signature
  • Knowles Assisted Living Facility - $1 million
  • Funds contract with Anthem Care
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32 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

GENERAL HOSPITAL SUBSIDY

34.9 33.5 32.1 32.7 32.7 36.1 33.4 27.7 29.5 34.5 10.0 16.0 31.1

10 20 30 40 50 60 70 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17* Original Budget Non-Recurring Supplemental Non-recurring, Non-cash write-off

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Excludes Bordeaux and Knowles Amounts in millions

*$500,000 of the $35 million subsidy was paid to Signature for prior year losses at Bordeaux

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33 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

GENERAL HOSPITAL SUBSIDY

  • Hospital Authority Board expressed commitment to stabilize financial position:
  • Timely bill and collect insurance payments for services
  • Strategically market NGH to increase patient volumes
  • Improve insurance payer mix to increase revenues
  • Pursue additional revenue sources
  • Reduce labor costs through productivity tied to patient volumes
  • Reduce supply and other costs through discounts and renegotiation
  • Analyze financial impact of all services
  • Ongoing Metro financial commitment and Hospital Authority Board financial oversight commitment should result in financially

sustainable safety net hospital for citizens 33

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34 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

ANNUAL DEBT REPORT

As required by BL2014-696, the Annual Debt Report will be emailed to Metro Council members today

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35 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

Historical Annual Debt Service Requirement 2014 – 2018

GENERAL OBLIGATION DEBT

10.87% 11.48% 10.76% 11.35% 12.56%

  • 50,000,000

100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 2014* 2015* 2016* 2017 2018 GSD Schools USD Total GO Debt Service as % of Budget *Restated to be consistent with CAFR presentation

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36 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

GENERAL OBLIGATION PRINCIPAL AND INTEREST

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50 100 150 200 250 300 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

232 258 267 267 267 263 264 267 258

Principal Interest

Amounts in millions

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37 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

MEETING DEBT SERVICE REQUIREMENTS

Adding $11.4 million to GSD debt service reserve to meet FY2019 estimated need for principal and interest Total Debt Service Increase is $40.6 million

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38 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

CAPITAL SPENDING PLAN

Planned Filing – May 15th with Capital Improvements Budget Ordinance

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39 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

CAPITAL SPENDING PLANS (A LOOK BACK)

356.7 210.0 310.7 205.0 165.0 389.0 325.0 204.1 40.0 0.0 97.0 95.0 110.0 131.0 150.0

560.8 250.0 0.0 407.7 300.0 275.0 520.0 475.0 100 200 300 400 500 600 FY10 FY11 FY12 FY13* FY14 FY15 FY16 FY17

General Government MNPS

*FY13 had two Capital Spending Plans

Amounts in millions

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40 Metropolitan Government of Nashville and Davidson County Mayor Megan Barry

LEGISLATION TO TRACK WITH BUDGET

  • Operating Budget Ordinance
  • Certified Tax Rate Resolution
  • Tax Levy Ordinance
  • Urban Council Resolution
  • Pay Plan Resolutions - to be filed after Civil Service Approval, mid-May
  • Longevity Resolution - to be filed after Civil Service Approval, mid-May
  • Property Tax Relief Ordinance
  • Create Historic Preservation Trust Fund Ordinance
  • Create Conservation Assistance Commission Ordinance
  • Animal Control fee increase Resolution
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FOR MORE INFORMATION VISIT THE CITIZENS’ GUIDE TO THE METRO BUDGET

www.nashville.gov/citizens_budget