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Presentation Title Here Presentation Title Here City Manager’s City Manager s Additional Line if Needed Recommended FY 2018-2019 Biennial Budget Date Here June 1, 2017

Five Strategic Priorities Overview Overview 2

Organizational Chart Overview Overview Citizens of Cincinnati Citizens of Cincinnati City Contractual Boards Boards and Commission Mayor & City Council Departments Southwest Ohio Regional Transit Authority (SORTA) Board of Health Human Relations City Manager Budget & Evaluation Environment & Sustainability Internal Audit Park Board Performance & Data Analytics Communications Recreation Commission Fire Department Public Services Department Retirement Police Department Law Department Human Resources Department Community & Economic Development Department Transportation & Engineering Department Finance Department Enterprise Technology Solutions Greater Cincinnati Water Works Sewers Stormwater Citizen Complaint Authority Buildings & Inspections Economic Inclusion City Planning Department Enterprise Services 3 Convention Center Parking Systems

Recommended FY 2018-2019 All Funds Budget Recommended FY 2018-2019 All Funds Budget City Manager’s 4

OPERATING BUDGET General Fund Revenue - $393.1 million Parking Meter Other Revenues Investments 0.5% 14.9% 14 9% 0.8% 0 8% Casino Tax 1.9% State Shared State Shared Revenues 3.2% Earnings Tax 71.1% 71.1% Property Taxes 7.5% 5

City Municipal Income Tax Rate History City of CIncinnati Income Tax Rate - 1970 to 2018 2.5% 2.0% 2.0% 1.5% 1.0% 0.5% 0.0% Tax Rate • Pre 1972- 1.7% • 1972- approved .3% Transit Tax • 1988- approved .1% Infrastructure Tax • Currently 2.1% 6

Current Ohio Major City Income Tax Rates • City of Cleveland 2 50% City of Cleveland 2.50% -- Passed .5% increase 2016, effective 2017 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% 7

Projected Deficit $26.0 million • Tentative Tax Budget deficit began at $8.7 million • Income Tax revised down adding $15.6 million • Additional target revisions increased $1.7 million due to g $ updated expenditure estimates 8

Closing the Operating Budget Deficit • Revenue estimates adjusted to reflect current trends • Fee/Citation Increases • Expenditure Reductions 9

OPERATING BUDGET General Fund Revenue – Changes P Proposed Fee Increases: d F I • Increased parking fines from $45 to $60 per ticket – Increase of $900,000 annually • Execute Booting Contract – Increase of $600,000 annually • Parking Meters $.25/hr average increase – $640,000 g g annually • Buildings and Inspections permit fees increased based g p p on CPI annually – 2.4% or $288,000 10

OPERATING BUDGET General Fund Expenditures – $395 4 million General Fund Expenditures $395.4 million Transportation & Enterprise Technology Engineering Solutions Mayor, Council and Clerk 0.9% 1.4% 0.9% Community & Economic Development Finance Finance Non-Departmental Non-Departmental Other Departments* Other Departments* 1.8% 1 8% 1.9% 4.3% Law 1.2% 1.7% City Manager's Office 2.3% Parks 2.4% B ildi Buildings & Inspections & I ti 2.5% Police 35.4% Police 35.4% Police Recreation 4.2% 37.9% Health 4.3% Public Services 4.5% Fire 28.2% Fire 26.3% Fire 26.3% Fire 26.3% *Other Departments includes: City Planning, Citizen Complaint Authority, Economic 11 Inclusion, Human Resources, and Transfers Out.

General Fund Expenditures OPERATING BUDGET Public Safety 66.0% Non-Public Safety 34.0% 12

All Funds Staffing Public Safety (Sworn and Non-Sworn) and Other FTEs 6,000 Other Department Non-Sworn FTE 5,000 Public Safety Non-Sworn FTE 3,817.15 3,752.24 4,000 Fire Sworn FTE Fire Sworn FTE 3,000 Police Sworn FTE 330.46 354.46 2,000 Public Public 869.00 838.00 Safety Safety Total Total 1,000 2,273.46 2 273 46 2 266 46 2,266.46 1,074.00 1,074.00 0 FY 2018 FY 2019 6,083.61 6 083 61 6,086.39 6 086 39 13 FTE: Full-time Equivalent

Historical Staffing Levels General Fund FTE Change 2000-2018 CY 2000 FY 2018 FTE Change Approved Recommended From Percentage (in Full-Time Equivalents, FTE) Budget Budget 2000 Budget Change Public Safety FTE 2,194.90 2,266.46 71.56 3.3% Non-Public Safety FTE 1,973.20 1,258.62 -714.58 -36.2% 4,168.10 3,525.08 -643.02 -15.4% Overall 15% decrease in General Fund FTEs: O ll 15% d i G l F d FTE •Public Safety increase of 3% •Non Public Safety decrease of 36% N P bli S f t d f 36% 14

General Fund Expenditures Where does the money go? Where does the money go? Personnel and Non-Personnel Non-Personnel 17.2% Personnel 82.8% 15

OPERATING BUDGET General Fund Expenditures General Fund Expenditures Personnel Expenses represent 83.3% of the General Fund Budget with 85.0% of employees represented by labor contracts. p y p y Non- Part-time 5.2% Represented 9.8% 9 8% FOP 30 5% FOP 30.5% AFSCME & AFSCME MWs SC s 20.6% IAFF 23.8% Building Trades 0.2% CODE 9.9% 16

OPERATING BUDGET General Fund Expenditure Reductions E Expenditure Reductions: di R d i • $5.1 million: Transfer Out Reduction for Debt Service Payments- this could be a recurring payment if necessary but would impact the future capital budgets. Administration will review as the next year budget is Administration will review as the next year budget is compiled • $3 6 million: Base Budget Reductions $3.6 million: Base Budget Reductions • Reduce Non-Represented COLA to 1% • Eliminate Non-Represented 3% Merit Pay • Reduce Health Insurance Premium Increase from Reduce Health Insurance Premium Increase from 5% to 3% 17

OPERATING BUDGET General Fund Expenditures Reductions E Expenditure Reductions: di R d i • $3.3 million: Transfer Expenditures to Eligible Funds • Special Revenue Funds in Parks and Recreation • • Wi t Winter Operations Shifted to Street Construction O ti Shift d t St t C t ti Maintenance & Repair Fund • • $2 3 $2.3 million: Police Recruit Classes Delayed illi P li R it Cl D l d • $2.1 million: 25% Reduction to Leveraged Funding 18

OPERATING BUDGET General Fund Expenditure Reductions E Expenditure Reductions: di R d i • $1.5 million: Hold Multiple Positions Vacant • $1.4 million: Street Sweeping and Yard Waste Expenditures Shifted to Stormwater Management Fund • $1.2 million: Departmental Target Reductions • • $0.9 million: Miscellaneous Non-Personnel Reductions $0 9 illi Mi ll N P l R d ti • $0.5 million: Fire Department Miscellaneous Reductions • $0.6 million: Miscellaneous Reductions 19

OPERATING BUDGET General Fund FY 2019 Status FY19 FY19 assumes $19.7 million, 4.7% across the board, reduction to $19 illi 4 % h b d d i all departments to remain structurally balanced due to expenditures outpacing revenues: p p g • Revenue projected to increase 1.6% or $6.4 million. • Expenditures projected to increase 4.8% or $19.0 million after reducing FY19 for one-time expenditures • Transfers Out Increase $4.7 million for Debt Service. 20

Select Neighborhood Items Operating: • Neighborhood Community Councils, $265,200 • • $88 400 $88,400 reduction from FY 2017 d ti f FY 2017 • Neighborhood Business Districts, $129,600 • $43,200 reduction from FY 2017 Capital: Capital: • Neighborhood Business District Improvements, $700 000 $700,000 • $200,000 reduction from FY 2017 21

CAPITAL BUDGET BY FUND Total FY 2018 Recommended All Funds Capital $503.7 million General Aviation, $678,800 Parking System Facilities, Convention Center, Special Revenue Capital, $691,900 Income Tax ‐ Transit, $650,000 $1,270,000 $100,000 Stormwater Management, Telecommunications, $4,750,200 $4,750,200 $30,000 Grants & Matching Funds, $29,748,132 General Capital, $78,172,700 $ Metropolitan Sewer Water Works, $83,841,400 , , , District, $303,786,008 ,$ , , 22

GENERAL CAPITAL BUDGET BY DEPARTMENT Total FY 2018 Recommended General Capital $78.2 million $ Fire, $906,400 Buildings and Inspections, $674,600 Parks, $1,666,000 Parks, $1,666,000 Recreation, $2,919,000 Police, $367,100 Enterprise Technology City Manager, $242,400 Solutions, $3,055,200 Health, $171,000 Community & Economic y City Planning, $65,100 City Planning, $65,100 Development, $3,791,100 Transportation & E Engineering, $38,850,800 i i $38 850 800 Public Services, $25,464,000 23

GENERAL CAPITAL BUDGET FEATURES Select Additions/Increases FY 2018 Replacement Facilities – Police District 5 (Public Services) $9,700,000 Firefighter Personal Protective Equipment (Fire Department) $512,000 Ballistic Vests (Fire Department) ( ) $ $264,000 Western Hills Viaduct ‐ Preliminary (DOTE) $500,000 Core Investments Street Rehabilitation $17,332,800 Street Rehabilitation ‐ Capital Acceleration $11,400,000 Street Rehabilitation Total $28,732,800 Fleet Replacements $6,101,000 Fleet Replacements Capital Acceleration Fleet Replacements ‐ Capital Acceleration $4 500 000 $4,500,000 Fleet Replacement Total $10,601,000 24