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City Manager’s

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City Manager s Recommended FY 2018-2019 Biennial Budget

Date Here June 1, 2017

Overview

Five Strategic Priorities

Overview

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Overview

Organizational Chart

Citizens of Cincinnati

Overview

City Contractual Boards Boards and Commission Departments

Mayor & City Council

Citizens of Cincinnati

Southwest Ohio Regional Transit Authority (SORTA)

Board of Health Park Board

City Manager

Human Relations Budget & Evaluation Environment & Sustainability Internal Audit Performance & Data Analytics Communications

Recreation Commission Retirement Fire Department Public Services Department 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

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Convention Center Parking Systems Enterprise Services

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

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OPERATING BUDGET General Fund Revenue - $393.1 million

Investments 0 8% Parking Meter 0.5% Other Revenues 14 9% State Shared Casino Tax 1.9% 0.8% 14.9% Earnings Tax 71.1% State Shared Revenues 3.2% 71.1% Property Taxes 7.5%

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City Municipal Income Tax Rate History

2.0% 2.5%

City of CIncinnati Income Tax Rate - 1970 to 2018

1.0% 1.5% 2.0% 0.0% 0.5% Tax Rate

• Pre 1972- 1.7%
• 1972- approved .3% Transit Tax
• 1988- approved .1% Infrastructure Tax
• Currently 2.1%

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Current Ohio Major City Income Tax Rates

• City of Cleveland 2 50%

Passed 5% increase 2016 effective 2017 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%

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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

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Closing the Operating Budget Deficit

• Revenue estimates adjusted to reflect current trends
• Fee/Citation Increases
• Expenditure Reductions

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OPERATING BUDGET General Fund Revenue – Changes

P d F I Proposed Fee Increases:

• 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

• n CPI annually – 2.4% or $288,000

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OPERATING BUDGET General Fund Expenditures – $395 4 million General Fund Expenditures $395.4 million

Finance Community & Economic Development 1 8% Enterprise Technology Solutions 1.4% Transportation & Engineering 0.9% Mayor, Council and Clerk 0.9% Non-Departmental Other Departments* B ildi & I ti Parks 2.4% City Manager's Office 2.3% Finance 1.9% 1.8% Law 1.7% Non-Departmental 4.3% Other Departments* 1.2%

Police 35.4% Police 35.4%

Police 37.9%

Health 4.3% Recreation 4.2% Buildings & Inspections 2.5%

Fire 26.3%

Fire 28.2%

Public Services 4.5%

Fire 26.3% Fire 26.3%

*Other Departments includes: City Planning, Citizen Complaint Authority, Economic Inclusion, Human Resources, and Transfers Out.

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OPERATING BUDGET General Fund Expenditures

Non-Public Safety 34.0% Public Safety 66.0%

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All Funds Staffing

Public Safety (Sworn and Non-Sworn) and Other FTEs

6,000

Other Department Non-Sworn FTE 3,817.15 3,752.24

4,000 5,000

Public Safety Non-Sworn FTE Fire Sworn FTE

3,000

Fire Sworn FTE Police Sworn FTE 838.00 869.00 354.46 330.46

1,000 2,000

Public Safety Total 2 266 46 Public Safety Total 2 273 46

1,074.00 1,074.00

FY 2018 6 083 61 FY 2019 6 086 39

2,266.46 2,273.46

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6,083.61 6,086.39

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%

O ll 15% d i G l F d FTE Overall 15% decrease in General Fund FTEs:

• Public Safety increase of 3%

N P bli S f t d f 36% 14

• Non Public Safety decrease of 36%

General Fund Expenditures

Where does the money go? Where does the money go? Personnel and Non-Personnel

Non-Personnel 17.2% Personnel 82.8%

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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- Represented 9 8% Part-time 5.2% FOP 30 5% 9.8% FOP 30.5% AFSCME & AFSCME MWs SC s 20.6% IAFF 23.8% Building Trades 0.2%

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CODE 9.9%

OPERATING BUDGET General Fund Expenditure Reductions

E di R d i Expenditure Reductions:

• $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

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Reduce Health Insurance Premium Increase from 5% to 3%

OPERATING BUDGET General Fund Expenditures Reductions

E di R d i Expenditure Reductions:

• $3.3 million: Transfer Expenditures to Eligible Funds
• Special Revenue Funds in Parks and Recreation
• Wi t

O ti Shift d t St t C t ti

• Winter Operations Shifted to Street Construction

Maintenance & Repair Fund

• $2 3

illi P li R it Cl D l d

• $2.3 million: Police Recruit Classes Delayed
• $2.1 million: 25% Reduction to Leveraged Funding

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OPERATING BUDGET General Fund Expenditure Reductions

E di R d i Expenditure Reductions:

• $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

illi Mi ll N P l R d ti

• $0.9 million: Miscellaneous Non-Personnel Reductions
• $0.5 million: Fire Department Miscellaneous Reductions
• $0.6 million: Miscellaneous Reductions

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OPERATING BUDGET General Fund FY 2019 Status

FY19 $19 illi 4 % h b d d i FY19 assumes $19.7 million, 4.7% across the board, reduction to 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.

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Select Neighborhood Items

Operating:

• Neighborhood Community Councils, $265,200
• $88 400

d ti f FY 2017

• $88,400 reduction from 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

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CAPITAL BUDGET BY FUND

Total FY 2018 Recommended All Funds Capital $503.7 million

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

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GENERAL CAPITAL BUDGET BY DEPARTMENT

Total FY 2018 Recommended General Capital $78.2 million $

Parks, $1,666,000 Fire, $906,400 Buildings and Inspections, $674,600 Community & Economic Enterprise Technology Solutions, $3,055,200 Recreation, $2,919,000 Parks, $1,666,000 Police, $367,100 City Manager, $242,400 Health, $171,000 City Planning, $65,100 Transportation & E i i $38 850 800 y Development, $3,791,100 City Planning, $65,100 Engineering, $38,850,800 Public Services, $25,464,000

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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 $4 500 000 Fleet Replacements ‐ Capital Acceleration $4,500,000 Fleet Replacement Total $10,601,000

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