PROPOSED BUDGET FY2021 1. We must present a balanced budget to - - PowerPoint PPT Presentation

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PROPOSED BUDGET FY2021 1. We must present a balanced budget to - - PowerPoint PPT Presentation

Apr 12, 2023 209 likes •649 views

PROPOSED BUDGET FY2021 1. We must present a balanced budget to reflect the new community economic conditions; 2. Our priority is to maintain our greatest asset, our workforce; 3. We should seek to avoid solely relying on deferring our capital

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SLIDE 1

PROPOSED BUDGET FY2021

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SLIDE 2
  • 1. We must present a balanced budget to reflect the new

community economic conditions;

  • 2. Our priority is to maintain our greatest asset, our

workforce;

  • 3. We should seek to avoid solely relying on deferring our

capital maintenance to balance the budget;

  • 4. Continue to provide great service to our community.

PROPOSED BUDGET FY2021

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SLIDE 3

FY2021 Budget Process

$3-$5 Million

Presented an estimated General Fund budget gap

  • Dec. 2019: Initial estimates

and process began

  • Feb. 2020: Shared preliminary

projections with City Council

PROPOSED BUDGET FY2021

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SLIDE 4

Economic Impacts of COVID-19

Unemployment

33M

unemployment claims filed in the last eight weeks nationally, with 889K in North Carolina

GDP

Estimated decline in GDP of

20-30%

for Q2 2020, with varying estimates of when stabilization may occur

Consumer Confidence

General market volatility and uncertainty

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SLIDE 5

Post COVID-19 Budget Process $25-$36 Million

Presented an estimated General Fund budget gap

  • Revised revenue modeling
  • Review operational changes/

reductions

  • Reductions in capital transfers
  • No additions to FY21 budget
  • Minimize impacts to residents
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SLIDE 6

FY2021 Proposed Budget

Total Funds: $1.01 Billion

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SLIDE 7

FY2021 Proposed General Fund Budget

Solid Waste Services 2% Capital Program 1% Financial Management 2% External Agencies 1%

PROPOSED BUDGET FY2021

Total Funds: $507.4 million

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SLIDE 8

FY2021 General Fund Revenue Outlook

2.2%

Decrease

  • ver FY2020

Adopted

  • Property Tax- 54% of revenues
  • Modest growth- 1.2%

– Current rate of $0.4382 – Assumes revenue neutral rate of $0.3552, decrease of $0.08 – Decrease collection rate

PROPOSED BUDGET FY2021

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SLIDE 9

20 40 60 80 100 120

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Est. FY21 Proj.

Millions

Sales Tax: FY06–FY21 Projected

FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 Sale Tax Growth (YOY) (15%) (10%) 0% 23%

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SLIDE 10

FY2021 General Fund Revenue Outlook

Sales Tax- 20% of revenues

  • Decrease of $6.0 million (5.6%)

Other Revenues

  • PRCR- $1.4 million (19% decrease)
  • Development Services- $2.7 million (16% decrease)

Use of fund balance- $13 million

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SLIDE 11

FY2020 Revenue Outlook

No proposed rate increase for Raleigh Water

  • No changes to water and sewer volumetric rates

$2.00 increase for Solid Waste Services Recycling

  • Increase associated with change in recycling contract and market

No proposed fee increase for Stormwater

  • Holding rate recommendation due to current economic situation

PROPOSED BUDGET FY2021

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SLIDE 12

FY2020 Revenue Outlook

Rental Fee Increase at Convention Center & Performing Arts Complex

No Transit or Parking Increase Proposed

  • Delays the second year of phased parking rate increases

PROPOSED BUDGET FY2021

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SLIDE 13

Continued Investment in Our Workforce

PROPOSED BUDGET FY2021

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SLIDE 14

Workforce Investments

2% base pay adjustments for all employees in January 2021

  • Contingent on revenues & expenditures

performing as anticipating

  • Decision will be made by December 1st

Increase Living Wage rate to $34,130 Implement open range for General Step

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SLIDE 15

City Health Insurance Contribution

$- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 FY17 Adopted FY18 Adopted FY19 Adopted FY20 Adopted FY21 Proposed Retirees Active Employees

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SLIDE 16

Employee Benefits

Medical - monthly premium increases by plan type:

  • Plan A: $2 - $32

depending on plan selection

  • Plan B: $0 - $21

depending on plan selection Noncompliant rates standardized to $50, a $5 increase to Plan B Dental - no premium increases Effective January 1, 2021

PROPOSED BUDGET FY2021

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SLIDE 17

Employee Benefits

$2.8M increase in City’s contribution for employee retirement system

  • 8.95% to 10.15% for

general employees

  • 9.70% to 10.90% for

law enforcement employees

  • No change to employee

contribution - 6%

PROPOSED BUDGET FY2021

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SLIDE 18

Changes in our Operations

PROPOSED BUDGET FY2021

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SLIDE 19

City-wide Operational Changes

  • No new positions across all funds
  • Implemented a hiring freeze
  • Achieve salary savings - $3.6 million
  • 25% reduction in travel & training
  • Cancellation of 4th of July Fireworks
  • Departmental reductions - $2.8 million

PROPOSED BUDGET FY2021

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SLIDE 20

City-wide Operational Changes

General Services $1.1 million Transportation $359,798 Engineering Services $325,733

Departmental Reductions- $2.8 million

  • Professional services, additional travel & training, furniture and
  • ffice equipment, temporary/intern positions, and supplies
  • Contracts impacting signals & markings, transportation planning,

highway mowing and street maintenance

  • Scaling back alterations on facilities/ focusing on maintaining
  • Eliminating funding for space related projects (moves, redesigns, etc.)
  • Reduction in overall ongoing maintenance- painting, window washing,

equipment/technology upgrades

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SLIDE 21

City-wide Operational Changes

Parks, Recreation & Cultural Resources $678,915

Departmental Reductions- $2.8 million

  • Reduce operational support for parks and equipment purchasing
  • Pullen Park Maintenance- reduction in funding for maintenance

and improvement work

  • Reduction in part-time staffing
  • Redirect tackle football to flag football
  • Reducing Moore Square Operating Hours

PROPOSED BUDGET FY2021

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SLIDE 22

Changes in our Infrastructure

PROPOSED BUDGET FY2021

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SLIDE 23

Housing

$8.2 million programmed for affordable housing development

  • Maintains General Fund contribution of

$6.2 million

  • $5.3M available for future commitments

Funding available from:

  • Property tax allocation
  • Property sales
  • HOME Grants
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SLIDE 24

Transportation Bond funding gaps

Transportation

  • Reallocating savings from Old Wake Forest

Road (grant funded)

  • Deferring Leesville Part B
  • Deferring Peace Street Streetscape
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SLIDE 25

Transportation

Supplement General Fund contribution with two-thirds bonds

  • Sidewalk petition improvements ($0.7 million)
  • Sidewalk repairs ($0.3 million)
  • Bikeway implementation/Bike share expansion ($0.25 million)
  • ADA curb ramp improvements ($0.9 million)
  • Street resurfacing ($2.75 million)

Includes $3.0 million in General Fund allocation

  • Savings of $7.2M
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SLIDE 26
  • Station 1 and Admin Office and shifts to FY25
  • Emergency vehicle operations course
  • Fire Station 3 replacement
  • Land purchase for station 23

General Public Improvements

  • Extend design and delay construction of Civic Campus
  • Reprioritizes Fire requests/needs
  • Reprioritization of $2.1 million in existing maintenance to

continue major facility maintenance needs

  • Continued funding for Economic Development initiatives
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SLIDE 27

Parks, Recreation & Cultural Resources

Continued implementation of the 2014 Bond

Additional funding to complete for:

  • Chavis Park
  • Pullen Art Center

On-going studies to gear future investment:

  • Greenway Master Plan
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SLIDE 28

Element FY21 Planned FY21 Proposed Savings Housing $6.2M $6.2M

  • PRCR

$3.3M $0.9M $2.4M Transportation $10.2M $3.0M $7.2M General Public Improvements $4.0M $1.4M $2.6M Technology $1.5M

  • $1.5M

Total $25.2M $11.5M $13.7M

  • Reduce General Fund transfer to debt service by $3.0 million

CIP Impact on General Fund

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SLIDE 29

PROPOSED BUDGET FY2021

Outside Agencies & Municipal Service Districts

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SLIDE 30
  • 25% maximum policy (January 2015)
  • Agencies awarded in only two grant

categories (July 2018)

  • Financial review of audits completed for

all agencies requesting $25,000 or more

Outside Agency Grants Policies

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SLIDE 31

Funding Source and FY21 Allocation

*An additional $575,970 in other arts agency appropriations is proposed **An additional $467,000 in General Fund support for 6 agencies is proposed

Outside Agency Grants

Category Funding Source Proposed FY21 Budget Arts Per Capita* General Fund $2,346,490 Community Enhancement CDBG $200,000 Human Services** General Fund $554,780 Other Outside Agency General Fund

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SLIDE 32
  • Tax rate is revenue neutral based on reevaluation
  • Recommend 5 year contract with Downtown Raleigh Alliance and

Hillsborough Street Community Service Corporation to provide services

*$1,185,870 for service provider and $295,000 for City for downtown cleaning

Municipal Service Districts

Assessed Value Tax Rate Projected Revenue Downtown Municipal Service District* $3,360,000,000 $0.0440 $1,480,870 Hillsborough Street Municipal Service District $695,000,000 $0.0965 $665,920

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SLIDE 33

PROPOSED BUDGET FY2021

Other Items

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SLIDE 34

Other Items

Creation of the Office of Equity & Inclusion- 9 positions

  • Direct report to the City Manager’s Office
  • Moves Human Relations Staff- 4 positions
  • Transfers the MWBE Program- 3 positions
  • Reallocates two additional Community Engagement staff
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SLIDE 35

Other Items

Public Safety Requests- Pre-COVID 19

  • Staffing Study
  • Benchmarking
  • Identified need for additional resources
  • Totals $5.2 million (.69 cents)
  • Not included in proposed budget
  • Future budget consideration
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SLIDE 36

Catalyst for Study

2.01 2.78 2.03 2.85 2.66 3.80 1.89 2.76 1.99 2.81 2.65 3.75 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Raleigh Austin San Antonio Charlotte Denver Miami

Police Staffing Per 1,000 Population (US)

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 2.01 2.85 2.44 2.83 3.03 1.89 2.81 2.40 2.68 2.94 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Raleigh Charlotte Durham Greensboro Winston-Salem

Police Staffing Per 1,000 Population (NC)

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Public Safety Needs

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SLIDE 37

Catalyst for Study

1.38 1.41 1.23 1.22 1.77 1.87 1.30 1.45 1.19 1.25 1.70 1.84 0.00 0.50 1.00 1.50 2.00 2.50 Raleigh Austin San Antonio Charlotte Denver Miami

Fire Staffing Per 1,000 Population (US)

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 1.38 1.22 1.20 2.00 1.43 1.30 1.25 1.50 1.96 1.48 0.00 0.50 1.00 1.50 2.00 2.50 Raleigh Charlotte Durham Greensboro Winston-Salem

Fire Staffing Per 1,000 Population (NC)

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Public Safety Needs

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SLIDE 38

Police Identified Needs

  • 23 sworn and 5 non-sworn personnel
  • Additional Specialized Units for Police
  • Transit, Parks & Greenways and Mental Health

& Homelessness

  • Training Academy Support
  • Family Violence Intervention Unit Support
  • Animal Control Officer

Public Safety Needs

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SLIDE 39

Fire Identified Needs

  • 20 additional staff
  • Staff resources for Fire Marshal
  • Training staff
  • Additional Ladder Company

Public Safety Needs

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SLIDE 40

Future Consideration

  • Continue to reimagine our service delivery model
  • Develop plan for changes to petition sidewalk program
  • Develop plan for changes to yard waste delivery

Other Items

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SLIDE 41

Next Steps

  • Budget work sessions begin June 1 (Mondays at 4 pm)
  • Budget public hearing – June 2 at 7 pm
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SLIDE 42

Thank You

PROPOSED BUDGET FY2021