fy 2019 budget highlights - nashville, tennessee...fy15 fy16 fy17 fy18 fy19 1,892 1,968 2,087 2,210...

Talia Lomax-O’dneal Director of Finance

FY 2019 BUDGET HIGHLIGHTS

Metropolitan Government of Nashville and Davidson County Department of Finance Mayor David Briley

WHERE ARE WE NOW? – FY 2018

• $34 million estimated revenue shortfall

• $26 million property tax

• $8 million BEP & all other

• $20.6 million in FY 2018 supplemental appropriations

• Fund balance below 5%

• Partial offset from targeted savings

Mayor David Briley Metropolitan Government of Nashville and Davidson County Department of Finance 2

LOOKING AHEAD

• No tax increase

• Revenue growth returning to normal (sales & property)

• Decline in other revenue sources (BEP & Hall Income Tax)

• No increase in pension costs

• $2 million for August & November elections

• Department budgets maintained at current funding


RECOMMENDED BUDGET

$2,231,700,200

0.996% increase over FY2018

($22,010,100)


TOTAL BUDGET GROWTH

1,400

1,600

1,800

2,000

2,200

2,400

FY15 FY16 FY17 FY18 FY19

1,892 1,968

2,087

2,210 2,232

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

Amounts in millions


WHERE THE MONEY COMES FROM

Property Taxes 46.6%

Local Option Sales Tax 19.7%

Grants & Contributions

18.7%

All Other Revenues 14.6%

Fund Balance Appropriated

0.4%


TOTAL PROJECTED REVENUE GROWTH $87.8 MILLION

• Property Taxes - $15 million

• Local Option Sales Tax ‐ $25 million

• Grants and Contributions ‐ $3.6 million net decrease

• All Other ‐ $51.4 million • Contingent upon $38 million in public property sales &

securing on-street parking vendor


BUDGETED REVENUE GROWTH BY FISCAL YEAR

Amounts in millions

0

30

60

90

120

150


51.9

75.2

121.5 119.1

87.8


PROPERTY TAX TRENDS

800

850

900

950

1,000

1,050

1,100


933 939 972

1,021

1,036

Amounts in millions


MAJOR CITY/COUNTY FY2018 PROPERTY TAX RATES

$3.15

$5.04 $4.58

$7.38

$3.89 $4.56

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

NashvilleDavidson

ChattanoogaHamilton

KnoxvilleKnox

MemphisShelby

MurfreesboroRutherford

FranklinWilliamson


SALES TAX TRENDS

0

100

200

300

400

500


325 361

388 413 438

Amounts in millions


RECOMMENDED USE OF FUND BALANCE

Fund Appropriated for use in FY19

Budget

Estimated June 30, 2018 Balance as a

Percent of FY19 Budget

OPERATING FUNDS:

GSD* General Fund $8,350,000 4.0%

USD** General Fund $500,000 4.0%

Schools Fund $0 3.4%

DEBT SERVICE FUNDS:

GSD* Debt Service Fund $0 3.5%

USD** Debt Service Fund $0 2.3%

Schools Debt Service Fund $550,000 5.1%

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


BUDGETED FUND BALANCE

0

20

40

60

80

100

120


72.5 73.9 71.9 75.2

9.4

Amounts in millions

Mayor David Briley Metropolitan Government of Nashville and Davidson County Department of Finance

*$65.8 million less fund balance used in FY 2019

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UNENCUMBERED FUND BALANCE Amounts in millions

50

70

90

110

130

150

170

FY15 CAFR FY16 CAFR FY17 CAFR FY18 Est.

154.8 158.0

112.0

85.2


GENERAL FUND SUPPLEMENTAL APPROPRIATIONS


Amounts in millions

0

10

20

30

FY15 FY16 FY17 FY18

4.3

14.5

23.2 20.6

15

NET RESOURCES AVAILABLE $22 MILLION

• $87.8 million – Revenue Growth

• $65.8 million – Reduction in Available Fund Balance _________________________________________________________________________________________________________________________________________________________

• $22 million – Net Resources Available

Key Drivers - Current year revenues collections expected to be down and supplemental appropriations


WHERE THE MONEY GOES

General Government 11%

Public Safety 21%

Other 2%

Health & Social Services

4%

Recreation & Culture 4%

Infrastructure & Transportation

5%

Education 40%

Debt Service 13%


WHERE THE MONEY GOES $ 22 MILLION

• Metro Employees & Pensioners - $10.7 million (GSD/USD)

• Schools - $5 million

• General Hospital- $11.1 million over FY18 budget of $35M

• Debt Service - $11.7 million (principal and interest)

• Other Operations (net) - $16.5 million savings* * This amount includes departmental targeted savings of $11.5M


PUBLIC EDUCATION

$103,823,200 • $9.4 million increase • 10% over FY18 • Debt service


$884,299,700 • $5 million increase • 0.57% over FY18 • Employee raises

MNPS Operating Budget

MNPS Debt Service Budget

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20

PUBLIC EDUCATION LOCAL FUNDING

FY2018

FY2019

GROWTH

PROPERTY TAXES $357,958,400 $362,854,400 $4,896,000

SALES TAXES $273,573,500 $294,161,500 $20,588,000

OTHER REVENUE $13,355,300 $20,732,200 $7,376,900

PROPERTY SALE $0 $13,000,000 $13,000,000

FUND BALANCE $20,459,900 $550,000 ($19,909,900)

TOTAL $665,347,100 $691,298,100 $25,951,000


SCHOOLS OPERATING & DEBT SERVICE

633.3 674.0 720.4 746.4 790.1 810.0 843.3 879.3 884.3

32.4 42.6

53.6 69.6 76.4 78.0 84.4 94.4 103.8

665.8 716.7

774.0 816.0 866.4 888.0

927.7 973.7 988.1

0

200

400

600

800

1000

1200

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Operating Debt Service

Amounts in millions


AFFORDABLE HOUSING & HOMELESS SERVICES

$10,000,000 Barnes Fund for

Affordable Housing*


$450,000 Housing Incentive Pilot

Program

*Subject to sale of public property

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METRO EMPLOYEES

$8.5 million* • One-year pay plan

• Increments for eligible employees (effective increment date)

• 2.5% for open range increases (effective July 1)

• No increase in employee health insurance cost

*GSD/USD and subsidized accounts and internal service funds


METRO PENSIONERS

$2.2 million

• Pensioner health benefit increase primarily due to anticipated increase in number of pensioners


HEALTH & HOSPITALS

• $46.1million - General Hospital

• $3.5 million - Bordeaux Nursing Home • Funds contract with Signature

• $2 million - Knowles Assisted Living Facility • Funds contract with Anthem Care


ADDITIONAL BUDGET HIGHLIGHTS

• Metro Facility Openings

• Smith Springs Community Center

• Madison Community Center

• Family Justice Center

• Public Works Improvements

• Funding for additional services in newly annexed USD areas

• Support for Small Chambers of Commerce

• $25,000 each for Black, Hispanic, Latino, & LGBT Chambers


ADDITIONAL BUDGET HIGHLIGHTS (CONTINUED)

• $250,000 for Youth Violence Initiatives

• $400,000 for Coordinated Pre-K Initiative


ANNUAL DEBT REPORT

As required by BL2014-696, the Annual Debt Report will be

emailed to Metro Council members today



Legislation to Track with FY 2019 Operating Budget

Operating Budget Ordinance Fire Marshal Fee Ordinance

Tax Levy Ordinance Urban Council Resolution

Pay Plan Resolutions Soil Conservation District Resolution

Property Tax Relief Ordinance

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FOR MORE INFORMATION VISIT THE CITIZENS’ GUIDE TO THE METRO BUDGET

Nashville.gov/citizens_budget

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fy 2019 budget highlights - nashville, tennessee...fy15 fy16 fy17 fy18 fy19 1,892 1,968 2,087 2,210...

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