fy2018 budget presentation - nashville, · pdf filefy2018 budget presentation ... reduce labor...

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

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


FY2018 BUDGET INSTRUCTIONS

• No tax increase

• No reduction scenario

• Long term financial planning

• Public Investment Plans

• Collaboration and innovation


MAYOR BARRY’S PRIORITIES

• Education

• Transportation and Infrastructure

• Affordable Housing/Homelessness

• Community and Economic Development

• Public Safety and Justice Initiatives


RECOMMENDED BUDGET

$2,209,690,100

5.86% increase over FY2017


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


WHERE THE MONEY COMES FROM

Property Taxes 46%

Local Option Sales Tax 19%

Grants & Contributions

19%

All Other Revenues 13%

Fund Balance Appropriated

3%


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


BUDGETED REVENUE GROWTH BY FISCAL YEAR Amounts in millions

0

30

60

90

120

150


55.3 51.9

75.2

121.5 119.1

GSD/USD/MNPS General Funds


PROPERTY TAX TRENDS

800

850

900

950

1,000

1,050

1,100

FY14 FY15 FY16 FY17Budget

FY18Budget

912

933 939 972

1,021

Amounts in millions



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

MurfreesboroRutherford

LebanonWilson

11

* Will have reappraisal in 2017


PRELIMINARY CERTIFIED TAX RATE

12

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)


SALES TAX TRENDS

0

100

200

300

400

500

FY14 FY15 FY16 FY17Budget

FY18Budget

315 325 361

388 413

Amounts in millions



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


BUDGETED FUND BALANCE

0

20

40

60

80

100

120


45.0

72.5 73.9 71.9 75.2

Amounts in millions


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%


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

SELECTED RECOMMENDATIONS BY PRIORITY AREA


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


EMPLOYEE INVESTMENTS

Three Year Pay Plan Recommendation

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


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


SCHOOLS

$879,299,700 Operating $94,371,300 Debt Service $36 million and 4.3% over FY17 $10 million and 11.8% over FY17


SCHOOLS OPERATING BUDGET

$36 million

• Employee Compensation and Benefits - $16 million COLA, step increases, and benefits

• Other - $20 million


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

0

200

400

600

800

1000

1200

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Operating Debt Service

Amounts in millions


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


METRO TRANSIT AUTHORITY SUBSIDY Amounts in millions

0

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


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


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


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


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


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


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

0

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

32

Excludes Bordeaux and Knowles Amounts in millions

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


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


ANNUAL DEBT REPORT

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


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


GENERAL OBLIGATION PRINCIPAL AND INTEREST

36

0

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


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


CAPITAL SPENDING PLAN

Planned Filing – May 15th with

Capital Improvements Budget Ordinance


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

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


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

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

www.nashville.gov/citizens_budget

http://www.nashville.gov/citizens_budget

fy2018 budget presentation - nashville, · pdf filefy2018 budget presentation ... reduce labor...

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