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2013 Budget Proposal Overview

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2013 Budget Proposal Overview Rev. Ricky Burgess, Finance Chair City Council Budget Office Bill Urbanic, Director November 27, 2012 $37 Million in 2013 bond * $13 ... – PowerPoint PPT presentation

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Title: 2013 Budget Proposal Overview


1
2013 Budget Proposal Overview
Rev. Ricky Burgess, Finance Chair City Council
Budget Office Bill Urbanic, Director November
27, 2012
2
The 2013 Ravenstahl Budget
470.1m Revenue and 469.5m Expenditure Budget
Departmental Expenditures increase by only 1m
over 2012
Budgetary 892 Police Officers maintained
  • Citys Total Portion of Pension will be 50m
  • 31 million MMO, 13 million Parking, 5 million
    MMO
  • Additionally 2.5m for OPEB Trust Fund

2.5 salary increase for non-union and some union
employees, Implementation of other contracts
36.8 million Capital Budget 15 million
transfer to PAYGO Budget 2014
3
Revenues 2013 - 470 Million
470 Million
4
2007 Expenditures
2013 Proposed Expenditures
469.5 Million
5
2013 Financial Outlook
Revenues   470,210,172
Expenditures    
Operating Departments   229,584,955
Pension   55,282,500
Healthcare, Workers Comp   88,422,993
Utilities, Judgments   9,087,950
Debt Service   87,135,417
Total Expenditures   469,513,815
     
Operating Result   696,357
     
Beginning Fund Balance   48,599,490
Tranfer to PayGo   15,000,000
Reserve Fund Balance Transfer   -
     
Ending Reserve Fund Balance   34,295,847
     
Fund Balance as of Expenditures   7.3
6
Debt Service 18.5 of Budget
  • Debt service has been reduced significantly over
    past 5 years
  • PayGo Capital set aside returns in 2013 for 2014
  • 2012 Bond Deal
  • Allows for reasonable debt service payments
  • Allows for future responsible borrowing
  • Maintains debt cliff and goal of 12 debt ratio
  • Council Debt Policy Objectives are met
  • City can responsibly borrow every 3 years

Debt
7
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8
Current Capital Status
  • The City budgeted 42.5 million of the 80
    million bond proceeds in 2012. That leaves 37.5
    million available for 2013.
  • The final 2012 Community Development Block Grant
    allocation was just over 13 million. The City
    anticipates slightly less funding in 2013 but
    that depends on the actions of Congress. Federal
    entitlement programs may be reduced if there is
    no compromise on tax revenues and expenditure
    cuts.
  • There is no PAYGO funding in the 2012 or 2013
    capital budgets.
  • The need for capital expenditures continue to
    exceed available resources. Paving, vehicle
    replacements, and demolition of condemned
    buildings are in perpetual backlog.
  • The City continues to look for grants and other
    funding opportunities to add to our capital
    budget.

9
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10
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13
2014-2018 Capital Improvement Plan
  • The Mayor proposes 25 million in general fund
    revenue (PAYGO) be transferred for the 2014
    capital budget.
  • The CIP also contemplates an annual 30 million
    in new bond issuance for 2015-2018.
  • CDBG entitlement is estimated to be fairly steady
    at approximately 13 million a year.

14
Proposed 5 Year Plan
2013 2014 2015 2016 2017
Expend   469,513,815 479,097,862 496,367,961 507,437,901 521,568,544
Revenue   470,210,172 479,455,533 497,004,242 508,517,110 522,135,999
Surplus / (Deficit)   696,357 357,671 636,281 1,079,209 567,455
Fund Balance 34,295,847 29,653,518 30,289,799 31,369,008 31,936,463
Transfer to Capital (15,000,000) (5,000,000) - - -
15
Pension 5 year plan
Benefit Expense
Employee Contributions
Pension Contributions MMO Parking Tax5
Million
16
Revenues vs. Expenditures 2013-2017
17
The need for additional revenue
  • In order to separate the lines of the previous
    slide the 2009 Act 47 Plan calls for the creation
    of new local revenue sources of 10 Million
    Dollars or expenditure cuts, or raise existing
    taxes
  • Any excessive cuts will have an adverse effect on
    service delivery
  • City should look to lower local tax burden on
    residents and businesses paying their share of
    fees and Payroll Tax to help create further
    growth
  • Raising existing taxes would have an adverse
    effect

Potential new revenue sources
  1. Billboard Tax 1.5 - 4m
  2. Non-Profit Payroll Tax or legal challenges of
    tax exempt cost centers 10-40 Million
  3. Market Based Revenue Opportunities 1 to 3
    Million

State action required
18
Who Paid in 2012?
19
Summary
  • We have addressed many of our underlying problems
    with the help of Act 47
  • The 2013 Budget proposal shows this by once again
    staying balanced
  • Revenue is still and will continue to be an issue
    out into the future
  • 10 Million is needed annually for a cushion for
    pension, PayGo and uncertain economic conditions
  • City should insist on a non-profit payroll tax
    (MegaHealthcare)
  • Any other options that do not increase resident
    taxes should be considered Billboard Tax,
    Increases of fees, State enabled taxation and
    relief through pension reform
  • CDBG funding may be further reduced need to
    replace those dollars

20
Act 47
  • As Act 47 departs we need to take advantage of
    the plan and tools it has left us
  • Council should begin to reassume its oversight
    function
  • Codify tools, processes and portions of the 47
    plan that work and can be implemented such as
    voting on a 5 year plan
  • Improve communication process and approval
    process in 2013
  • Lobby the state legislature with a plan of reform
    for pension and non-profit contribution (payroll
    tax)
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