Public Hearing on Central Health Fiscal Year 2018 Proposed Budget and Property Tax Rate Increase

Central Health Board of Managers Sept. 6, 2017 Jeff Knodel, CFO Lisa Owens, Interim Deputy CFO

FY 2018 Proposed Tax Rate (4.5% over Effective Rate)

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FY17 FY18 (Proposed)

Average Homestead Value

$285,152 $305,173

Tax Rate 11.0541¢ 10.7385¢

Tax Bill $315.21 $327.71

Annual Increase = $12.50 (3.97%)

Homestead Exemption

Over 65 Homestead Exemption

Disability Homestead Exemption

20%* $5,000 Minimum $80,000 $80,000

*Maximum allowable by state law

Central Health FY 2018 Proposed Budget

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Description FY 2017 Approved Budget

FY 2018 Proposed Budget (August 16,

2017)

FY 2018 Proposed Budget (August

30, 2017)

Variance Notes

Sources

Property Taxes $169,806,722 $181,839,054 $181,839,054 Lease Revenue 31,544,675 10,303,467 10,303,467 Interest 400,000 400,000 400,000 Tobacco Litigation Settlement 1,800,000 1,800,000 1,800,000 Subtotal Revenue 203,551,397 194,342,521 194,342,521

Contingency Reserve 36,600,000 57,886,845 67,511,845 9,625,000

Updated year end estimate for FY17; IGT and expenses less

than budget Total Sources 240,151,397 252,229,366 261,854,366 9,625,000

Uses

Health Care Delivery 229,738,205 241,433,090 251,058,090 9,625,000

Increased contingency reserve ($8.875 million) and women’s health ($1 million); decreased

operating expenses ($250,000) Administration 8,926,601 9,143,516 9,143,516 Tax Collection 1,486,591 1,652,760 1,652,760

Total Uses 240,151,397 252,229,366 261,854,366 9,625,000 Reserves (ending balance)

Capital - - - HMO Risk-based Capital Reserve - - - Contingency Reserve - - - Emergency Reserve 29,895,000 32,035,084 31,997,584 (37,500)

Total Reserves $29,895,000 $32,035,084 $31,997,584 (37,500)

Resources

For detailed information regarding Central Health’s proposed FY 2018 budget and tax rate, visit: http://www.centralhealth.net/finance/

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Next Steps ü  May 24 — Central Health Board of Managers (5-year forecast) ü  May 30 — Travis County Commissioners Court (FY 2017 update and FY 2018 budget guidelines) ü  June 21 — Central Health Budget and Finance Committee (budget update) ü  June 28 — Central Health Board of Managers (proposed budget) ü  July 19 — Central Health Budget and Finance Committee (FY 2018 CCC proposed budget) ü  July 26 — Central Health Board of Managers (FY 2018 CCC proposed budget and Central Health

budget update) ü  Aug. 9 — Central Health Budget and Finance Committee (FY 2018 Central Health proposed

budget and property tax rate) ü  Aug. 16 — Central Health Board of Managers (FY 2018 Central Health proposed budget and

property tax rate) ü  Aug. 22 — Travis County Commissioners Court (Central Health proposed budget and property

tax rate) ü  Aug. 30 — First public hearing •  Sept. 6 — Second public hearing •  Sept. 13 — Central Health Board of Managers (FY 2018 budget adopted) •  Sept. 19 — Travis County Commissioners Court (FY 2018 Central Health proposed

budget and property tax rate)

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(512) 978-8000 www.centralhealth.net @centralhealthtx