fy2017 budget presentation · 2016. 4. 29. · fy2017 budget presentation talia lomax-o’dneal...

FY2017 Budget Presentation

Talia Lomax-O’dnealFinance Director

April 29, 2016

Metropolitan Government of Nashville and Davidson CountyDepartment of Finance

Mayor Megan Barry

2Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

FY2016 – Current Year Status

• Operating within overall budget allocations

• Growth in property and sales taxes

• Strong economy

• Maintaining bond rating

• Grow reserves

3Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

FY2017 Budget Instructions

• No tax increase

• No reduction scenario

• Long term financial planning

• Public Investment Plans

• Collaboration and innovation

4Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Mayor Barry’s Priorities

• Education and Youth

• Affordable Housing and Economic Development for All

• Transportation and Infrastructure

• Quality of Life

5Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Recommended Budget

$2,087,320,200

6.1% increase over FY2016

6Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Total Budget Growth

1.40

1.60

1.80

2.00

2.20

FY13 FY14 FY15 FY16 FY17

1.71

1.81

1.89

1.972.09

Amounts taken from Substitute Budget Ordinances as approved by Metro Council

FY16 to FY17 = 6.1% growth

Amounts in billions

7Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Where the Money Comes From

All Other Revenues

12.5% Grants & Contributions

18.9%

Local Option Sales Tax18.6%

Property Taxes46.6%

Fund Balance3.4%

8Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Total Revenue Growth $121.0 million

• Property Taxes - $33.2 million

• Local Option Sales Tax ‐ $27.3 million

• Grants and Contributions ‐ $27.6 million

• All Other ‐ $32.9 million

9Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Budgeted Revenue Growth by Fiscal YearAmounts in millions

0

30

60

90

120

150

FY13* FY14 FY15 FY16 FY17

49.4 55.3 51.9

75.2

121.0

GSD/USD/MNPS General Funds*FY13 excludes $100 million of new revenue from property tax increase

10Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Property Tax Trends

800

850

900

950

1,000

FY13 FY14 FY15 FY16Budget

FY17Budget

891912

933939

972

Amounts in millions

FY16 to FY17 = 3.5% growth

11Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Sales Tax Trends

0

100

200

300

400

500

FY13 FY14 FY15 FY16Budget

FY17Budget

301 315 325361

388

Amounts in millions

FY16 to FY17 = 7.5% growth

12Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Recommended Use of Fund Balance

FundAppropriated for

use in FY17 Budget

Estimated June 30, 2017 Balance as a

Percent of FY17 Budget

Estimated June 30, 2016 Balance as a

Percent of FY16 Budget

OPERATING FUNDS:

GSD* General Fund $43,372,400 7.4% 6.1%

USD** General Fund $7,574,800 5.4% 5.7%

Schools Fund $16,000,000 7.6% 5.5%

DEBT SERVICE FUNDS:

GSD* Debt Service Fund $5,000,000 6.6% 5.2%

USD** Debt Service Fund $0 18.6% 9.4%

Schools Debt Service Fund $0 6.1% 5.2%

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

13Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Budgeted Fund Balance

0

20

40

60

80

100

120

FY14 FY15 FY16 FY17

45.0

72.5 73.9 71.9

Amounts in millions

14Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Year-End Operating Fund Balances*

0

40

80

120

160

200

240

FY13 FY14 FY15 FY16 Projected

148.1124.8 136.5

205.3

(unassigned) (unassigned) (unassigned) (Total)

* GSD/USD/MNPS General Funds

Amounts in millions

15Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Where the Money Goes

Education41%

Debt Service10%

Health & Social Services

4%

Infrastructure & Transportation

5%

General Government

13%

Recreation & Culture

4%

Public Safety21%

Other2%

16Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Where the Money Goes$121.0 million

• Debt Service - $18.6 million

• Schools - $33.3 million

• Compensation - $29.6 million

• Operations - $39.5 million*

* Net change

17Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Historical Annual Debt Service Requirement 2014 – 2017

General Obligation Debt

10.52%11.19%

10.49% 10.85%

-

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

2014 2015 2016 2017

GSD Schools USD Total GO Debt Service as % of Budget

18Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Annual Debt Report

BL2014-696

As required, the Annual Debt Report

will be emailed to Metro Council members today

19Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Employee Investments*

• Compensation

• $28.5 million

• Veteran’s Day Holiday

• $1.1 million

• Grand Total

• $29.6 million* GSD/USD and subsidized accounts and internal service funds

20Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Pay Plan Increase HistoryFY2008 • 2% COLA and increments for eligible employees

FY2009 • Increments for eligible employees

FY2010 • None

FY2011 • 2% lump sum for full-time staff, $2,000 cap

FY2012 • 1.5% lump sum for full-time staff, $1,500 cap

FY2013 • 2% for department heads, SR13-equivalent and upper grades• 4% increase for all other employees

FY2014 • 1.5% COLA for all employees including part-time staff (effective Jan 2014)• Increments for eligible employees

FY2015 • Full funding for raises given in FY2014• 1% COLA and 2% open range (effective Jan 2015)• Market adjustment for positions deemed significantly below market (effective Jan 2015)• Increments for eligible employees

FY2016 • Full funding for raises given in FY2015• 2.5% COLA (effective July 1)• Increments for eligible employees• Compression for certain public safety positions• 2% Open Range (effective July 1)

21Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Pay Plan Recommendations

• Deloitte Compensation Study recommendations (effective July 1)

• Increments for eligible employees (effective increment date)

• 3% for open range increases (effective July 1)

• 3.1% COLA (effective July 1)

22Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Selected Improvement Recommendations

by Priority Area

23Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Schools

4.1% increase of $33.3 million over FY16

$843,299,700

24Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Schools

$33.3 million

• Employee Compensation – $14.7 million ($1.3 million net of savings)

• Inflationary and Required Additions – $18.5 million

• Other – $13.5 million

Bus Monitors, Community Achieves, Special Education Bus Drivers, Pre-K (from federal), Start-up costs for English

Language Learners and Literacy Initiatives

25Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Schools Budget Growth

350

450

550

650

750

850

950

FY13 FY14 FY15 FY16 FY17

720746 790 810

843FY16 to FY17 = 4.1% growth

Amounts taken from Substitute Budget Ordinances as approved by Metro Council

Amounts in millions

26Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Youth Programs and Services

$2.6 million

• Employment

• After School Programs

• College Readiness

• Youth Violence

27Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Affordable Housing and Economic Development for All

Barnes Fund – FY17 Total Allocation

$16,000,000

$10 million New in FY17

$5 million Estimated Convention Center Proceeds

$1 million Carry Over from FY16

28Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Public Investment PlansInnovation Investment Fund

• 34 plans were submitted with operating funding requests of $16 million and capital funding requests of $35 million

• 14 plans were recommended for either total or partial funding in FY2017

• The Innovation Investment Fund will allocate funding to departments during the year for approved plans

$1,000,000

29Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Recommended Operating Subsidies

• Farmers’ Market - $1 million (funded from State purchase of

land)

• Municipal Auditorium - $400,000 (general fund)

• State Fair – balanced budget based on projected revenues

30Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Hospital AuthoritySubsidy History

20

25

30

35

40

45

50

55

60

FY13 FY14 FY15 FY16 FY17

47.543.9

35.0

45.0

35.0

Amounts in millions

FY13 includes $4,292,400 supplemental - FY14 includes $5,227,100 supplemental - FY16 includes $10,000,000 supplemental

31Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Metro Transit Authority

$42,013,600

$2 million Improvement over FY16 Budget

Nolensville Road bus rapid transit, Thompson Lane feeder service, maintenance, planning for first and last mile service

32Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Metro Transit AuthoritySubsidy History

0

5

10

15

20

25

30

35

40

45

50

FY13 FY14 FY15 FY16 FY17

29.4 33.436.4

40.0 42.0

Amounts in millions

33Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Public Safety

• Fire – $1.5 million

• EMS staffing

• Fire prevention staffing

• Uniform allowances

• Quality improvement staffing

• Police – $2 million

• 6 new police officers for domestic violence

• Crime lab

• Special events overtime

• Youth Services

34Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Quality of Life

• Library – $975,300

• Friday openings - full funding for locations opened in FY16

• Friday openings for new locations opening in FY17

• Health – $780,100• Youth services, food and facility inspections, vital

records, vaccinations

35Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Transportation and Infrastructure

• Codes and Planning – $492,100

• Property standards, zoning, planning and land development staffing

• Metro Transit Authority – $2 million

• Parks – $1.6 million

• Staffing and maintenance

• Public Works – $1.2 million

• Contractual increases, road and paving repairs, cleaning crews

36Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Revenue Proposals

Planning - $866,500 Public Works - $2,370,400

Miscellaneous Fees. Memo will be provided to Council members from Department Heads explaining proposed revenue adjustments today.

37Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

Legislation to Track with Budget

• Operating Budget Ordinance

• Tax Levy Ordinance

• Urban Council Resolution

• Pay Plan Resolutions

• Emergency Communications Center Department Ordinance

• Miscellaneous Revenue Adjustments for Planning and Public Works

38Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry

CAPITAL SPENDING PLAN

Planned Filing – May 13th

For

Capital Improvements Budget Ordinance

And

Capital Spending Plan

For More Information Visit the Citizens’ Guide to the Metro Budget

www.nashville.gov/citizens_budget