Mayor s Fiscal Year 2015 Recommended Budget. Columbus, Georgia Consolidated Government

Transcription

1 Mayor s Fiscal Year 2015 Recommended Budget Columbus, Georgia Consolidated Government

2 FY 2015 Mayor s Recommended Budget Is a Balanced Budget Eliminates an $11 Million Deficit Reforms Systemic Deficits and Sets Forth a Plan to Reverse General Fund Reserve Drawdown Prevents Jobs from Being Lost Prevents Dramatic Reduction in Services Maintains a Level of Service and Quality of Life Commensurate with a Top-Tier, Mid-Sized City

3 Threading the Needle Balancing Four Competing Budget Interests Municipal Financial Stability Citizen Services Employee Jobs Employee Benefits

4 The Basics Recommended Budget $263,097,415.05% Reduction from the FY 2014 Approved Budget Maintains a Day General Fund Reserve Meets City Requirements (Res. No ) and Government Finance Officers Association Best Practices Recommendations Strikes a Balance of Four Competing Budget Interests

5 We Did Not Get Here By Accident A 6-Year Use of Reserve Funds to Balance the Budget

6 Use of Reserve Funds to Off-Set Stagnant/Decreasing Revenues Avoid Dramatic Reduction in Citizen Services, Employee Jobs or Employee Benefits Avoid Fee Increases Implement Smaller Across Department Cuts of 1%-2% Drawdown City Savings Account a/k/a General Fund Reserve From Each Budget Has Required a Drawdown of General Fund Reserve

7 Additional Pressures on General Fund Reserve Subsidies of Rising Employee Healthcare - $8.3 Million or 14 General Fund Reserve Days Over Last 6 yrs. Sheriff s Office Budget Overruns - $9.5 Million or 22 General Fund Reserve Days Over Last 6 yrs. Insufficient User Fees to Cover Rising Cost of Services Subsidies to Third-Party Affiliates

8 General Fund Drawdown History * 2015* OLOST General Fund *

9 Prior Steps Taken to Reverse General Fund Drawdown Pension Reform - $2.2 Million in Savings to Date; $27-$28 Million in Savings in 15 years $235,000 in Savings from Worker s Compensation Administration Reform Health and Wellness Center Reducing Costs to Employees by Hundreds of Thousands of Dollars, Reducing the Rise in Healthcare Costs Reducing Third-Party Subsidies

10 FY 2015 Budget Plan to Reverse General Fund Drawdown Cost Containment Through Reforms and Revenue Enhancement Through User Fees Continue Prior Successful Reforms, Which Not Only Reduce Costs But Create a Sustainable Structure Reform CCG Healthcare System Saving $4.5 Million and Creating a Sustainable Healthcare Structure Implement User Fees to Off-Set Costs Depleting General Fund Set Department Budgetary Limits and Require Fidelity Through Regular Council Reviews Begin Process of Reforming Our Tax Assessor s Office and Systems

11 FY 2015 Budget Assumptions $4.5 Million Healthcare Fund Deficit $6.5 Million General Operation Fund Deficit.5%/.25% Cost of Living Adjustment (01/03/15) 22% Reduction on Third- Party Subsidies No Capital Replacement (General Fund/OLOST) 1% Tax Digest Increase $0.86 (86 cent) Increase in Monthly Garbage Fee - $ Day in General Fund Reserve Deputy Chief Tax Assessor

12 Failure to Balance Competing Budget Interests Results In: $11 Million Budget Deficit Consumes 26 Days of (Non- OLOST) General Fund Reserve Leaving 20 Reserve Days Payroll Grants Emergency Purchases Normal Functioning Jeopardizes Over 100 City Jobs Severe Impact to Citizen Services Competing Budget Interests Municipal Financial Stability Citizen Services Employee Jobs Employee Benefits

13 With No Restructuring of Healthcare We Would Have to Balance a $4.5 Million Healthcare Deficit Healthcare Cost Per Employee Would Increase from $5,650 to $7,381 There Would Be An Additional 2.2% Pro Rata Department Budget Reduction to Cover Employee Cost Increase 80 Jobs Would Be Threatened Citizen Services Would Be Impacted

14 Restructuring Employee Healthcare $23.7 Million Healthcare Program

15 User Fees $0.86 (86 cents) Increase in Monthly Garbage Fee (from $14.14 to $15.00). Monthly Garbage Fee for Years Has Not Paid for Our Integrated Waste Fund. Subsidies to Integrated Waste Fund and Capital Expenditures for Garbage Trucks and Landfill Equipment Have Stressed our General Fund. $2+ Million Subsidy from our General Fund in past 6 years for Required Capital Expenditures Alone. Fee Increase Will Raise $567,600 for Integrated Waste Fund. Other Recommended User Fees 0f $803,000 Across Several Departments Will Curb General Fund Support of Services Provided.

16 Additional Budget Balancing Strategies Postpone Regular Capital Expenditures to Replace Equipment Continue Our Hiring Freeze Enhance Our Economic Development Fund with Bond Refinancing Interest Savings Move Our NCR Installment from General Fund to Economic Development Fund Restructure Our Financial Commitment to the Housing Authority for BTW to 2016 Postpone.5%/.25% COLA to January 3, 2015

17 Targeted Budget Adjustments Unfund All Vacant Employee Positions in General Fund So Those Monies Remain in General Fund Reserve Until Position Is Filled ($2.3 Million Budget Impact or 5.7 Reserve Days) Set Sheriff s Office Overtime Budget to $350,000 ($1.15 Million Budget Impact or 2.75 Reserve Days) Set Police Department Overtime Budget to $350,000 ($524,982 Budget Impact or 1.25 Reserve Days) Positions Sought to be Filled or Additional Overtime Funds Needed Can be Brought to Council as a Budget Amendment

18 Across the Board Cuts After Recommended Reforms and Adjustments - $825,000 Deficit Across All Departments General Gov t, Public Safety and Elected Official Offices 1.5% Budget Cut GREATLY Reduced Impact from the $11 Million Deficit We Faced at the Beginning of Budget Process ($11 Million = 7% Across the Board Cut to ALL Departments or a 33% Cut to Just General Government Departments) All Departments Must Participate in Across the Board 1.5% Cut or Impact to Other Departments Is Increased

19 Conclusion A Path Forward Balances Competing Interest with Minimum Impact to Any One Interest. Resolves Systemic Deficits for Long Term Financial Stability of City. Balances Cost Containment with Revenue Adjustments in the Form of User Fees. Balanced Competing Budget Interests Municipal Financial Stability Citizen Services Employee Jobs Employee Benefits

20 This is the Mayor s FY 2015 Recommend Budget Submitted for Council s Approval.