BUDGET & FINANCE COMMITTEE MEETING June 13, 2018 AGENDA ITEM 3. Receive and discuss a presentation on the proposed Fiscal Year (FY) 2019 Budget.

Transcription

1 BUDGET & FINANCE COMMITTEE MEETING June 13, 2018 AGENDA ITEM 3 Receive and discuss a presentation on the proposed Fiscal Year (FY) 2019 Budget. 12

2 Fiscal Year 2019 Proposed Budget Central Health Board of Managers Budget and Finance Committee June 13, 2018 Lisa Owens, VP of Financial Operations 13

3 FY 2019 Proposed Budget Support of the Strategic Work Plan Objective 1: Develop and execute health care delivery strategy based on place and people Eastern Travis County convening, collaboration and development of health care infrastructure Investment in health promotion, for collaborative workgroups and for new initiatives Updated community engagement strategies and enterprise communications Objective 2: Implement coordinated and patient focused health care system Investment in CCC coordinated health care system Eastern Travis County convening, collaboration and development of health care infrastructure Objective 3: Implement sustainable financial model for health care delivery and system strategies through 2024 Central Health reserve levels, leveraged financing and partnership strategies Investment in Central Health workforce Enhancement of value based contracting strategies Maximize use of Brackenridge Campus 14 2

4 Central Health FY 2019 Proposed Budget Financial Assumptions Healthcare delivery uses of funds proposed (less contingency reserves) increases slightly year over year Maintain reserve levels that sustain long term funding strategies, plan for funding uncertainties and support AAA Standard and Poors bond rating Continued support of Sendero Risk Based Capital based on regulatory requirements Employee pay-for-performance salary increase and health insurance costs Consider new initiatives in alignment with the Strategic Work Plan 15 3

5 Central Health FY 2019 Proposed Budget(in millions) DESCRIPTION FY 2018 APPROVED BUDGET FY 2018 YEAR END ESTIMATE FY 2019 PROPOSED BUDGET FY2019 POTENTIAL INITIATIVES Sources Property Taxes $181.8 $ Lease Revenue Other Revenue Subtotal Revenue Contingency Reserve Total Sources Uses Healthcare Delivery (IGT, Healthcare Expand Women s Health Program Eastern Travis County Expansion** services and Initiatives) Healthcare Operations and UMCB* *Prior year was in initiatives * Eligibility and Enrollment Expansion** Increase SEHWC programs** Phase 2 of Public Education Campaign Contingency Reserve (appropriated) Other Reserves and transfers Debt Service Total Healthcare Delivery Administration Emerging Leader Program Administrative support and increased capacity for expanded service area** Tax Collection Total Uses Reserves (estimated ending balance) Capital - Contingency Reserve 16.8 Emergency Reserve 31.3 **Partial or full initiative included 16 4

6 5-Year Forecast: 4.5% Over Effective Property Tax Rate (in millions) 4.5% Over Effective Property Tax Rate YOY $300 $280 $260 $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 FY19 FY20 FY21 FY22 FY23 Total Sources Total Uses Total Reserves Emergency Reserve FY18 Estimate FY19 DRAFT FY20 FY21 FY22 FY23 Total Sources Total Uses Total Reserves Contingency Reserve

7 5-Year Forecast: 6.0% Over Effective FY19/20 and 2.5% thereafter (in millions) $300 $280 $260 $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 6.0% Over Effective Property Tax Rate FY19 and FY20, then 2.5% FY19 FY20 FY21 FY22 FY23 Total Sources Total Uses Total Reserves Emergency Reserve FY18 Estimate FY19 DRAFT FY20 FY21 FY22 FY23 Total Sources Total Uses Total Reserves Contingency Reserve

8 5-Year Forecast: 8.0% Over Effective FY19/20 and 2.5% thereafter (in millions) $300 $280 $260 $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 8.0% Over Effective Property Tax Rate FY19 and FY20, then 2.5% FY19 FY20 FY21 FY22 FY23 Total Sources Total Uses Total Reserves Emergency Reserve FY18 Estimate FY19 DRAFT FY20 FY21 FY22 FY23 Total Sources Total Uses Total Reserves Contingency Reserve

9 Share of Local Property Taxes FY 2017 Travis County Tax Entity Percentages Austin Community College 5.0% Central Health 4.4% FY2018 Travis County Tax Entity Percentages Austin Community College 5.0% Central Health 4.3% Austin ISD 55.1% City of Austin 20.2% Austin ISD 55.5% City of Austin 20.5% Travis County 15.3% Travis County 14.8% 20 8

10 Major Texas Hospital Districts: FY 2018 Tax Burden Comparisons 21 9

11 Next Steps (preliminary dates) April 25 Central Health Board of Managers Meeting May 16 Central Health Budget and Finance Committee (5-year forecast) May 23 Central Health Board of Managers (5-year forecast) June 13 Central Health Budget and Finance Committee (FY 2019 Central Health proposed budget and property tax rate) June 27 Central Health Board of Managers (FY 2019 CCC proposed budget) Aug. 21 Travis County Commissioners Court (Proposed Central Health budget and tax rate) Aug. 29 First public hearing Sept. 5 Second public hearing Sept. 12 Central Health Board of Managers (FY 2019 budget adopted) Sept. 18 Travis County Commissioners Court (FY 2019 Central Health proposed budget and property tax rate) 22 10

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