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BUILDING A STRONGER NASHVILLE
Talia Lomax-O’dneal Director of Finance
Metropolitan Government of Nashville and Davidson County Mayor David Briley
FY 2020 RECOMMENDED BUDGET
Where are we now? - FY2019
■ Revenues
■ Non-recurring revenues
■ Expenditures and savings targets
■ Supplemental appropriations
■ Fund balances
2
FY2019 Revenues
■ Property tax revenue projected to meet budgeted estimate
■ Local option sales tax projected to meet or exceed budgeted estimate
■ Decreases expected in excise tax and certain fines
– Excise Tax ($1.4 million)
– Moving Violation Fines ($600,000)
3
FY2019 Non-Recurring Revenues
4
Entity Budget Planned Close Status
General Fund
• 3800 Charlotte
• 2025 Richard Jones Rd
$10,000,000
• $7,450,000
• $4,000,000
• Under Contract
• Under Contract
GSD Debt Service
• Parking
$15,000,000
$15,000,000
• Delayed until 2020
• FY 2019 General
Fund supplemental
appropriation has
been filed
MNPS
• 2795 Pennington Bend
• 1015 Davidson Rd
• 3125 Ironwood Dr
• $13,000,000
• Amount not realized
will be offset by
increased sales
taxes and by fund
balance
• $56,001
• $4,100,000
• $680,000
• Sold
• Under Contract
• Bidding closed
FY2019 Expenditures and Savings Targets
■ FY19 $11.5 million Savings Target
– Most departments on track to meet their target
– Some will exceed their target
■ General Fund is expected to be under budget as a whole after supplemental
appropriation
5
FY 2019 General Fund Supplemental Appropriations
■ Debt Service: $15,000,000 to replace budgeted parking revenue
■ MDHA TIF: $2,261,900 (includes $827,700 for Schools)
■ Industrial Development Board TIF for Bellevue Mall Project: $1,066,700
■ Sheriff: $986,700 for contractual increases, salaries, and repairs and maintenance
■ Community Oversight Board: $375,000
■ Fairgrounds: $300,000 due to various revenue shortfalls, coupled with no fund
balance availability to offset the shortfalls
6
FY2019 General Fund Supplemental Appropriations
7
Amounts in millions
0
10
20
30
FY15 FY16 FY17 FY18 FY19
4.3
14.5
23.2 20.6 20.0
8
Fund Balances General, Schools and Debt Service Funds
Amounts in millions
50
70
90
110
130
150
170
FY16 CAFR FY17 CAFR FY18 CAFR FY19 Est
158.0
112.0
102.4
111.0
CAFR: Comprehensive Annual Financial Report
FY 2020 Budget Priorities
■ Funding for Schools
■ Pay plan for all employees
■ Debt Service obligations
9
FY2020 Recommended Budget
$2,331,618,000
4.55% increase over FY2019
$101,517,400
10
11
Total Budget Growth
1,400
1,600
1,800
2,000
2,200
2,400
FY16 FY17 FY18 FY19 FY20
1,968
2,087
2,210 2,230
2,332
Budget amounts taken from Substitute Budget Ordinances as approved by Metro Council
Amounts in millions
Where the Money Comes From
Property Taxes 45.7%
Local Option Sales Tax
20.6%
Grants & Contributions
18.3%
Fund Balance Appropriated
0.3%
12
All Other Revenues 15.1%
13
Total Projected Revenue Growth $103.6 million / 4.7%
■ Property Taxes: $29.2 million
■ Local Option Sales Tax: $40.8 million
■ Grants and Contributions: $10.2 million
■ All Other: $23.4 million
Includes non-recurring revenue in GSD Debt Service of:
• $30 million up-front parking concession payments
• $11.5 million District Energy System
Fund balance use decreased by $2.1 million
14
Budgeted Revenue Growth
Amounts in millions
0
30
60
90
120
150
FY16 FY17 FY18 FY19 FY20
75.2
121.5 119.1
86.3
103.6
Major City/County FY2019 Property Tax Rates
$3.15
$5.04
$4.58
$7.25
$3.05 $3.16
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
Nashville,Davidson
Chattanooga,Hamilton
Knoxville,Knox
Memphis,Shelby
Mufreesboro,Rutherford
Franklin,Williamson
15
Property Tax Trends
16
Amounts in millions
860
880
900
920
940
960
980
1,000
1,020
1,040
1,060
1,080
FY16 FY17 FY18 FY19 FY20
938.8
972.0
1,021.3
1,036.3
1,065.5
941.8
970.0
995.7
Budget Actuals
17
Sales Tax Trends Amounts in millions
300
325
350
375
400
425
450
475
FY16 FY17 FY18 FY19 FY20
360.9
388.2
413.2
438.1
478.9
365.7
382.9
414.2
Millio
ns
Budget Actuals
18
Recommended Use of Fund Balance
Fund Appropriated for use in
FY2020 Budget
Estimated June 30, 2019 Balance as a
Percent of FY2020 Budget
OPERATING FUNDS:
GSD General Fund $0 5.0%
USD General Fund $7,300,000 5.1%
Schools Fund $0 3.5%
DEBT SERVICE FUNDS:
GSD Debt Service Fund $0 2.3%
USD Debt Service Fund $0 1.8%
Schools Debt Service Fund $0 9.3%
19
Budgeted Use of Fund Balance
0
20
40
60
80
100
120
FY16 FY17 FY18 FY19 FY20
73.9 71.9 75.2
9.4 7.3
Amounts in millions
20
Where the Money Goes
General Government
11%
Public Safety
21%
Other
2%
Health & Social Services
4% Recreation & Culture
4%
Infrastructure &
Transportation
5%
Education
39%
Total Debt Service
14 %
21
Where the Money Goes – Total Schools Funding
General Government
10%
Public Safety
21%
Other
2%
Health & Social Services
4% Recreation & Culture
4%
Infrastructure &
Transportation
5%
Education Including Debt
Service
44%
GSD/USD Debt Service
10%
22
Increase in Appropriations $101.5 Million
■ MNPS Operating: $28.2 million
■ General Government Pay Plan: $23.3 million
■ Debt Service: $44.1 million
■ Increase in General Government savings target: ($1.4 million)
■ Other operational changes, net: $7.3 million
23
Schools Operating and Debt Service Increase $34.9 Million
$110,554,700
$6.7 million increase
6.5% over FY19
$914,475,600
$28.2 million increase
3.2% over FY19
Operating Budget Debt Service Budget
Total Schools Funding
674.0 720.4 746.4 790.0 810.0 843.3 879.3 884.3 914.5
42.7 53.6 69.6
76.4 78.0 84.4 94.4 103.8 110.5
716.7 774.0 816.0
866.4 888.0 927.7 973.7 988.1 1025.0
0
200
400
600
800
1000
1200
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Operating Debt Service
Budgeted Amounts shown- in millions
24
25
Local Funding Revenue Sources
FY2019 FY2020 GROWTH
PROPERTY TAXES $362,854,400 $372,615,200 $9,760,800
SALES TAXES $294,161,500 $328,535,100 $34,373,600
OTHER REVENUE $20,732,200 $26,082,200 $5,350,000
PROPERTY SALE $13,000,000 $0 ($13,000,000)
TOTAL $690,748,100 $727,232,500 $36,484,400
Total Schools Local Funding
26
Historical State and Total Local Combined Contributions
Schools
226.1 240.4 252.3 257.0 266.8 279.0 290.3 285.8 286.4
446.3 522.7 539.6 548.1 592.0
617.3 644.0 690.7 727.2
79,217
80,969
82,688
84,081 85,307
86,052
84,594 84,385 84,104
68,000
70,000
72,000
74,000
76,000
78,000
80,000
82,000
84,000
86,000
88,000
0
200
400
600
800
1,000
1,200
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
BEP Funding Metro Funding Enrollment
FY2012-FY2018 – Actual
FY2019-FY2020 - Budget
Amounts in Millions
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Historical State and Total Local Combined Contributions
Schools
33.6% 31.5% 31.9% 31.9% 31.1% 31.1% 31.1% 29.3% 28.3%
66.4% 68.5% 68.1% 68.1% 68.9%
68.9% 68.9% 70.7% 71.7%
79,217
80,969
82,688
84,081
85,307 86,052
84,594 84,385 84,104
68,000
70,000
72,000
74,000
76,000
78,000
80,000
82,000
84,000
86,000
88,000
0
200
400
600
800
1,000
1,200
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
BEP Funding Metro Funding Enrollment
FY2012-FY2018 – Actual
FY2019-FY2020 - Budget
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Metro Employees $23.3 Million
■ 3.0% Cost of Living Adjustment (COLA)
■ Increments for eligible employees (effective increment date)
■ 2.0% for open range increases (effective July 1)
■ All full-time employees under Metro’s general pay plan will be paid a living wage of at least $15 per hour
■ No increase in General Government employee health insurance cost
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Debt Service Amounts in millions
FY2019
Budgeted FY2020
Budgeted $ Change % Change
GSD 169.3 207.6 38.3 22.7%
USD 19.7 18.7 (1.0) -5.1%
MNPS 103.8 110.5 6.7 6.6%
Total 292.8 336.9 44.1 15.1%
Historical Annual Debt Service Requirement FY2016-FY2020
11.27% 11.52% 12.72%
13.13% 14.45%
0
50
100
150
200
250
300
350
400
FY16 FY17 FY18 FY19 FY20
GSD Schools USD Total Debt Service as % of Budget
Amounts in millions
30
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Annual Debt Report
As required by BL2014-696,
the Annual Debt Report will be emailed to Metro Council members
today and will include new information required by BL2019-1602
New Information:
• Percentage Increase or Decrease in GO Bonds
• Authorized Unbonded Debt
• Debt Per Capita
• Debt Instruments other than bonds (Sports Authority)
32
Blue Ribbon Commission Recommendations
■ Increased targeted savings for the General Fund from $11,500,000 to $12,907,300
■ Established a targeted savings goal for MNPS of $6,209,000
■ Short Term Rental Permit fee revenue increase of $1,140,000
■ Public Property Performance Audit budgeted at $200,000
■ Expanded Parthenon hours budgeted at $206,000 of net revenue
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■ $43.1 million - General Hospital
– Funds 100% of requested subsidy
■ $3.5 million - Bordeaux Nursing Home
– Funds contract with Signature
■ $2 million - Knowles Assisted Living Facility
– Funds contract with Anthem Care
Selected Budget Highlights
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Tax Increment Financing Amounts in millions
FY2019
Budget FY2019
Actual FY2020
Budget
Budget
Increase
GSD 11.9 13.9* 15.7 3.8
USD 2.9 3.2 3.9 1.0
MNPS 8.5 8.5 11.2 2.7
Total 23.3 25.6 30.8 7.5
*Includes increase for MNPS
Selected Budget Highlights
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Selected Budget Highlights
■ Continued Barnes Fund Affordable Housing Funding: $10 million
■ Body Worn Cameras: $3 million
■ Community Oversight Board: $1.5 million
■ Public Safety and Public Works Staffing Studies: $250,000
■ Equal Business Opportunity Program Implementation: $442,300
■ GRAD Program: $1 million
■ Study and Formulating Committee: $150,000
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Selected Budget Highlights
■ Metro Facility Openings, including security: $2.6 million
– Bellevue Community Center
– New Police Headquarters
– Family Safety Center
■ Recycling increased to every other week (1/2 year): $518,100
■ 2020 Elections: $2.5 million
■ Short- Term Rental Administration: $458,100
– Codes – Enforcement
– Fire - Inspectors
– Finance - Collections
Legislation to Track with
FY 2020 Operating Budget Operating Budget Ordinance Urban Council Resolution
Tax Levy Ordinance Tax Anticipation Notes Resolution
Property Tax Relief Ordinance Parking System Legislation
Short Term Rental Property Fee Ordinance Pay Plan Resolutions and
Position Classifications Update Ordinance
FY19 Supplemental Resolution
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FOR MORE INFORMATION VISIT THE CITIZENS’ GUIDE TO THE METRO BUDGET
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Nashville.gov/citizens_budget