central health budget€¦ · 03-09-2015 · fy16 proposed budget highlights 4 • proposed...
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Central Health Budget Fiscal Year 2016 Proposed Budget Property Tax Rate Vote for Public Notice Central Health Board of Managers September 3, 2015 Jeff Knodel, CFO
Agenda
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• Consideration of the FY16 Central Health property tax rate – Roll Call Vote – Public Notice • Tax rate • Public hearings on FY16 budget and tax rate
Staff Recommendation
• Central Health Board of Managers considerations – Affordability – Financial Stewardship
• Staff recommends approval of property tax rate of 11.7781 cents/$100
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FY16 Proposed Budget Highlights
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• Proposed property tax rate of 11.7781 cents/$100 • 4.5% over effective rate • Decrease from FY15 rate of 12.64 cents/$100
• Intergovernmental transfers budgeted at $134.7M that provides local share to draw estimated $160.6M in federal funds
• Continued funding for the implementation of the Integrated Delivery System (IDS) in the Community Care Collaborative
• Funding of $5M for Sendero reserves if needed to meet Texas Department of Insurance requirements
• Additional $2.5M to Emergency Reserve Fund
• Employee performance-based increase pool of 3%
Total Proposed Tax Rate: 11.7781 cents
www.CentralHealth.net 5
Property tax rate: • Consists of both
maintenance and operations (M&O) and debt service (I&S) rate
• Proposed rate is 4.5% above the effective M&O tax rate
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FY15 FY16 Difference amount % difference
Average taxable value $240,279 $262,520 $22,241 9.26%
Median taxable value $180,760 $199,300 $18,540 10.26%
Rate per $100 taxable value 0.1264 0.117781 -0.0086 -6.82%
Annual property taxes on average taxable homestead value $303.71 $309.20 $5.49 1.81%
Annual property taxes on median taxable homestead value $228.48 $234.74 $6.26 2.74%
Estimated impact of increased over age 65/disabled exemption from $70,000 to $75,000: $6 annual tax bill reduction
Estimated Annual Tax Impact to Homeowners
Summary of FY16 Sources/Uses Excludes Contingency
Sources
Uses
81.5%
17.5%
1.0%
Property Tax Revenue Seton Lease Revenue Other Revenue
96.7%
2.8% 0.5%
Healthcare Delivery Administra=on Tax Collec=on
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FY16 Sources of Funds
FY 2015
Proposed FY 2016
Property tax revenue $151,728,532 $160,705,076
Seton lease revenue $31,637,380 $34,371,988
Other revenue $1,900,000 $2,000,000
Total revenue $185,265,912 $197,066,144
Contributions from HMO risk-based capital $4,883,000 -
Contingency $78,800,000 $98,700,000
Total sources $268,948,912 $295,777,064
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FY16 Uses of Funds
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FY 2015 Proposed FY 2016
Intergovernmental transfers $117,400,000 $134,700,000 Member payment to CCC $15,200,000 $26,245,166 Charity care payment $4,251,733 $4,251,733 ACA ini=a=ve $1,717,000 $1,745,000 Health promo=on $150,000 $353,713 Service expansion $2,000,000 $3,300,000 Personnel $2,446,402 $2,976,926 Opera=ng goods/services $9,898,862 $3,515,231 Transfer to capital $11,300,000 $3,000,000 Transfer to emergency reserve -‐ $2,539,279 Sendero risk-‐based capital $16,883,000 $5,000,000 Debt service $1,371,207 $1,368,805 Con=ngency reserve appropria=on $76,480,000 $97,092,539
Subtotal Healthcare Delivery $259,098,204 $286,088,392 Administra=on $8,495,708 $8,262,466 Tax collec=on $1,355,000 $1,426,206 Subtotal $9,850,708 $9,688,672
Total Uses $268,948,912 $295,777,064
FY16 Summary Sources over Uses
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Proposed
Sources FY15 FY16
Property tax revenue $151,728,532 $160,705,076
Seton lease revenue $31,637,380 $34,371,988
Other revenue $1,900,000 $2,000,000
Total revenue $185,265,912 $197,066,144
Contributions from HMO risk-based capital $4,883,000 -
Contingency $78,800,000 $98,700,000
Total sources $268,948,912 $295,777,064
Uses
Healthcare Delivery $259,098,204 $286,088,392
Administration $8,495,708 $8,262,466
Tax Collection $1,355,000 $1,426,206
Total Uses $268,948,912 $295,777,064
FY16 Intergovernmental Transfers (IGT)
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Proposed Budget
Intergovernmental transfer type FY16 UC—Public $28.7M UC—Private $27.9M DSH $23.3M DSRIP $54.8M Total $134.7M
Intergovernmental Transfers provide the local share to be used to match an estimated $160.6 million in federal funds
FY16 Contingency Reserve Appropriation
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Proposed Budget FY16 IGT Reserve* $68.4M Unallocated** $28.7M Total $97.1M
* Reserved for estimated intergovernmental transfers (IGT), as determined by HHSC **Can be used for ongoing expenditures when needed for cyclical or temporary structural deficits
Travis County Taxing Entities
FY14
Preliminary FY16
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22.09%
16.76%
52.28%
4.23% 4.64%
City County
School Community College
Hospital District
20.65%
16.29%
53.86%
4.70% 4.50%
City County School Community College Hospital District
Next Steps
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• Tonight– Central Health Board of Managers vote on property tax rate for public notice
• September 14 – First Public hearing
• September 17 – Second Public Hearing
• September 23 - Central Health Board of Managers final budget and tax rate approval
• September 29 – Travis County Commissioners Court final budget and tax rate approval