new orleans mayor mitch landrieu's 2014 operating budget presentation

7/27/2019 New Orleans Mayor Mitch Landrieu's 2014 Operating Budget Presentation

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CITYOFNEWORLEANS

October 15th, 2013

10/15/2013

2014 Budget Proposal


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2014 Budget Proposal2

Background

2013 Results

2014 Budget Challenges


2014 Budget Highlights

2014 Budget Presentation


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300

350

400

450

500

$550M

300

350

400

450

500

$550M

Budget Comparison

2009

418

110

2010

431

$431M

RecurringRevenue

Gap

3

The Landrieu Administration addressed

an inherited $97M spending gap

$97M Gap

2009 Expenditure$528M

Note: One-t ime revenue sources n ot inc lud ed in chart


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300

350

400

450

500

$550M

300

350

400

450

500

$550M

Annual Expenses

2009

$528.0M

2010

$496.0M

2011

$483.0M

2012

$483.4M

2013Budgeted

$483.2M**

2014Proposed

$495.6M*

+$28.0M -$32.0M -$13.0M +$0.4M -$0.2M $12.4MDelta toprevious year

4

First step to eliminating gap was to reverse

the spending trend

$32.4MDifference

**= $483.2M budgeted

in 2013 does not

include $14.0M to fund

balance. Including fund

balance contribution,

the Citys current

budget for 2013 is

$497.2M.

*= $495.6M proposed

for 2014 does not

include $8.8M to fund

balance. Including fund

balance contribution,

the City proposes$504.3M in 2014.


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300

400

$500M

300

400

$500M

Annual Revenue

2009

56.0

418.4

$474.4M

2010

35.0

431.0

$466.0M

2011

5.0

479.1

$484.1M

2012

3.6

477.5

$481.1M

2013Budgeted

8.5

488.7

$497.2M

2014Proposed

8.2

496.1

$504.3M

One-time

RecurringRevenue

5

Second step was to reduce the reliance on

one-time monies to balance the budget

One-time moneyas a % of overallbudget

11.8% 7.5% 1.0% 0.8% 1.7% 1.6%


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300

350

400

450

500

$550M

300

350

400

450

500

$550M

Historical Expense vs. Revenue

2009

418.0

56.0

54.0

$528.0M

2010

431.0

35.0

29.0

$496M

2011

479.1

5.0

$484.1M

2012*

477.5

3.6

$481.1M

2013Budgeted

488.7

8.5

$497.2M

2014Proposed

496.1

8.2

$504.3M

Recurring

One-time

Fund Balance/OtherFinancing Sources

ActualExpenditures('09-'12)

ProjectedExpenditures('13-'14)

6

We are now living within our means

2013 Actual Expenditure line does not include $14.0M appropriation to fund balance as that is not an expenditure on

operations. Including fund balance contribution, budgeted $497.2M in 2013.


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-40.0

-20.0

0.0

20.0

40.0

60.0

$80.0M

2009

-$8.7M

2010

-$25.1M

2011

-$16.8M

2012

-$20.0M

2013

Budgeted

2014

Proposed

$4.3M

2015

Projected

$12.4M

2016

Projected

$26.3M

2017

Projected

$41.5M

2018

Projected

$60.1M

-$4.5MFund Balance Reserve

City will nearly eliminate the

fund balance deficit in 2013

7

Ending Fund Balance

Assumes 1% Annual

Growth in Non-Debt

Expenditures in 2015

and 2016 and 2% growth

in 2017 and 2018

$15.5M reduction in fund

balance deficit.

$14.0M Fund Balance

$1.5M Isaac CDBG Money


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Modest revenue growth projections pale in

comparison to projected expense growth

8

$7.6M growth in GF revenue projected for 2014 (1.5%) 3% growth in Sales and Property Tax projected

Sluggish growth of non-tax based revenues (40% of GF revenue)

Safety cameras, EMS Billing

1.6% projected annual growth of General Fund revenue (2013-2018)

Debt payments scheduled to increase by $5.5M in 2014 and $3.5M more

in 2015


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Modest 5 Year Revenue Growth Projected

(1.6% Annual Growth)

9

0

200

400

$600M

2014

Proposed

496.1

2015

Projected

507.0

$507.0M

2016

Projected

517.6

$517.6M

2017

Projected

528.5

$528.5M

2018

Projected

539.7

$539.7M

8.2

$504.3M

RecurringRevenue

One TimeMoney


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Major Financial Accomplishments

10

Forgiveness of $240M worth of CDL loans

Substantially improved Citys debt posture

Shifted retirees to Medicare reducing future liabilities from $350M to

$166M

Scheduled to reduce negative fund balance by $15.5M in 2013

Refinanced pension obligation bonds at lower interest rates, saving

money while retaining the same maturation date of 2030

Won $11M FEMA arbitration to avoid recoupment of already expended

funds

Made important changes to city, police, and fire pension funds


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Background

2013 Results






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Note on murders: Totals do not include justifiable/negligent

homicides or police shootings.

0

20

40

60

80

100

120

140

160

180

200

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Murders Citywide (Down 26% from 2012. 111 through September)

Public Safety Results

2009-2012 Average 2013 YTD


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Blight Fighting Results

Source:HUDAggregate

dUSPSA

dmin

istrativeData

onA

ddressVacancies

,GNOCDC201

2


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Commercial Properties Target List



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Streetlight ResultsFewest Outages Since Katrina


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0

500

1,000

1,500

2,000

Q12011

77

Q22011

626

Q32011

1,386

Q42011

1,539

Q12012

1,487

Q22012

1,549

Q32012

1,436

Q42012

1,666

Q12013

1,705

Q22013

RecyclableMaterialCollected

1,695

18

Recyclable Material

Collected (Tons)

0

250

500

750

1,000

1,250

2011(Through Q2)

379

2012(Through Q2)

413

2013(Through Q2)

IllegalDumpingSitesCleared

1,004

+165%+165%

Illegal Dumping SitesCleared

Sanitation Department Results


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0

1,000

2,000

3,000

4,000

2009

1,663

2011

(ThroughQ2)

2,898

2012

(ThroughQ2)

2,978

2013

(ThroughQ2)

NOR

DCSummerCampReg

istrants

3,058

+84%+84%

0

10

20

30

40

2011

29

2012

33

2013

NumberofSumm

erCamps

40+38%+38%

19

Recreation & Health Results

NORDC Summer Camp

RegistrantsNORDC Summer Camps


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0

10,000

20,000

30,000

40,000

2011

(Through Q2)

29,342

2012

(Through Q2)

32,680

2013

(Through Q2)

WICClinic

Visits

32,289

+10%+10%

0

1,000

2,000

3,000

4,000

2012(Through Q2)

2,742

2013(Through Q2)

Homeless

HealthCare

Visits

3,299+20%+20%

20

WIC Clinic VisitsHomeless Health Care

Visits

0

1,000

2,000

3,000

4,000

2013 Target(Through Q2)

1,995

2013 (ThroughQ2)

WIC ClinicVisits

3,225+62%+62%

AIDS clients served

Recreation & Health Results


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2014 Budget ProposalData Source: Lobby Central for One Stop Shop

NOTE: One Stop Shop Wait Time does not include appointments

863

598669

319

228

0

100

200

300

400

500

600

700

800

900

1,000

S&P S&P-Elec S&P-Inspec S&P-Mech S&P-Plan Rev

Visitors

Number of Visitors at the One Stop ShopBar 1=June Bar 2=July Bar 3=August

22

78

1112

0

5

10

15

20

25

30


Minute

s

Target (20)

Average Wait Time

Bar 1=June Bar 2=July Bar 3=August

16

13

1819

14

0

5

10

15

20

25

30


Minute

s

Average Service TimeBar 1=June Bar 2=July Bar 3=August

One Stop Shop Safety and Permits Results


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2014 Budget ProposalData Source: Lobby Central for One Stop Shop

NOTE: One Stop Shop Wait Time does not include appointments

164

338

202

494

30

119

376

0

100

200

300

400

500

600

700

800

900

1,000

Business Intake CPC HDLC Payment Special Event VCC Zoning

Visitors

Number of Visitors at the One Stop ShopBar 1=June Bar 2=July Bar 3=August

19

11

6 7

16

4

14

0

5

10

15

20

25

30

Business

Intake

CPC HDLC Payment Special

Event

VCC Zoning

Minu

tes

Target (20)

Average Wait TimeBar 1=June Bar 2=July Bar 3=August

1519 20

6

43

23

15

0

5

10

15

2025

30

35

40

45

50

Business

Intake

CPC HDLC Payment Special

Event

VCC Zoning

Minu

tes

Average Service TimeBar 1=June Bar 2=July Bar 3=August

One Stop Shop HDLC/VCC/CPC Results


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HDLC Results


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Key Performance Indicator: Call Abandonment Rate for 311

Key Performance Indicator: Average Monthly Percent of 311 First Call Resolution

Note: First call resolution includes information requests and undocumented calls. Excludes service requests and department referrals.

6% 6%

18%

12%

10%

16%

8%

10%9% 9%

14%

9% 9%

12%

8%

0%

5%

10%

15%

20%

Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13

Abandonment Rate Target (10%)

46% 45%

64%70%

65%

81%

64%69%

80%

60%

71%

58% 59% 59% 63%

0%

20%

40%

60%

80%

100%

Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13

First Call Resolution Target (70%)

NOLA 311 Results


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140 140147 145

151 150162

169180

161172

158

0

20

40

60

80

100

120

140

160

180

Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13

Seconds

Average Call LengthAverage Call Length Target (160)

43

57

64

21

2722

1814

95

13

6

0

10

20

30

40

50

60

70

Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13

Seconds

Average Hold Time

Average Hold Time Target (15)

NOLA 311 Results


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Employee sites engaged withSummer Youth Employment

0

10

20

30

$40M

Q1

$24.3M

Q2

$3.7M

Q3

PrivateDollarsLeveraged

$39.5M

0

100

200

300

400

500

Q1

188

Q2

233

Q3

FreshFoodRetaile

rsJobs

449

Private dollars leveraged toattract and retain business

Jobs announced throughFresh Foods Initiative

0

100

200

300

2013 AnnualTarget

200

2013(Through

Q3)

SitesengagedwithSum

merYou

thEm

ploym

ent243

+22%+22%

2013 Economic Development Results


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Economic Development Announcements

GE Capital

Gameloft TCI

Costco

Wal-Mart New Orleans East

Wal-Mart Gentilly Mid-City Market

Whole Foods on Broad Street

Riverwalk

Historic Circle Food Store Algiers Plaza

Fresh Market Uptown


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Collections Results

$1.1

$2.1

$0.9

$2.7$2.5

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Millions

2011 YTD 2012 YTD 2013 YTD

The value of audits in 2013 has more than

doubled from the same period in 2012


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Sales tax has increased almost 8% (2013 vs.

2012)

$11.5 $10.1 $10.7 $12.5 $11.6 $11.4 $11.3 $9.9 $10.3 $10.7 $11.5 $11.0

$12.1 $11.0 $11.4 $12.8 $12.1 $12.1 $11.3 $10.5 $9.8$10.9 $11.9 $11.5

$12.9$11.2 $12.7

$14.1 $12.9 $13.4 $12.2 $11.1

$88.90

$93.36

$100.55

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

January February March April May June July August September October November December

Millions

2011 Monthly Actual 2012 Monthly Actual 2013 Monthly Actual

YTD 2011 YTD 2012 YTD 2013

Collections Results


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Hotel/Motel sales tax has increased 4%

(2013 vs. 2012)

$0.8 $0.8 $1.0 $1.4 $1.3 $1.2 $0.9 $0.8 $0.6 $0.8 $1.2 $0.9

$0.9$1.2 $1.4 $1.6

$1.6 $1.5$1.0

$1.1

$0.8$1.3 $1.6 $1.1$0.9

$1.2$1.8 $1.8

$1.6 $1.3 $1.0$1.0

$8.14

$10.26

$10.72

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

January February March April May June July August September October November December

Millions

2011 Monthly Actual 2012 Monthly Actual 2013 Monthly Actual

YTD 2011 YTD 2012 YTD 2013

Collections Results


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ReqtoCheck Results

31

66*61

49

32

0

10

20

30

40

50

60

70

Jan-11 Q3 2012 Q4 2012 Q2 2013

Average Days from Contract Date to Execution

(excludes routing time)

Time reduced by 51%

Unknown 208

147

121

0

50

100

150

200

250

Jan-11 Q3 2012 Q4 2012 Q2 2013

Average Number of Contracts in Queue

*Best estimate from limited historical data.


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The City has increased the percent of payments it makes within 60business days as well as reduced the average number of days ittakes to make a payment.

32

66%

78%85%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

May-11 Jan-12 Jun-13

Percent of Capital & Grant Payments Made within 60

Business Days

53 51

45

0

10

20

30

40

50

60

May-11 Jan-12 Jun-13

Average Days to Payment of Capital & Grant from

Invoice date to Payment date

ReqtoCheck Results


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With contracting times down by 42% and the payment times down by

15%, the entire req to check process for bids is down 22% Excluding mandatory 21 days for bid advertising and opening, the req to

check times are down 30%

33

6

5

21*

21*

77

45

53

45

157 days

116 days

0 20 40 60 80 100 120 140 160 180 200

Jan 2011 (Estimated)

Q2 2013

Total Time in ProcessRequisition and PO Approval Bid Advertising to Award Letter Contract Pre-Work, Routing, and Processing Payments (Capital & Grants)

ReqtoCheck Results


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Background

2013 Results






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2014 Budgeting Challenges

Increase NOPD Strength ($129.0M)

Implement two costly Consent Decrees

NOPD Consent Decree ($6.1M)

OPSO Consent Decree (?)

NOFD Pension ($17.5M)

Workers Compensation ($8.0M)

GO Zone loan repayment ($4.9M)

Launch and ongoing support of new NORD facilities ($1.3M)

Joe Brown, Treme, Lyons (2013)

Sanchez Center, Gernon Brown, St. Bernard (2014)

Increased Entergy costs ($800k)

Identify permanent funding source for streetlights

35


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2014 NOPD Consent Decree Funding

Consent Decree Projected 2014 GF Projected 2014 Capital 2014 Request

NOPD Personnel $1,343,477 $1,343,477

Early Warning System Deployment $5,000,000 $5,000,000

Early Warning System Integration/Maintenance $1,400,000 $1,400,000

Lexipol Policy Development $97,950 $97,950

AVL/Mobi le Data Terminal (In car Computer System) $68,000 $318,000 $386,000

In Car Camera System $32,000 $550,000 $582,000

On-Body Cameras $88,000 $88,000

2 Year Data Storage $300,000 $300,000

Electronic Control Weapons $49,229 $49,229

Digital Audio Recorders $1,200 $1,200

Training Supplies $8,700 $8,700

Police Monitor $2,125,000 $2,125,000

Citizen Satisfaction Survey $250,000 $250,000

Police Recruitment $300,000 $300,000

Total $5,763,556 $6,168,000 $11,931,556


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Workers Compensation Overview

0.0

10.0

20.0

$30.0M

2009

$18.7M

2010

$17.5M

2011

$18.1M

2012

$22.7M

2013 Projected

$24.8M


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Lyons Center opened in 2013


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Treme Center opened in 2013

d i


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Joe Brown Center opened in 2013

h & l i i


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Sanchez Center & Pool opening in 2014

G B G i i 2014


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Gernon Brown Gym opening in 2014

Energy costs increase $800K;


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Energy costs increase $800K;

Usage Decreases

Utili $14 6M f E t f St tli ht


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Utilize $14.6M from Entergy for Streetlights

2014 B d t P t ti


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Background

2013 Results





P d G l F d B d t D t il


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Proposed General Fund Budget Detail

2013 Amended 2014 Proposed % of 2013 Allocation

City Council $9,820,916 $9,820,916 100.0%

Mayor $7,097,697 $6,138,692 86.5%

Criminal Justice Coordination $624,059 $2,021,763 324.0%

Homeland Security $2,233,237 $2,399,809 107.5%

Community Development $161,701 $162,234 100.3%

Chief Administrative Office $31,386,300 $31,639,329 100.8%

IT $13,004,883 $12,043,250 92.6%Law $6,368,617 $5,946,584 93.4%

Fire $84,915,565 $86,248,045 101.6%

Safety & Permits* $4,714,227 $4,197,439 89.0%

Police $126,784,896 $128,600,368 101.4%

Sanitation $37,209,066 $39,230,811 105.4%

Health $1,663,408 $1,600,338 96.2%EMS $11,764,159 $11,925,126 101.4%

Human Services $2,379,078 $2,379,078 100.0%

NOLA FOR LIFE Investments


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NOLA FOR LIFE Investments

Group Violence Reduction Strategy

CeaseFire New Orleans

CeaseFire Hospital Crisis Intervention Team

Midnight Basketball

Workforce Re-entry Program


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Additional CDBG funds to Safety & Permits

0.0

2.0

4.0

$6.0M

2014 Proposed

General Fund $4.2M

CDBG $0.9M

$5.1M



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2013 Amended 2014 Proposed % of 2013 Allocation

Finance $13,874,308 $13,420,812 96.7%Debt Service $16,262,905 $21,784,030 133.9%

Fund Balance $14,000,000 $8,800,000 62.9%

State Pass Through $1,961,402 $2,007,718 102.4%

Property Management $6,656,823 $6,249,885 93.9%

Civil Service $1,469,643 $1,552,076 105.6%

Public Works $15,242,280 $14,965,553 98.2%

Parks & Parkways $6,737,667 $7,071,257 105.0%

HDLC $638,095 $533,981 83.7%

VCC $344,831 $397,232 115.2%

Alcoholic Beverage Control Board $1,500 $1,500 100.0%

City Planning Commission* $1,594,134 $1,139,843 71.5%Mosquito and Termite Control $2,078,509 $2,078,505 100.0%

New Orleans Museum of Art $151,683 $128,931 85.0%

Additional CDBG funds to


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0.0

0.5

1.0

1.5

$2.0M

2014 Proposed

General Fund $1.1M

CDBG $0.5M

$1.6M

Additional CDBG funds to

City Planning Commission



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Proposed General Fund Budget DetailDepartment 2013 Amended 2014 Proposed % of 2013 Allocation

Miscellaneous $20,220,979 $23,231,177 114.9%

NORDC $8,333,966 $9,231,821 110.8%

Service & Innovation* $501,184 $1,089,652 217.4%

OPA $469,364 $469,364 100.0%

Inspector General $3,685,336 $4,212,614 114.3%

District Attorney $6,271,671 $6,271,671 100.0%

Coroner's Office $1,669,099 $1,781,605 106.7%

Juvenile Court $3,615,283 $3,025,203 83.7%

First City Court $6,000 $6,000 100.0%Civil Court $14,400 $14,400 100.0%

Municipal Court $1,867,343 $2,045,894 109.6%

Traffic Court $389,640 $437,587 112.3%

Criminal District Court $1,526,597 $1,526,597 100.0%

Sheriff $22,134,388 $22,134,338 100.0%

Clerk of Criminal District Court $3,726,330 $3,726,330 100.0%

Registrar of Voters $383,416 $371,945 97.0%

Judicial Retirement Fund $263,238 $287,233 109.1%

TOTAL $496,219,823 $504,348,536 101.6%

*Service & Innovation

budget was amended inAugust to transfer approx.

$450k in funds from CAO-

ITI.

Juvenile Court Downsizing Proposal


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0.0

1.0

2.0

3.0

$4.0M

2013

(Budgeted)

$2.6M

$1.0M

$3.6M

2013

(Projected)

$2.6M

$0.8M

$3.5M

2014

$2.1M

$1.0M

$3.0M

2015

$2.0M

$0.5M

$2.6M

GeneralFund

CourtReserves

Juvenile Court Downsizing Proposal

M i i l C P l


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Municipal Court Proposal



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Background

2013 Results





2014 B d t Hi hli ht1 of 3


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57

Public Safety

Increased funding to recruit 150 additional officers for NOPD

Funding for 100 new police cars and body cameras for every officer

Funding two new civil service positions focused on NOPD Recruitment

$300,000 Police Recruitment Campaign

Increased funding for NOFD ($1.3M) and EMS ($160k)

Expanded NOLA FOR LIFE Initiatives ($1.6M)

Raised $3 in private support for every $1 public support in 2013

NOPD Consent Decree increase ($200k)

Increased pre-trial funding from $484k to $584k

Increased Municipal Court allocation ($178k)

Increased public defender for racketeering case defense ($232k)

Additional investment in Coroner ($112k)

DA and Criminal District Court funded at 100% of 2013 level


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2014 Budget Highlights3 of 3


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Infrastructure

$14.6M for StreetlightsSanitation

Enhanced services in the French Quarter funded by Convention Center

($500k)

new orleans mayor mitch landrieu's 2014 operating budget presentation

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