City of Bexley budget presentation

THE CITY OF BEXLEY

PUBLIC MEETING

THE CITY BUDGET May 24, 2011 Tuesday, May 10, 2011

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CITY OF BEXLEY BUDGET 101 BUDGET HISTORY $13,000,000 $11,700,000 $10,400,000 $9,100,000 $7,800,000 $6,500,000 $5,200,000 $3,900,000 $2,600,000 $1,300,000 $0 2000

2002

2004

General Fund Income Cleansed of Estate Tax Tuesday, May 10, 2011

2006

Total General Fund Income

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2008

2010

General Fund Expenses

CITY OF BEXLEY BUDGET 101 SOURCES OF INCOME Estate Tax 15%

Local Gov’t Fund 7%

Income Tax 62%

Income Tax Estate Tax Local Gov’t Fund Real Estate Tax All Other

Tuesday, May 10, 2011

Real Estate Tax 7%

All Other 8%

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CITY OF BEXLEY BUDGET 101 GENERAL FUND* EXPENSES

General Gov’t 16%

Fire 15%

Service Dept 13%

Police General Gov’t Fire Service Dept Debt Service Parks and Rec Capital Expenditures

Tuesday, May 10, 2011

Police 34%

Debt Service 11% Parks and Rec 6% Capital Expenditures 4%

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CITY OF BEXLEY BUDGET 101 RECIPIENTS OF LOCAL TAXES SCENARIO: BEXLEY RESIDENT WORKING IN ANOTHER CITY*

County & Misc 15%

Bexley Schools 51%

City of Columbus 26%

*Assumptions: $100,000 Household Income $300,000 Home Value

City of Bexley City of Columbus Bexley Schools County & Misc

Includes City Income Tax, School District Income Tax, and all Property Taxes Tuesday, May 10, 2011

City of Bexley 8%

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CITY OF BEXLEY BUDGET 101 BEXLEY VS. OTHER COMMUNITIES GENERAL FUND BUDGET PER CAPITA: $1,700 $1,530 $1,360 $1,190 $1,020 $850 $680 $510 $340 $170 $0 h

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CITY OF BEXLEY BUDGET 101 A CHANGING LANDSCAPE

PROSPECTIVE CHANGES TO: • THE

LOCAL GOVERNMENT FUND • OHIO ESTATE TAX

Tuesday, May 10, 2011

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CITY OF BEXLEY BUDGET 101 A 5 YEAR BUDGET PROJECTION* $15,000,000 $12,500,000 $10,000,000 $7,500,000

Auditor’s 5-year Stabilized Annual Shortfall: $5,000,000 $2,500,000

$2,900,000

$0 -$2,500,000 -$5,000,000 -$7,500,000 -$10,000,000 -$12,500,000 -$15,000,000

2011

Projected Income

2012

Projected Expenses

2013

2014

Projected Ending General Fund Balance

* Assumptions: 4-year phase out of local government funds, 2% payroll growth Tuesday, May 10, 2011

2015

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CITY OF BEXLEY BUDGET 101 OPTIONS

How to Solve our $2,900,000 Shortfall: • Expense

Reductions • New Revenues

Tuesday, May 10, 2011

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CITY OF BEXLEY BUDGET COST SAVINGS TO DATE

Personnel Reductions

1% annual growth from 2007-2010 in personnel costs

Major Cuts in Consulting Fees Major reductions in legal and consulting fees

Health Insurance Restructuring

30% reduction in health care costs; costs remain lower today than they were in 2007

Operational Streamlining

Cuts in discretionary spending and misc. expenses Tuesday, May 10, 2011

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CITY OF BEXLEY BUDGET EXPENSE CUTTING OPTIONS THE $2,900,000 QUESTION: WHAT CAN BE CUT? WHAT CAN’T BE CUT?

Fire $1,770,430

Service Dept $1,453,338 Debt Service $1,300,000

General Gov’t $2,056,625

Parks and Rec $737,518 Capital Expenditures $412,092

Police General Gov’t Fire Service Dept Debt Service Parks and Rec Capital Expenditures

Tuesday, May 10, 2011

Police $3,906,514

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CITY OF BEXLEY BUDGET EXPENSE CUTTING OPTIONS THE $2,900,000 QUESTION: WHAT CAN BE CUT? WHAT CAN’T BE CUT? Fire contract, debt service, and capital expenditures represent 30% of expenses Police General Gov’t Fire Service Dept Debt Service Parks and Rec Capital Expenditures

Tuesday, May 10, 2011

Fire $1,770,430 Service Dept $1,453,338 Debt Service $1,300,000

General Gov’t $2,056,625

Parks and Rec $737,518

Police $3,906,514

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Capital Expenditure $412,092

CITY OF BEXLEY BUDGET EXPENSE CUTTING OPTIONS Revenue and Expense Options and Scenarios • • • •

Created for illustrative purposes Not representative of final decisions Don’t infer that there aren’t other options Assume cooperation of bargaining units that may not occur

Tuesday, May 10, 2011

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CITY OF BEXLEY BUDGET EXPENSE CUTTING OPTIONS Scenario: No New Revenue A $2,900,000 Expense Reduction Scenario: Item Cut down police patrols from 4 to 2 cruisers Cut additional police personnel Elimination of Development Department Elimination of Parks/Recreation Department Close Jeffrey Mansion & Parks Service Department Layoffs Administration Layoffs Cut Remaining Salaries by 10% Cut Employee Benefits No salary increases for 3 years Outsource Building Department Total Reductions

Savings $680,000 $135,000 $106,569 $320,000 $325,202 $420,000 $270,000 $125,000 $280,070 $130,000 $125,000 $2,916,841

Expense reduction scenarios are for illustrative purposes only and do not represent any final decisions made by City of Bexley leadership Tuesday, May 10, 2011

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CITY OF BEXLEY BUDGET EXPENSE CUTTING OPTIONS Scenario: No New Revenue ($2,900,000 in Expense Reductions) Tangible Changes Resulting from Cuts: • Noticeable change in police service • Elimination of Parks/Rec Programming • Slower response times for street, tree service, etc • No new investment in development in the city • Loss of local oversight of building department function • Slowed response time from administrative function • High risk of diminished employee retention Expense reduction scenarios are for illustrative purposes only and do not represent any final decisions made by City of Bexley leadership Tuesday, May 10, 2011

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CITY OF BEXLEY BUDGET NEW REVENUE OPTIONS $2,900,000 $2,610,000 $2,320,000 $2,030,000 $1,740,000 $1,450,000

$2,482,092

$1,160,000 $870,000

$1,867,368

$580,000 $290,000 $0

2.5% Income Tax 75% Credit up to 2.5% Tuesday, May 10, 2011

2.5% Income Tax 80% Credit up to 2.0%

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CITY OF BEXLEY BUDGET NEW REVENUE OPTIONS IMPACT OF OPTIONS $100,000 HOUSEHOLD INCOME* $1,000 $750 $500 $250 $0

Total Tax: Annual Increase: Monthly Increase:

Current Tax: 2.0% 80% Credit

2.5% Income Tax 75% Credit 2.5% Cap

2.5% Income Tax 80% Credit 2.0% Cap

$400 N/A N/A

$625 $225 $18.75

$900 $500 $41.67

*Bexley resident working outside of the city Tuesday, May 10, 2011

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CITY OF BEXLEY BUDGET NEW REVENUE OPTIONS Option 1: 2.5% Income Tax / 75% Credit $1,000

2.5% Income Tax with 75% Credit

$750 $500 $250 $0 Current Tax: 2.0% 80% Credit

2.5% Income Tax 75% Credit 2.5% Cap

$400

$625*

Increase of $225/year or $18.75/month per $100,000 of Household Income*

*Bexley resident working outside of the city Tuesday, May 10, 2011

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CITY OF BEXLEY BUDGET EXPENSE CUTTING OPTIONS Option 1: 2.5% Income Tax / 75% Credit • $1,155,000 in Expense Reductions • $1,800,000 in New Revenue Item

Savings

Police personnel cuts

$195,000

Parks/Rec Cost Reductions

$110,000

Service Department Cost Reductions:

$255,000

Administration Layoffs

$110,000

Cut Employee Salaries by 5%

$225,000

Reduction in Employee Benefits

$180,000

No salary increases for 3 years

$80,000

Total Reductions

$1,155,000

Expense reduction scenarios are for illustrative purposes only and do not represent any final decisions made by City of Bexley leadership Tuesday, May 10, 2011

DRAFT COPY: Subject to Change

CITY OF BEXLEY BUDGET EXPENSE CUTTING OPTIONS Option 1: 2.5% Income Tax / 75% Credit ($1,155,000 in Expense Reductions / $1,800,000 in New Revenue)

Tangible Changes Resulting from Cuts: • Minimal change to police service • Reduction in Rec Programming • Slower response times for street, tree service, etc • Risk of diminished employee retention Expense reduction scenarios are for illustrative purposes only and do not represent any final decisions made by City of Bexley leadership Tuesday, May 10, 2011

DRAFT COPY: Subject to Change

CITY OF BEXLEY BUDGET NEW REVENUE OPTIONS Option 2: 2.5% Income Tax / 80% Credit credit capped at 2.0% $1,000

2.5% Income Tax with 80% Credit / 2.0% Cap

$750 $500 $250 $0 Current Tax: 2.0% 80% Credit

2.5% Income Tax 80% Credit 2.0% Cap

$400

$900*

Increase of $500/year or $42/month per $100,000 of Household Income*

*Bexley resident working outside of the city Tuesday, May 10, 2011

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CITY OF BEXLEY BUDGET EXPENSE CUTTING OPTIONS Option 2: 2.5% Income Tax / 80% Credit credit capped at 2.0% • $420,000 in Expense Reductions • $2,480,000 in New Revenue Item

Savings

Parks/Rec Cost Reductions

$50,000

Service Department Cost Reductions:

$50,000

Administration Layoffs

$60,000

Reduction in Employee Benefits

$180,000

No salary increases for 3 years

$80,000

Total Reductions

$420,000

Expense reduction scenarios are for illustrative purposes only and do not represent any final decisions made by City of Bexley leadership Tuesday, May 10, 2011

DRAFT COPY: Subject to Change

CITY OF BEXLEY BUDGET EXPENSE CUTTING OPTIONS Option 2: 2.5% Income Tax / 80% Credit credit capped at 2.0% ($420,000 in Expense Reductions / $2,480,000 in New Revenue)

Tangible Changes Resulting from Cuts: • Reduction in Rec Programming • Mild risk of diminished employee retention Expense reduction scenarios are for illustrative purposes only and do not represent any final decisions made by City of Bexley leadership Tuesday, May 10, 2011

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THE CITY BUDGET QUESTIONS & ANSWERS, DISCUSSION May 24, 2011 Tuesday, May 10, 2011

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