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
DRAFT COPY: Subject to Change
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
DRAFT COPY: Subject to Change
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
DRAFT COPY: Subject to Change
THE CITY BUDGET QUESTIONS & ANSWERS, DISCUSSION May 24, 2011 Tuesday, May 10, 2011
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