FY2017 Budget Presentation
Talia Lomax-O’dnealFinance Director
April 29, 2016
Metropolitan Government of Nashville and Davidson CountyDepartment of Finance
Mayor Megan Barry
2Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
FY2016 – Current Year Status
• Operating within overall budget allocations
• Growth in property and sales taxes
• Strong economy
• Maintaining bond rating
• Grow reserves
3Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
FY2017 Budget Instructions
• No tax increase
• No reduction scenario
• Long term financial planning
• Public Investment Plans
• Collaboration and innovation
4Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Mayor Barry’s Priorities
• Education and Youth
• Affordable Housing and Economic Development for All
• Transportation and Infrastructure
• Quality of Life
5Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Recommended Budget
$2,087,320,200
6.1% increase over FY2016
6Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Total Budget Growth
1.40
1.60
1.80
2.00
2.20
FY13 FY14 FY15 FY16 FY17
1.71
1.81
1.89
1.972.09
Amounts taken from Substitute Budget Ordinances as approved by Metro Council
FY16 to FY17 = 6.1% growth
Amounts in billions
7Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Where the Money Comes From
All Other Revenues
12.5% Grants & Contributions
18.9%
Local Option Sales Tax18.6%
Property Taxes46.6%
Fund Balance3.4%
8Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Total Revenue Growth $121.0 million
• Property Taxes - $33.2 million
• Local Option Sales Tax ‐ $27.3 million
• Grants and Contributions ‐ $27.6 million
• All Other ‐ $32.9 million
9Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Budgeted Revenue Growth by Fiscal YearAmounts in millions
0
30
60
90
120
150
FY13* FY14 FY15 FY16 FY17
49.4 55.3 51.9
75.2
121.0
GSD/USD/MNPS General Funds*FY13 excludes $100 million of new revenue from property tax increase
10Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Property Tax Trends
800
850
900
950
1,000
FY13 FY14 FY15 FY16Budget
FY17Budget
891912
933939
972
Amounts in millions
FY16 to FY17 = 3.5% growth
11Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Sales Tax Trends
0
100
200
300
400
500
FY13 FY14 FY15 FY16Budget
FY17Budget
301 315 325361
388
Amounts in millions
FY16 to FY17 = 7.5% growth
12Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Recommended Use of Fund Balance
FundAppropriated for
use in FY17 Budget
Estimated June 30, 2017 Balance as a
Percent of FY17 Budget
Estimated June 30, 2016 Balance as a
Percent of FY16 Budget
OPERATING FUNDS:
GSD* General Fund $43,372,400 7.4% 6.1%
USD** General Fund $7,574,800 5.4% 5.7%
Schools Fund $16,000,000 7.6% 5.5%
DEBT SERVICE FUNDS:
GSD* Debt Service Fund $5,000,000 6.6% 5.2%
USD** Debt Service Fund $0 18.6% 9.4%
Schools Debt Service Fund $0 6.1% 5.2%
*GSD - General Services District **USD - Urban Services District
13Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Budgeted Fund Balance
0
20
40
60
80
100
120
FY14 FY15 FY16 FY17
45.0
72.5 73.9 71.9
Amounts in millions
14Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Year-End Operating Fund Balances*
0
40
80
120
160
200
240
FY13 FY14 FY15 FY16 Projected
148.1124.8 136.5
205.3
(unassigned) (unassigned) (unassigned) (Total)
* GSD/USD/MNPS General Funds
Amounts in millions
15Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Where the Money Goes
Education41%
Debt Service10%
Health & Social Services
4%
Infrastructure & Transportation
5%
General Government
13%
Recreation & Culture
4%
Public Safety21%
Other2%
16Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Where the Money Goes$121.0 million
• Debt Service - $18.6 million
• Schools - $33.3 million
• Compensation - $29.6 million
• Operations - $39.5 million*
* Net change
17Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Historical Annual Debt Service Requirement 2014 – 2017
General Obligation Debt
10.52%11.19%
10.49% 10.85%
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
2014 2015 2016 2017
GSD Schools USD Total GO Debt Service as % of Budget
18Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Annual Debt Report
BL2014-696
As required, the Annual Debt Report
will be emailed to Metro Council members today
19Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Employee Investments*
• Compensation
• $28.5 million
• Veteran’s Day Holiday
• $1.1 million
• Grand Total
• $29.6 million* GSD/USD and subsidized accounts and internal service funds
20Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Pay Plan Increase HistoryFY2008 • 2% COLA and increments for eligible employees
FY2009 • Increments for eligible employees
FY2010 • None
FY2011 • 2% lump sum for full-time staff, $2,000 cap
FY2012 • 1.5% lump sum for full-time staff, $1,500 cap
FY2013 • 2% for department heads, SR13-equivalent and upper grades• 4% increase for all other employees
FY2014 • 1.5% COLA for all employees including part-time staff (effective Jan 2014)• Increments for eligible employees
FY2015 • Full funding for raises given in FY2014• 1% COLA and 2% open range (effective Jan 2015)• Market adjustment for positions deemed significantly below market (effective Jan 2015)• Increments for eligible employees
FY2016 • Full funding for raises given in FY2015• 2.5% COLA (effective July 1)• Increments for eligible employees• Compression for certain public safety positions• 2% Open Range (effective July 1)
21Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Pay Plan Recommendations
• Deloitte Compensation Study recommendations (effective July 1)
• Increments for eligible employees (effective increment date)
• 3% for open range increases (effective July 1)
• 3.1% COLA (effective July 1)
22Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Selected Improvement Recommendations
by Priority Area
23Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Schools
4.1% increase of $33.3 million over FY16
$843,299,700
24Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Schools
$33.3 million
• Employee Compensation – $14.7 million ($1.3 million net of savings)
• Inflationary and Required Additions – $18.5 million
• Other – $13.5 million
Bus Monitors, Community Achieves, Special Education Bus Drivers, Pre-K (from federal), Start-up costs for English
Language Learners and Literacy Initiatives
25Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Schools Budget Growth
350
450
550
650
750
850
950
FY13 FY14 FY15 FY16 FY17
720746 790 810
843FY16 to FY17 = 4.1% growth
Amounts taken from Substitute Budget Ordinances as approved by Metro Council
Amounts in millions
26Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Youth Programs and Services
$2.6 million
• Employment
• After School Programs
• College Readiness
• Youth Violence
27Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Affordable Housing and Economic Development for All
Barnes Fund – FY17 Total Allocation
$16,000,000
$10 million New in FY17
$5 million Estimated Convention Center Proceeds
$1 million Carry Over from FY16
28Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Public Investment PlansInnovation Investment Fund
• 34 plans were submitted with operating funding requests of $16 million and capital funding requests of $35 million
• 14 plans were recommended for either total or partial funding in FY2017
• The Innovation Investment Fund will allocate funding to departments during the year for approved plans
$1,000,000
29Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Recommended Operating Subsidies
• Farmers’ Market - $1 million (funded from State purchase of
land)
• Municipal Auditorium - $400,000 (general fund)
• State Fair – balanced budget based on projected revenues
30Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Hospital AuthoritySubsidy History
20
25
30
35
40
45
50
55
60
FY13 FY14 FY15 FY16 FY17
47.543.9
35.0
45.0
35.0
Amounts in millions
FY13 includes $4,292,400 supplemental - FY14 includes $5,227,100 supplemental - FY16 includes $10,000,000 supplemental
31Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Metro Transit Authority
$42,013,600
$2 million Improvement over FY16 Budget
Nolensville Road bus rapid transit, Thompson Lane feeder service, maintenance, planning for first and last mile service
32Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Metro Transit AuthoritySubsidy History
0
5
10
15
20
25
30
35
40
45
50
FY13 FY14 FY15 FY16 FY17
29.4 33.436.4
40.0 42.0
Amounts in millions
33Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Public Safety
• Fire – $1.5 million
• EMS staffing
• Fire prevention staffing
• Uniform allowances
• Quality improvement staffing
• Police – $2 million
• 6 new police officers for domestic violence
• Crime lab
• Special events overtime
• Youth Services
34Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Quality of Life
• Library – $975,300
• Friday openings - full funding for locations opened in FY16
• Friday openings for new locations opening in FY17
• Health – $780,100• Youth services, food and facility inspections, vital
records, vaccinations
35Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Transportation and Infrastructure
• Codes and Planning – $492,100
• Property standards, zoning, planning and land development staffing
• Metro Transit Authority – $2 million
• Parks – $1.6 million
• Staffing and maintenance
• Public Works – $1.2 million
• Contractual increases, road and paving repairs, cleaning crews
36Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Revenue Proposals
Planning - $866,500 Public Works - $2,370,400
Miscellaneous Fees. Memo will be provided to Council members from Department Heads explaining proposed revenue adjustments today.
37Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
Legislation to Track with Budget
• Operating Budget Ordinance
• Tax Levy Ordinance
• Urban Council Resolution
• Pay Plan Resolutions
• Emergency Communications Center Department Ordinance
• Miscellaneous Revenue Adjustments for Planning and Public Works
38Metropolitan Government of Nashville and Davidson CountyMayor Megan Barry
CAPITAL SPENDING PLAN
Planned Filing – May 13th
For
Capital Improvements Budget Ordinance
And
Capital Spending Plan
For More Information Visit the Citizens’ Guide to the Metro Budget
www.nashville.gov/citizens_budget
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