The City of New York Bill de Blasio, Mayor February 2015 Financial Plan Fiscal Years 2015–2019 Office of Management and Budget Dean Fuleihan, Director February 9, 2015 February 2015 Financial Plan Fiscal Years 2015—2019 The Financial Plan .................................................................................................... 1 Economic and Tax Revenue Forecast Overview .................................................................................................................. The U.S. Economy ................................................................................................... The New York City Economy ................................................................................ Tax Revenue Forecast .............................................................................................. 3 7 12 17 Sandy Recovery .......................................................................................................... 25 Capital Program .......................................................................................................... 27 Financing Program ...................................................................................................... 33 Supplemental Information Expenditure Assumptions ........................................................................................ Financial Plan Tables ............................................................................................... 43 48 Expense Program Agency Details Police Department................................................................................................. Fire Department .................................................................................................... Department of Correction ..................................................................................... Department of Sanitation ...................................................................................... Administration for Children's Services ................................................................. Department of Social Services .............................................................................. Department of Homeless Services ........................................................................ Department of Youth & Community Development............................................... Department of Health & Mental Hygiene ............................................................. Housing Preservation and Development ............................................................... Department of Finance .......................................................................................... Department of Transportation ............................................................................... Department of Parks and Recreation .................................................................... New York Public Library ...................................................................................... Brooklyn Public Library ....................................................................................... Queens Public Library .......................................................................................... Department of Cultural Affairs ............................................................................. Department of Citywide Administrative Services ................................................ Department of Education ...................................................................................... City University ...................................................................................................... Health and Hospitals Corporation......................................................................... Department for the Aging ..................................................................................... Department of Small Business Services ............................................................... Department of Buildings ....................................................................................... Department of Environmental Protection ............................................................. Debt Service .......................................................................................................... E-1 E-4 E-8 E-11 E-15 E-17 E-21 E-24 E-26 E-29 E-31 E-34 E-38 E-41 E-43 E-45 E-47 E-49 E-52 E-56 E-58 E-60 E-62 E-65 E-67 E-69 THE FINANCIAL PLAN The Fiscal Year 2016 Preliminary Expense Budget is $77.7 billion. This is the thirty-sixth consecutive budget which is balanced under Generally Accepted Accounting Principles (GAAP), except for the application of Statement No. 49 of the Government Accounting Standards Board (GASB 49) which prescribes the accounting treatment of pollution remediation costs. The following chart details the revenues and expenditures for the five year financial plan. ($ in Millions) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 REVENUES Taxes General Property Tax $21,170 $22,113 $23,141 $24,151 $25,220 Other Taxes 28,346 29,019 29,814 30,737 31,679 Tax Audit Revenue 912 711 711 711 711 Subtotal: Taxes $50,428 $51,843 $53,666 $55,599 $57,610 Miscellaneous Revenues Unrestricted Intergovernmental Aid Less: Intra-City Revenue Disallowances Against Categorical Grants Subtotal: City Funds 7,738 — (1,967) (15) $56,184 6,938 — (1,804) (15) $56,962 6,805 — (1,814) (15) $58,642 6,862 7,090 — — (1,825) (1,825) (15) (15) $60,621 $62,860 Other Categorical Grants Inter-Fund Revenues Federal Categorical Grants State Categorical Grants Total Revenues 898 574 8,399 12,493 $78,548 832 547 6,618 12,772 $77,731 840 543 6,433 13,181 $79,639 848 845 546 546 6,389 6,297 13,638 13,682 $82,042 $84,230 EXPENDITURES Personal Service Salaries and Wages Pensions Fringe Benefits Subtotal: Personal Service $24,241 8,582 8,660 $41,483 $24,875 8,534 9,177 $42,586 $25,014 8,504 9,682 $43,200 $26,413 8,490 10,287 $45,190 $27,842 8,586 11,019 $47,447 Other Than Personal Service Medical Assistance Public Assistance All Other Subtotal: Other Than Personal Service 6,447 1,476 25,110 $33,033 6,415 1,407 23,261 $31,083 6,415 1,413 23,510 $31,338 6,415 1,413 23,932 $31,760 6,415 1,413 24,053 $31,881 6,242 (115) (2,006) 1,578 300 7,031 (337) — (1,578) 750 7,414 (201) — — 750 7,735 (198) — — 750 8,051 — — — 750 $80,515 $79,535 $82,501 $85,237 $88,129 (1,967) $78,548 (1,804) $77,731 (1,814) $80,687 (1,825) $83,412 (1,825) $86,304 $— $— Debt Service 1, 2, 3 Debt Defeasances 1 FY 2014 Budget Stabilization 2 FY 2015 Budget Stabilization 3 General Reserve Subtotal Less: Intra-City Expenses Total Expenditures Gap To Be Closed 1. 2. 3. ($1,048) ($1,370) ($2,074) Includes Debt Defeasances of TFA in Fiscal Year 2013 of $196 million and Fiscal Year 2015 of $592 million impacting FY 2014 to FY 2018. Fiscal Year 2014 Budget Stabilization totals $2.006 billion, including GO of $621 million, TFA of $1.362 billion, and net equity contribution in bond refunding of $23 million. Fiscal Year 2015 Budget Stabilization totals $1.578 billion in TFA. 1 ECONOMIC AND TAX REVENUE FORECAST Economic Overview For the first time in nearly five years, most economic sectors as well as fiscal and monetary policy are moving in the same direction, setting the stage for stronger growth in 2015. Until recently, the lackluster housing market had been a drag on the economy. However, the long-awaited recovery, aided by low mortgage rates and the improving labor market, has boosted residential investment and consumption spending. Real estate-related spending from building materials to home furnishings has revived, as has construction employment. Rising home and asset prices are lifting household net worth, leading to the first uptick in mortgage debt in four years as borrowers’ sentiment and balance sheets improve The U.S. economy accelerated in 2014 compared to the previous three years. Real GDP growth increased to 2.4 percent, up from 2.2 percent in 2013. Stronger employment, lower energy prices, falling debt levels and appreciating asset markets have all bolstered consumer confidence, resulting in the strongest consumption growth since 2006. After pausing in 2014, conditions are favorable for a housing rebound in 2015 as mortgage rates have fallen almost a full percentage point from a year ago and supply appears to be picking up. However, several areas pose potential challenges to faster growth. Non-residential investment has been spotty, particularly with weak global growth and a strong dollar hurting U.S. manufacturing and exports. Low energy prices, while a fillip to consumers, are putting pressure on sectors exposed to the oil and gas drilling industry. Fiscal policy continues to be tight and the divided leadership in Washington does not bode well for compromise. In particular, Congress will need to revisit the debt-ceiling debate later this year. Interest rates have drifted lower, resulting in another record year for corporate debt issuance as firms rushed to lock in favorable rates. However, the low-rate environment has been a challenge to the banking industry as net interest margins are squeezed. Regulatory uncertainty has restrained Wall Street activity with year-to-date profits through the first three quarters of 2014 down from the previous year. Equity markets saw increased volatility in the second half of 2014, but still appreciated strongly. Trading volume in the NYSE turned up in 2014 after five years of declines, while bond trading volumes declined. The New York City labor market extended its expansion with private sector jobs growing by 2.6 percent in 2014 – the fourth consecutive year of robust activity. The only other period that matches the vigor of the current employment spell was the tech boom period at the end of the 1990’s. However, the composition of new jobs continues to be skewed toward lower-wage sectors with strong growth in health, leisure and hospitality and retail trade, the latter two sectors driven by tourism and a record number of visitors. The one exception is professional and business services, which accounted for one in five new jobs in 2014. Also, financial service jobs started to grow again after two years of contraction, adding 2,000 jobs on an annual average basis. It is expected that employment markets will moderate after this stretch of strong increases, slowing to 1.9 percent growth in 2015. The vibrant labor market is driving other parts of the City’s economy. Higher levels of office-using employment resulted in a strong year for Manhattan office leasing. Tenants signed new leases of over 32 million square feet of office space in 2014, the highest since 1998. While three million square feet of new inventory was added to the market with the completion of One World Trade Center, strong demand pushed primary market rents up nearly seven percent from 2013. Following national trends, residential real estate markets paused, with transactions growing less than one percent in 2014, down from a double-digit pace in 2013. Permits grew 12 percent in 2014, but the level is still only two-thirds of the 2008 peak. The persistence of tight supply and strong demand and the bias towards high-end condos is expected to extend price growth in the near future. 3 Tax Forecast Summary New York City’s economy is thriving and tax revenue is expected to reach the $50 billion mark in 2015, growth of 4.2 percent over 2014. Property taxes are forecast to increase 6.0 percent, and non-property taxes are forecast to exhibit growth of 3.1 percent. The economic recovery is expected to continue at a decelerating pace and total tax revenue is forecast to grow 2.8 percent in 2016, resulting in total revenues of $51.8 billion. Property tax revenue in 2016 is forecast to increase 4.5 percent and non-property tax revenue is expected to increase 2.4 percent.1 Property tax revenue is forecast to grow 6.0 percent in 2015 and 4.5 percent in 2016. Property tax revenue is forecast at $21.2 billion in 2015 and $22.1 billion in 2016. The steady growth in property tax is supported by growth of 9.4 percent in taxable billable assessed value, an increase of $17.1 billion on the 2016 tentative roll. The tentative roll is projected to be reduced by $4.1 billion on the final roll after Tax Commission actions, Department of Finance changes by notice, and the completion of exemption processing. On the tentative roll, Class 1 market values saw a steady increase of 7.1 percent, with an increase in billable assessed value of 4.9 percent. Small Class 2 properties saw market value growth of 4.8 percent while Large Class 2 properties saw market value growth of 12.8 percent, for a total Class 2 market value increase of 10.9 percent. Overall Class 2 billable assessed value grew 10.5 percent. Class 3 properties remain stable in both market and billable assessed values. Class 4 properties grew in market value by 11.8 percent and significantly contributed to the total market value increase of 9.1 percent. Class 4 billable assessed value increased 10.6 percent. Non-property tax revenue is expected to grow 3.1 percent in 2015 and 2.4 percent in 2016. Personal income tax revenue totals $9.8 billion in 2015, an increase of 2.9 percent. Robust employment and wage gains result in withholding revenue growth of over seven percent while non-wage income remains at high levels due to strong real estate and equity markets, and business income growth. City/State offsets are expected to drop and together with an increase in refunds offset the strong growth seen in withholding. Personal income tax revenue is forecast to grow 2.6 percent in 2016. Business tax revenue, which includes the general corporation, banking corporation, and unincorporated business taxes, is forecast to increase 3.8 percent in 2015 and 2.7 percent in 2016, resulting in $6.1 billion and $6.3 billion, respectively. In 2015, a 6.1 percent increase forecast for general corporation tax gross collections is offset by a 3.2 percent decline in the banking corporation tax gross collections, stemming from increased financial regulations and settlements related to mortgage securities and unfair banking practices. Unincorporated business tax gross collections are forecast to grow 7.2 percent, reflecting growth in hedge fund asset management and employment growth. Sales tax and hotel tax revenue growth remains stable. Sales tax revenue is expected to reach $6.8 billion in 2015 and $7.0 billion in 2016, an average growth of 4.2 percent, reflecting steady economic growth and continued high levels of tourism activity. Hotel tax revenue is forecast to increase 5.8 percent to $567 million in 2015 and is expected to remain stable from 2016 through 2019, reflecting continued strength in the tourism industry, although the stronger dollar is expected to limit growth. After four consecutive years of double-digit growth, transaction tax revenue (mortgage recording tax and real property transfer tax) is expected to remain at the $2.5 billion mark in 2015 and 2016 as the pace of commercial transactions plateaus and the residential market is faced with a dearth of inventory. Real property transfer tax revenue accounts for approximately $1.5 billion of the total. Growth is projected to average 3.3 percent for the remaining plan period as a substantial amount of new residential inventory comes onto the market. The slower pace of the mortgage recording tax recovery results from tighter lending standards, with 2015 levels remaining at 38.8 percent below their 2007 peak. Mortgage recording tax revenue is expected to fall 1.7 percent in 2016 before rebounding to average 4.3 percent growth from for the remaining plan period. 1 Total non-property taxes excludes audits. 4 In summary, revenues from non-property taxes will stabilize at $28.3 billion in 2015. There is a risk that taxes sensitive to the financial sector will remain restrained due to the tightening of monetary policy, the impact of financial regulations, and global economic uncertainty. Assuming the moderate recovery of the City economy continues through the plan period, total tax revenue will grow at just under three percent in 2016 before stabilizing at an annual average growth rate of 3.6 percent from 2017 through 2019. 5 The U.S. Economy The engine of national growth is finally starting to accelerate, more than five years after the end of the housing recession. After an anemic first quarter due to severe winter weather, activity in the rest of 2014 was above trend. Fourth quarter real GDP was estimated to grow at an annualized rate of 2.6 percent, following the strongest combined two-quarter period since 2003. For the year, growth of real GDP was 2.4 percent, up from 2.2 percent in 2013. It is expected that favorable conditions will continue into 2015 with growth accelerating above three percent – the fastest pace in a decade – before settling back to 2.7 percent in the following year. Annual Growth Strong employment growth, Strong Consumption Spending Will Boost U.S. Economic Growth lower energy prices, lower in 2015 to Three Percent, the Fastest Pace in a Decade. debt and appreciating asset 4.0% values (primarily equity and Forecast GDP housing) have boosted consumer 3.5% Consumption confidence and spending. The gradual pick-up in the labor 3.0% market has been a key factor. Through the first three quarters 2.5% of 2014, job creation averaged 240,000 per month, accelerating 2.0% to a monthly rate of 325,000 in the final quarter, a 35 percent 1.5% increase. For all of 2014, U.S. employment grew 1.9 percent, 1.0% the fastest pace since the end of the tech boom 14 years ago. One 0.5% caution to the otherwise upbeat employment picture is the lack 0.0% 2011 2012 2013 2014 2015 2016 2017 of wage growth. Average hourly earnings at the national level have grown sluggishly since the end of the recession and, accounting for inflation, earnings have been flat. Thus, while the unemployment rate continues to fall – hitting 5.6 percent at the end of 2014 – there are negligible signs of wage pressures. The dramatic plunge of energy prices is also providing a tailwind. Since the middle of 2014, oil prices have fallen over 50 percent, with gasoline tumbling nearly as much. While there will be winners and losers, the net effect will be stronger overall growth via higher consumer confidence, expanded consumption and cheaper input costs to producers.1 Moody’s Analytics estimates that about 25 percent of the energy savings will be spent within six months and about two-thirds will be spent within a year. How long prices will remain low depends on the factors behind the decline. Clearly, increased supply from the United States and Canada using high-tech drilling techniques is one part of the equation. At the same time, global demand has been slackening as China, Japan and Europe face slowdowns. Analysts attribute about half of the price slump to supply increases and half to weaker demand.2 At current prices, many producers are now selling beneath their production costs with predictable results. U.S. energy companies are scaling back investment in new drilling operations and a handful of smaller firms have closed. Ultimately, both cutbacks in supply and a pickup of global demand will drive prices higher. The forecast projects that West Texas Intermediate oil prices will finally start to increase in the second half of 2015, climbing back to nearly $70/bbl by early 2016. 1 2 A rough rule of thumb is that a permanent $10 decline in crude oil price produces a 0.2 percentage point increase in real GDP growth. “What’s driving the price of oil down?” by James Hamilton. Econobrowser, January 25, 2015 7 Household debt burdens have been steadily improving, mainly through the shedding of home mortgage debt. Total household indebtedness declined to 108 percent of disposable income in the third quarter of 2014, down from 135 percent in 2007 – the lowest debt-to-income ratio since 2003. Household net worth had been increasing at double-digit rates (year-over-year) since the beginning of 2013, driven by housing prices and equity market appreciation. However, financial market weakness in the fall resulted in a loss of 0.2 percentage points of household wealth from the second to the third quarter. With the S&P 500 up 4.4 percent in the fourth quarter (compared to only 0.6 percent in the third quarter), household wealth likely rebounded in the final quarter. For these reasons, it is not surprising that both measures of consumer sentiment, the Conference Board and the University of Michigan index, have reached levels last seen in 2007 and most measures of consumer spending have been robust. Sales of auto and light trucks in 2014 were the strongest since 2006 as consumers took advantage of lower borrowing rates and cheap fuel costs. The average age of a U.S. automobile is now above 11 years so sales trends are expected to continue. Although overall retail sales dropped 0.9 percent from November to December, on a year-over-year basis, sales were still up 3.2 percent. Excluding gasoline purchases, which plummeted in value, sales were up 5.3 percent. Additionally, the National Retail Federation reported that retail sales excluding autos, gas stations and restaurants rose four percent in November and December over the same period a year prior, highlighting a strong holiday season. Since many of these factors will persist into 2015, the forecast projects that real consumption will accelerate to 3.3 percent this year – the fastest pace since 2005 – and remain near three percent growth in 2016 and 2017. Investment spending continues to be volatile. After double-digit growth in 2012 and 2013, residential fixed investment paused in 2014. New home sales were up less than two percent for all of 2014, compared to 17 percent gains in 2013. Existing home sales in 2014 fell 3.1 percent over the prior year, while the S&P/Case Shiller composite price index was up 4.3 percent (year-over-year) in November. Despite this weakness, there are several reasons to expect housing to rebound in the near future. Mortgage rates have fallen back to extremely affordable levels, with rates on 30-year loans dropping to near 3.6 percent in January 2015, down almost a full percentage point from a year ago. Furthermore, rising prices continue to pull existing home-owners out of negative equity, which would allow owners to sell unencumbered. CoreLogic estimates that through the first three quarters of 2014, 1.5 million underwater properties regained positive equity, with another 5.1 million still owing more on their mortgages than the value of their properties. Moreover, late last year, Fannie Mae and Freddie Mac both announced programs to guarantee loans with down payments as low as three percent of purchase price, essentially a loosening of underwriting standards. The latest evidence is promising with December housing starts 5.3 percent higher than the prior year. While it is likely that mortgage rates will eventually rise again as the Fed looks to tighten monetary policy, residential investment is forecast to return to double-digit growth rates in 2015 and 2016. Unlike the housing outlook, the path of non-residential fixed investment is looking uneven, particularly with increasing pressure on sectors exposed to the oil and gas drilling industry. In addition, the strong dollar is also causing firms to scale back investment activity as overseas sales are hurt. Orders for non-defense capital goods (excluding aircraft) have contracted in five of the last six months through December on a month-to-month basis. Yet on a year-to-year basis capital goods spending is up slightly. Furthermore, the Institute for Supply Management’s purchasing managers’ index (PMI), which tracks U.S. manufacturing activity, has declined for the last three months through January, dipping to the lowest level since last January when the harsh winter freeze slowed production. The export component of the PMI has been drifting lower and finally, for the first time since 2012, dropped below 50, reflecting significant weakness from abroad. While most expect energy prices to bounce back in the near term, the decoupling of monetary policy between the U.S. Fed and most other central banks will likely keep the dollar strong until growth resumes in our major trading partners. Another cloud on the horizon is the status of fiscal policy. The federal budget deficit hit a seven-year low in 2014, in both levels and as a share of GDP. During the recession, annual deficits rose to 10 percent of GDP and have now settled below three percent in the latest figures. Even though low deficits bode well for the long- 8 term sustainability of government spending, they result from recent budget impasses in Washington, which heighten uncertainty and create a steady drag on the economy. For example, since 2010, federal employment has contracted by nearly nine percent and is now at levels last seen in 1967. With the mid-term elections flipping the Senate to Republican leadership, the possibility of instability due to spending stalemates still exists. In particular, Congress suspended the federal debt limit until March 2015, and it is expected that they will have to vote again to raise the limit sometime in the summer. Additional discord has been generated by President Obama’s recent budget proposal, which raises spending above the caps imposed by the 2011 Budget Control Act. These sequester limits were imposed by the agreement which ended the last major debt-limit battle. Price Per Barrel 3% $60 Inflation Rate The path of monetary policy is also a source of near-term uncertainty. The Fed is slowly tightening with the end of the last round of quantitative easing in October. It plans to maintain an accommodative policy by continuing to reinvest earnings from its massive asset holdings and target a federal funds rate (FFR) of 0 to 0.25 percent. There is still no clear date set for liftoff of the FFR; however, the majority of the members of the Federal Open Market Committee (FOMC) view sometime in 2015 as appropriate for the first rate hike. Following the FOMC’s meeting in December, Chair Janet Yellen stated that it is unlikely for the Fed to raise the FFR target rate in the next couple of meetings and the January statement reiterated that the Fed would remain “patient” before initiating its normalization plans. As survey based long-run infl ation Energy Prices Are Expected to Rebound in the Second Half of 2015, Pushing Headline Inflation Back to Two Percent in the Out-Years. expectations are well anchored around the Fed’s two percent 7% $140 target rate, the members of the Forecast West Texas Oil, Left Scale committee feel comfortable 6% $120 CPI Inflation, Right Scale continuing the accommodative policy in the near term despite 5% $100 the “solid pace” of the U.S. economy noted in the January 4% $80 meeting. Currently all measures of infl ation are running below 2% $40 the Fed’s target, particularly with the dramatic drop in 1% $20 energy prices. The personal consumption expenditure (PCE) 0% $0 index, the Fed’s favored inflation indicator, measured 0.7 percent -1% 2011 2012 2013 2014 2015 2016 2017 in December 2014, its thirtysecond consecutive month below two percent. Core PCE for December was 1.3 percent, slightly above the headline index but well below the target rate. The headline consumer price index (CPI) and the core CPI had December readings of 0.7 percent and 1.6 percent, respectively. A sustained low oil price could have spillover effects into the core indexes, suppressing price increases in the short run.3 Currently, core PCE is expected to remain below two percent through 2015, while core CPI is projected to match the Fed’s objective in 2015. Similar to the U.S., NYC’s headline CPI is also projected to stay below two percent in 2014 and 2015, before surpassing the Fed’s target rate in 2016. Equity markets in 2014 slowed considerably from 2013. Despite episodic volatility in the second half of the year, the S&P 500 and Dow expanded by 11.4 and 7.5 percent in 2014, respectively. October was particularly problematic with the S&P 500 sliding over seven percent at the start of the month, only to turn around and gain 3 Core CPI and PCE exclude the volatile energy and food components. 9 eight percent through the end of the month. The trading days ratio, the proportion of trading days with price moves in excess of one percent, spiked in October to 52 percent, up from five percent in September and well above the typical rate of 15 to 20 percent. One bright spot in the fourth quarter was NYSE trading volume. After 12 consecutive quarters of year-over-year declines, fourth quarter trading volume jumped 20 percent over 2013. This bump was enough to push the full year 2014 volume up 0.5 percent from 2013 – the first annual increase in six years. Fourth quarter 2014 trading in investment-grade fixed income securities was flat compared to year-ago values, a relatively positive outcome after five consecutive quarters of declines. Nevertheless, for the full year, average daily volume in 2014 was down nearly 11 percent, the fourth consecutive year with diminished activity. While nearly all types of bond trading were weak, the one standout was highly rated corporate securities, which saw an annual increase of 10 percent in volume, helped by the rapidly expanding supply of tradable assets. Corporate bond issuance last year hit $1.5 trillion, up 3.5 percent over 2013, marking the third consecutive record year as corporations continue to take advantage of low rates. The largest deals included Apple’s $12 billion sale in April, which was soon eclipsed by Medtronic in December with a $17 billion issuance. This remarkable trend will likely continue as long as interest rates remain near historically low levels. The likely fallout from indebted energy companies will probably not impact the investment-grade market since most of their bond financing comes through risky, high-yield paper. Even in this market, the share of borrowing tied to oil and gas companies is estimated to be a relatively modest 15 percent of outstanding debt. The low interest rate environment, market volatility and ongoing litigation restrained Wall Street activity. Third quarter profits for all NYSE member firms were $3 billion, down from $3.4 billion booked during the same quarter a year ago. Aggregate profits through the first three quarters totaled $11.7 billion, down about 14 percent over the same period in 2013. The forecast projects profits to end the year at $14.8 billion, down from $16.7 billion in 2013. Net profits are expected to fall slightly in 2015 to $14.1 billion and remain in the $14 billion range for 2016 and 2017. Revenue through the first three quarters was four percent higher than same prior year period, driven by gains in trading and investment, underwriting, and fees. Year-to-date, net revenue has grown at a faster pace than compensation resulting in a decreasing compensation to net revenue ratio. The ratio is expected to decline further in 2015 to 47.6 percent, well below the long run average of 53.2 percent. The end of the Fed’s QE program was expected to result in higher interest rates, but the opposite has occurred. Ten-year 4 Ten-Year Treasury Yields and Mortgage Rates Rise as the Fed Starts to Tighten Monetary Policy in the Second Half of 2015. 7% Forecast 30-Year Mortgage 6% 10-Year Treasury Fed Fund Rate 5% Annual Rate Although fourth quarter industry-wide figures are not yet available, the Big Five banks recently reported their fourth quarter earnings.4 Year-over-year pretax earnings at their investment banking units were up 9.2 percent from the fourth quarter 2013, while full year earnings were up a more modest 4.3 percent. The results for the full consolidated banks (including investment, commercial and retail units) were less sanguine as earnings contracted by 10 percent. 4% 3% 2% 1% 0% 2011 2012 2013 2014 Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley 10 2015 2016 2017 Treasury yields dropped 0.35 percentage points in the fourth quarter due to strong demand from risk-averse buyers. Since banks borrow short and lend long, a flattening yield curve hurts their margins on loans. Net interest earnings at the major retail banks (JP Morgan, Bank of America, Citigroup and Wells Fargo), fell by one percent (year-over-year) in the fourth quarter as yields sagged. Nonetheless, the drop in mortgage rates is spurring a large jump in mortgage refinancings, which should provide a temporary boost in fees. At the end of January, the Mortgage Bankers Association’s mortgage index was up over 30 percent, with the refinancing component up over 50 percent (year-over-year). However, activity is not expected to approach the frenzy seen in 2012, when mortgage rates hit bottom at 3.4 percent, since most mortgages have already been refinanced at lower rates. Continuing litigation and regulatory reforms are also challenging the banking industry. The biggest banks have collectively agreed to more than $120 billion in fines and other costs due to wrongdoings associated with the mortgage and financial crisis. Of this total, about $60 billion of the sanctions were levied in 2014. The largest was Bank of America’s deal for $16.5 billion to settle charges that it sold flawed mortgage securities just prior to the 2008 crisis. Other large settlements in 2014 included Citigroup ($7 billion) and Goldman Sachs ($1.2 billion), both as penalties for the packaging and sale of faulty mortgage bonds. S&P Ratings also recently agreed to pay $1.4 billion in charges associated with their ratings of mortgage backed and related securities. While legal costs have accounted for a significant amount of the growth in bank expenses, these costs appear to be winding down as the litigation expense for the Big Five banks fell from $9.4 billion in the third quarter to $4.8 billion in the fourth quarter. On the regulatory front, the Fed recently proposed new capital surcharges on the eight largest U.S. banks, which forces them to bolster their capital cushions against future crises. These levies are even stricter than international standards proposed by the Financial Stability Board in Basel and would be phased in starting in 2016. The Fed also finalized a Dodd-Frank rule that prohibits banks and financial firms from merging if the combined entity holds more than 10 percent of all financial liabilities. There are already three banks approaching this limit, including JPMorgan, Bank of America and Citigroup. At the same time, the financial industry is pushing back to limit or roll back existing rules. They recently received a two-year reprieve on the implementation of Volcker rule restrictions on ownership of private equity and hedge funds. In addition, the budget deal passed by Congress in December contained a modification to Dodd-Frank that eased derivative ownership rules. 11 The New York City Economy New York City’s economy extended its robust expansion by adding 89,000 private sector jobs in 2014, an increase of 2.6 percent from the prior year. This is the fourth consecutive year in which the City saw job growth of over two percent; the only other period with such vigorous hiring was the tech boom (from 1997 to 2000). Since the trough in September 2009, the City has added 446,000 private sector jobs, a 14.4 percent jump. The City’s employment growth has also outpaced the nation each of the past four years. In addition to posting strong employment gains, New York City had a record year in commercial real estate activity and tourism as well. With economic prospects looking bright, private employment is expected to sustain growth at 1.9 percent in 2015 and 2016. After suffering employment losses for two years in a row, the tide may be starting to turn for financial firms. In 2014, the financial services sector added an annual average of 2,200 jobs. As securities firms regain footing and continue to benefit from the economy’s momentum, they are expected to add 5,000 jobs over the next two years. Even with improvement in the industry underway, securities sector headcounts still remain 11.7 percent below their pre-recession peak. NYSE member firm profits are projected to hit $14.8 billion in 2014 and decline slightly to around $14 billion in 2015 and 2016. Profits have exceeded $14 billion eight times during the 34-year period spanning 1980 to 2013. Tightening regulation along with a projected deceleration of equity markets will contribute to the marginal decline in profits. With the decline in profits, average securities wages are forecast to come down slightly in 2015 from an expected all-time high of $404,000 in the prior year. Since the Employment Trough in August 2009, the Majority of Employment Gains Have Come from Lower Wage Sectors 35% 65% The professional and business Wage Greater Than 2013 Average services sector continues to be Wage Less Than 2013 Average a steadfast engine of high-wage Sectors with wages less than the 2013 average private non-finance wage include: Education, Health, Leisure and Hospitality, Manufacturing, Other Services, Retail, and Transportation. employment growth, adding an annual average of 17,800 jobs in 2014 and accounting for one in five private sector jobs. This sector, which includes computer systems design, management, advertising and employment services, has surpassed the pre-recession peak by 70,000 jobs. Growth in this sector is expected to average about 15,000 jobs per year from 2015 through 2017. The higher level of office-using employment resulted in a spectacular year for Manhattan office leasing, with deals covering 32.8 million square feet (msf), the highest level since 1998. The long-awaited completion of One World Trade Center added 3.0 msf of new inventory to the primary market and pushed the primary Downtown vacancy rates up. Nonetheless, strong leasing in the Midtown market more than offset the rise. The vacancy rate for the market overall is 9.3 percent, down 1.6 percentage points from the prior year. New office towers at Hudson Yards and the World Trade Center are expected to be completed over the next three years, adding nearly five msf of space to the market. Vacancy rates are expected to stay around 11 percent, with demand growing steadily to meet the new supply. 12 Asking rents have continued to rise, with rents in the primary market hitting $73.69 per square foot (psf), a 6.9 percent increase from the prior year. Since the trough in September 2010, primary market asking rents have risen 21 percent. The secondary Midtown South market, a hot area for tech firms this year, has seen growth of 47 percent from its prior trough in May 2010. With average asking rents of $63.23 psf, the space is currently considered more desirable than primary Downtown offices due to its proximity to tech powerhouses, such as Google, in the Silicon Alley area. This trend, however, may reverse course as newer, more affordable inventory in the Downtown area begins to attract fresh tenants in the tech, advertising, media, and information sectors. In addition to robust leasing activity, the office sales market exhibited vigorous strength in the first three quarters of the year. Average prices exceeded $100 million for four consecutive quarters from the fourth quarter of 2013 through the third quarter of 2014, the first time since the beginning of comprehensive data in 1985. Through November, there were multiple large transactions that suggest the momentum in large office transactions (over $100 million) is unlikely to have slowed in the final quarter.5 Like the national real estate market, New York City’s residential housing market slowed but is showing signs of modest recovery. Through the first three quarters of 2014, total sales volume climbed 0.6 percent, down from a 17 percent jump in the first three quarters of 2013. Over the next three years, the favorable environment fostered by cheap borrowing rates and easing lending standards is expected to stimulate volume growth. Additionally, housing inventory is projected to rise in 2015 and 2016. Condos are forecast to lead the increase in transactions, with growth of 21 percent and 13 percent for 2015 and 2016, respectively. Employment gains have not necessarily translated into increased home ownership as job growth over the past four years has been concentrated in industries with relatively low annual salaries. Wages in health, leisure and hospitality, and retail trade are all below the citywide average, but have been key contributors to post-recession growth following the recession. 5 Thousands of Dollars As the residential housing market becomes more active, average housing prices continue to rise. There was a slight slip of 1.4 percent in total average prices in 2013 following the artificially strong performance in 2012, fueled by a surge in high-end sales to beat federal tax law changes. In 2015, prices are forecast to grow 10 percent, driven by the higher-end segments of the market: co-ops and condos. This significant pace is based upon lean supply and strong demand, but is forecast to slow to six percent as new completions alleviate the supply constraints. Prices of the three residential housing sectors, however, are not picking up at the same pace. The price levels for condos and co-ops have accelerated faster over the last decade relative to single family houses. As a consequence, the average price gap between condo/ co-ops and single family homes Condo and Co-op Prices Are Accelerating is expected to continue widening. Faster Than 1-3 Family Home Prices. Building permits, a measure of $1,800 future housing supply, were up Forecast Condo Prices 12 percent in 2014 but levels are Co-op Prices $1,600 still only two-thirds of the 2008 1-3 Family Home Prices peak. Issuance flow is projected to $1,400 maintain double-digit growth rates for most of the forecast horizon. $1,200 $1,000 $800 $600 $400 $200 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 The fourth quarter 2014 transactions data from NYC Department of Finance will not be released until March 2015. 13 2017 The health services sector added 21,400 jobs in 2014 and contributed 57,400 positions to total employment since 2011. Demographics are one key driver of the strong gains within the sector. According to the Census Bureau, the percentage of the New York City population above 65 was 12.1 percent in 2010, an increase from 11.7 percent in 2000. Forecasts for 2015 through 2017 expect the sector’s employment gains to slow to a more moderate pace, averaging 7,000 jobs per year. The leisure & hospitality industry continues to be an important driver for City employment. Since the financial crisis, this industry has experienced above-average hiring with less volatility. The average annual growth rate for this industry post-financial crisis has been five percent. It is expected to add more than 10,000 jobs in each of the next three years. This growing dynamic is based upon its key subsector, accommodation & food services, whose growth is driven mostly by tourism. However, hiring in leisure & hospitality might down-shift to a more modest pace if the tourism industry slows due to factors such as currency appreciation or sluggish global growth. Nevertheless, domestic traffic makes up the majority of total visitors to NYC. Thus, a strengthening U.S. economy might also increase the flow of domestic travelers who would be uninfluenced by currency shifts. Similar to leisure and hospitality, retail trade employment is closely tied to the tourism industry. It has also been a significant contributor to growth during this four year stretch, adding 13,600 jobs in 2014. Employment in this sector is projected to continue to grow, but at a more moderate pace, expanding by an average of approximately 9,000 jobs in 2015 through 2017. The projections for retail trade are subject to the same risks as the leisure and hospitality sector. As New York City offers incomparable experiences for visitors from all over the world, the tourism industry continues to be a crucial part of the City’s economy. In 2014, the industry set new highs, attracting 56.4 million visitors, of which 78 percent were domestic and 22 percent were international. In 2013, out of New York City’s top 10 international markets, four were Eurozone countries (France, Germany, Italy and Spain), and since 2009, the number of international tourists has increased at a faster rate than domestic visitors. The travel boom has also resulted in a record hotel occupancy rate of 89.2 percent. Average daily room-rates finished 2014 at $295, up from $290 in the prior year. The economic impact from the booming tourism industry is significant, including but not limited to wages, jobs, and taxes that are directly generated from or supported by visitor spending. The outlook for the New York City economy is positive; however, there are several risk factors that could alter the projections. One risk to the forecast is the potential slowdown of global economic growth, particularly in the Eurozone, Russia, and China, as an international slump will have some spillover to the City and the U.S. The decoupling of monetary policy between the Federal Reserve and other central banks will keep the dollar strong, casting a cloud over U.S. export activity. Meanwhile, at the city level, weaker foreign currencies might discourage international visitors and their spending on local goods and services. Finally, with a divided leadership in Washington, further fiscal uncertainty and potential for gridlock remains a possibility. 14 New York City Job Growth Forecast Seasonally Adjusted NYC Employment (Thousands) Total Private Financial Activities Securities Professional & Business Services Information Education Health & Social Services Leisure & Hospitality Wholesale & Retail Trade Transportation & Utilities Construction Manufacturing Other Services Government Note: Total may not add up due to rounding. 15 2014 2015 2016 Level 4,054 3,513 441 165 661 179 202 639 394 496 123 123 77 178 541 Level Change 65 66 6 3 18 5 2 6 13 9 2 2 — 2 — Level Change 64 64 6 2 15 4 2 8 11 10 1 3 — 1 — Financial Plan Fiscal Year 2016 Forecasts of Selected Economic Indicators for the United States and New York City Calendar Year 2014-2019 NATIONAL ECONOMY Real GDP Billions of 2009 Dollars……… Percent Change ……………… Non-Agricultural Employment Millions of Jobs……………… Level Change………………… Percent Change……………… Consumer Price Index All Urban (1982-84=100)…… Percent Change ……………… Wage Rate Dollars Per Year……………… Percent Change……………… Personal Income Billions of Dollars…………… Percent Change……………… Before-Tax Corporate Profits Billions of Dollars…………… Percent Change……………… Unemployment Rate Percent ……………………… 10-Year Treasury Note Percent……………………… Federal Funds Rate Percent……………………… NEW YORK CITY ECONOMY Real Gross City Product** Billions of 2009 Dollars……… Percent Change……………… Non-Agricultural Employment*** Thousands of Jobs…………… Level Change………………… Percent Change ……………… Consumer Price Index All Urban (1982-84=100)…… Percent Change……………… Wage Rate Dollars Per Year……………… Percent Change……………… Personal Income Billions of Dollars…………… Percent Change……………… 2014 2015 2016 2017 2018 2019 1979-2013* $16,089 2.4 $16,573 3.0 $17,013 2.7 $17,497 2.8 $17,932 2.5 $18,441 2.8 2.6% 138.9 2.5 1.8 141.7 2.8 2.0 144.1 2.4 1.7 146.0 1.9 1.3 147.1 1.1 0.8 148.5 1.4 0.9 1.2% 236.7 1.6 237.5 0.3 242.8 2.2 248.4 2.3 254.6 2.5 260.9 2.5 3.5% 53,530 2.5 55,044 2.8 56,905 3.4 59,072 3.8 61,497 4.1 64,056 4.2 4.0% 14,715 3.9 15,352 4.3 16,120 5.0 17,020 5.6 17,878 5.0 18,800 5.2 5.8% 2,438 9.1 2,572 5.5 2,555 -0.7 2,436 -4.7 2,401 -1.4 2,478 3.2 6.1% 6.2 5.6 5.3 5.2 5.2 5.1 6.4% avg 2.5 2.8 3.6 4.2 4.4 4.4 6.8% avg 0.1 0.4 1.6 3.3 3.8 3.8 5.5% avg $719.2 3.4 $729.7 1.5 $742.7 1.8 $757.4 2.0 $771.4 1.9 $786.7 2.0 2.6% 4,058 91 2.3 4,123 65 1.6 4,187 64 1.6 4,247 60 1.4 4,292 45 1.1 4,333 41 1.0 0.5% 260.7 1.5 263.1 0.9 269.2 2.3 275.8 2.4 283.0 2.6 290.2 2.6 3.7% 84,449 4.9 86,235 2.1 88,512 2.6 91,151 3.0 94,104 3.2 97,241 3.3 3.8% 503.7 4.6 519.0 3.0 539.3 3.9 565.0 4.8 589.1 4.3 613.2 4.1 5.7% NEW YORK CITY REAL ESTATE MARKET Manhattan Primary Office Market Asking Rental Rate**** Dollars per Square Feet……… $73.66 $76.68 $80.60 $82.86 $86.30 $87.61 Percent Change……………… 6.9 4.1 5.1 2.8 4.2 1.5 2.3% Vacancy Rate**** Percent……………………… 11.0 11.5 11.1 11.0 11.1 12.0 10.6% avg * Compound annual growth rates for 1979-2009. Compound growth rate for Real Gross City Product covers the period 1980-2013; Personal Income 1978-2013. ** GCP estimated by OMB. *** Employment levels are annual averages. **** Office market statistics are based on 1987-2013 data published by Cushman & Wakefield. 16 TAX REVENUE FORECAST1 Real Property Tax Real property tax revenue is forecast at $21.170 billion in 2015, growth of 6.0 percent over the prior year. In 2016, real property tax revenue is forecast at $22.113 billion, growth of 4.5 percent. Total market value grew by 9.1 percent from the 2015 final roll to the 2016 tentative roll. The market value growth is primarily driven by an 11.8 percent increase in Class 4 (office and commercial space) properties. Class 1 (one-to three-family homes) properties saw an increase of 7.0 percent in their market value. Class 2 (rental apartments, condominiums, and cooperatives) properties saw market value growth of 10.9 percent overall. Large Class 2 (more than 10 units) properties saw an increase of 12.8 percent, while small Class 2 (10 units or less) properties saw growth of 4.8 percent. Class 3 (utilities) properties saw a slight market value increase of 0.7 percent. Citywide, total billable assessed value on the 2016 tentative roll (after accounting for the veterans’ and STAR exemptions) increased by $17.1 billion over 2015 to $199.6 billion, growth of 9.4 percent. The 2016 tentative roll is expected to be reduced by $4.1 billion on the final roll as a result of Tax Commission actions, Department of Finance changes by notice, and the completion of exemption processing. The billable assessed value on the final roll (before accounting for the veterans’ and STAR exemptions) is forecast to grow 5.8 percent. On the 2016 tentative roll, Class 1 billable assessed value (based on the comparable sales price valuation methodology) increased 4.9 percent over the prior year (after accounting for the veterans’ and STAR exemptions). With an estimated tentative-to-final roll reduction of $9 million, billable assessed value on the final roll (before accounting for the veterans’ and STAR exemptions) is expected to grow 4.5 percent, slightly higher than last year’s growth of 3.4 percent. Class 1 billable assessed value is forecast to grow at an annual average of 3.6 percent from 2017 through 2019. On the 2016 tentative roll, overall Class 2 properties saw billable assessed value growth of 10.5 percent (after accounting for the veterans’ and STAR exemptions). With an estimated tentative-to-final roll reduction of $1.4 billion, billable assessed value growth on the final roll (before accounting for the veterans’ and STAR exemptions) is expected to be 8.2 percent, significantly stronger than last year’s growth of 6.8 percent. Class 2 billable assessed value growth is forecast to grow at an annual average of 5.0 percent from 2017 through 2019. Class 3 (utilities) properties saw billable assessed value growth of 0.8 percent on the 2016 tentative roll. After the assessments for Class 3 special franchise properties are completed by the NYS Office of Real Property Tax Services, Class 3 billable assessed value on the final roll is expected to grow 0.8 percent. Class 3 billable assessed value growth is expected to remain flat from 2017 through 2019. Class 4 properties, which consist of all other real properties such as office buildings, factories, stores and vacant land, saw billable assessed value growth (after accounting for the veterans’ and STAR exemptions) of 10.6 percent on the 2016 tentative roll. With an estimated tentative-to-final roll reduction of $2.7 billion, the billable assessed value growth on the final roll (before accounting for the veterans’ and STAR exemptions) is expected to be 5.1 percent. Class 4 billable assessed value is forecast to grow at an annual average of 5.5 percent from 2017 through 2019. Property tax collections are expected to grow at an annual average of 4.5 percent from 2017 through 2019. Commercial Rent Tax Commercial rent tax revenue is forecast at $735 million in 2015, growth of 3.5 percent over the prior year. Market conditions have been improving steadily since 2010 with increasing occupancy and growth in both 1 All tax figures are stated in terms of the City fiscal year, which runs from July 1 to June 30. The text will specifically state when referring to calendar years. 17 Midtown and Downtown primary market asking rents. In calendar year 2015, commercial office markets are expected to remain steady with asking rents growing at 4.1 percent. New leasing activity in calendar year 2014 has reached the highest level of activity since 1998, while total leasing volume including renewals has reached an all-time high. In 2016, the commercial rent tax is forecast at $765 million, growth of 4.1 percent. This reflects the continued growth in office-using employment. Asking rents are expected to rise while the vacancy rate is forecast to remain steady. Commercial rent tax revenue is projected to grow at an annual average of 4.2 percent from 2017 through 2019 as growth in the City’s employment is expected to remain positive as the City’s economy continues to rebound. Transaction Taxes Real property transfer tax revenue is forecast at $1.501 billion in 2015, a decline of 1.7 percent from the prior year. The 2015 level is now only 12.9 percent below the peak seen in 2007, reflecting a healthy recovery after collections collapsed by 64.3 percent from their 2007 peak. Real property transfer tax collections year-todate through December grew 4.0 percent over the extraordinary levels of the prior year. Together with a stronger dollar and rising interest rates, demand for commercial office properties is expected to temper and real property transfer tax revenue is forecast to remain relatively flat in 2016 before returning to growth, averaging 3.3 percent from 2017 through 2019 as the local property market continues to rebound with stable employment growth. In 2015, commercial transaction activity is forecast to be similar to last year’s high levels as the market for large transactions (greater than $100 million) remains strong. Strong office fundamentals, a relatively weak dollar and record low interest rates have made commercial real estate in New York City a sought after asset class as investors all over the globe search for safe assets with positive yields. The 2015 commercial transaction tax revenue forecast is now only 14.0 percent below the peak seen in 2007. The frenzied level of activity seen in recent years is expected to stabilize as the dollar appreciates and interest rates begin to rise from their nadir. Collections from commercial transactions are forecast to decline 13.7 percent in 2016 and decline slightly through the forecast period. In 2015, residential transfer tax collections are forecast to decline 4.2 percent from the prior year as the residential real estate market tempers. A lack of inventory in the market is likely to result in an 8.2 percent decline in transactions, although the average price of units on the market is forecast to grow 8.0 percent. Collections from the residential real estate market are expected to return to growth in 2016 at a 21.2 percent increase as new condominiums are completed and offered to potential buyers, lifting both the volume and average price of the overall residential market. Revenue is forecast to grow at an annual average rate of 9.5 percent from 2017 through 2019. Mortgage recording tax revenue is forecast at $960 million in 2015, nearly flat from the prior year. The 2015 level is still 38.8 percent below the 2007 peak. As a result of tighter lending standards, growth in mortgage recording tax lags the recovery seen in the real property transfer tax. Mortgage recording tax collections yearto-date through December grew 16.4 percent. In 2016, mortgage recording tax revenue is forecast to fall 1.7 percent, before returning to growth averaging 4.3 percent from 2017 through 2019. In 2015, commercial mortgage recording tax revenue is expected to remain flat from the prior year. The strength in mortgage recording tax collections stemming from strong commercial real estate sales activity in the prior year is not expected to continue. Transactions are then expected to drop off, mirroring the decline in large commercial transaction activity. Collections are forecast to decline 13.8 percent in 2016 and remain flat from 2017 through 2019. 18 In 2015, residential mortgage recording tax revenue is forecast to remain flat following a slightly weaker level of sales activity. Parallel to the strength in transactions due to new inventory, collections from residential mortgage recording tax are forecast to grow 21.2 percent in 2016 and average growth of 9.6 percent from 2017 through 2019 as the housing market continues to improve. Personal Income Tax Personal income tax revenue is forecast at $9.817 billion in 2015, an increase of 2.9 percent over the prior year. This moderate growth follows record high personal income tax revenue of $9.5 billion in 2014, the result of continued withholding growth bolstered by strong private and securities sector bonus payments as well as higher than expected City/State offset payments. Estimated payments fell in 2014 as they were coming off a strong 2013 caused by a behavioral shift whereby taxpayers realized capital gains before higher federal rates came into effect. In 2015, estimated payments are expected to grow modestly from the 2014 level. Withholding for 2015 is expected to continue to grow; however a drop in City/State offsets is forecast to offset some of this growth. Withholding collections in 2015 are forecast to grow 7.5 percent over the prior year after an increase of 6.6 percent in 2014. The July through November withholding collections grew 8.3 percent over the same prior year period as the City added nearly 90,000 jobs during the calendar year. For the December through March bonus period, withholding collections are forecast to increase 7.9 percent. This reflects a small increase in private sector bonus payouts after strong growth in the prior year, as well as continued growth in non-bonus withholding. Withholding collections are forecast to increase 2.6 percent for the fourth quarter of 2015, reflecting moderate growth in the wage earnings forecast off of an elevated base. Estimated payments (the sum of installment and extension payments) are expected to increase in 2015 after a decline the prior year. The growth in total estimated payments is due to higher liability driven by strength in equity markets, large commercial transactions, and proprietor’s income growth. The decline in estimated payments in 2014 was a return to a more sustainable level after taxpayers in 2013 accelerated capital gains realizations in order to avoid the higher federal tax rates which came into effect on January 1, 2013. This behavioral shift caused a rebasing of capital gains for tax year 2013, but growth in capital gains is expected for tax year 2014, buoyed by strong growth in equity markets throughout the calendar year. This growth in capital gains paired with the increase in proprietor’s income will drive up overall non-wage income, which is expected to boost estimated and extension payments. Settlement payments (net of final returns, refunds, extensions and City/State offsets) are forecast to decline due to a drop in City/State offsets as well as an increase in refunds. Extension payments and final returns are projected to remain nearly flat from the previous year. City/State offsets came in higher than expected in 2014, but are forecast to revert to lower trend levels for 2015. Refunds are projected to increase in line with the forecast withholding growth. Overall, City/State offsets and refunds drive the decline in the settlement payments in 2015. Personal income tax revenue in 2016 is forecast to grow 2.6 percent. Withholding collections are forecast to grow 4.2 percent, as job growth is expected to continue throughout 2016 and the average wage rate is forecast to increase 2.3 percent. However, this growth in base withholding is expected to be dampened by a decline in securities sector bonuses after consecutive years of near-record levels. Non-wage income levels are expected to remain high for tax year 2015. This will result in growth of 1.9 percent for estimated payments on tax year 2015. In the out-years of the forecast period, continued growth in employment, wage rates, and non-wage income leads to personal income tax growth averaging 2.7 percent from 2017 through 2019. Business Income Taxes Business income tax revenues (general corporation, banking corporation, and unincorporated business taxes) are forecast at $6.100 billion in 2015, growth of 3.8 percent over the prior year. In 2016, business income tax revenues are forecast at $6.262 billion, growth of 2.7 percent. 19 General corporation tax gross collections are forecast to grow 6.1 percent in 2015 to over three billion dollars. Gross collections year-to-date through December increased 4.4 percent from the prior year. Tax payments from finance sector firms grew nearly eight percent year-to-date over the prior year period, reflecting the high level of Wall Street profitability in calendar year 2013 and the first half of calendar year 2014. Lower levels of finance sector tax payments are forecast for the second half of the fiscal year, reflecting the expected decline of Wall Street firm profitability from $14.8 billion in calendar year 2014 to approximately $14 billion in calendar year 2015. Non-finance sector tax payments have exhibited strong growth year-to-date through December and healthy levels of non-finance sector tax payments are forecast to continue for the remaining half of the fiscal year, supported by the high level of calendar year 2014 corporate profits. In 2016, general corporation tax gross collections are forecast to grow 2.6 percent, reflecting moderate levels of corporate profits and continued Wall Street profitability. General corporation tax gross collections are forecast to average growth of 2.9 percent annually from 2017 through 2019. Banking corporation tax gross collections are forecast to decline 3.2 percent in 2015 to $1.313 billion. Gross collections increased 5.4 percent year-to-date through December, in part attributable to significant clearing house bank tax payments this year that were insignificant in the same prior year period. The increase in bank tax payments reflects a pickup in mortgage loan originations and refinancing activity, resulting from low interest rates and gradual improvements in the nation’s housing market. However, settlements related to mortgage securities and unfair banking practices, along with more restrictive regulations, are expected to reduce bank tax payments in the second half of 2015 and remain a drag on bank tax collections from 2016 through 2019. Unincorporated business tax gross collections are forecast to grow 7.2 percent in 2015 to $2.121 billion. Unincorporated business tax gross collections are up 18.0 percent year-to-date through December. Finance sector tax payments have demonstrated strong growth, reflecting healthy finance market performance. Hedge funds, which make up a significant portion of the unincorporated business tax finance sector, have seen assets under management maintain at the all-time high level over the past two years (calendar years 2013 and 2014), facilitating the payments to rebound to the pre-2008 recession level. Non-finance sector tax payments, led by robust real estate market activities, as well as the healthy growth in construction, professional services, health care and leisure & hospitality, are forecast to reach a new all-time high level for the third consecutive year. In 2016, unincorporated business tax gross collections are forecast to grow 4.3 percent, paralleling the sustained growth of the national and local economies. Unincorporated business tax gross collections are forecast to average growth of 3.4 percent annually from 2017 through 2019. In March 2014, the State of New York’s enacted budget for State Fiscal Year 14-15 imposed major changes to the State Corporate tax structure. These changes included the merging of the NYS franchise tax with the NYS banking franchise tax as well as modifications to other sections of the NYS corporate tax code. The proposed Governor’s Budget, released January 21, 2015, includes a proposal supported by NYC Mayor Bill de Blasio which would conform the NYC corporate tax structure to the State corporate tax structure with revisions to ensure that the effects of corporate tax reform on NYC tax revenue are revenue neutral. Sales & Use Tax Sales tax revenue is forecast at $6.782 billion in 2015, growth of 4.4 percent over the prior year. The forecast for 2015 is supported by continued high levels of visitor spending and the local economic recovery. Sales tax collections year-to-date through December grew 4.7 percent. The moderate growth, through December, reflects local employment growth, Wall Street profitability, and continued strength from tourist consumption. Overall, the holiday spending season was seen to be healthy, as reported by several organizations that track consumer spending, with women’s apparel, jewelry, and casual dining among the best-performing categories. 20 NYC tourist consumption continued to thrive as the City welcomed approximately 56 million visitors, making calendar year 2014 another record-breaking year for tourism. An improving jobs market, with national and statewide unemployment at a six-year low, and falling gasoline prices are among the factors helping to spur spending. In 2016, sales tax revenue is forecast at $7.045 billion, growth of 3.9 percent. Taxable consumption is forecast to grow moderately due to strength in the tourism industry and growth in wage earnings. Sales tax revenue growth is forecast to average 3.9 percent annually from 2017 through 2019, paralleling steady growth in the local economy. Hotel Tax Hotel tax revenue is forecast at $567 million in 2015, growth of 5.8 percent over the prior year. Year-todate hotel tax collections growth through December, after adjusting for a December tax payment that slipped into January, is over seven percent. The forecast assumes solid growth to continue through the remainder of the fiscal year. The forecast growth in hotel tax revenue stems from the continued expansion in hotel room inventory and extremely high occupancy rates at hotels throughout the City. The strength in tourism allows hoteliers to increase hotel room rates by 3.1 percent in 2015, after growing 2.5 percent in 2014. Hotel tax revenue is forecast to remain essentially flat at the current high levels from 2016 through 2019. Stable national macroeconomic growth is offset by weaker demand from abroad, as the appreciating dollar and global economic malaise limit growth. Utility Tax Utility tax revenue is forecast at $398 million in 2015, a decline of nearly two percent from the prior year. Utility tax collections through December declined from the prior year, reflecting substantially lower natural gas prices and a milder summer than in recent years. Collections for the second half of the fiscal year are forecast to decline slightly from the prior year as the effect of lower natural gas prices is still impacting collections. In addition, early winter weather that was warmer than in recent years is expected to decrease natural gas consumption, resulting in a decline in collections. Utility tax revenue is forecast to average growth of 2.5 percent annually from 2016 through 2019, reflecting more stable energy prices. Cigarette Tax Cigarette tax revenue is forecast at $49 million in 2015, a decline of 9.2 percent from the prior year. In 2016, cigarette tax revenue is forecast to decline to $48 million. From 2017 through 2019, cigarette tax collections are projected to average a decrease of 2.1 percent. This reflects the long-term trend of decline in the number of packs sold resulting from cessation of smoking and substitution towards new products. Other Taxes All other tax revenues are forecast at $576.2 million in 2015, an increase of 5.3 percent over the prior year. All other taxes are forecast at $541.4 million, a decline of 6.0 percent in 2016 and remain flat from 2017 through 2019. Tax Audit Revenue As part of the City’s tax enforcement efforts, the Department of Finance vigorously pursues delinquent taxpayers through agency audit activities and computer matches. Tax audit revenue for 2015 is forecast at $912.3 million. Audit revenue is forecast at $711.1 million annually from 2016 through 2019. 21 Tax Revenue Forecast ($ in Millions) Fiscal Year 2015 2016 2017 2018 2019 $21,170 $22,113 $23,141 $24,151 $25,220 1,501 1,506 1,557 1,612 1,661 Mortgage Recording 960 944 986 1,030 1,071 Commercial Rent 735 765 800 835 865 Personal Income 9,817 10,076 10,308 10,591 10,908 General Corporation 2,900 2,950 3,036 3,136 3,246 Banking Corporation 1,171 1,194 1,190 1,191 1,218 Unincorporated Business 2,029 2,118 2,167 2,251 2,345 6,782 7,045 7,327 7,624 7,893 Utility 398 404 413 428 440 Hotel 567 550 565 574 569 Cigarette 49 48 47 46 45 All Other 576 541 537 537 537 48,655 50,255 52,074 54,007 56,018 912 711 711 711 711 $49,567 $50,966 $52,785 $54,718 $56,729 861 877 881 881 881 $50,428 $51,843 $53,666 $55,599 $57,610 Real Estate-Related Taxes: Real Property Real Property Transfer Income-Based Taxes: Consumption and Use Taxes: Sales and Use Subtotal Tax Audit Revenue Total STAR Aid Total* * Totals may not add due to rounding 22 Tax Revenue Forecast All Other Taxes ($ in Millions) Fiscal Year 2015 2016 2017 2018 2019 Off-Track Betting (Dividend) $— $— $— $— $— OTB Surtax 1.3 1.3 1.3 1.3 1.3 Horse Race Admissions — — — — — Beer and Liquor 24.0 26.0 24.0 24.0 24.0 Liquor License 5.0 5.0 5.0 5.0 5.0 Commercial Motor Vehicle 53.0 50.0 50.0 50.0 50.0 Auto Use 29.0 29.0 29.0 29.0 29.0 8.0 8.0 8.0 8.0 8.0 Section 1127 (Waiver) 130.0 130.0 130.0 130.0 130.0 PILOTs 305.9 269.1 269.1 269.1 269.1 Other Tax Refunds (32.0) (29.0) (29.0) (29.0) (29.0) P&I - Real Estate Current Year 19.0 19.0 18.0 18.0 18.0 P&I - Real Estate Prior Year 36.0 36.0 35.0 35.0 35.0 P&I - Other (Refunds) (3.0) (3.0) (3.0) (3.0) (3.0) $576.2 $541.4 $537.4 $537.4 $537.4 Excise Taxes: Auto-Related Taxes: Taxi Medallion Miscellaneous Taxes: Penalties and Interest: Total All Other Taxes* * Totals may not add due to rounding 23 SANDY RECOVERY New York City’s Response to Sandy Hurricane Sandy, which made landfall in New York City on October 29, 2012, disrupted critical systems and caused significant damage across the five boroughs of New York City. Sandy’s impacts included power outages, hospital closures, transportation disruptions, and, most tragically, the loss of 44 lives in New York City. In addition to emergency response and repairs to damages, the City is making resiliency improvements to protect against future disasters. Extreme weather events are expected to increase in both frequency and intensity due to climate change. Federal Funding for Sandy Recovery Funding for Sandy Recovery comes primarily from two sources, the Federal Emergency Management Agency (FEMA), and the U.S. Department of Housing and Urban Development (HUD). The FEMA Public Assistance program supports costs borne by the City for emergency response and long-term repairs to damaged City facilities and infrastructure, as well as qualifying resiliency improvements. HUD funding is provided through the Community Development Block Grant – Disaster Recovery program (CDBG-DR). Through this program the City is funding additional recovery needs such as housing recovery and assistance to impacted businesses. Federal Emergency Management Agency (FEMA) Public Assistance A total of $4.7 billion was budgeted in prior years and in the prior Financial Plan ($1.9 billion in the expense budget and $2.8 billion in the capital budget). The February Financial Plan adds $1.3 billion to the capital budget for FEMA-funded projects. Included in this addition is $828 million at HHC for repairs and mitigation investments at four major hospitals (out of an expected total HHC grant of $1.7 billion). At SCA $200 million were added, bringing up the capital program for school repairs to $649 million. At DEP $115 million of capital funding were added for repairs and mitigation investments for damaged electrical conduit. At EDC $101 million were added for repairs and mitigation investments at the Homeport on Staten Island. At DPR $67 million were added to cover change orders on the plan to rebuild and harden the Rockaway Beach Boardwalk. The February Financial Plan reflects 97% of total anticipated FEMA-funded projects ($6.0 billion of $6.2 billion) that flow through the City’s budget. Community Development Block Grant – Disaster Recovery Program (CDBG-DR) The Federal Department of Housing and Urban Development has allocated $4.2 billion of CDBG-DR funds from HUD for Hurricane Sandy, of which $3.2 billion have been published in a Action Plan approved by HUD. The February Financial Plan adds $1.0 billion in HUD CDBG-DR funding to the budget for Sandy recovery, $0.5 billion in expense funding and $0.5 billion in capital funding. The additional expense funding primarily supports housing recovery, including the mitigation measures to protect the City’s housing stock from future flooding. Capital funding will support, through the local match of the 10% local share of FEMA funding, repair and resiliency measures for public housing, hospitals, and parks. This $1.0 billion increase in additional HUD CDBG-DR funding results in a total of $2.6 billion budgeted, or 93% of total available CDBG-DR funds. The City will budget the remaining $1.6 billion once HUD approves the City’s revised Action Plan, expected in mid-April. 25 CAPITAL PROGRAM The Modified Capital Commitment Plan for Fiscal Years 2015-2018 authorizes agencies to commit $44.7 billion, of which $36.6 billion will be City-Funded. City funds include proceeds of bonds issued by the City Municipal Water Finance Authority and the New York City Transitional Finance Authority as well as City general obligation bonds. The targeted level for City-funded commitments is $9.8 billion in Fiscal Year 2015. The aggregate agencyby-agency authorized commitments of $13.6 billion exceed the Fiscal Year Financial Plan by $3.8 billion. Excess authorizations in this proportion have proven necessary to achieve commitment spending targets by accommodating such factors as scope changes and delays. 27 The Capital Program Since 2011 The following table summarizes capital commitments over the past four years. FY 2011-2014 Commitments ($ in Millions)* 2011 2012 2013 2014 City Funds All Funds City Funds All Funds City Funds All Funds City Funds All Funds $100 178 602 354 1 $1,235 $98 190 602 361 1 $1,252 $59 366 578 571 97 $1,670 $59 368 590 570 97 $1,685 $65 279 402 454 316 $1,516 $58 288 402 456 316 $1,521 $84 300 343 412 21 $1,160 $84 302 345 408 21 $1,160 Subtotal $130 137 296 $563 $130 137 333 $600 $5 6 278 $290 $35 125 300 $460 $125 249 298 $672 $133 361 438 $931 $35 131 325 $491 $35 234 415 $684 Subtotal $953 58 $1,011 $1,787 58 $1,845 $1,263 70 $1,332 $2,481 70 $2,551 $1,282 48 $1,330 $2,345 48 $2,394 $1,040 74 $1,113 $2,060 74 $2,134 Housing And Economic Development Economic Development Housing Subtotal $143 258 $400 $190 343 $533 $205 192 $397 $244 298 $542 $272 308 $580 $282 376 $657 $255 336 $590 $278 415 $694 Subtotal $69 97 80 $246 $69 97 80 $246 $95 63 63 $221 $95 63 63 $221 $104 17 83 $204 $104 17 89 $210 $114 123 164 $401 $125 123 170 $418 Subtotal $149 90 279 367 116 319 462 132 $1,914 $161 94 286 396 116 320 475 248 $2,097 $133 83 292 256 154 222 260 147 $1,548 $135 87 298 290 154 222 276 187 $1,651 $172 143 264 310 190 392 277 147 $1,894 $176 157 315 533 190 400 279 215 $2,265 $211 52 244 255 144 276 571 216 $1,969 $215 63 307 365 144 277 573 356 $2,298 Environmental Protection Equipment Sewers Water Mains, Sources & Treatment Water Pollution Control Water Supply Subtotal Transportation Mass Transit Bridges Highways Education Education Higher Education Administration Of Justice Correction Courts Police City Operations & Facilities Cultural Institutions Fire Health & Hospitals Parks Public Buildings Sanitation Technology & Equipment Other Total Commitments Total Expenditures $5,369 $6,575 $5,458 $7,111 $6,196 $7,978 $5,725 $7,387 $8,602 $9,099 $6,994 $8,431 $6,888 $8,385 $7,468 $7,903 * Note: Individual items may not add to totals due to rounding. 28 FY 2015-2018 Commitment Plan ($ in Millions)* 2015 2016 2017 2018 City Funds All Funds City Funds All Funds City Funds All Funds City Funds All Funds $98 470 738 668 666 $2,638 $98 488 739 700 666 $2,691 $59 567 823 591 16 $2,057 $59 583 823 702 16 $2,183 $91 435 385 580 7 $1,499 $91 444 385 580 7 $1,508 $49 333 381 733 151 $1,647 $49 333 381 889 151 $1,803 Subtotal $351 310 395 $1,056 $375 758 582 $1,714 $40 672 668 $1,381 $40 982 922 $1,945 $40 452 305 $797 $40 757 467 $1,264 $40 430 344 $814 $40 498 349 $887 Subtotal $1,741 304 $2,045 $3,101 314 $3,415 $2,425 57 $2,482 $2,743 57 $2,800 $2,405 32 $2,437 $2,600 32 $2,632 $1,928 6 $1,935 $2,600 7 $2,607 Housing And Economic Development Economic Development Housing Subtotal $699 535 $1,234 $871 672 $1,543 $352 618 $970 $371 668 $1,039 $274 627 $900 $292 676 $968 $72 643 $715 $90 693 $782 Subtotal $340 291 388 $1,018 $401 291 422 $1,114 $196 103 106 $405 $205 103 111 $419 $477 61 151 $689 $477 61 151 $689 $126 47 76 $250 $126 47 77 $250 Subtotal $617 245 533 1,307 391 356 1,029 1,170 $5,647 $717 386 701 1,840 391 375 1,038 1,382 $6,830 $20 108 256 260 262 238 410 199 $1,753 $20 108 896 269 262 238 410 603 $2,806 $27 38 139 242 152 336 240 212 $1,387 $27 38 283 242 152 336 240 429 $1,747 $50 87 79 82 124 123 145 153 $844 $50 87 170 82 124 123 145 239 $1,020 Total Commitments $13,638 $17,307 $9,047 $11,191 $7,709 $8,808 $6,204 $7,349 Reserve For Unattained Commitments ($3,851) ($3,851) $57 ($232) ($232) $446 $446 $9,104 $11,248 $6,865 $8,572 $7,477 $7,521 $8,576 $9,282 $6,650 $7,720 $7,795 $9,376 Environmental Protection Equipment Sewers Water Mains, Sources & Treatment Water Pollution Control Water Supply Subtotal Transportation Mass Transit Bridges Highways Education Education Higher Education Administration Of Justice Correction Courts Police City Operations & Facilities Cultural Institutions Fire Health & Hospitals Parks Public Buildings Sanitation Technology & Equipment Other Commitment Plan $9,787 $13,456 Total Expenditures $6,464 $8,480 * Note: Individual items may not add to totals due to rounding. 29 $57 The Department of Design and Construction The Department of Design and Construction was created in October 1995 by Local Law 77, which authorized it to assume responsibility for construction projects performed by the departments of Transportation, Environmental Protection and General Services. The Department delivers the City’s construction projects in an expeditious, cost-effective manner, while maintaining the highest degree of architectural, engineering and construction quality. The Department performs design and construction functions related to streets and highways; sewers; water mains; correctional and court facilities; cultural buildings; libraries; and other public buildings, facilities and structures. The consolidation of design and construction into a single agency allows for the elimination of duplicative program units within agencies; the standardization of construction procedures and practices; the implementation of reforms of current practices relating to procurement for construction projects; and the expansion of the use of construction-related technology, such as Computer-Aided Drafting and Design (CADD); and a project management information system. The Department also enables the City to coordinate a wide variety of construction projects with utilities, community representatives, and private industry, thus minimizing the disruption to individual neighborhoods caused by water-main projects, sewer construction, and road work, as well as reducing the costs associated with such projects. The Department of Design and Construction serves 21 client agencies. Capital Asset Inventory and Maintenance Program The Charter mandates an annual assessment of the City’s major assets, including buildings, piers, bulkheads, bridges, streets and highways, and the preparation of state of good repair needs for these assets. The annual report, used by agencies for capital planning purposes, includes, as a separate volume, a reconciliation of the amounts recommended in the condition assessment with amounts funded in the budget. All asset reports are now available to the agencies via the City intranet. Value Engineering For the past 31 years, the Mayor’s Office of Management and Budget (OMB) has successfully used several review and assessment tools of value management as a means of maximizing the City’s return on investment. These include the value engineering and value analysis methodologies, defined below: Value Engineering (VE) systematically reviews construction designs, costs and functions for the purpose of achieving the most effective project at the lowest life–cycle cost for both capital and operating expenses. Value Engineering is conducted on selected major capital projects at an early enough phase to confirm that their scope includes all required elements, to identify potential problems and to incorporate solutions and recommendations into the design. Each review is customized to bring in relevant experts on a wide range of technical disciplines who contribute their vast knowledge to the development of City projects. An independent cost estimate is prepared for each VE study as a reality cost check. In its role as technical support, the Value Engineering Unit is able to provide expertise otherwise unavailable in–house, both at OMB and other agencies. Working with a VE team of outside consultants and experts, along with input from agency clients, the VE Unit is able to review capital projects and operational processes, and greatly contribute to the effectiveness of how the City conducts its business and manages its resources. This truly collaborative effort also provides a forum to address the concerns of the interested parties. Recommendations stemming from VE reviews enable agency policy makers to make an informed assessment on the viability of a project’s scope, cost and schedule, which often result in substantial construction cost savings. In many cases it also results in improved designs and future operational savings. 30 Projects earmarked for future VE review include bridges, water supply tunnels and reservoirs, dams, waste water treatment facilities, hospitals, labs, sanitation garages, roadways, and jail projects. Value Analysis (VA) fundamentally redesigns key operational functions to effect increased efficiency and improvements. Value analysis is applied to the review of the City’s operational processes and procedures to assist agencies in streamlining their operations. Value Analysis has provided agencies with new operational and functional processes for existing programs, and often offers a new paradigm for providing services. One of the essential goals of Value Analysis is to provide a structure within which a client agency’s operations can be reviewed and changed by those closest to the process with support from the decision-makers charged with performing the agency’s mission. This process encourages all levels of staff to “see” the larger mission and creates internal support for change which increases the likelihood of success. OMB continues to be on the forefront in Value Management (VM). The City’s VM program has provided agencies with a management tool that allows participation in the decision-making process by personnel at various levels, thereby adding collaborative and constructive input to the overall “big picture” scope of projects. 31 FINANCING PROGRAM The City’s financing program projects $33.1 billion of long-term borrowing for the period fiscal years 2015 through 2019 to support the City’s current capital program. The portion of the capital program not financed by the New York City Municipal Water Finance Authority (NYW or the Authority) will be split between General Obligation (GO) bonds of the City and bonds of the New York City Transitional Finance Authority (TFA). Figures below do not include state funded financing for education capital purposes through TFA Building Aid Revenue Bonds (BARBs): Financing Program ($ in Millions) City General Obligation Bonds (1) TFA Bonds Water Authority Bonds(2) Total 2015 2016 2017 2018 2019 Total $800 $2,500 $3,020 $3,100 $3,090 $12,510 2,650 1,198 $4,648 2,500 1,314 $6,314 3,020 1,265 $7,305 3,100 1,269 $7,469 3,090 1,192 $7,372 14,360 6,238 $33,108 (1) TFA Bonds do not include BARBs issued for education capital purposes. TFA expects to continue to issue BARBs under the current legislative authorization. (2) Includes commercial paper and revenue bonds issued for the water and sewer system’s capital program. Figures do not include bonds that defease commercial paper or refunding bonds. 33 The following three tables show statistical information on debt issued and expected to be issued by the financing entities described above, other than BARBs to be issued by the TFA. Debt Outstanding ($ in Millions at year end) 2015 2016 City General Obligation Bonds 2017 2018 2019 $40,348 $40,532 $41,227 $42,016 $42,779 26,280 28,063 30,197 32,358 34,199 TSASC Bonds 1,216 1,203 1,190 1,168 1,145 Conduit Debt 1,534 1,445 1,365 1,284 1,206 Total $69,378 $71,243 $73,979 $76,826 $79,329 Water Authority Bonds $30,901 $32,348 $33,319 $34,276 $35,125 (1) TFA Bonds (1) Figures above do not include state funded financing for education capital purposes through the TFA BARBs. Annual Debt Service Costs ($ in Millions, Before Prepayments) 2015 2016 (1) City General Obligation Bonds TFA Bonds(2) TSASC Bonds (3) 2017 2018 2019 $3,935 $4,422 $4,553 $4,662 $4,754 1,968 2,037 2,351 2,574 3,002 74 74 74 82 82 224 235 308 301 295 Total Debt Service $6,201 $6,768 $7,286 $7,619 $8,133 Water Authority Bonds(4) $1,452 $1,719 $1,813 $1,893 $1,985 Conduit Debt (1) Includes interest on short-term obligations (RANs). (2) Figures above do not include state funded financing for education capital purposes through the TFA BARBs. (3) Conduit Debt debt service includes interest on the $3 billion Hudson Yards Infrastructure Corporation (HYIC) debt issued in December 2006 and October 2011. Such debt is not included in the “Debt Outstanding” table above because the City is not required to pay principal of the HYIC debt. (4) Includes First Resolution debt service and Second Resoluiton debt service net of subsidy payments from the NYS Environmental Facilities Corporation. Debt Burden 2015 2016 2017 2018 2019 7.8% 8.6% 9.1% 9.2% 9.6% 12.1% 12.9% 13.4% 13.6% 14.0% 1.2% 1.3% 1.3% 1.3% 1.3% 13.3% 13.3% 13.2% 13.1% 13.0% Total Debt Service(1) as % of: a. Total Revenue b. Total Taxes c. Total NYC Personal Income Total Debt Outstanding(1) as % of: a. Total NYC Personal Income (1) Total Debt Service and Debt Outstanding include GO, conduit debt and TFA bonds other than BARBs (PIT Bonds). 34 The financing of the City capital program is split among GO, TFA and NYW bond issuance. The City and TFA will issue $12.5 billion and $14.4 billion, respectively, during the plan period. The City issuance supports 38 percent of the total, while TFA issuance supports 43 percent of the total. NYW’s annual financing amount, excluding refundings, will average approximately $1.25 billion. The aggregate NYW financing during the plan period will account for 19 percent of the total financing program. In spite of continuing volatility and uncertainty in the financial markets, the City, TFA, and NYW have enjoyed continued market access which has allowed the City’s capital program to continue to be financed at reasonable interest rates. All of the issuers financing the City capital program have maintained credit ratings in the AA or better category by Moody’s, Standard & Poor’s, and Fitch, as indicated in the table below. Ratings Fitch Moody’s Standard and Poor’s AA Aa2 AA AAA AAA Aaa Aa1 AAA AAA TFA BARBs AA Aa2 AA NYW First Resolution NYW Second Resolution AA+ AA+ Aa1 Aa2 AAA AA+ EFC Senior SRF Bonds EFC Subordinated SRF Bonds AAA AA+ Aaa Aaa AAA AAA Issuer NYC GO TFA Senior TFA Subordinate New York City General Obligation Bonds Since July l, 2014, the City has issued approximately $980 million in refunding bonds. The date and principal amount are as follows: NYC GO Issuances ($ in Millions) Series (N)ew Money/ (R)efunding Issue Date 2015 AB R 9/4/2014 Tax Exempt Amount $980 35 Taxable Amount $— Total Par Amount $980 The refunding transaction the City has completed to date in fiscal year 2015 generated approximately $135 million of debt service savings during the financial plan period. In addition to the total issuance mentioned above, the City took steps to manage its outstanding floating rate debt. The City reoffered approximately $350 million of floating rate bonds in order to manage expiring bank facilities supporting that debt. Of that amount, $50 million was reoffered as an index bond directly to a bank such that the debt will remain in a floating rate mode until maturity without further management action required. Within the refunding issue mentioned above, the City refunded approximately $33 million of floating rate bonds using the same rationale as for the converted issues The City plans to issue $800 million of GO bonds for capital purposes during the remainder of fiscal year 2015 and approximately $2.5 billion, $3.0 billion, $3.1 billion, and $3.1 billion in fiscal years 2016 through 2019, respectively. Currently the debt service for the City, TFA (excluding BARBs), and City appropriation debt, or conduit debt, excluding the effect of pre-payments, is 7.8 percent of the City’s total budgeted revenues in fiscal year 2015. That ratio is projected rise to 9.6 percent in fiscal year 2019. As a percentage of tax revenues, the debt service ratio is 12.1 percent in fiscal year 2015 and is projected to increase to 14.0 percent in fiscal year 2019. In fiscal year 2015, the City does not project a note issuance to satisfy cash flow needs. The City’s financing program assumes the issuance of $2.4 billion of notes annually through the remainder of the financial plan. New York City Related Issuers - Variable Rate Debt Floating rate bonds have been a reliable source of cost savings in the City’s capital program. In considering the proportion of the City’s debt which is in variable rather than fixed rates, it is useful to consider all sources of financing with the exception of NYW, which is typically considered separately for such purposes. Included would be not only City GO bonds but also TFA, TSASC bonds and conduit debt. The City and its related entities have approximately $10.4 billion of floating rate exposure. Despite changes in the floating rate market, the City and other issuers supporting the City capital program have maintained floating rate exposure to minimize interest costs. The City and related financing entities have managed bank facility expirations by obtaining renewals from existing providers or replacement facilities from new providers. In addition, the City and related financing entities have explored new floating rate structures not requiring bank facilities. The City and TFA entered into private placements and public offerings of index floating rate bonds bearing all-in costs comparable to variable rate demand bonds with bank facilities. The City and TFA continue to explore these and other debt instruments which confer the benefit of floating rate exposure. The City has not entered into any new interest rate swaps to date in fiscal year 2015. The total notional amount of swaps outstanding as of December 31, 2014 was $1.75 billion, on which the termination value was negative $138 million. This is the theoretical amount which the City would pay if all of the swaps were terminated under market conditions as of December 31, 2014. The following table shows the City’s and its related issuers’ floating rate exposure. Floating rate exposure is of note because certain events can cause unexpected increased costs. Those events would include rising interest rates, a change in the tax code (in the case of tax-exempt debt), and the deterioration of the City’s credit. Additionally, the deterioration of the credit of a related credit or liquidity provider can also have an impact on interest cost. By contrast, the cost of outstanding fixed rate debt does not increase if any of the previously mentioned events takes place. On the other hand, fixed rate borrowing locks in a higher borrowing cost if interest rates do not change materially or if they decline. Overall, floating rate exposure benefits the City because it reduces the cost of financing. In short, interest costs on short term debt are almost always lower than long term debt. The City has assumed floating rate exposure using a variety of instruments; including tax exempt floating 36 rate debt, taxable floating rate debt, basis swaps, and certain types of synthetic fixed rate debt. The basis swaps and certain synthetic fixed rate debt provide exposure to changes in the tax code but are largely insensitive to changes in interest rates and changes in the City’s credit. Given that those instruments provide only limited floating rate exposure, they are counted as variable rate exposure at less than the full amount of par or notional amount. Instruments that provide exposure only to changes in the tax code are counted at 25 percent of par or notional amount in the table below. NYC Floating-Rate Exposure(1) ($ in Millions) GO TFA Conduit TSASC Total Floating Rate Bonds Synthetic Fixed Taxable Basis Swap Enhanced Basis Swap Total Floating-Rate $6,167 212 91 125 $6,595 $3,773 $30 31 $— $3,773 $61 $— 9,971 243 91 125 $10,430 Total Debt Outstanding $40,348 $26,280 $1,534 $1,216 $69,378 % of Floating-Rate / Total Debt Outstanding Total Floating-Rate Less $6.143 Billion Balance in General Fund (Floating-Rate Assets) % of Net Floating Rate / Total Debt Outstanding 15.0% 4,286 6.2% (1) Debt Outstanding as of the February 2015 Financial Plan excluding NYW, HYIC, and TFA BARBs The 15 percent floating rate exposure, including the risk from the synthetic fixed rate swaps and the basis swaps, is even more manageable after taking into account the 10 year average balance of $6.14 billion of shortterm assets in the City’s General Fund which are an offset to these floating rate liabilities. Net of these floating rate assets, the floating rate exposure of the City, excluding NYW, is 6.2 percent of its outstanding debt. Moreover, the City uses conservative assumptions in budgeting expenses for floating rate instruments. During fiscal year 2015, short-term interest rates relating to the $10.4 billion of floating rate debt have been 0.07 percent on average for tax-exempt and 0.49 percent for taxable floating rate debt. These rates have continued to provide extremely attractive financing costs relative to fixed rate debt despite the recent market turmoil. Tax exempt floating rate debt has traded recently at rates that are approximately 300 basis points lower than those for long term fixed-rate debt, resulting in an annual savings of approximately $315 million. The New York City Municipal Water Finance Authority The New York City Municipal Water Finance Authority (NYW) was created in 1985 to finance capital improvements to the City’s water and sewer system. Since its first bond sale in November 1985, the Authority has sold $56.4 billion in bonds. These bond issuances included a combination of general (first) resolution, second general resolution and subordinated special resolution crossover refunding water and sewer system revenue bonds. Of this aggregate bond par amount, $30.1 billion is outstanding, $19.6 billion was refinanced with lower cost debt, $2.3 billion was defeased with revenues prior to maturity, and $4.4 billion was retired with revenues as it matured. In addition to this long-term debt, NYW uses a $600 million tax-exempt commercial program as a source of flexible short-term financing. The commercial paper includes $400 million of unenhanced extendible municipal commercial paper (EMCP) notes and $200 million of notes backed by a line of credit from a bank. 37 NYW’s outstanding debt also includes floating rate bonds, which have been a reliable source of cost effective financing. NYW has $4.7 billion of floating rate bonds or 16% of its outstanding debt, including $401 million which was swapped to a fixed rate. NYW’s floating rate exposure includes tax-exempt floating rate debt supported by liquidity facilities. NYW participates in the State Revolving Fund (SRF) program administered by the New York State Environmental Facilities Corporation (EFC). The SRF provides a source of long-term below-market interest rate borrowing, subsidized from federal capitalization grants, state matching funds and other funds held by EFC. On July 10, 2014, NYW issued $200 million of new money tax-exempt fixed rate Second Resolution Bonds, Fiscal 2015 Series AA. The bonds included term bonds maturing in 2044. On July 10, 2014, NYW issued $400 million of new money tax-exempt adjustable rate Second Resolution Bonds, Fiscal 2015 Series BB. The bonds are backed by standby purchase agreements provided by four banks. This bond issue included term bonds maturing in 2049 and 2050. On September 24, 2014, NYW issued $200 million of new money tax-exempt fixed rate Second Resolution bonds, Fiscal 2015 Series CC. This bond issue included a term bond maturing in 2045. On September 24, 2014, NYW issued $300 million of refunding tax-exempt fixed rate Second Resolution bonds, Fiscal 2015 Series DD. The bonds refunded portions of NYW’s First Resolution bonds, Fiscal 2005 Series B. The refunding bonds included term bonds maturing in 2028, 2029 and 2036. On November 20, 2014, NYW issued $392.1 million of refunding and new money tax-exempt fixed rate Second Resolution bonds, Fiscal 2015 Series EE. The new money bonds included a term bond maturing in 2045. The refunding bonds refunded portions of NYW’s First Resolution bonds, Fiscal 2005 Series B. The refunding bonds included term bonds maturing in 2028, 2029 and 2036. In fiscal year 2015, NYW has drawn on short-term loans from EFC, pursuant to agreements entered into in fiscal year 2012 and fiscal year 2014. To date, NYW has drawn $179.5 million against these loans. Summarized in the following table are five bond series that have closed to date in fiscal year 2015. The proceeds of the bonds refinanced commercial paper previously issued by NYW, paid costs of improvements to the water and sewer system or paid principal and interest on certain of the Authority’s outstanding debt and paid the costs of issuance. NYW Issuance Series 2015 AA (N)ew Money/ (R)efunding Issue Date Par Amount True Interest Cost (TIC) Longest Maturity N 7/10/14 $200,000,000 4.18% 2044 2015 BB N 7/10/14 $400,000,000 0.04%(1) 2050 2015 CC N 9/24/14 $200,000,000 3.99% 2045 2015 DD R 9/24/14 $300,000,000 3.96% 2036 2015 EE N/R 11/20/14 $392,110,000 4.07% 2045 (1) Bonds issued as variable rate demand bonds; rate shown is an average from the issue date through January 2, 2015. 38 NYW is a party to two interest rate exchange agreements (swaps) with a total notional amount of $401 million. As of December 31, 2014, the mark-to-market value of the swaps was negative $114.1 million. This is the theoretical amount which NYW would pay if all swaps were terminated as of December 31, 2014. NYW expects to issue an additional $300 million of new money bonds over the remainder of fiscal year 2015. During the period from fiscal years 2015 to 2019, NYW expects to sell an average of approximately $1.25 billion of new money bonds per year. Of this amount, NYW plans to issue a minimum of $300 million per year through EFC, taking advantage of the interest rate subsidy available for qualifying projects, and minimizing the overall costs of its financing program. After fiscal year 2015, NYW expects to issue approximately 90 percent of its new debt per year as fixed rate debt with the remainder issued as variable rate debt, subject to market conditions The New York City Transitional Finance Authority The TFA is a public authority of New York State created by the New York Transitional Finance Authority Act. The TFA was created to issue debt, primarily secured with the City’s personal income tax (PIT), to fund a portion of the capital program of the City. The TFA was originally authorized to issue up to $7.5 billion of bonds and notes. On September 13, 2001, the TFA was given statutory authority to borrow $2.5 billion to finance costs related to the September 11th terrorist attack on the City. Currently, TFA is permitted to have $13.5 billion of debt outstanding and any amounts over and above that level are subject to the City’s remaining debt incurring power under the State constitutional debt limit. Since July l, 2014, the TFA has issued approximately $1.9 billion in bonds for capital purposes. The dates and principal amounts are as follows: NYC TFA Issuance Series (N)ew Money/ (R)efunding ($ in Millions) Tax Exempt Issue Date Amount Taxable Amount Total Par Amount 2015 A N 8/1/2014 $875 $125 $1,000 2015 B N 11/13/2014 700 150 850 $1,575 $275 $1,850 Total Beyond the financings described above, the TFA plans to issue an additional $800 million of TFA bonds for capital purposes during the remainder of fiscal year 2015 and approximately $2.5 billion, $3.0 billion, $3.1 billion, and $3.1 billion in fiscal years 2016 through 2019, respectively. In April 2006, the State enacted legislation authorizing the TFA to have outstanding an additional $9.4 billion of bonds to be used to fund capital costs for the Department of Education. This legislation also provided for the assignment to TFA of State building aid that had previously been paid directly to the City. The TFA currently has approximately $6.7 billion of BARBs outstanding which fund the capital program of the Department of Education. Since June 2014, the TFA BARBs received several credit rating upgrades. Moody’s Investor Service upgraded the BARBs from Aa3 to Aa2 and Fitch, Inc. upgraded the BARBs from AA- to AA. Standard & Poor’s subsequently upgraded the BARBs from AA- to AA. The TFA plans to continue to issue BARBs for the educational capital program under the current legislative authorization. 39 Hudson Yards Infrastructure Corporation Hudson Yard Infrastructure Corporation (HYIC), a not-for-profit local development corporation, was established to provide financing for infrastructure improvements to facilitate economic development on Manhattan’s far west side. Improvements include the extension of the No. 7 subway line west and south, construction of a system of parks, streets, and open spaces, as well as the acquisition of development rights over the MTA rail yards. In December 2006, HYIC issued its first series of bonds in the principal amount of $2 billion. HYIC issued its second issuance of $1 billion of bonds in October 2011. Principal on the HYIC bonds will be repaid from revenues generated by this new development, notably payments-in-lieu-of-property taxes (PILOT) on the commercial development and various developer payments. To the extent these revenues are not sufficient to cover interest payments, the City has agreed to make interest support payments to HYIC subject to appropriation. Given the ongoing development in the Manhattan’s far west side, revenues received by HYIC have accelerated. HYIC has begun to receive recurring PILOT revenue. Additionally, HYIC recently received approximately $130 million from the sale of Transferrable Development Rights as well as District Improvement Bonus associated with the Related Companies’ project located at 55 Hudson Yards. These revenues will reduce the interest support the City would have to provide on the HYIC Bonds. The subway extension, which is being constructed by the MTA, will open for service in 2015. As of January 2015, nearly 100% of the construction work and 96% of the systems installation work necessary for passenger service was complete, and operational testing has commenced. Construction is also underway on the HYIC-funded first phase of Hudson Park and Boulevard. As of January 2015, construction of the boulevard was nearly 100% complete, and the park was 95% complete. Construction began in 2012 and is proceeding on schedule for completion in 2015. The construction work is being performed by the New York City Economic Development Corporation with oversight by the Hudson Yards Development Corporation. Sales Tax Asset Receivable Corporation The Sales Tax Receivable Asset Corporation (STAR), received credit rating upgrades related to the upgrade of New York State. In June 2014, Moody’s Investor Service upgraded STAR from Aa2 to Aa1 and Fitch, Inc. upgraded STAR from AA to AA+. Standard and Poor’s had previously rated STAR AAA since 2006. In October 2014, STAR executed a refunding of all of its outstanding debt. The refinancing generated approximately $650 million of savings, which was applied to benefit fiscal years 2016 through 2018. 40 Supplemental Information EXPENDITURE ASSUMPTIONS The expenditure estimates in the plan reflect the four-year financial plan submitted on November 25, 2014 adjusted for new needs, approved categorical budget modifications through February 2, 2015, changes in inflation and other technical adjustments. Personal Services The estimates for Personal Services over the five-year period of the plan are as follows: ($ in Millions) 2015 2016 2017 2018 2019 Salaries & Wages Pensions Other Fringe Benefits Reserve for Collective Bargaining Department of Education Other $23,389 8,582 8,660 $23,547 8,534 9,177 $24,043 8,504 9,682 $24,543 8,490 10,287 $24,881 8,586 11,019 11 841 — 1,328 — 971 — 1,870 — 2,961 Total $41,483 $42,586 $43,200 $45,190 $47,447 Salaries & Wages The projections for salaries and wages reflect personnel costs associated with current and projected headcount levels and also includes recognized needs and any wage adjustments from rounds of collective bargaining that have been implemented. Pensions and Other Fringe Benefits Pension expenses reflect actuarial valuation estimates of the City’s five major retirement systems prepared by the Office of the Actuary (OA). These estimates include the civilian Collective Bargaining pattern set in 2014 and the impact of fiscal year 2014 asset performance. Pension expense estimates in the financial plan reflect the funding assumptions and actuarial methods recommended by the Chief Actuary. The assumptions were adopted by the boards of trustees of each of the City’s retirement systems and a certain portion of the assumptions subject to legislation was enacted into law in January 2013. The financial plan includes valuation updates from the OA, which incorporate fiscal year 2014 investment returns of 17.48%. The investment return – higher than the assumed actuarial rate of seven percent - reduced required pension contributions by $208 million, $415 million, $623 million, and $831 million in fiscal years 2016 through 2019, respectively. Other adjustments stemming from changes in the number of pension members and expected increases in pension administration costs have also been reflected in the financial plan. 43 Total pension expenses for the financial plan are shown below: Total Pension Expenses ($ in Millions) 2015 2016 2017 2018 2019 City Actuarial Systems $8,445 $8,381 $8,344 $8,318 $8,409 Non-City Systems Non-Actuarial Total 73 64 $8,582 85 68 $8,534 88 72 $8,504 94 78 $8,490 95 82 $8,586 Other fringe benefits include, primarily, Social Security, Unemployment Insurance, Workers’ Compensation and Health Insurance. Expenditures on fringe benefits include adjustments for the expected changes in the City’s planned headcount levels. The Social Security expense estimates reflect the tax rates and earnings caps issued by the Social Security Administration. In Calendar 2015, the combined tax rate is 7.65%. The OASDI tax portion of 6.2% is capped at $118,500 in earnings; the Medicare tax portion of 1.45% is applied to all earnings. Unemployment Insurance expense estimates are consistent with the statutory weekly benefit levels and planned payroll levels. Workers’ Compensation expense estimates are consistent with the compensation rate schedule mandated by State law and the projected growth in medical costs. Health Insurance expense estimates reflect current levels of City enrollee coverage based on the health insurance contract counts and premium data available from the City’s health insurance providers. These estimates also include the health care savings agreed to in the May 2014 Agreement between the City and the Municipal Labor Committee. The savings amounts agreed to were $400 million, $700 million, $1 billion and $1.3 billion in FY 2015 through FY 2018 respectively; with the $1.3 billion growing with trend beyond FY 2018. Reserve for Collective Bargaining The labor reserve contains funding for the net cost of all of the elements of the UFT and DC37 pattern as applied to the remaining unsettled unions (including those for whom ratification is pending). The reserve also contains funding for the restructured payments for those unions that were covered by the UFT nine-year pattern. In addition, the reserve includes the additional cost of the uniformed pattern for the unsettled uniformed unions. For the period beyond current round of bargaining, the reserve contains funding for wage increases assumed to be 1% per year following the expiration of the contracts in the 2010-2017 round of collective bargaining. In May 2014, the City announced a settlement with the United Federation of Teachers (UFT) covering the 2008-2010 bargaining period and the seven-year portion beyond 2010. The agreement provides for a total compounded value of 19.41% in general wage increases over the nine-year period. In July 2014, the City reached a settlement with the District Council 37 (DC37) that provides for a total compounded value of 10.41% in general wage increases over the seven-year period. The reserve assumes employees whose contracts were unsettled for the 2008-2010 round of collective bargaining will follow the UFT pattern. For all other civilians, the reserve assumes application of the DC37 deal over the seven-year period. In December 2014, the City reached a settlement with the eight members of the Uniformed Superior Officers Coalition (USOC) representing superior officers in each of the four uniformed forces. The settlement set the pattern for uniformed force employees in the 2010-2017 round of collective bargaining. 44 The USOC deal largely mirrored the seven-year agreement reached with DC37 with the following alterations: 1) An additional 1% the first day of the twelfth month. 2) Giving those who retire the option of taking terminal leave in a lump sum. 3) No $1,000 lump sum. 4) The members of the coalition agreed to savings items including delaying wage increases, reducing the City’s welfare fund contributions, and reducing the City’s contributions to the annuity fund. Subsequently alterations were made to the deal allowing some groups to advance the date of the first increase to the first day of the seventh month and required that they provide additional savings items to cover this cost. Over the plan, these changes were approximately cost neutral. The cost above the already budgeted civilian pattern through FY 2019 was approximately $746 million when applied to all uniformed force employees. The portion of this amount that is for unsettled contracts or contracts that have not been ratified is reflected in the reserve for collective bargaining in the Preliminary Budget. The reserve for collective bargaining also contains a small amount of funding for the cost of undistributed collective bargaining increases for those groups that have settled in the previous round of bargaining. Other Than Personal Services The following items are included in this category: ($ in Millions) 2015 2016 2017 2018 2019 $21,054 $19,367 $19,442 $19,733 $19,749 Public Assistance 1,476 1,407 1,413 1,413 1,413 Medical Assistance 6,447 6,415 6,415 6,415 6,415 294 215 258 273 278 3,762 3,679 3,810 3,926 4,026 City Debt Service* 6,242 7,031 7,414 7,735 8,051 Debt Defeasance (115) (337) (201) (198) — Prepayment Adjustments (428) (1,578) — — — 300 750 750 750 750 $39,032 $36,949 $39,301 $40,047 $40,682 Administrative OTPS Health and Hospitals Corp. Covered Agency Support & Other Subsidies General Reserve Total * Numbers adjusted for prepayments and debt defeasances. Administrative OTPS The estimates in this category include new needs in the baseline. For 2016 through 2019, most expenditures have been increased to reflect the effect of inflation. The inflation adjustment, which is shown in a citywide account, represents an estimated annual 2.5 percent increase in 2016 through 2019. Baseline costs for energy and lease requirements are shown in the appropriate operating agency, while out-year inflationary costs are primarily shown in citywide accounts as noted in the following two sections. 45 Energy The financial plan for 2015 through 2019 reflects current projections for energy related purchases. Gasoline and fuel costs are expected to increase by $58 million between 2015 and 2019. Heat, light and power is expected to increase by $88 million between 2015 and 2019. Usage adjustments are held constant, with the exception of varying workload adjustments, the privatization initiative in the In-Rem / DAMP program, and the annualization of 2015 adjustments, where applicable. The annual cost projections are as follows: Energy Costs ($ in Millions) 2015 2016 2017 2018 2019 Gasoline $94 $95 $106 $114 $122 Fuel Oil 95 99 110 117 125 HPD-In Rem / DAMP 6 6 6 6 6 HPD-ERP / AEP 6 3 3 3 3 771 781 803 838 859 $972 $984 $1,028 $1,078 $1,115 Heat, Light and Power Total Leases Agency baseline expenditures carry the cost of leases at a constant level for 2016 through 2019 with the exception of the annualization of 2016 adjustments where applicable. A citywide adjustment for 2016 through 2019 provides for the increased cost of leases based on a 3.0 percent annual inflator. The four-year projection includes $989 million for leases in 2016, $1,019 million in 2017, $1,050 million in 2018, and $1,081 million in 2019. Of these amounts, the citywide adjustment is $33 million, $63 million, $94 million and $125 million respectively in 2016 through 2019. Public Assistance The financial plan for Public Assistance projects 350,297 persons will be on Public Assistance in June 2015 and remain at that level for the balance of the four-year plan. Medical Assistance The financial plan for Medicaid assistance funds 3.4 million recipients including 2.6 million enrolled in Medicaid Managed Care. NYC Medicaid expenditures were capped as a result of the 2005-2006 and 2012-2013 State Budgets. In 2016, the City anticipates a budget of $6.3 billion in City Tax Levy. Health and Hospitals Corporation The City’s support for the Health and Hospitals Corporation reflects funding for HHC’s provision of healthcare to prison inmates and uniformed service employees, as well as other City services. Support also includes the most recent round of collective bargaining costs for applicable unions that have reached agreements with the City. The 2016 City support is budgeted at $215 million. Details of HHC’s own institutional financial plan are set forth in the covered organization submissions for the Health and Hospitals Corporation. 46 Covered Agency Support and Other Subsidies Included in this category are the contributions made by the City to the Transit Authority, Housing Authority, Libraries and various Cultural Institutions. Also included in this category are the estimated projections for the cost of Judgments and Claims. General Reserve The General Reserve is projected at $300 million for 2015 and $750 million for 2016-2019 to provide for uncontrollable increases in expenditures as well as shortfalls in revenue. The General Reserve has been increased above the required $100 million to allow for any further uncertainties that may occur in the future. Debt Service Debt Service projections estimate payments of debt service on currently outstanding City, Transitional Finance Authority (TFA) and Lease debt and future issuances in accordance with the financing program for 2015-2019. Actual debt service payments in these years will be affected by the timing of such issuances as well as market conditions. Projections of debt service on debt to be issued are based on estimates of the periods of probable usefulness of the expenditures to be financed for the City. A Budget Stabilization account has been established for the prepayment of future years’ debt service costs. Funding of $1.58 billion in 2015 has been provided for this purpose. Below are the detailed estimates for debt service for 2015 through 2019 after prepayments: ($ in Millions) Long Term 2015 2016 2017 2018 2019 * $3,292 4,348 4,479 4,588 4,680 Short Term Lease Purchase $75 75 75 75 $224 235 308 301 295 Budget Stabilization* $1,578 — — — — Total City and Lease TFA $5,094 4,658 4,862 4,964 5,050 $605 458 2,351 2,574 3,001 Prepayment Adjustment $428 1,578 — — — Total City, Lease and TFA $6,127 6,694 7,213 7,538 8,051 Amounts in the Budget Stabilization Account are used to prepay the succeeding year’s debt service. Does not adjust for the impact of debt defeasances. 47 NEW YORK CITY Five Year Expenditure Analysis (All Funds - $ in Millions) 2015 2016 Uniformed Forces Police Department Fire Department Department of Correction Department of Sanitation 2017 2018 2019 $5,163 1,985 1,142 1,485 $4,798 1,814 1,170 1,569 $4,788 1,800 1,158 1,563 $4,798 1,774 1,161 1,562 $4,801 1,777 1,165 1,560 Health and Welfare Admin. for Children Services Department of Social Services Dept. of Homeless Services Dept Health & Mental Hygiene 2,952 9,879 1,112 1,515 2,951 9,701 1,034 1,447 2,961 9,694 1,032 1,449 2,964 9,681 1,032 1,443 2,964 9,667 1,035 1,443 Other Mayoral NY Public Library - Research New York Public Library Brooklyn Public Library Queens Borough Public Library Department for the Aging Department of Cultural Affairs Housing Preservation & Dev. Dept of Environmental Prot. Department of Finance Department of Transportation Dept of Parks and Recreation Dept of Citywide Admin Srvces All Other Mayoral 24 120 90 91 286 166 959 1,713 266 958 474 1,214 2,720 24 116 86 87 257 150 720 1,233 262 840 428 1,169 2,218 24 117 88 89 258 151 591 1,182 265 846 430 1,169 2,166 24 118 88 89 258 150 551 1,117 268 847 431 1,157 2,238 24 118 88 89 258 150 551 1,101 267 847 431 1,155 2,162 20,906 975 294 21,588 923 215 22,445 928 258 23,359 931 273 23,916 933 278 8,582 8,858 5,699 300 (65) — — 8,534 9,683 5,116 750 (47) 34 56 8,504 9,796 7,213 750 (10) 63 111 8,490 11,221 7,538 750 40 94 167 8,586 12,912 8,051 750 75 125 222 120 532 109 500 110 512 108 515 113 515 $80,515 $79,535 $82,501 $85,237 $88,129 Major Organizations Department of Education City University Health and Hospitals Corp. Other Citywide Pension Contributions Miscellaneous Debt Service General Reserve Energy Adjustment Lease Adjustment OTPS Inflation Adjustment Elected Officials Mayoralty All Other Elected Total Including Intra-City Less: Intra-City Expenses Total Excluding Intra-City (1,967) (1,804) (1,814) (1,825) (1,825) $78,548 $77,731 $80,687 $83,412 $86,304 48 NEW YORK CITY Five Year Expenditure Analysis (City Funds - $ in Millions) 2015 2016 Uniformed Forces Police Department Fire Department Department of Correction Department of Sanitation 2017 2018 2019 $4,575 1,609 1,128 1,460 $4,533 1,593 1,160 1,545 $4,532 1,579 1,148 1,539 $4,538 1,553 1,151 1,538 $4,541 1,556 1,155 1,537 Health and Welfare Admin. for Children Services Department of Social Services Dept. of Homeless Services Dept Health & Mental Hygiene 911 7,630 540 682 907 7,562 519 693 910 7,554 528 697 911 7,542 528 691 911 7,531 531 692 Other Mayoral NY Public Library - Research New York Public Library Brooklyn Public Library Queens Borough Public Library Department for the Aging Department of Cultural Affairs Housing Preservation & Dev. Dept of Environmental Prot. Department of Finance Department of Transportation Dept of Parks and Recreation Dept of Citywide Admin Srvces All Other Mayoral 24 120 89 90 173 159 71 1,119 261 534 348 265 1,716 24 116 86 87 148 150 57 1,100 257 505 336 258 1,562 24 117 88 89 149 150 58 1,046 260 511 341 258 1,543 24 118 88 89 149 150 58 1,031 264 511 342 246 1,551 24 118 88 89 149 150 58 1,030 262 511 342 243 1,550 Major Organizations Department of Education City University Health and Hospitals Corp. 9,771 657 154 10,189 643 150 10,678 650 193 11,179 653 208 11,734 655 214 Other Citywide Pension Contributions Miscellaneous Debt Service General Reserve Energy Adjustment Lease Adjustment OTPS Inflation Adjustment 8,423 7,445 5,444 300 (65) — — 8,373 8,252 4,821 750 (47) 34 56 8,343 8,314 6,923 750 (10) 63 111 8,328 9,689 7,252 750 40 94 167 8,425 11,335 7,773 750 75 125 222 73 478 73 470 74 480 75 483 75 483 $56,184 $56,962 $59,690 $61,991 $64,934 Elected Officials Mayoralty All Other Elected Citywide Total 49 Revenue Detail ($ in Millions) 2015 2016 2017 2018 2019 $21,170 $22,113 $23,141 $24,151 $25,220 • Personal Income 9,817 10,076 10,308 10,591 10,908 • General Corporation 2,900 2,950 3,036 3,136 3,246 • Banking Corporation 1,171 1,194 1,190 1,191 1,218 • Unincorporated Business 2,029 2,118 2,167 2,251 2,345 • Sale and Use 6,782 7,045 7,327 7,624 7,893 735 765 800 835 865 1,501 1,506 1,557 1,612 1,661 • Mortgage Recording 960 944 986 1,030 1,071 • Utility 398 404 413 428 440 49 48 47 46 45 • Hotel 567 550 565 574 569 • All Other 576 542 537 538 537 • Tax Audit Revenue 912 711 711 711 711 • State Tax Relief Program - STAR 861 877 881 881 881 $50,428 $51,843 $53,666 $55,599 $57,610 $612 $603 $577 $574 $574 17 45 134 163 163 933 926 926 926 926 1,541 1,563 1,533 1,534 1,549 • Rental Income 271 271 271 271 271 • Fines and Forfeitures 819 788 787 787 787 • Miscellaneous 1,578 938 763 782 995 • Intra-City Revenue 1,967 1,804 1,814 1,825 1,825 $7,738 $6,938 $6,805 $6,862 $7,090 Taxes: • Real Property • Commercial Rent • Real Property Transfer • Cigarette Total Taxes Miscellaneous Revenue: • Licenses, Franchises, Etc. • Interest Income • Charges for Services • Water and Sewer Charges Total Miscellaneous 50 Revenue Detail ($ in Millions) 2015 2016 2017 2018 2019 (15) (15) (15) (15) (15) (1,967) (1,804) (1,814) (1,825) (1,825) $56,184 $56,962 $58,642 $60,621 $898 $832 $840 $848 $845 574 547 543 546 546 $57,656 $58,341 $60,025 $62,015 $1,316 $521 $362 $327 $239 • Social Services 3,315 3,245 3,238 3,232 3,229 • Education 1,684 1,696 1,696 1,696 1,696 • Other 2,084 1,156 1,137 1,134 1,133 $8,399 $6,618 $6,433 $6,389 $6,297 $1,500 $1,499 $1,499 $1,503 $1,503 9,250 9,569 9,932 10,341 10,341 • Higher Education 262 262 262 262 262 • Department of Health and Mental Hygiene 477 468 468 468 468 1,004 974 1,020 1,064 1,108 $12,493 $12,772 $13,181 $13,638 $13,682 $78,548 $77,731 $79,639 $82,042 $84,230 Reserve for Disallowance of Categorical Grants Less: Intra City Revenue SUB TOTAL CITY FUNDS Other Categorical Grants Inter Fund Agreements TOTAL CITY FUNDS & CAPITAL BUDGET TRANSFERS $62,860 $64,251 Federal Categorical Grants: • Community Development Total Federal Grants State Categorical Grants: • Social Services • Education • Other Total State Grants TOTAL REVENUE 51 Full-Time and Full-Time Equivalent (FTE) Headcount 6/30/2015 Total City 6/30/2016 Total City 6/30/2017 Total City 6/30/2018 Total City 34,483 16,614 10,789 5,447 9,537 1,776 7,449 2,308 88,403 34,483 16,492 10,781 5,419 9,537 1,767 7,332 2,194 88,005 34,483 16,727 10,789 5,631 9,526 1,777 7,578 2,367 88,878 34,483 16,707 10,781 5,617 9,526 1,769 7,461 2,253 88,597 34,483 16,728 10,789 5,624 9,526 1,777 7,490 2,368 88,785 34,483 16,708 10,781 5,612 9,526 1,769 7,373 2,254 88,506 34,483 16,728 10,789 5,624 9,526 1,777 7,490 2,368 88,785 34,483 16,708 10,781 5,612 9,526 1,769 7,373 2,254 88,506 Health and Welfare: Admin. For Children Services Social Services Homeless Services Health and Mental Hygiene Subtotal 6,722 14,557 2,239 6,279 29,797 6,554 10,580 2,166 4,585 23,885 7,084 14,380 2,149 6,083 29,696 6,916 10,404 2,149 4,658 24,127 7,086 14,004 2,149 5,971 29,210 6,918 10,027 2,149 4,655 23,749 7,086 13,945 2,148 5,971 29,150 6,918 9,968 2,148 4,655 23,689 Other Agencies: Housing Preservation and Development Environmental Protection Finance Transportation Parks Citywide Administrative Services All Other Subtotal 2,331 6,249 2,110 5,228 7,462 2,331 20,325 46,036 552 243 2,098 2,488 6,584 1,642 16,504 30,111 2,307 6,293 2,105 5,039 6,936 2,306 19,194 44,180 545 243 2,093 2,328 6,303 1,617 15,996 29,125 2,303 6,338 2,099 5,024 6,862 2,296 19,140 44,062 545 243 2,087 2,328 6,292 1,606 15,974 29,075 2,299 6,378 2,095 5,016 6,862 2,297 19,069 44,016 545 243 2,083 2,328 6,292 1,607 15,973 29,071 Education: Department of Education - Pedagogical Department of Education - Civilian City University - Pedagogical City University - Civilian Subtotal 112,423 23,010 6,260 3,068 144,761 93,896 20,778 6,239 3,058 123,971 113,890 22,907 6,242 3,006 146,045 93,896 20,675 6,242 3,006 123,819 114,390 22,907 6,283 3,006 146,586 93,896 20,675 6,283 3,006 123,860 114,890 22,907 6,283 3,006 147,086 93,896 20,675 6,283 3,006 123,860 Total 308,997 265,972 308,799 265,668 308,643 265,190 309,037 265,126 38,333 11,318 3,926 1,356 715 392 443 386 142 268 57,279 38,333 — 3,926 1,356 715 392 443 386 142 263 45,956 38,333 11,221 3,873 1,356 715 392 443 390 144 269 57,136 38,333 — 3,873 1,356 715 392 443 390 144 264 45,910 38,333 11,139 3,873 1,356 715 392 443 390 146 270 57,057 38,333 — 3,873 1,356 715 392 443 390 146 265 45,913 38,333 11,070 3,873 1,356 715 392 443 390 147 271 56,990 38,333 — 3,873 1,356 715 392 443 390 147 266 45,915 366,276 311,928 365,935 311,578 365,700 311,103 366,027 311,041 MAYORAL AGENCIES: Uniform Forces: Police Department - Uniform Police Department - Civilian Fire Department - Uniform Fire Department - Civilian Department of Correction - Uniform Department of Correction - Civilian Sanitation Department - Uniform Sanitation Department - Civilian Subtotal COVERED ORGANIZATIONS[1] Health and Hospitals Corporation Housing Authority Libraries Cultural Institutions[2] School Construction Authority New York City Employees Retirement System Economic Development Corporation Teachers Retirement System Police Pension Fund All Other[3] Subtotal Total [1] Includes non-city employees substantially paid by city subsidies. [2] Includes only those employees of the Cultural Institutions Group paid by city fund subsidies. [3] Includes Housing Development Corporation, Education Construction Fund, City University Construction Fund, Rent Guidelines Board and Water Finance Authority. 52 Expense Program AGENCY FIVE YEAR SUMMARY PROGRAM Police Department FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $4,532,354 $4,408,503 $4,419,275 $4,421,874 $4,421,945 42,411 124,086 112,761 115,860 119,053 $4,574,765 $4,532,589 $4,532,036 $4,537,734 $4,540,998 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 34,483 U 14,803 C 34,483 U 14,651 C 34,483 U 14,651 C 34,483 U 14,651 C 34,483 U 14,651 C 248 C 198 C 198 C 198 C 198 C 34,483 U 34,483 U 34,483 U 34,483 U 34,483 U 15,051 C 14,849 C 14,849 C 14,849 C 14,849 C C = Civilian U = Uniform E-1 Expenditure Increases/Re-estimates Police Department (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 Police Cadets Funding to increase the Police Cadet headcount by 520. Funding includes annual compensation and tuition reimbursement. -- 10,060 10,060 10,060 10,060 Email Account Expansion -- 4,079 5,079 5,079 5,079 21,901 3,886 3,280 3,681 3,815 -- 13,009 -- -- -- 3,936 2,459 2,459 2,459 2,459 1,199 1,256 880 755 755 -- 6,276 6,276 6,276 6,276 2,682 72,450 72,450 72,450 72,450 February Funding to support 30,000 new email users hosted in the cloud, and to incrementally migrate existing email users to the cloud over two years. Technology Needs Funding for IT maintenance and non-capitally funded IT projects. Parking Enforcement System Refresh Funding to implement a refresh of the parking enforcement system including hardware and other implementation costs. Preventive Maintenance Teams Funding to create a preventive maintenance program consisting of 23 trained professionals to improve building system operations and energy efficiency at NYPD facilities. 23 C OTPS Funding OTPS funding for the Aviation Unit, Mounted Unit, Harbor Unit, and Risk Assessment and Compliance Unit. Police Communications Technicians (PCT) Funding to maintain Police Communications Technician (PCT) headcount in FY16 and the out-years at the same level as FY15. 151 C NYCHA Payment Relief City tax levy funding required to relieve NYCHA of its obligation to pay for NYPD services in the baseline. C = Civilian E-2 *As of 6/30/16 Expenditure Increases/Re-estimates Police Department (City Funds in 000's) Description City Personnel * Lease Adjustment Lease adjustment. Bulletproof Vests Funding for the replacement of bulletproof vests and to undertake a study to establish an appropriate regular replacement cycle for all vests going forward. Federal Funding Adjustment City tax levy funding to support positions previously funded through Justice Assistance Grant (JAG) funding. 24 C Collective Bargaining for Captains Collective bargaining increases for Captains, Inspectors, and Surgeons. Lease Adjustment Lease adjustment. Total Agency: Expenditure Increases/Re-estimates C = Civilian 2015 2016 2017 2018 2019 933 1,063 996 943 245 8,050 4,200 4,200 4,200 4,200 750 1,000 1,000 1,000 1,000 3,256 4,348 6,081 8,957 12,714 -- -- -- -- 124,086 112,761 115,860 119,053 (296) 198 C E-3 42,411 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Fire Department FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $1,561,826 $1,537,579 $1,520,570 $1,483,649 $1,483,730 46,713 55,007 58,536 69,514 72,268 $1,608,539 $1,592,586 $1,579,106 $1,553,163 $1,555,998 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 10,780 U 5,146 C 10,780 U 5,146 C 10,780 U 5,141 C 10,780 U 5,141 C 10,780 U 5,141 C 1U 1U 1U 1U 1U 225 C 423 C 423 C 423 C 423 C 10,781 U 10,781 U 10,781 U 10,781 U 10,781 U 5,371 C 5,569 C 5,564 C 5,564 C 5,564 C C = Civilian U = Uniform E-4 Expenditure Increases/Re-estimates Fire Department (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 7,000 -- -- -- -- February WTC Health HIPAA Compliance Legal, technical, and staffing costs associated with HIPAA compliance measures at the Fire Department's World Trade Center (WTC) Health program. 45 New EMS Tours 181 C 2,812 11,249 8,689 8,557 8,662 149 C 3,332 6,663 6,663 6,663 6,663 24 C 770 1,539 1,539 1,539 1,539 11 C 309 618 618 618 618 217 189 189 189 189 45 new Basic Life Support (BLS) tours targeted to the South Bronx, western Queens, and Staten Island in order to reduce response times to life threatening emergencies. Emergency Medical Dispatch Additional EMS call takers for Emergency Medical Dispatch. 24 EMS Lieutenants Additional EMS Lieutenants. WTC Tours Funding to maintain existing EMS service levels. Fire Academy - OTPS Costs associated with efforts to minimize the risk of MRSA infections as recommended by the Department of Health. Recruitment / Diversity A new Military Coordinator for the Office of Recruitment and Diversity, as well as increased funding for uniformed overtime to support the Firefighter candidate mentorship program and other recruitment related activities. 1 C 3,662 3,660 3,660 3,660 3,660 Facilities - Fuel Monitoring and OSHA 5 C 520 370 370 370 370 Additional facilities staff for the OSHA Unit and to monitor fuel storage tanks. C = Civilian U = Uniform E-5 *As of 6/30/16 Expenditure Increases/Re-estimates Fire Department (City Funds in 000's) Description City Personnel * Automotive Parts Technical adjustment to address baseline shortfalls in the automotive parts budget, when compared to historical spending levels. Renovations at Fire Headquarters Costs to renovate the medical and Fire Prevention spaces at Fire Department Headquarters (9 MetroTech). Fire Academy Fitness Instructors Additional Fire Academy Fitness Instructors to address increased workload. 2015 2016 2017 2018 2019 4,549 4,549 4,549 4,549 4,549 997 -- -- -- -- 2 U 100 200 200 200 200 Technical Adjustment Technical headcount adjustment to convert one position from uniformed to civilian. (1) 1 U C -- -- -- -- -- Increased Revenue from BFP Inspections, Exams and Plan Reviews The Fire Department will generate additional revenue through inspections, the administration of tests for certificates and plan reviews, as dictated by the Fire Code. This revenue offsets expenses associated with these Bureau of Fire Prevention initiatives. 20 C 484 1,334 1,334 1,334 1,334 Fleet Services Additional auto mechanics and related vehicles to maintain current vehicle service levels. 10 C 740 760 760 760 760 4,000 800 800 800 800 841 1,916 1,776 1,461 1,461 EMD Back-up Site Upgrade Upgrade of technology at the Emergency Medical Dispatch (EMD) back-up site. Technology & Communications Needs 19 additional technology/communications staff to support ongoing 911 system upgrades, including the new Computer Aided Dispatch (CAD) system and the radio installation at PSAC 2, as well as associated OTPS. C = Civilian U = Uniform 19 C E-6 *As of 6/30/16 Expenditure Increases/Re-estimates Fire Department (City Funds in 000's) Description City Personnel * Health Services PEG Restoration A prior PEG anticipated efficiencies between the Bureau of Health Services and the World Trade Center health program. This is not feasible due to HIPAA requirements, which require a greater staff separation between the two programs. Small Business First The City will implement initiatives across several agencies to improve the regulatory environment for small businesses. For Fire the related expenses are for providing customer service and plain language training and increasing the use of interpretation services. 2 C UFOA Collective Bargaining City funding for UFOA labor contract settlement. Local Initiatives Local Initiatives Total Agency: Expenditure Increases/Re-estimates C = Civilian U = Uniform 2015 2016 2017 2018 2019 2,578 2,578 -- -- -- 229 386 382 382 382 13,578 18,196 27,007 38,432 41,081 -- -- -- -- 55,007 58,536 69,514 72,268 (5) 1 423 U C E-7 46,713 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Correction FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $1,107,859 $1,105,643 $1,104,100 $1,105,104 $1,105,156 20,261 54,264 43,778 46,071 49,464 $1,128,120 $1,159,907 $1,147,878 $1,151,175 $1,154,620 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 9,208 U 1,657 C 9,208 U 1,656 C 9,208 U 1,656 C 9,208 U 1,656 C 9,208 U 1,656 C 329 U 318 U 318 U 318 U 318 U 71 C 71 C 71 C 71 C 71 C 9,537 U 9,526 U 9,526 U 9,526 U 9,526 U 1,728 C 1,727 C 1,727 C 1,727 C 1,727 C C = Civilian U = Uniform E-8 Expenditure Increases/Re-estimates Department of Correction (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 February Young Adult Housing Funding to provide a 1:15 staff to inmate ratio and programming for new young adult (18-21 year old) housing areas. 282 6 U C 12,648 25,291 25,307 25,332 25,368 Programming Staff Funding for 2 Deputy Commissioners to oversee agency-wide programming and 20 Correctional Counselors to implement and facilitate rehabilitation and behavioral modification treatment programs. 22 C 417 1,669 1,669 1,669 1,669 Legal Staff Funding for additional legal staff to handle workload tied to increases in lawsuits, FOIL requests, and subpoenas. 8 C 179 717 717 717 717 Press Officers Funding for 2 additional Press Officers to handle an increase in press inquiries. 2 C 45 180 180 180 180 Applicant Investigation Unit Funding to expand the Applicant Investigation Unit, including additional investigators and medical staff. 8 23 U C 783 2,397 2,325 2,327 2,330 Recruitment Unit Funding to re-establish a dedicated Recruitment Unit within the Department of Correction. 12 3 U C 305 1,213 1,214 1,216 1,219 Camera Expansion Staff/Maint. Funding for technical, maintenance, and support staff for camera expansion throughout DOC facilities, as well as uniformed staff to monitor camera feeds. 10 7 U C 1,035 2,347 3,336 3,336 3,336 6 U 267 602 604 606 609 Expanded Canine Services Funding for expanded canine use, including handlers, canine food, transportation, and veterinary services. C = Civilian U = Uniform E-9 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Correction (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 Training Funding for enhanced officer training. 590 6,572 545 545 545 Equipment Replacement Funding to replace equipment, including inmate tables in housing areas, as well as other items requested by each command. 124 5,080 652 652 652 1,100 2,421 32 32 32 -- 1,802 1,802 1,802 1,802 456 654 888 1,260 1,811 2,312 3,319 4,507 6,397 9,194 20,261 54,264 43,778 46,071 49,464 Maintenance Funds Funding for shortfall in resources for maintenance activities, surveying/mapping of Rikers Island, and diesel spill remediation. Replacement of Ceramic Fixtures Funding to replace ceramic lavatory sinks, toilet bowls and fixtures with tamper resistant stainless steel. ADWA Collective Bargaining Increases Assistant Deputy Warden Association (ADWA) collective bargaining increases. CCA Collective Bargaining Increases Correction Captains' Association (CCA) collective bargaining increases. Total Agency: Expenditure Increases/Re-estimates C = Civilian U = Uniform 318 71 U C E-10 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Sanitation FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 $1,467,677 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 (7,776) $1,459,901 $1,518,350 $1,498,626 $1,499,101 $1,499,107 27,095 40,761 39,245 37,578 $1,545,445 $1,539,387 $1,538,346 $1,536,685 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 7,239 U 2,059 C 7,280 U 2,091 C 7,280 U 2,091 C 7,280 U 2,091 C 7,280 U 2,091 C 93 U 181 U 93 U 93 U 93 U 5C 32 C 32 C 32 C 32 C 7,332 U 7,461 U 7,373 U 7,373 U 7,373 U 2,064 C 2,123 C 2,123 C 2,123 C 2,123 C C = Civilian U = Uniform E-11 Expenditure Increases/Re-estimates Department of Sanitation (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 February Residential Organics Pilot Continuation of the residential organics pilot. School Organics Collection Continuation of the school organics pilot. Recycling and Sustainability 76 U 1,404 4,570 -- -- -- 7 U -- 321 -- -- -- 20 C -- 1,314 1,344 1,344 1,344 15 U 447 1,489 1,491 1,489 1,618 78 U 1,992 6,707 6,776 6,830 8,208 5 U -- 253 -- -- -- 4,728 23,936 22,085 22,385 1,077 406 -- -- -- -- 600 600 600 600 Additional staff for the Bureau of Recycling and Sustainability to support new and expanding recycling programs. Operations Management Supervisors Additional Supervisors in the Operations Assistance Unit to support the snow route sectoring project, routing for organics pilots, and other programs. District Field Supervisors Additional Supervisors to be assigned to all 59 community districts to improve monitoring of field conditions and provide critical administrative support. Sanitation Workers for Brooklyn Interim Export Relays Sanitation Workers for relays to Brooklyn interim export contract vendors. Fresh Kills Closure Funding to continue closure construction at the Fresh Kills Landfill. (13,560) Solid Waste Management Plan Legal Services Legal services to support implementation of the Solid Waste Management Plan. Civilian Analytics Staff Additional positions in the Operations Management Division to enhance the Department's analytic capabilities. C = Civilian U = Uniform 6 C E-12 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Sanitation (City Funds in 000's) Description City Personnel * Update Medical Standards The Department's Medical Division will update its medical standards for new hires and update its guidelines for medical leave. 2015 2016 2017 2018 2019 20 390 -- -- -- Temp Conversion Conversion of four temporary contract positions to full-time positions in the Medical Division. 4 C 19 39 39 39 39 Environmental Compliance Specialist One Environmental Compliance Specialist in the Bureau of Legal Affairs. 1 C 19 75 75 75 75 525 3,067 3,067 3,067 525 -- 2,735 2,871 2,877 1,685 -- 40 40 40 40 (42) (55) (81) (90) (90) 320 416 603 889 Great Kills Park Remediation Funding for a Remedial Investigation/Feasibility Study at Great Kills Park. Bureau of Information Technology OTPS - Licenses and Maintenance Funding for licenses and software maintenance costs in the Bureau of Information Technology. EEO Investigator One additional position in the Department's EEO Office. 1 C Labor Transfer Non-Union Employees Reestimate of labor transfer for wage increases for City funded non-union employees. USCA Collective Bargaining 1,149 Funding for Uniformed Sanitation Chiefs labor contract settlement. C = Civilian U = Uniform E-13 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Sanitation (City Funds in 000's) Description City Personnel * Local Initiatives Local Initiatives Total Agency: Expenditure Increases/Re-estimates C = Civilian U = Uniform 181 32 U C E-14 2015 2016 2017 2018 2019 3 -- -- -- -- 27,095 40,761 39,245 37,578 (7,776) *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Administration for Children's Services FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $902,245 $894,936 $898,888 $899,729 $899,749 8,426 12,063 11,491 11,588 11,588 $910,671 $906,999 $910,379 $911,317 $911,337 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 6,399 6,761 6,761 6,761 6,761 83 83 83 83 83 6,482 6,844 6,844 6,844 6,844 E-15 Expenditure Increases/Re-estimates Administration for Children's Services (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 5,517 11,034 9,987 9,987 9,987 YMI Reallocation: Cultural Sensitivity Plus Training Funding for training of agency personnel to enhance sensitivity to cultural differences. 20 -- -- -- -- Labor Transfer for Non-Union Employees Realigns funding. 97 117 172 190 190 1,960 -- -- -- -- 5 6 8 9 9 827 906 1,324 1,402 1,402 8,426 12,063 11,491 11,588 11,588 February Child Welfare Reforms Funding to support data-driven risk assessments, frontline coaching, training and preventive services. 83 Supervision and Treatment Services for Juveniles Program I/C DC37 Collective Bargaining Adjustment DC37 Collective Bargaining Realigns funding for DC37 Collective Bargaining Agreement. Total Agency: Expenditure Increases/Re-estimates 83 E-16 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Social Services FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $7,595,897 $7,523,749 $7,526,104 $7,516,306 $7,506,577 33,969 38,143 27,401 25,742 24,268 $7,629,866 $7,561,892 $7,553,505 $7,542,048 $7,530,845 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 10,370 9,767 9,585 9,526 9,526 174 594 440 440 440 10,544 10,361 10,025 9,966 9,966 E-17 Expenditure Increases/Re-estimates Department of Social Services (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 -- 6,920 3,848 3,848 3,848 ID NYC Additional staff and administrative funding to support an increased application volume for IDNYC, the New York City municipal identification card. 5,038 4,124 -- -- -- Anti-Eviction Legal Services Funding to maintain affordable housing by providing housing court legal assistance for residents experiencing tenant harassment and displacement in neighborhoods identified for rezoning. 5,000 -- -- -- -- -- 2,064 2,064 2,064 2,064 LINC IV / Rental Assistance for Homeless Seniors Funding for rental assistance for 1,100 homeless seniors. 2,602 8,661 7,794 7,015 6,314 Broker's Fees Funding for enhanced broker's fees to promote shelter move outs. 3,651 -- -- -- -- LINC V / Rental Assistance for Homeless Working Adults Funding for rental assistance for 1,000 homeless working adults. 2,174 7,129 6,060 5,151 4,378 -- 495 495 495 495 February SNAP Staffing Funding to support current staffing at SNAP centers to allow HRA to maintain services as the agency transitions to a more modernized and user friendly approach with rollout of the Benefits Re-engineering initiative. 515 Employment and Aftercare Services for LINC I Families Support for LINC I working families to ensure that they maintain employment and housing after placement in permanent housing. Aftercare Services for LINC III Families Support for domestic violence survivors receiving LINC III rental assistance. E-18 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Social Services (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 Enhanced Moving Allowances for Homeless Families Funding to increase the furniture allowance and cover moving costs for families moving from shelter to permanent housing. 4,596 1,440 1,440 1,440 1,440 Landlord Bonus and Enhanced Security Fund Funding for one-time incentive payments to landlords participating in the LINC programs and for establishment of a program to reimburse landlord costs not covered by security deposits. 2,000 1,000 1,000 1,000 1,000 Employment and Aftercare Services for LINC V Individuals Support for working individuals receiving LINC rental assistance. 700 1,700 -- -- -- LINC Apartment Inspections Funding for HPD staff, vehicles, and equipment to conduct inspections of LINC apartments. 759 840 831 831 831 Early Warning Homeless Prevention Funding for programs to provide outreach and preventive services to families and individuals known to HRA who are at high risk of entering shelter. 328 656 656 656 656 1,403 2,907 2,907 2,907 2,907 Aftercare Services for LINC I and LINC III Families Support for working families receiving LINC I rental assistance and Domestic Violence survivors receiving LINC III rental assistance. 1,389 -- -- -- -- Homeless Prevention Strategies Short-term rental assistance for families at-risk of homelessness. 3,507 -- -- -- -- 10 12 18 20 20 Homeless Program Support Staff to provide operational and administrative support for LINC and homeless prevention programs. 79 I/C Labor Transfer for Non-Union Employees E-19 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Social Services (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 IC Transfer for Non-Union Employees 70 89 131 145 145 I/C Labor Transfer for Non-union Employees - Mayor's Office 16 17 26 28 28 I/C Labor Transfer for Non-union Employees - Mayor's Office 34 43 64 71 71 4 5 7 8 8 558 -- -- -- -- DC37 Collective Bargaining Realigns funding for DC37 Collective Bargaining Agreement. 10 13 19 20 20 DC37 Collective Bargaining Realigns funding for DC37 Collective Bargaining Agreement. 26 28 41 43 43 657 -- -- -- -- CEO: Evaluation Reallocates funds for other CEO programming. (490) -- -- -- -- Young Men's Initiative: Jobs Plus Reallocates funding for other YMI programming. (73) -- -- -- -- 38,143 27,401 25,742 24,268 I/C Labor Transfer For Non-Union Employees - OLR FY15 Local Initiatives Technical Adjustment for Executive Action Legal Services Transfers funding for Executive Action legal services from DCAS to HRA. Total Agency: Expenditure Increases/Re-estimates 594 33,969 E-20 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Homeless Services FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $529,510 $500,394 $512,120 $512,671 $515,774 10,962 18,140 15,383 14,940 14,732 $540,472 $518,534 $527,503 $527,611 $530,506 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 1,976 1,994 1,994 1,994 1,994 189 154 154 153 153 2,165 2,148 2,148 2,147 2,147 E-21 Expenditure Increases/Re-estimates Department of Homeless Services (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 25 1,615 4,306 4,306 4,306 4,306 4 770 2,563 2,307 2,076 1,868 44 1,026 3,079 3,079 3,079 3,079 Prevention Team Staff to provide oversight of prevention and aftercare programming. 5 114 342 342 342 342 Conditional Rental Assistance for Singles Funding for a conditional rental assistance program for homeless adults in shelter. 1 1,992 2,713 212 -- -- Flexible Funding for At-Risk Singles Provides funding to assist singles at risk for homelessness in maintaining housing stability. 200 -- -- -- -- Homebase Media Campaign Funding for the Homebase public media campaign. 708 -- -- -- -- Adult Shelter Housing Specialists 500 -- -- -- -- Family Shelter Intake Staffing Staff to expedite family shelter eligibility reviews. 456 -- -- -- -- Child Safety Campaign Social workers to assist homeless families involved in the child welfare system. 300 -- -- -- -- February PATH Community-Based Demonstration Project Funding to improve homeless prevention efforts at family shelter intake. Aftercare for LINC IV Individuals Support for elderly adults receiving LINC IV rental assistance. LINC Support Staff to provide operational and administrative support for LINC programs. Additional housing specialists at single adult shelters. E-22 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Homeless Services (City Funds in 000's) Description Auburn and Catherine Street Shelter Staff Provides staff for the conversion of Auburn and Catherine Shelters into adult only facilities. City Personnel * 15 Drop-In Center Capacity Expansion of drop-in center capacity to serve street homeless individuals. 2015 2016 2017 2018 2019 347 833 833 833 833 354 850 850 850 850 Routine Site Review Inspections Staff to conduct routine site review inspections to prevent premature failure of building systems. 19 303 1,212 1,212 1,212 1,212 Permanency Specialists Staff to provide advocacy support, assistance, oversight, and training to shelter providers related to housing permanency. 37 624 1,873 1,873 1,873 1,873 4 123 369 369 369 369 1,250 -- -- -- -- 270 -- -- -- -- 10 -- -- -- -- 10,962 18,140 15,383 14,940 14,732 Office of Public-Private Partnerships Staff to build community resources for shelter clients and coordinate services with other City agencies. Aftercare for LINC II Families Support for families receiving LINC II rental assistance. Lease Adjustment Member Item Reallocation Total Agency: Expenditure Increases/Re-estimates 154 E-23 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Youth and Community Development FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2017 FY 2018 FY 2019 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 $349,156 $229,437 $230,149 $230,330 $230,331 706 21,163 22,293 22,293 22,293 $349,862 $250,600 $252,442 $252,623 $252,624 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 409 417 417 417 417 Financial Plan as of 2/09/2015 409 417 417 417 417 E-24 Expenditure Increases/Re-estimates Department of Youth and Community Development (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 Summer Youth Employment Program (SYEP) Minimum Wage Increase Funding to maintain summer 2014 service levels at the new minimum wage. -- 3,391 4,521 4,521 4,521 COMPASS Summer Slots Funding to maintain summer programming for all elementary afterschool slots. -- 17,606 17,606 17,606 17,606 Relocation Costs Funding to cover additional move costs related to the relocation of the agency's administrative offices. 341 -- -- -- -- City Council Member Item Reallocation 321 -- -- -- -- City Council Member Item Reallocation 44 -- -- -- -- -- 166 166 166 166 706 21,163 22,293 22,293 22,293 February YMI Reallocation: Mayor's Youth Leadership Council Funding to support the Mayor's Youth Leadership Council. Total Agency: Expenditure Increases/Re-estimates E-25 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Health and Mental Hygiene FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $676,605 $676,925 $682,326 $684,157 $684,336 5,500 15,678 15,002 7,332 7,332 $682,105 $692,603 $697,328 $691,489 $691,668 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 3,470 3,442 3,438 3,438 3,438 14 18 18 18 18 3,484 3,460 3,456 3,456 3,456 E-26 Expenditure Increases/Re-estimates Department of Health and Mental Hygiene (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 2,002 3,538 3,538 3,538 3,538 196 782 782 782 782 OCME Administration Funding for maintenance and professional support services. 788 1,108 928 928 928 Health Clinic Expansion Planning and financial support for new community-based health clinics. 250 8,200 8,050 -- -- February Enhanced Supervision Housing Funding for health and mental health staff in new housing units at Rikers Island. OCME Forensic Operations Funding will support additional staff to improve mortuary operations. 12 Child Health Surveillance Funding to support an annual child health survey, which will enhance the City's capability to monitor and evaluate trends in child health risk factors and outcomes. 2 -- 749 749 749 749 Language Development Campaign Media campaign to encourage parents of young children to talk, read, and sing to their babies to promote brain development. 1 -- 1,055 1,055 1,055 1,055 3 468 122 122 122 89 178 178 178 178 Small Business First The City will implement initiatives across several agencies to improve the regulatory environment for small businesses. For DOHMH, the related expenses are for creating plain language guides, plain language training, and increasing translated materials. Child Care Enhanced Oversight Additional funding for enhanced oversight of child care programs in NYC. 3 E-27 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Health and Mental Hygiene (City Funds in 000's) Description City Personnel * Pre-Arraignment Screening Funding realignment. Animal Control 1 HHC-DOHMH Transfer DOHMH and HHC functional transfer Intracity agreement for HIV/AIDs Testing and Counseling services. PECO HPD Transfer (1) HHC-DOHMH Transfer DOHMH and HHC functional transfer Intracity agreement for Chronic Disease. City Council Member Items Total Agency: Expenditure Increases/Re-estimates 18 E-28 2015 2016 2017 2018 2019 (380) (380) (380) -- -- 33 65 65 65 65 516 -- -- -- -- (64) (85) (85) (85) (85) 2,063 -- -- -- -- 4 -- -- -- -- 5,500 15,678 15,002 7,332 7,332 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Housing Preservation and Development FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $71,141 $54,537 $54,992 $55,108 $55,111 266 2,586 2,734 2,785 2,785 $71,407 $57,123 $57,726 $57,893 $57,896 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 515 508 508 508 508 27 27 27 27 27 542 535 535 535 535 E-29 Expenditure Increases/Re-estimates Housing Preservation and Development (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 26 729 2,185 2,185 2,185 2,185 1 64 85 85 85 85 (762) -- -- -- -- (2) -- -- -- -- 318 467 518 518 February HPD New Needs Staffing and Related OTPS The Department of Housing Preservation and Development will hire additional staff across the agency to support the Housing New York plan. Transfer of a PECO Staff Position from DOHMH The Department of Housing Preservation and Development will receive a transfer of a Rapid Building Assessment Staff Position from The Department of Health and Mental Hygiene (DOHMH). The position was previously added under DOHMH's Post-Emergency Canvassing Operations initiative. FY15 City Council Member Item Re-Allocation FY15 City Council Member Item Re-Allocation MN-3 Member Item Re-allocation MN-3 Member Item Re-allocation Labor Transfer for Non-Union Employees. 239 Labor Transfer for Non-Union Employees. Total Agency: Expenditure Increases/Re-estimates (2) 27 266 E-30 (2) 2,586 (3) 2,734 (3) 2,785 (3) 2,785 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Finance FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $255,829 $254,063 $256,529 $260,212 $258,591 4,709 3,401 3,400 3,410 3,410 $260,538 $257,464 $259,929 $263,622 $262,001 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 1,962 1,957 1,952 1,947 1,947 63 63 63 63 63 2,025 2,020 2,015 2,010 2,010 E-31 Expenditure Increases/Re-estimates Department of Finance (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 3,000 -- -- -- -- February Paylock Additional funding is allocated to Department of Finance to pay for the cost of car booting services. This is offset by revenue. New City Tax Auditors New City Tax Auditors 27 767 1,534 1,534 1,534 1,534 Tax Policy and Planning - New Assessors Tax Policy and Planning - New Assessors 20 400 800 800 800 800 2 -- -- -- -- -- Sheriff - Support for NYC Law Dept Investigations Funding for the Sheriff to support Law Department investigations that require work outside the City. 4 102 193 163 163 163 Financial Data Matching unit Additional staff for the Financial Data Matching unit. 3 90 180 180 180 180 Tax Audit Support Staff Tax Audit Support Staff 4 223 446 446 446 446 Funding for 55A staff 3 77 185 185 185 185 Speed Camera and Vision Zero Support Staff Speed Camera and Vision Zero Support Staff Positions and funding restoration for Office Machine Aides previously laid off in 2011. Labor Transfer for Non-union Employees Correction (1,689) (2,119) (3,111) (3,446) (3,446) Prior labor transfer for non-union employees technical correction. E-32 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Finance (City Funds in 000's) Description City Personnel * Labor Transfer for Non-union Employees Labor transfer for non-union employees. Total Agency: Expenditure Increases/Re-estimates 63 E-33 2015 2016 2017 2018 2019 1,739 2,182 3,203 3,548 3,548 4,709 3,401 3,400 3,410 3,410 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Transportation FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $501,381 $497,450 $504,319 $504,985 $504,991 33,053 7,687 6,529 6,309 6,424 $534,434 $505,137 $510,848 $511,294 $511,415 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 2,173 2,171 2,171 2,171 2,171 226 68 68 68 68 2,399 2,239 2,239 2,239 2,239 E-34 Expenditure Increases/Re-estimates Department of Transportation (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 345 -- -- -- -- 3,051 -- -- -- -- 370 1,110 -- -- -- -- 350 -- -- -- 135 182 182 182 182 -- 400 400 400 400 18 866 1,743 1,743 1,743 1,743 1 14 55 55 55 55 37 2,198 1,356 1,638 1,753 1,868 February Parking Meter Operating Costs Funding for increased annual Air Time (wireless communication) costs for multi-space parking meters. Parking Meter Credit Card Fees Funding for credit card fees associated with multi-space parking meters. Parking Meter Upgrades Expense costs for reprogramming multi-space meters. NYC Parking Surveys Costs for establishing a comprehensive, City-wide survey model in order to more accurately manage metered parking. Accessible Pedestrian Signals Staffing cost for Local Law 60, which mandates additional 50 Accessible Pedestrian Signals units to be installed annually. 3 Brooklyn Bridge Cameras Maintenance for Brooklyn Bridge surveillance cameras. Bridge Inspection & Load Rating Staffing and equipment costs for inspection and load rating of bridges. Intercity Bus Stop Permit Headcount Additional Intercity Bus Stop Permit Group staff. Revenue will offset expenses associated with this initiative. HIQA & Permit Management Additional Highway Inspection & Quality Assurance (HIQA) and Permit Management staff to handle increased building and street opening permit volumes. Revenue will offset expenses associated with this initiative. E-35 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Transportation (City Funds in 000's) Description Freedom of Information Law (FOIL) Unit Staffing Additional resources to handle the Department of Transportation's Freedom of Information Law (FOIL) requests. City Personnel * 2 New York State Industries for the Disabled (NYSID) Contract - Prevailing Wages Prevailing Wage increases for New York State Industries for the Disabled (NYSID) cleaning contract. Information Technology Needs 2015 2016 2017 2018 2019 21 85 85 85 85 270 549 549 549 549 1,064 783 452 -- -- 284 314 326 326 326 3 13 3 3 3 23,861 -- -- -- -- 113 147 216 239 239 7 9 13 14 14 Funding for information technology expenses including hardware and software and ongoing maintenance costs. Commercial Biking 7 Additional Commercial Biking Unit staff to implement new commercial biking regulations. Revenue will offset expenses associated with this initiative. Small Business First The City will implement initiatives across several agencies to improve the regulatory environment for small businesses. For DOT this will require expense costs associated with providing plain language staff training and increased use of translated materials. Resurfacing Reallocation Adjustment to accurately reflect the IFA funding of fringe benefits associated with resurfacing in the miscellaneous expense budget. The increase in DOT city tax levy is offset by a corresponding decrease in the miscellaneous expense budget for a net zero tax levy expense impact. Labor Transfer for Non-Union Employees - Fed Labor Transfer for Non-Union Employees - Federal Labor Transfer for Non-Union Employees - OC Labor Transfer for Non-Union Employees - Other Categorical E-36 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Transportation (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 Labor Transfer for Non-Union Employees - State Labor Transfer for Non-Union Employees - State 108 139 204 226 226 Labor Transfer for Non-Union Employees - City Labor Transfer for Non-Union Employees - City 347 452 663 734 734 -- -- -- -- 7,687 6,529 6,309 6,424 Council Member Adjustment Total Agency: Expenditure Increases/Re-estimates (4) 68 33,053 E-37 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Parks and Recreation FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $340,241 $325,178 $330,088 $331,262 $331,266 8,211 10,740 10,740 10,365 10,365 $348,452 $335,918 $340,828 $341,627 $341,631 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 3,367 3,279 3,281 3,281 3,281 21 40 40 40 40 3,388 3,319 3,321 3,321 3,321 E-38 Expenditure Increases/Re-estimates Department of Parks and Recreation (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 Overtime Adjustment Funding to address a baseline deficit in the Department's overtime budget. 5,000 5,000 5,000 5,000 5,000 Pre-Design Site Testing and Analysis Pre-design testing program to better assess the cost of capital projects prior to funding being added to the capital plan; this is also anticipated to reduce the number of change orders, allowing for quicker project completion. 1,800 1,800 1,800 1,800 1,800 -- 175 175 -- -- -- 1,500 1,500 1,500 1,500 110 120 120 120 120 138 275 275 275 275 Public Music Licenses Funding for blanket licenses for performances of music on City property in order to comply with Federal law. 31 162 162 162 162 Historic Houses Funding to support the care and maintenance of 23 historic houses under the Department's portfolio. 87 87 87 87 87 February Parks Usership Study Funding for a Citywide parks usership study. Continuation of Forestry Staff 23 Continuation of funding for the forestry staff previously supported by DEP funding as part of the Croton Forestry Management Program. Environmental Monitoring Funding to continue environmental monitoring at Barretto Point Park and White Island, as required by the State Department of Environmental Conservation (DEC). Driver Training (Vision Zero) Funding for driver trainers to supplement classroom instruction with in-vehicle training. 5 E-39 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Parks and Recreation (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 Natural Resources Group (NRG) Move Funding to support the move of the Natural Resources Group (NRG) staff to a new location in Queens. 125 -- -- -- -- Capitally Ineligible Project Needs Funding to cover capitally ineligible charges associated with the completion of capital projects. 400 400 400 400 400 Parks Needs Assessment Study Funding for the development of a comprehensive capital assets needs assessment study. -- 200 200 -- -- GreenThumb and Land Restoration Project (LRP) Funding Continuation of funding for GreenThumb and Land Restoration Project (LRP) sites that are no longer eligible for Community Development (CD) funding. 7 211 421 421 421 421 Recreation Center Programming and Maintenance Funding for dedicated maintenance staff for Recreation Centers and for all Recreation Centers to remain open a minimum of 6 days per week. This funding would increase the operating hours at three locations (Owen Dolen, Von King, and Fort Hamilton) from 5 to 6 days. 5 300 600 600 600 600 9 -- -- -- -- 8,211 10,740 10,740 10,365 10,365 Member Item Reallocation Council member item reallocation. Total Agency: Expenditure Increases/Re-estimates 40 E-40 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM New York Public Library FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2017 FY 2018 FY 2019 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 $119,549 $115,788 $117,453 $117,761 $117,761 20 - - - - $119,569 $115,788 $117,453 $117,761 $117,761 E-41 Expenditure Increases/Re-estimates New York Public Library (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 Member Item Reallocation Member Item Reallocation 20 -- -- -- -- Total Agency: Expenditure Increases/Re-estimates 20 -- -- -- -- February E-42 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Brooklyn Public Library FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2017 FY 2018 FY 2019 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 $89,084 $86,137 $87,508 $87,780 $87,781 202 170 259 337 337 $89,286 $86,307 $87,767 $88,117 $88,118 E-43 Expenditure Increases/Re-estimates Brooklyn Public Library (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 186 170 259 337 337 16 -- -- -- -- 202 170 259 337 337 February BPL L237 Collective Bargaining Brooklyn Public Library Local 237 Collective Bargaining Member Item Reallocation Member Item Reallocation Total Agency: Expenditure Increases/Re-estimates E-44 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Queens Borough Public Library FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2017 FY 2018 FY 2019 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 $90,086 $87,405 $88,927 $89,216 $89,216 6 - - - - $90,092 $87,405 $88,927 $89,216 $89,216 E-45 Expenditure Increases/Re-estimates Queens Borough Public Library (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 Member Item Reallocation Member Item Reallocation 6 -- -- -- -- Total Agency: Expenditure Increases/Re-estimates 6 -- -- -- -- February E-46 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Cultural Affairs FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2017 FY 2018 FY 2019 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 $159,665 (184) $159,481 $149,678 $150,398 $149,806 $149,806 - - - - $149,678 $150,398 $149,806 $149,806 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 46 46 46 46 46 Financial Plan as of 2/09/2015 46 46 46 46 46 E-47 Expenditure Increases/Re-estimates Department of Cultural Affairs (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 February Member Item Reallocation Member item reallocation. (125) -- -- -- -- Member Item Reallocation Member item reallocation. (59) -- -- -- -- (184) -- -- -- -- Total Agency: Expenditure Increases/Re-estimates E-48 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Citywide Administrative Services FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $261,722 $257,161 $256,691 $244,160 $241,794 2,801 1,204 1,386 1,447 1,447 $264,523 $258,365 $258,077 $245,607 $243,241 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 1,381 1,383 1,383 1,383 1,383 (21) (27) (27) (27) (27) 1,360 1,356 1,356 1,356 1,356 E-49 Expenditure Increases/Re-estimates Department of Citywide Administrative Services (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 February Asset Management Headcount for four Fire Safety Inspector Supervisor positions for DCAS-managed buildings. The agency will self-fund the salary costs. 4 -- -- -- -- -- Civil Service Compliance Headcount and Funding 2 108 215 215 215 215 Human Capital Offices Funding and positions are provided to establish an Office of Citywide Recruitment and an Office of Workforce Development. The respective units will enhance the City's efforts in recruitment and retention of public employees. 6 251 501 501 501 501 Procurement IT Developer 1 50 100 100 100 100 238 -- -- -- -- 2,020 -- -- -- -- 6 7 10 11 11 -- -- -- -- Funding and positions are provided for a Systems Manager and a Senior IT Developer to provide technical improvements to civil service systems and exams. Funding and a position are provided for an IT Developer to maintain the Procurement and Contract Tracking (PACT) System. BSA Office Space Renovations Funding for construction of temporary office space for the Board of Standards and Appeals at 250 Broadway. Immigration Headcount and funding for Citywide immigration coordination, outreach and education plan. Labor Transfer for Non-Union Employees (IC) Immigration Plan Reallocation Reallocation of immigration plan funding. (177) E-50 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Citywide Administrative Services (City Funds in 000's) Description Budget Code Realignment Budget Code Realignment to appropriately reflect Court Cleaning program headcount. City Personnel * (40) Labor Transfer for Non-Union Employees Labor Transfer for Non-Union Employees (City). Total Agency: Expenditure Increases/Re-estimates (27) E-51 2015 2016 2017 2018 2019 -- -- -- -- -- 305 381 560 620 620 2,801 1,204 1,386 1,447 1,447 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Education FY 2015 FY 2016 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2019 $9,680,492 $10,083,968 $10,524,904 $10,994,077 $11,502,630 90,357 104,714 152,707 184,549 231,674 $9,770,849 $10,188,682 $10,677,611 $11,178,626 $11,734,304 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2018 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2017 93,291 P 9,024 C 93,291 P 9,025 C 93,291 P 9,025 C 93,291 P 9,025 C 93,291 P 9,025 C 12 P 12 P 12 P 12 P 12 P 1C 7C 7C 7C 7C 93,303 P 93,303 P 93,303 P 93,303 P 93,303 P 9,025 C 9,032 C 9,032 C 9,032 C 9,032 C C = Civilian P = Pedagogical E-52 Expenditure Increases/Re-estimates Department of Education (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 272 -- -- -- -- -- 360 330 330 330 Committee on Special Education Funding for temp staff at each Committee on Special Education (CSE) to help speed up responses to 10-day notice of claims. 306 525 525 525 525 Tuition Assistance for Paraprofessionals Career training program that provides UFT and DC37 paraprofessionals an opportunity to acquire college credits. 961 1,009 1,009 1,009 1,009 64 109 109 109 109 -- 443 462 516 -- -- 2,614 2,614 2,614 2,614 -- 119 119 119 119 336 655 703 735 767 February Family Welcome Centers Upgrades technology platform at Family Welcome Centers to make them compatible with P311. New Impartial Hearing Office Creates a new satellite Impartial Hearing Office, which will help speed up decisions in Special Education related cases. Local 372 Union Leave Employee Funds L372 employee salary & fringe to serve for a year as a grievance representative. 3 1 C C TCIS Training Threapeutic Crisis Intervention training for staff who work with students who have behavorial issues. School Food Funds salary, fringe & supplies for 9 new school food sites opening in Fall 2015. 3 C Webcasting for PEP Meetings Funds the webcasting of all DOE PEP and contract meetings. Literacy Intervention Teams Literacy training for teachers including those who work with students with dyslexia. C = Civilian P = Pedagogical 2 P E-53 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Education (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 -- 214 435 665 906 Student Enrollment System Upgrades to enrollment system to include enhancements that increases enrollment and placement opportunities for ELL and other disadvantaged students. 335 -- -- -- -- Language Line Supports over-the-phone language services for parents in over 80 languages. 75 47 26 14 7 -- 68 -- -- -- 4,912 4,912 4,912 4,912 4,912 824 1,097 1,097 1,097 1,097 5,240 -- -- -- -- I/C DC37 Collective Bargaining Adjustment 54 69 101 107 107 I/C DC37 Collective Bargaining Adjustment 10 13 18 19 19 I/C DC37 Collective Bargaining Adjustment 20 23 33 35 35 I/C DC37 Collective Bargaining Adjustment 10 13 18 20 20 I/C Labor Transfer for Non-Union Employees 19 25 36 40 40 I/C Labor Transfer for Non-Union Employees 7 9 13 15 15 PSAL Adds 12 new varsity girls teams per year. Language Access Campaign Public awareness campaign to inform parents of Language Line services. Teacher Leadership Positions Funds enhanced salaries for master and model teacher positions per the UFT contract. Guidance Support Funds Guidance Counselors and Social Workers at Alternative Learning Centers in response to the fatal stabbing at I.S. 117. 10 P Renewal Schools Funds the first year of services for the Renewal Schools intiative. C = Civilian P = Pedagogical E-54 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Education (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 I/C Labor Transfer for Non-Union Employees 5 7 10 11 11 YMI: Youth Leadership Council YMI Funds for Mayor's Youth Leadership Council shifting to DYCD -- -- -- -- YMI: Scholastic Partnership YMI: Scholastic Partnership for Native Sons Campaign (166) 53 -- -- -- -- CSA Collective Bargaining Funds CB related wage increases. 19,993 27,317 52,131 85,224 132,599 Local891 Collective Bargaining Funds CB related wage increases 9,299 13,076 18,521 18,521 18,521 L94 Collective Bargaining Funds Collective Bargaining related wage increases. 8,873 11,428 14,791 14,062 14,062 32BJ Collective Bargaining Funds Collective Bargaining related wage increases. 24,735 28,953 37,475 35,629 35,629 DC37 Collective Bargaining Salary and fringe for school aides, health aides related to collective bargaining. 14,001 11,775 17,219 18,221 18,221 Council Items Reallocations to Council Items (50) -- -- -- -- Council Member Items Reallocation of Member Items 3 -- -- -- -- 90,357 104,714 152,707 184,549 231,674 Total Agency: Expenditure Increases/Re-estimates C = Civilian P = Pedagogical 12 7 P C E-55 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM City University FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $654,955 $634,442 $634,319 $629,436 $629,477 2,172 8,219 15,621 23,993 25,733 $657,127 $642,661 $649,940 $653,429 $655,210 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 3,336 P 1,728 C 3,331 P 1,676 C 3,365 P 1,676 C 3,365 P 1,676 C 3,365 P 1,676 C 826 P 826 P 826 P 826 P 826 P 177 C 177 C 177 C 177 C 177 C 4,162 P 4,157 P 4,191 P 4,191 P 4,191 P 1,905 C 1,853 C 1,853 C 1,853 C 1,853 C C = Civilian P = Pedagogical E-56 Expenditure Increases/Re-estimates City University (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 319 325 331 338 344 1,074 1,074 1,074 1,074 1,074 279 279 -- -- -- -- 7,041 14,716 23,081 24,315 -- -- -- -- -- February Solar Cities CUNY's NYSolar Smart project aims to ensure funding for the NYC Solar programs that support large-scale solar energy market growth in NYC and engage CUNY faculty, staff and students. Fatherhood Academy CUNY's Fatherhood Academy program provides services to fathers aged 18-24 who are interested in improving their employment and educational prospects. LaGuardia Community College Rent Technical adjustment to increase rental aid. Fringe Technical adjustment to fund CUNY at appropriate fringe levels. Technical Headcount Adjustment Technical adjustment to align headcount plan with past funding and hiring decisions. 826 177 P C Green City Force Transferring funding from CUNY to MOCJ to support the Green City Force Project. The program provides job training for NYCHA residents who are diconnected high school graduates or GED holders between the ages of 18 and 24. (500) Create New Technology Incubators (500) (500) (500) -- 1,000 -- -- -- -- 2,172 8,219 15,621 23,993 25,733 Create New Technology Incubators Total Agency: Expenditure Increases/Re-estimates C = Civilian P = Pedagogical 826 177 P C E-57 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Health and Hospitals Corporation FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2017 FY 2018 FY 2019 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 $156,823 (2,579) $154,244 E-58 $149,881 $193,081 $208,096 $213,500 - - - - $149,881 $193,081 $208,096 $213,500 Expenditure Increases/Re-estimates Health and Hospitals Corporation (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 February HHC CTL taketown for IC (516) -- -- -- -- HHC CTL taketown for IC (2,063) -- -- -- -- Total Agency: Expenditure Increases/Re-estimates (2,579) -- -- -- -- E-59 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department for the Aging FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 $172,937 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 (65) $172,872 $148,266 $148,798 $148,832 $148,833 1 1 1 1 $148,267 $148,799 $148,833 $148,834 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 141 143 143 143 143 1 - - - - 142 143 143 143 143 E-60 Expenditure Increases/Re-estimates Department for the Aging (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 1 1 1 1 1 Member Item Reallocation (66) -- -- -- -- Total Agency: Expenditure Increases/Re-estimates (65) 1 1 1 1 February I/C Labor Transfer for Non-union Employees - Mayor's Office E-61 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Small Business Services FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 $96,330 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 (4,412) $91,918 $52,554 $52,455 $52,603 $52,603 13,391 5,922 6,161 3,861 $65,945 $58,377 $58,764 $56,464 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 103 97 94 94 94 52 62 62 62 62 155 159 156 156 156 E-62 Expenditure Increases/Re-estimates Department of Small Business Services (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 25 1,400 1,385 1,385 1,385 -- 1,925 2,118 2,329 -- 650 676 703 731 760 1,663 3,080 1,716 1,716 1,716 490 -- -- -- -- (1,500) 1,500 -- -- -- (4,810) 4,810 -- -- -- -- -- -- -- February MWBE Funding The Department of Small Business Services will receive funding for expansion of the MWBE Program. 10 OER BIG Funding The Mayor's Office of Environmental Remediation will receive new funding for the Brownfield Incentive Grant program. TGI Electricity The Trust for Governors Island will receive funding for the cost of electricity. Small Business First The City will implement initiatives across several agencies to improve the regulatory environment for small businesses. For SBS, the related expenses are for building a new Business Center, deploying Compliance Advisors, and implementing all Small Business First initiatives. 21 CEO Scholars at Work The Center for Economic Opportunity (CEO) will receive funding transferred from the Human Resources Administration (HRA) for the Scholars at Work Program. MWBE Disparity Study The Department of Small Business Services will reallocate funding added at the FY16 NOV Plan to conduct a Disparity Study. OER Reallocation The Mayor's Office of Environmental Remediation will reallocate funding between fiscal years. PS Realignment The Department of Small Business Services will realign its fulltime headcount. 31 -- E-63 *As of 6/30/16 Expenditure Increases/Re-estimates Department of Small Business Services (City Funds in 000's) Description City Personnel * FY16 November Plan - City Council Member Item Changes EDC Decrease in EDC City Council TL Allocation - Incubators (1,000) City Council Member Items Reallocation of City Council member items associated with the Department of Small Business Services. Total Agency: Expenditure Increases/Re-estimates 2015 70 62 (4,412) E-64 2016 2017 2018 2019 -- -- -- -- -- -- -- -- 13,391 5,922 6,161 3,861 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Buildings FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $107,207 $103,042 $103,729 $104,103 $104,104 4,736 13,416 7,898 7,898 7,898 $111,943 $116,458 $111,627 $112,001 $112,002 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 1,139 1,139 1,125 1,125 1,125 60 67 67 67 67 1,199 1,206 1,192 1,192 1,192 E-65 Expenditure Increases/Re-estimates Department of Buildings (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 February DOB Audit The Department of Buildings will receive funding for auditing improvements within the agency. 15 563 1,050 1,050 1,050 1,050 DOB ELP Project The Department of Buildings will receive funding for the Enterprise Licensing and Permitting Project to upgrade its IT systems. 13 2,434 7,082 2,064 2,064 2,064 DOB Enforcement Improvements 32 1,374 2,235 2,235 2,235 2,235 7 211 2,385 2,385 2,385 2,385 154 664 164 164 164 4,736 13,416 7,898 7,898 7,898 The Department of Buildings will receive funding for enforcement improvements. DOB Development Hub The Department of Buildings will receive funding for the Development Hub. Small Business First The City will implement initiatives across several agencies to improve the regulatory environment for small businesses. For DOB, the related expenses are to fund studies to improve coordination between DOB and FDNY, and to streamline several processes at DOB. Total Agency: Expenditure Increases/Re-estimates 67 E-66 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Department of Environmental Protection FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2018 FY 2019 $1,116,805 $1,095,783 $1,043,221 $1,029,326 $1,027,646 2,203 3,720 2,606 2,051 2,051 $1,119,008 $1,099,503 $1,045,827 $1,031,377 $1,029,697 (City Funded) Headcount Baseline Per November Plan - 11/25/2014 FY 2017 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 222 222 222 222 222 14 14 14 14 14 236 236 236 236 236 E-67 Expenditure Increases/Re-estimates Department of Environmental Protection (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 February Office of Environmental Remediation Staffing Increase Funding for 4 additional positions within the Office of Environmental Remediation. 4 149 197 197 197 197 MS4 Assessment of Facilities Funding for two positions and a Citywide Requirements Contract for assessment of municipal operations and facilities and the impact on stormwater management. This contract will assist the City in complying with the forthcoming Municipal Separate Storm Sewer System (MS4) Permit. 2 350 1,810 698 143 143 7 16 14 14 14 1,697 1,697 1,697 1,697 1,697 8 -- -- -- -- -- 14 2,203 3,720 2,606 2,051 2,051 Small Business First The City will implement initiatives across several agencies to improve the regulatory environment for small businesses. For DEP the related expenses are for creating plain language guides, providing plain language training, and increasing the use of interpretation services. LEEBA Collective Bargaining Collective bargaining increase for the Law Enforcement Employees Benevolent Association (LEEBA) settlement. Air Pollution Inspectors Reallocate overtime funding to support the hiring of 8 additional air and noise enforcement agents (5 Inpectors and 3 Associate Inspectors). Total Agency: Expenditure Increases/Re-estimates E-68 *As of 6/30/16 AGENCY FIVE YEAR SUMMARY PROGRAM Debt Service FY 2015 Expenditure Increases / Re-estimates Financial Plan as of 2/09/2015 FY 2017 FY 2018 FY 2019 (City Funds in 000's) Dollars Baseline Per November Plan - 11/25/2014 FY 2016 $4,299,445 $6,437,546 1,144,820 (1,616,228) $5,444,265 $4,821,318 E-69 $6,980,742 (57,910) $6,922,832 $7,260,841 (8,357) $7,252,484 $7,698,739 74,103 $7,772,842 Expenditure Increases/Re-estimates Debt Service (City Funds in 000's) Description City Personnel * 2015 2016 2017 2018 2019 February Projected Debt Service Reflects changes in annual issuance amounts (27,120) Variable Rate Interest Savings Reflects changes in assumed floating rates (54,240) (58,926) (33,671) 8,707 (117,346) -- -- -- -- (11,250) -- -- -- -- 2,000 -- -- -- -- 2,396 -- -- -- -- Education Construction Fund Education Construction Fund (16,425) -- -- -- -- Hudson Yards Interest Support (76,515) Swap Payments Swap Payments adjusted to follow variable rate interest assumptions. GO Interest Earnings on Proceeds GO Interest Earnings on Proceeds Swap Receipts Swap Receipts (93,231) (8,959) (8,959) (8,959) Hudson Yards Interest Support TFA Retention TFA Retention (66,136) -- 5,016 29,314 69,396 GO LOC/Remarketing GO LOC/Remarketing (18,500) -- -- -- -- 4,959 4,959 4,959 4,959 -- -- -- HYIC Tax Equivalency Payment -- HYIC Tax Equivalency Payment Debt Service Prepayment Debt Service Prepayment 1,473,716 (1,473,716) Total Agency: Expenditure Increases/Re-estimates 1,144,820 (1,616,228) E-70 (57,910) (8,357) 74,103 *As of 6/30/16