EXECUTIVE SUMMARY BOARD OF ESTIMATES RECOMMENDATIONS FISCAL 2021 B ERNARD C. “JACK ” Y OUNG, MAYOR C IT Y OF B ALT IM OR E, M A RY L A N D Board of Estimates: Brandon M. Scott, President City Council Bernard C. “Jack” Young, Mayor Joan M. Pratt, Comptroller Dana P. Moore, Acting City Solicitor Matthew W. Garbark, Acting Director of Public Works City Council: President: Brandon M. Scott Vice President: Sharon Green Middleton First District: Zeke Cohen Second District: Danielle McCray Third District: Ryan Dorsey Fourth District: Bill Henry Fifth District: Isaac “Yitzy” Schleifer Sixth District: Sharon Green Middleton Seventh District: Leon F. Pinkett, III Eighth District: Kristerfer Burnett Ninth District: John T. Bullock Tenth District: Edward L. Reisinger Eleventh District: Eric T. Costello Twelfth District: Robert Stokes, Sr. Thirteenth District: Shannon Sneed Fourteenth District: Mary Pat Clarke Department of Finance: Henry J. Raymond, Director Photo Credit: Baltimore City Recreation and Parks Marketing Communications Division Dave Pope for Mayor’s Office of Children and Family Success Phylicia Ghee for Live Baltimore Table of Contents Table of Contents The Mayor’s Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Introduction Municipal Organization Chart Baltimore’s Budget Process . Budget Process Overview . . Fixed Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii 1 3 4 5 10 Summary of Recommendations 19 Recommended Budget Appropriation Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Preliminary to Recommended Reconciliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Revenue Economic Outlook . . . . . . . . . . . . . . . . . Major Revenues Forecast . . . . . . . . . . . . . . Summary of City Real Property Tax Credit Programs Property Tax One‐Cent Yield . . . . . . . . . . . . Selected Real Property Tax Expenditures . . . . . . Revenue Estimates . . . . . . . . . . . . . . . . . . . . . . . 25 27 31 49 50 51 56 . . . . . . . . . . . 79 81 82 83 92 102 117 124 130 132 151 152 Summary of Capital Budget Recommendations Capital Budget Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital Budget Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital Budget Recommendations by Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 159 160 163 . . . . . . . . . . . . . . . . . . Summary of Operating Budget Recommendations Operating Budget Recommendations . . . . . . . . . . . Priority Outcomes . . . . . . . . . . . . . . . . . . . . Priority Outcome: Children and Families . . . . . . . . . Priority Outcome: Public Safety . . . . . . . . . . . . . . Priority Outcome: Clean and Healthy Communities . . . . Priority Outcome: Equitable Neighborhood Development Priority Outcome: Innovative Government . . . . . . . . Priority Outcome: Other . . . . . . . . . . . . . . . . . Operating Budget by Agency, Service, and Fund . . . . . Comparison of Current and Prior Year Operating Budget . Changes to Permanent Full‐Time Positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 169 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 Intentionally Left Blank THE MAYOR'S LETTER Fiscal 2021 BERNARD C. YOUNG MAYOR 100 Holliday Street, Room 250, City Hall Baltimore, Maryland 21202 May 4, 2020 May 6, 2020 The Honorable Members of the City Council The Honorable City Hall,Members Room 400of the City Council Baltimore, Maryland 20212 City Hall, Room 400 Baltimore, Maryland Re: Fiscal 2021 21202 Proposed Ordinance of Estimates The Fiscal 2021 budget that we present today has been shaped by one of the most unique challenges in our City’s history. Over the course of 2020, we saw the COCID-19 virus spread rapidly and reach nearly corner of the globe. The virus has upended our daily life in ways that few of us could Re: Fiscal 2021every Proposed Ordinance of Estimates have imagined. Our schools are closed, most of our businesses have been shuttered, and some of our fellow facing new health challenges economic The Fiscal 2021citizens budgetare that we present today has beenand shaped by onepressures. of the most unique challenges in our City’s history. Since November 2019, we have seen the COVID‐19 virus spread rapidly and reach nearly every corner of During this emergency, I have remained city through Our theseschools uncertain the globe. The virus has upended our daily life inlaser-focused ways that fewon of guiding us couldour have imagined. are closed, times. We have worked closely with our State and regional partners to aggressively contain the most of our businesses have been shuttered, and some of our fellow residents are facing new health challenges spread of the virus, and to communicate clearly and openly to our citizens about how to keep and economic pressures. themselves and their families safe. We have continued to deliver the essential services that our citizens rely on, such as remained police protection, emergency medicalour services, and trash collection, among During this emergency, I have laser‐focused on guiding city through these uncertain times. We many others. And, we have been connecting with our fellow citizens and businesses that are most in and have worked closely with our State and regional partners to aggressively contain the spread of the virus, need to help them access the myriad of relief available through local, State, Federal, and non-profit to communicate clearly and openly to our residents about how to keep themselves and their families safe. We partners. have continued to deliver the essential services that our residents rely on, such as police protection, emergency medicalLike services, trash among manyBaltimore’s others. And, we have been is connecting our fellow resi‐ manyand other Statecollection, and local governments, financial position also underwith heavy strain dents and that are most in need to help access the myriad of relief available through local, duebusinesses to the COVID-19 pandemic. In March, asthem the economic impact of the pandemic became clearer, I State, federal,asked and non‐profit partners. my Finance Department to quickly re-assess our Fiscal 2021 outlook. The result of this analysis was sobering. Finance projected sharp declines in key revenue sources such as Highway User Like many other State andTax, localHotel governments, Baltimore’srevenues, financial position is others. also under heavywe strain due to the Revenue, Income Tax, parking-related and many Overall, project COVID‐19 pandemic. In March, as the economic impact of the pandemic became clearer, I asked the Department General Fund revenues in Fiscal 2021 to be $103 million less than originally anticipated. of Finance to quickly re‐assess our Fiscal 2021 outlook. The result of this analysis was sobering. Finance projected To address thisrevenue challenge, we hadsuch to rewrite this budget andIncome make some tough choices. This sharp declines in key sources as Highway User quickly Revenue, Tax, Hotel Tax, parking‐related is not budget that IOverall, expectedwe to present to you today, there isinnot much room But revenues, andthe many others. project General Fundand revenues Fiscal 2021 tofor beextras. $103 million less I believe that this Fiscal 2021 budget is a realistic and responsible plan that focuses on the basics and than originally anticipated. ensures that the most crucial City services can still be delivered. And, it continues to target To address this challenge, wemy had rewrite this budget and make some tough choices. This is not the investments towards toptopriorities, schools andquickly public safety. budget that I expected to present to you today. However, I believe that this Fiscal 2021 budget is a realistic iii THE MAYOR'S LETTER Fiscal 2021 and responsible plan that focuses on the fundamentals and ensures that the most crucial City services are still delivered. Moreover, it continues to target investments towards my top priorities, schools and public safety. Budget Plan The Fiscal 2021 recommended budget totals $3.87 billion, including $3.0 billion for operating expenses and $823.2 million for capital investments. The General Fund budget totals $1.93 billion, a 1.8% decrease from the Fiscal 2020 Adopted Budget. The Fiscal 2021 recommendation is organized around my five key priorities: Chil‐ dren and Families, Public Safety, Clean and Healthy Communities, Equitable Neighborhood Development, and Innovative Government. Detailed descriptions of how the Budget Plan aligns with each of these priorities begins on page 81. A preview for each priority is summarized below: Children and Families The recommended plan includes $481.3 million across all funding sources. Key highlights: • $30 million of new funding is included as a down payment on the State’s “Built to Learn” school construction legislation. Per the legislation, every $1 of City contributions will be matched by approximately $9 of State funds, which will be leveraged to provide $420 million of additional funding for City schools. • Total City support for City Schools exceeds $400 million, a record‐high investment. City funding supports Maintenance of Effort payments, the 21st Century Schools Fund, teacher pension costs, retiree health benefits, school health, and crossing guard services. • The budget consolidates a variety of functions, including Head Start, Community Action Partnership, and African‐American Male Engagement, under a newly‐constituted Mayor’s Office of Children and Family Suc‐ cess. The goal is to better leverage existing resources to improve the lives of Baltimore’s children and families. • With the help of available prior‐year balances in the Children and Youth Fund, youth programming will be preserved at current levels across a myriad of services, including recreation centers, aquatics, after‐school programming, and many others. Public Safety The recommended plan includes $980.0 million across all funding sources. Key highlights: • The budget includes $1.4 million of new funding to add two new Baltimore Community Intelligence Centers, which are modeled after a best practice that has demonstrated success in Chicago. The Centers are district‐ level operations that will use data, technology, and real‐time intelligence to rapidly respond to crime. The Centers will be staffed by Police officers, attorneys, analysts, and case managers, to ensure that high‐risk individuals are identified and then directed to appropriate interventions such as housing, drug treatment, or job training. • The Fire Department budget includes multiple initiatives to improve operations. The agency will work with a consultant to assess staffing methods and assignments; time‐keeping and leave policies; overtime staffing; policies, schedules, and compensation plans; and current fees for BCFD services. In addition, BCFD is implementing a comprehensive inventory management system that is expected to result in efficiency savings. Clean and Healthy Communities The recommended plan includes $1,128.1 million across all funding sources and funds projects across a variety of services that improve citizens’ overall quality of life such as street and alley cleaning, waste disposal and recycling, iv THE MAYOR'S LETTER Fiscal 2021 business district cleaning, health and housing services, demolition of vacant housing, recreational opportunities, transportation, and infrastructure investment. Key highlights: • $608 million of new capital investment is included across the Water, Wastewater, and Stormwater Funds to continue progress on the modernization of the City’s core infrastructure. Funding supports a variety of projects for improvements to treatment facilities, pumping stations, stream restoration, and drainage improvements, among many others. • The Fiscal 2021 budget marks the second year of an eight‐year plan for landfill redevelopment. $9.7 mil‐ lion will be deposited into the Landfill Trust Fund, to prepare the City for the eventual expansion of the Quarantine Road site, which is nearing the end of its useful life. Equitable Neighborhood Development The recommended plan totals $136.4 million across all funding sources in support of strategies to promote the City’s economic recovery in the wake of COVID‐19. These services will work to increase jobs, employment, and visitors to Baltimore in Fiscal 2021. Key highlights: • $42.1 million of capital funding across multiple funding sources will support Department of Housing and Community Development projects in demolition, development, homeownership incentives, and affordable housing. This funding will compliment other sources like the Neighborhood Impact Investment Fund (NIIF) to continue the City’s strategic framework for community development. • $4.5 million will be generated for Visit Baltimore through the new Tourism Improvement District (TID), which is generated by a surcharge on hotel room stays. This funding will help backfill losses in Visit Bal‐ timore’s base budget that are tied to Hotel Tax receipts, and keep the City poised to restart promotional advertising as the tourism industry recovers from the effects of the COVID‐19 pandemic. • The budget includes $18.1 million of funding for a variety of art and cultural activities. Funding supports arts institutions, promotion of the City’s events and festivals, and the City’s Arts and Entertainment Districts. Innovative Government The recommended budget plan includes $205.9 million across all funding sources for financial, legal, information technology, human resources, and other functions that support the delivery of public services to residents. Highly effective support services lead to cost savings and better performance. Key highlights: • The Baltimore City Information Technology (BCIT) budget includes $17 million to continue the implementa‐ tion of an Enterprise Resource Planning (ERP) system. The intent of the project is to replace and integrate the City’s core Finance, Payroll, and Human Resources systems, with the goal of reducing manual data‐entry, streamlining business processes, and improving access to real‐time financial information. • BCIT’s capital budget includes $8.3 million for a variety of infrastructure and cyber‐security projects includ‐ ing remediation of end‐of‐life systems, new cable and wiring, an upgraded data warehouse, and new secu‐ rity and network‐related tools and processes. These investments will strengthen the City’s IT infrastructure and minimize the ongoing risk of a service disruption in response to last year’s ransomware attack. • The Department Human Resources will re‐launch its Office of Learning and Development, with a focus on foundational training for staff and change management instruction for ERP project leaders. • The Department of Finance, in collaboration with the Department of General Services and the Comptroller’s Office of Real Estate, will deploy the first phase of its real estate maximization strat‐ egy. Various public safety functions will be consolidated downtown under one roof, freeing up the valuable vacated real estate to be put back to productive, and taxable, private use. • $2.1 million of one‐time funding will be awarded from the City’s Innovation Fund for two new projects v THE MAYOR'S LETTER Fiscal 2021 in the Convention Center and Recreation and Parks, both with the potential to generate additional City revenue in a post‐pandemic economy. Tough Choices With General Fund revenues in decline due to the impact of the COVID‐19 pandemic, budget reductions were unavoidable. I remain committed to doing everything possible to minimize the impacts to our residents, but I also need to be transparent and honest about our choices. For Fiscal 2021, we will take the following actions: • Reduce the Mayor’s Office budget, to set an example for other City agencies. • Trim 240 vacant civilian positions across all City agencies. Agencies were given the flexibility to choose which positions to forego with the intent of minimizing immediate service impacts. • Request that our labor unions agree to personnel savings via pay reductions or furloughs. We’ve been transparent with our unions about the City’s financial challenges and our desire to avoid more painful alternatives, such as layoffs. • Negotiate changes to active employee benefit plans beginning January 1, 2021, and offer a more cost‐ effective Medicare Advantage plan to the City’s retirees. • Defer PAYGO capital projects across many agencies including Transportation, General Services, and Recre‐ ation and Parks. • Reduce contributions to the Rainy Day Fund and Risk Management Fund, with the intent of rebuilding our reserves once we emerge from the immediate time of fiscal need. • Utilize available balances from the Children and Youth Fund and Community Development Block Grant (CDBG) to protect youth programming and code enforcement, respectively. • Reorganize the Mounted, Aviation, and traffic‐related units in Police to achieve savings. Officers in these units will be re‐assigned to Patrol functions, resulting in: use of horses or motorcycles only for high‐priority special events and traffic control; reducing helicopter flight time from 16 hours to 12 hours each day; and focusing traffic investigations on fatal and serious injury accidents. • Budget for additional Police overtime savings. New planned strategies include privatizing some building security functions, better deployment of police officers for court appearances and special events, and more efficient utilization of light‐duty or suspended officers for administrative tasks. • Reassign personnel from two Fire Suppression companies, which will be chosen from stations that house multiple units so that no one station will go dark. Per the requirements of the federal SAFER grant, person‐ nel will be retained and shifted to fill gaps in other staffing areas to reduce overtime costs. • Eliminate the graffiti removal service, with personnel being reassigned to more critical work such as solid waste collection and street and alley cleaning. The Road Ahead The economic outlook going forward is uncertain. There is some room for cautious optimism – new COVID‐19 cases are declining in some localities, and State and federal officials have begun developing plans to slowly re‐ open certain sectors of the economy. In addition, the federal government passed a massive $2.2 trillion stimulus package (CARES Act) in March in an attempt to blunt the economic impact and provide temporary aid for workers, businesses, non‐profits, and state and local governments. However, public health officials have also warned that effective treatment options or a reliable vaccine are still many months away, which could slow any economic re‐ covery. Given the continuing health risks, it is unlikely that the economy will be able to return to its pre‐pandemic strength. The federal CARES Act included a $150 billion State Stabilization Fund with direct aid for State and local govern‐ ments, and Baltimore has applied directly for its share, which is estimated at $103 million. The most immediate vi THE MAYOR'S LETTER Fiscal 2021 need for Baltimore is for direct aid to help make up for the millions of dollars of lost tax revenue. For Fiscal 2020, we project $68.7 million of lost tax revenue, and for Fiscal 2021 we planned the revised budget around a pro‐ jected loss of $103 million. Unfortunately, the federal rules for the State Stabilization Fund so far only cover costs that are directly related to the COVID‐19 response effort. We are hopeful that these rules will be relaxed, but we have no guarantee. In the meantime, it is critically important that we protect our existing reserve funds, which are almost certain to be tapped in Fiscal 2020 to balance the budget and perhaps again in Fiscal 2021. Moreover, it means that we will need to exercise fiscal caution and restraint for an indefinite period of time, until we see evidence that the economic recovery is well underway. This period of restraint could last for just a few short months or for many years. Despite this uncertain outlook, I am immensely proud of the way Baltimore has banded together to respond to the COVID‐19 pandemic. The heroes in this crisis – the health care workers, the teachers, the public safety officers, the front‐line sanitation workers, and many others – have courageously put themselves at risk in order to keep us healthy and safe, and to protect the most vulnerable among us. I can’t promise you when this difficult period in our City’s history will end, but I can assure you that we will emerge even stronger than before. Sincerely, Bernard C. “Jack” Young Mayor vii Intentionally Left Blank FISCAL 2021 2020 EXECUTIVE SUMMARY SUMMARY EXECUTIVE Board OF of ESTIMATES Estimates RECOMMENDATIONS Recommendations BOARD Introduction Introduction Intentionally Left Blank INTRODUCTION Fiscal 2021 Municipal Organization Chart THE PEOPLE PRESIDENT OF CITY COUNCIL MAYOR COMPTROLLER CITY COUNCIL BOARD OF ESTIMATES Cable and Communications Employment Development Finance Fire Health Housing and Community Dev. Human Resources Law Legislative Reference Municipal and Zoning Appeals Information Technology Other Mayoral Offices Planning Police* Public Works Recreation and Parks Transportation General Services BOARDS, AGENCIES, AND COMMISSIONS ORDINANCE AUTHORIZED CHARTER AUTHORIZED Art Commission Board of Finance Com. on Aging & Retirement Ed. Commission for Children & Youth Community Relations Com. Board of Municipal & Zoning Appeals Board of Recreation & Parks Employees’ Retirement Fire & Police Retirement Hispanic Commission Board of Fire Commissioners Civil Service Commission Historical & Architectural Presv. Labor Commissioner Minimum Wage Commission Veterans’ Commission Parking Authority of Baltimore City Commission for Women Sustainability Commission Planning Commission ACTS OF STATE LEGISLATURE Board of School Commissioners Baltimore Museum of Art Board of Elections Courts: Circuit Court Courts: Orphans’ Court Baltimore City Public Schools Enoch Pratt Free Library Liquor License Commissioners Sheriff Social Services State’s Attorney War Memorial Commission *The Baltimore Police Department was created by an act of State legislature. The Mayor has the statutory right to hire and replace the Police Commissioner. 3 Fiscal 2021 INTRODUCTION Baltimore’s Budget Process Operating Budget Capital Budget Mayor’s Office issues guidance documents identifying City objectives and key strategies. November City agencies receive guidance documents from the Department of Planning. City agencies submit budget proposals responsive to the City objectives and key strategies. December Agencies submit requests to the Planning Department. Planning performs detailed review of agency requests. The Department of Finance evaluates and ranks agency proposals and makes funding recommendations to the Mayor. JanuaryMarch Planning Commission evaluates agency requests. Agencies give presentations to the Commission on their capital priorities. March Planning Commission and the Board of Finance approve the Six-Year Capital Improvement Program. The Director of Finance sends the recommended operating budget to the Board of Estimates. April June The Board of Estimates holds hearings on the budget. Agency heads participate. The recommended budget is amended as necessary. April The Board of Estimates holds a “Taxpayers’ Night” for final resident input before it votes on the budget. May A majority vote of the Board of Estimates approves the total budget and sends it to the City Council. May The City Council holds hearings on the total budget. Residents and agency heads attend. May The City Council holds a “Taxpayers’ Night” for final resdient input before it votes on the budget. June The City Council votes on the budget and sends it to the Mayor. May approve total budget. July Mayor May disapprove some items and approve the rest. The adopted budget is monitored through the City’s system of expenditure controls. 4 INTRODUCTION Fiscal 2021 Budget Process Overview Prior to Fiscal 2011, Baltimore used a traditional agency‐centric budget process similar to what was used by other local governments across the country. Each year, funding was allocated to agencies based on available resources and prior‐year spending patterns, and agencies were given freedom to allocate their resources among a variety of functions. Although this process kept the City’s budget in balance from a financial perspective, it was unclear which agency functions were most important to residents and which were demonstrating results. In Fiscal 2011, Baltimore implemented an innovative process called Outcome Budgeting. The process required agencies to make service‐level budget proposals that justify investments in strategies geared towards achieving citywide outcomes and goals. Although the process has evolved significantly over the past decade, the underlying principle remains the same: to not only keep Baltimore’s budget sustainably balanced, but also to get the best use of City resources by devoting resources to services that achieve the best results for our residents. The budget process operates in a cycle that repeats each year: first, develop a strategic plan; next, budget re‐ sources in a manner informed by the strategic plan; and finally, track performance against the plan. A more detailed description of the budget process is provided below. Strategic Planning Priority Outcomes and Indicators The Mayor and Senior Team first decide on a set of Priority Outcomes. Priority Outcomes are broadly‐defined goals for the City. Although these have been modified and adjusted to reflect the priorities of each Mayoral administration, similar themes are common. The Fiscal 2021 budget was built around five Priority Outcomes: Children and Families, Equitable Neighborhood Development, Clean and Healthy Communities, Public Safety, and Innovative Government. Next, under each Priority Outcome, indicators serve as a measure of how well the City is advancing the Priority Outcome. Indicators are measured annually and use an external source to ensure integrity of the data. Taken together, these Priority Outcomes and indicators serve as a report card on how well the City is doing. 5 Fiscal 2021 INTRODUCTION EQUITABLE NEIGHBORHOOD DEVELOPMENT CHILDREN & FAMILIES Academic Achievement College & Career Readiness Infant Mortality Employment Rate Number of Jobs Visitors to Baltimore CLEAN & HEALTHY COMMUNITIES Recycling Rate Citywide Energy Use Asthma Visits Recreational Opportunities Blight Elimination Water Cleanliness Childhood Asthma INNOVATIVE GOVERNMENT PUBLIC SAFETY Homicides & Non-Fatal Shootings Property Crime Opioid-Related Deaths Prompt Vendor Payment 311 Responsiveness Service‐Level Budgets Each agency organizes its budget around services with simple descriptions and clearly identified costs. Budget‐ ing by service deliberately changes the focus from agencies to services, and provides insight into exactly what it costs to carry out each specific function of government. One key advantage of this approach is that services are evaluated based on which Priority Outcome they advance rather than which agency manages the service. For example, the Department of Transportation has a wide range of functions that address different Priority Out‐ comes. Services such as Traffic Safety and Street Lighting support Public Safety, while Parking Management and Special Events support Equitable Neighborhood Development. This approach allows us to identify and eliminate duplication of efforts across agencies, and isolate services that are not contributing to desired results. A listing of the services and funding levels by Priority Outcome can be seen in the Summary of Operating Budget Recommendations Section on page 81. Service‐Level Performance Measures Agencies work with the Bureau of the Budget and Management Research (BBMR) and the Mayor’s Office of Performance and Innovation (OPI) to develop performance measures for each service. Internally, performance measures allow the City to assess the service’s performance over time, and to make corrections if necessary. Externally, performance measures allow the agency to communicate the value that residents receive for their tax dollars. There are four types of performance measures: 6 INTRODUCTION Fiscal 2021 Type Description Example for Service 609: Emergency Medical Services Output Efficiency How much service is being delivered The cost in dollars and/or time per unit of output How well the service meets standards based on customer expectations How much better off is the customer Number of EMS responses Percent of EMS fees collected versus total billable Percent EMS responses within 9 minutes Effectiveness Outcome Percent of patients surviving cardiac arrest Performance measures must meet the S.M.A.R.T. test: Label Type Description S M A R T Specific Measurable Ambitious Realistic Time Bound Measure is clear and focused Can be quantified and allow for analysis The target should stretch the service to improve performance The target should make sense given the organization’s fiscal constraints There should be a clear timeframe for achieving the targeted performance Service‐level performance measures were first developed in Fiscal 2011 for larger agencies and in Fiscal 2012 for small and medium‐sized agencies. In Fiscal 2018, the City launched a comprehensive review of all service‐based performance measures across agencies. All performance measures, including past years’ actuals and the next budget year’s target, are reflected in each years’ Agency Detail budget publication. Budgeting Proposals Agencies are asked to submit a budget proposal for each service. The budget proposal is a formal request from the agency to BBMR for resources for the next fiscal year. The budget proposal includes both financial informa‐ tion and details about how the service impacts the City. Agencies are asked: How does your service align with the Priority Outcomes? How does your service drive improvement in one of the citywide indicators? And, what steps will the service take to improve performance? Agencies are also provided the opportunity to submit enhance‐ ment funding requests. Enhancement requests are for projects that will improve efficiency and effectiveness of agencies. Results Teams In prior years, budget proposals and enhancement requests were reviewed by BBMR staff in conjunction with Results Teams. Results Teams are small teams composed of the “best and brightest” within City government and include mid‐level managers, analysts, or front‐line operational experts, as well as City residents in certain years. In Fiscal 2021, the City did not deploy Results Teams for the budget proposal and enhancement request processes. 7 Fiscal 2021 INTRODUCTION Budget Recommendations Next, the Department of Finance shares all information with the Mayor and Senior Team, and develops the Prelim‐ inary Budget Plan that is released in late March or early April. In April, the Mayor and Finance work to incorporate feedback from the Board of Estimates and Taxpayers’ Night to develop a final budget recommendation, which is submitted to the Board of Estimates in May. Once the Board of Estimates approves the budget, it is passed on to City Council for review. In May and June, the City Council holds hearings with agencies and hosts a Taxpayers’ Night. In June, the City Council votes on the budget and the budget is submitted to the Mayor for final passage. The final budget must be acted on by the City Council at least five days before the start of the fiscal year, July 1. Performance Management Once the budget is approved, regular performance management sessions are held between the Mayor’s Senior Team, OPI, and agency leadership to discuss performance, identify problems, diagnose causes, and direct re‐ sources to solve problems. BBMR, Department of Human Resources (DHR), and Baltimore City Information and Technology (BCIT) staff also participate in these meetings. Performance management meetings are either agency‐ focused or topic‐focused, centered on a Mayoral priority, and including multiple agencies. PoliceStat and DOTStat are current examples of agency‐focused Stat meetings. Examples of topic‐focused “Stat” meetings include Clean‐ Stat, YouthStat, CyberStat, and RecruitStat. During the COVID‐19 crisis, COVIDStat was launched to monitor the spread of the disease, testing, hospital capacity, personal protective equipment supplies, and continuity of ser‐ vice for City agencies. Performance management is a vital component of Baltimore’s budget process and ensures that agencies are meeting goals and advancing the City’s Priority Outcomes. New Developments In looking to the future of Baltimore’s budget process, BBMR is working to expand community input in the budget process and integrate equity into the budget process. Community Outreach A key part of BBMR’s role is to provide residents with insights into the budget and the budget process. Over the years, BBMR has embraced this role with the development of the Budget Pop‐Up at the Board of Estimates Taxpayers’ Night, presentations and workshops in the community, and social media presence. In Fiscal 2020, BBMR piloted “Budget Pop‐Ups” at Enoch Pratt Free Library Branches across the city, as well as hosting a table at the 32nd Street Farmers Market. In addition, BBMR continued presenting and attending community meetings and City agency sponsored events. As of April 2020, approximately 145 people engaged with BBMR through these in‐person events. BBMR has also expanded virtual outreach, including the Your Budget Priorities online survey and Virtual Taxpayers’ Night, which took place in April 2020 and had over 200 participants. Due to the public health restrictions in place at the time of publication, BBMR is developing a virtual community engagement strategy around the Fiscal 2021 budget to ensure residents can stay informed and engaged in the process. Equity in the Budget In the summer of 2017, Baltimore’s Department of Planning began analyzing where capital projects occurred in the City based on race, income, and age group. In 2018, the City Council established an Equity Assessment Program (City Council Bill 18‐0223) with the intent to eliminate structural and institutional racism and other 8 INTRODUCTION Fiscal 2021 forms of discrimination. In 2019, Mayor Young established the Equity In City Government Committee (EICG), which developed a plan for implementing an equity strategy for the City. This plan resulted in the Office of Civil Rights and Wage Enforcement becoming the Office of Equity and Civil Rights (OECR). The newly constituted OECR began facilitating meetings with Equity Officers across City agencies in the effort of facilitating the City’s equity strategy. For the Fiscal 2021 budget process, BBMR conducted research on best practices and connected with municipali‐ ties across the country, including San Antonio, Louisville, and Portland, to gain insights into how to operationalize equity in the budget process. Based on this research, BBMR assessed that Baltimore was in the “normalizing” stage of our equity work and still developing a shared language and understanding across City agencies. There‐ fore, the focus of this year’s work was on assessing each agency’s current understanding and engagement in equity work. This assessment was discussed with the EICG and OECR in order to better target engagement with agencies. Budget for Baltimore BBMR considers the budget process to be a collaborative effort led by the Mayor, with input from agencies, City Council members, and Baltimore City residents. BBMR is committed to building and upholding an innovative and equitable process. 9 Fiscal 2021 INTRODUCTION Fixed Costs In general, “fixed costs” are expenses that the City is required to pay by law or contract and cannot be easily reduced in the short‐term. As shown in the chart below, the City’s fixed costs include contributions to employee pension systems, health care for retirees, the State‐mandated Maintenance of Effort (MOE) contribution to Bal‐ timore City Public Schools (BCPS), and payment of debt service. General Fund Fixed Costs Trend 800M 600M 400M 200M FY12 Actual FY13 Actual FY14 Actual FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Actual FY20 Budget FY21 Budget Chart in millions. Other Debt Service Retiree Health BCPS Required Contribution Pension Pension Costs: The City funds three pension systems for sworn fire and police employees, civil service employees, and elected officials. Retiree Health: The City subsidizes medical and prescription drug benefits for 14,977 out of 16,003 eligible re‐ tirees. 5,743 of those are BCPSS retirees or retired State librarians. Debt Service: The City Charter mandates that payment of the principal and interest on municipal debt must be funded. The General Fund budget includes funding to pay debt on General Obligation Bonds used for capital projects, county transportation bonds, Tax Increment Financing (TIF), Conditional Purchase Agreements (CPA), and economic development loans from the State. City Schools Required Contribution: State law requires that Baltimore City maintain its education funding effort from year to year on a per‐pupil basis and pay a portion of the normal cost of the teacher pension system. Other: Other fixed costs include workers’ compensation claims; insurance and liability costs; a State mandated contribution to Baltimore City Community College; gas, electric, sewer and water costs; and tipping fees for solid waste disposal. 10 INTRODUCTION Fiscal 2021 Fixed Cost Trends From Fiscal 2009 to Fiscal 2012, fixed costs grew from only 43.8% of General Fund revenues to 47.7% of General Fund revenues. Since Fiscal 2013, due to a series of reforms, fixed costs have leveled off at approximately 42.4% of General Fund revenues, as represented by the line in the graph below. Fixed Costs vs Revenues 1,861.7M 1,523.8M 1,487.1M 1,595.6M 1,551.3M 1,560.1M 47.2% 47.7% 46.5% 1,886.7M 1,942.7M 1,967.2M 1,932.8M 70% 1,797.9M 1,671.3M 1,683.4M 60% 50% 46.3% 44.9% 43.8% 44.5% 44.2% 43.3% 41.1% 42.4% 40.9% 40.3% 40% 668.1M FY 09 702.0M FY Ac tua Chart in millions. l 10 744.9M 721.4M Ac FY tua l 11 A FY ctu al 12 739.3M Ac FY tua l Revenues 13 749.9M Ac FY tua l 14 766.0M 744.2M Ac FY Fixed Costs tua l 15 Ac FY tua l 16 799.5M Ac FY tua l 17 817.6M Ac FY tua l 18 782.6M Ac FY tua l 19 804.2M Ac FY tua l 20 818.9M Bu FY dg et 30% 21 Bu dg et Fixed Costs at a Percent of Revenue In the Fiscal 2021 Recommended Budget, fixed costs grew $14.8 million versus Fiscal 2020 budgeted levels. The increase is primarily related to increases in debt service due to temporary refinancing that concluded in Fiscal 2020, and higher pension systems contributions due to lower than expected investment returns. These increases were partially offset by healthcare savings, slower growth in fuel and vehicle costs, and a reduction in Rainy Day Fund contributions. Employees’ Retirement Systems In 2010, the City reformed the Fire and Police Employee Retirement System (FPERS), which had grown in cost by 81% from $48 million Fiscal 2005 to $87.5 million in Fiscal 2010. These reforms included: • Replacing the variable benefit with a cost of living adjustment capped at 2%. • Modifying age and years of service requirement to 25 years of completed service or age 55 with 15 years of completed service. • Increasing employee contributions from 6% to 10% over a four‐year period from Fiscal 2011 to Fiscal 2014. • Extending the time‐period used for calculating average final compensation from 18 months to 3 years. In 2013, the City also reformed the Employee Retirement System (ERS) for civilian employees. These reforms included: • For existing civilian employees hired before July 1, 2014, phasing in employee contributions of 1% of salary per year up to a cap of 5% contributions in Fiscal 2019. • Creating a new retirement system for employees hired after July 1, 2014. These employees can choose to enter the new Retirement Savings Plan (RSP) with mandatory employee contributions plus a City match, 11 Fiscal 2021 INTRODUCTION or a hybrid plan, which includes a mix of RSP and a guaranteed benefit under the Employee Retirement System. In May 2019, a judgment was reached in the Baltimore Circuit Court on the longstanding litigation between the City and Fire and Police employees over pension reforms that were enacted in 2010. The judge upheld the City’s modification that extended the years of service required to earn a pension from 20 to 25 years. But the judge also ruled that the City unfairly withdrew benefits from already‐retired employees, and that those retirees are entitled to seek damages for lost benefits from the City. For the Fiscal 2019 year‐end report which informed the Fiscal 2021 budget, both the ERS and F&P systems fell short of their return benchmark, leading to higher than expected cost growth. The ERS and EOS system reported a 6.1% investment return against a 7.0% benchmark, and FPERS reported a 5.7% investment return against a 7.25% benchmark. The chart below shows that these reforms have significantly reduced the rate of growth of the City’s contribution (as compared to the Fiscal 2009 to Fiscal 2011 time‐period). Contribution to Employee Retirement Systems (All Funds) 219.7M 197.9M 165.4M 175.4M 205.4M 104.4M 101.0M 101.0M 87.5M 74.6M 219.9M 243.2M 195.6M 181.0M 135.1M 111.8M 211.9M 231.7M 113.0M 118.4M 84.9M 87.0M 80.1M 74.4M 119.5M 127.2M 134.5M 139.3M 77.4M 80.6M 92.5M 76.1M 145.8M 150.5M 92.7M 86.0M 61.0M 47.6M 37.2M FY 09 FY Ac tua l 10 FY Ac tua l 11 A FY ctu al 12 FY Ac tua 13 l FY Ac tua l 14 FY Ac tua 15 l FY Ac tua l 16 FY Ac tua l 17 FY Ac tua l 18 FY Ac tua l 19 FY Ac tua 20 l ERS figures also include Library, Sheriff's Office, and Elected Officials. Chart in millions. Employee Retirement Systems Fire and Police Retirement Systems 12 Total Contribution Bu FY dg et 21 Bu dg et INTRODUCTION Fiscal 2021 Health Care for Employees and Retirees From Fiscal 2005 to Fiscal 2010, the City’s cost of providing medical and drug benefits to its employees and retirees grew by $69 million, or 40%, from $172.2 million to $241.7 million. These costs were on an unsustainable path, and could no longer be ignored as the City faced the fiscal consequences of the Great Recession. Several changes to health care plans have been made that have collectively reduced the City’s costs by $150 million compared to baseline estimates. The recent changes are summarized below both graphically and sequentially: Baltimore City Health Care Costs 381.8M 367.5M 327.6M 340.4M 353.7M 312.6M 295.5M 262.2M 234.0M 243.4M 253.3M 241.7M 240.0M FY 09 FY 1 0A Ac tua l 272.7M 280.9M FY ctu a l 225.3M 255.1M FY 11 Ac tu 12 al 212.7M 223.9M FY Ac tua l 203.8M FY 13 Ac tu al 14 A FY 1 ctu al 5A 236.1M 209.5M FY 1 6A ctu a l 222.4M 207.7M FY 1 7A ctu a l FY 1 ctu al 8A FY FY 19 B ctu a l ud ge t 20 B 213.5M FY 2 ud 1B ge t ud ge t Chart in millions. With Health Care Changes Without Health Care Changes Fiscal 2011 Changes • 10% prescription drug premium co‐share for retirees Fiscal 2012 Changes • • • • • • • Prescription co‐pay tier adjustments for retirees Reduce the number of Medicare supplemental plan options for retirees from five to two $100 annual pharmacy deductible for retirees Drug Quantity Management Prescription Drug Prior Authorization Mandatory pre‐certification/enhanced utilization review/case management Step Therapy Fiscal 2013 Changes • As of January 1, 2013, the City pays 79.2% of premium costs for a new standard network medical benefit plan that requires deductibles and co‐insurance. Employees can opt to pay the full incremental cost for a medical plan with lower out‐of‐pocket costs. The City also requires all employees and retirees to pay 20% of their prescription drug premium costs. 13 Fiscal 2021 INTRODUCTION Fiscal 2014 Changes • The City conducted a dependent eligibility audit to ensure that health care benefits are not provided to ineligible recipients. As a result of the audit, approximately 1,500 ineligible dependents were dropped from coverage, saving $4.5 million. Fiscal 2017 Changes • The City shifted several health care plans to a self‐funded model, which decreases external administrative costs and provides the City with greater flexibility in determining premiums. This shift decreased City costs by $7 million in calendar year 2017. • The City reduced Medicare supplemental plan reimbursements paid by the City from 100% to 80%, which decreased costs by $8.6 million in calendar year 2017. Fiscal 2019 Changes • The City rebid health care and prescription drug coverage contracts and switched from Express Scripts to CVS Caremark. The shift from 9 to 4 health care providers and the new prescription drug provider saved the City nearly $35 million. Fiscal 2020 Changes • There were no changes to healthcare policy, but the City is seeing a greater percentage of retirees not enrolling in City sponsored plans. Fiscal 2021 Changes • The City plans to negotiate changes to active employee benefit plan designs for the plan year beginning January 1, 2021. It will also offer more cost effective Medicare Advantage Plans to the City’s Retirees. Expected General Fund savings is approximately $4.8 million for half of Fiscal Year 2021. 14 INTRODUCTION Fiscal 2021 Long‐Term Liabilities for Pensions and Retiree Health Care As with many cities and states across the country, Baltimore faces large‐scale, long‐term liabilities associated with retiree pension and health benefits. Pensions and retiree health plans have pay‐as‐you‐go costs equal to the benefits distributed or claimed that year, but they also have accrued obligations to be paid in the future. Actuaries determine the amount of assets that must be set aside now to ensure adequate resources are available in the future. The chart below shows that Baltimore’s long term liabilities have increased in Fiscal Year 2019 valuations due to two factors. First, the City has not yet acted on its prior intent to sunset the supplemental prescription drug cov‐ erage for retirees, which lead to a significant increase in City’s Other Post‐Employment Benefits (OPEB liability). Second, liabilities for the FPERS and ERS pension plans continue to grow due to ongoing amortization of prior year investment losses, the steady decrease in number of active employees, the growing number of retirees, and the adoption of more conservative actuarial methods. For the Fiscal 2019 year‐end actuarial report, the funded ratio for ERS declined from 74.1% to 73% and FPERS stayed the same 69.8%. These developments are concerning because the City has made significant changes to its benefit packages in order to lower long‐term liabilities and is still struggling to make progress. Long-Term Liabilities 680.0M 530.2M 1,198.7M 558.6M 2,087.7M 1,492.0M Fiscal 2011 Valuations Fiscal 2019 Valuations Chart in millions. Employee Retirement Systems Fire and Police Retirement System Other Post-Employment Benefits 15 Fiscal 2021 INTRODUCTION Debt Service The City’s total debt service is projected at $381.4 million for Fiscal 2021, among the following sources: Wastewater Utility 95.5M (25.0%) General 120.9M (31.7%) Parking Enterprise 9.4M (2.5%) Stormwater Utility 10.5M (2.7%) Water Utility 77.2M (20.2%) Internal Service 22.7M (6.0%) Special Revenue 45.2M (11.8%) Chart in millions. The Fiscal 2021 General Fund recommendation of $120.9 million in debt service is $4.5 million above the Fiscal 2020 Adopted Budget. General Obligation Bond debt service increases from Fiscal 2020 to Fiscal 2021 due to temporary refinancing savings that conclude in Fiscal 2020. The following chart illustrates General Fund debt service over the past 10 years: Debt Service History 139.7M 132.1M 134.1M 128.3M 123.6M 109.7M 109.6M 112.9M 116.5M 120.9M FY12 Actual FY13 Actual FY14 Actual FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Actual FY20 Budget FY21 Budget Chart in millions. 16 INTRODUCTION Fiscal 2021 Risk Management Risk Management costs include workers’ compensation, legal liability, insurance, and administration. The City’s self‐insured costs (workers’ compensation and legal liability) are projected through an annual actuarial valuation. Other insurance and administrative costs are determined by analysis of historical actuals and trends; these costs include personnel in the Department of Finance (Risk Management) and the Law Department (work‐ ers’ compensation and auto liability), as well as other brokerage, medical, and contractual costs. The City shares a portion of the Risk Management costs with the Baltimore City Public Schools (BCPS), based upon the BCPS share of annual claims. In the Fiscal Year 2018 budget process, the City agreed to bridge a funding gap in Baltimore City Schools for three years, while the State conducted an analysis of funding formulas through the Kirwan Commission. Part of the agreement included in‐kind services for BCPS Risk Management. In Fiscal 2020, the City budgeted $13.1 million towards BCPS workers’ compensation as part of the last year of bridge funding. In Fiscal 2021, the City will return to billing BCPS for their share of costs. While most costs are budgeted centrally within the City’s Self‐Insurance Fund (Service 126), workers’ compen‐ sation is allocated across City agencies, and administrative costs are captured within the Risk Management and Law services. The Fiscal 2021 budget represents a decrease in expected costs for Judgments and Suits against the Baltimore Police Department. The City believes that the adoption of body worn cameras has reduced the number of claims made against the Department and has reduced the need to settle cases prior to court. The City’s share of Risk Management costs are summarized below: Cost Center Fund Source Workers’ Comp ‐ Direct Risk Management Administration Judgments and Suits ‐ Awards (Law) General Tort Liability Insurance Auto/Animal Liability Insurance Insurance ‐ Other Risks Self Insurance Stabilization Reserve Property and Casualty Insurance GRAND TOTAL Multiple Funds Multiple Funds Multiple Funds General and Fleet Funds Multiple Funds General and Fleet Funds General Fund Multiple Funds 17 FY20 Budget FY21 Budget 67,164,370 8,976,410 4,054,009 4,297,814 2,376,780 1,701,954 9,814,813 928,645 99,314,795 58,186,079 8,918,361 3,090,530 2,780,283 2,595,034 2,570,032 2,462,893 336,042 80,939,254 Intentionally Left Blank FISCAL 2021 EXECUTIVE SUMMARY Board of Estimates Recommendations Summo ry of Recommendations Intentionally Left Blank SUMMARY OF RECOMMENDATIONS Fiscal 2021 Recommended Budget Appropriation Levels The total Fiscal 2021 appropriation plan recommended by the Department of Finance for the City of Baltimore is $3,869,668,342. This is an increase of $314,350,254 or 8.8% above the Fiscal 2020 Adopted budget. The two components of the total recommended appropriation plan are the Operating Budget Plan and the Capital Improvement Plan. The operating budget is recommended at $3,046,456,342, which is an increase of $118,602,254 or 4.1%. The capital budget is recommended at $823,212,000, which is an increase of $195,748,000 or 31.2%. The capital budget is subject to cyclical change due to the phasing of certain large construction projects. More explanation regarding the capital plan is available in the “Summary of Capital Budget Recommendations” section of this publication. Fiscal 2021 Recommended Amount Change from Fiscal 2020 Percent Change from Fiscal 2020 Operating Plan Capital Plan Total 3,046,456,342 823,212,000 3,869,668,342 +118,602,254 +195,748,000 +314,350,254 4.1% 31.2% 8.8% Operating and Capital Budget Fund Sources Fund Name General Conduit Enterprise Wastewater Utility Water Utility Stormwater Utility Parking Enterprise Parking Management Federal State Special Revenue Special Grant General Obligation Bonds Revenue Bonds County Transportation Bonds All Other Total Operating Budget Capital Budget 1,932,300,000 13,497,197 273,303,492 201,535,654 34,016,956 21,714,081 27,046,907 212,868,706 157,158,843 167,661,926 5,352,580 0 0 0 0 3,046,456,342 21 Total 500,000 1,932,800,000 23,000,000 36,497,197 0 273,303,492 0 201,535,654 1,750,000 35,766,956 0 21,714,081 0 27,046,907 39,967,000 252,835,706 8,630,000 165,788,843 0 167,661,926 0 5,352,580 80,000,000 80,000,000 451,538,000 451,538,000 15,000,000 15,000,000 202,827,000 202,827,000 823,212,000 3,869,668,342 Fiscal 2021 SUMMARY OF RECOMMENDATIONS Operating and Capital Recommendations by Type of Fund Operating Funds Fiscal 2020 Budget Fiscal 2021 Budget Dollar Change Percent Change 1,917,250,000 4,562,625 26,014,422 1,932,300,000 0 27,046,907 15,050,000 (4,562,625) 1,032,485 0.8% ‐100.0% 4.0% Enterprise Funds Conduit Enterprise Wastewater Utility Water Utility Stormwater Utility Parking Enterprise 12,308,498 277,356,115 192,375,485 27,145,365 21,524,562 13,497,197 273,303,492 201,535,654 34,016,956 21,714,081 1,188,699 (4,052,623) 9,160,169 6,871,591 189,519 9.7% ‐1.5% 4.8% 25.3% 0.9% Grant and Special Funds Federal State Special Revenue Special Grant 171,418,401 144,648,279 130,253,537 3,080,491 212,868,706 157,158,843 167,661,926 5,352,580 41,533,997 12,510,564 37,408,389 2,272,089 24.2% 8.6% 28.7% 73.8% 2,927,854,088 3,046,456,342 118,602,254 4.1% Fiscal 2020 Budget Fiscal 2021 Budget Dollar Change Percent Change Pay‐As‐You‐Go General Conduit Enterprise Wastewater Utility Water Utility Stormwater Utility 50,000,000 23,000,000 16,388,000 19,578,000 2,275,000 500,000 23,000,000 0 0 1,750,000 (49,500,000) 0 (16,388,000) (19,578,000) (525,000) ‐99.0% 0.0% ‐100.0% ‐100.0% ‐23.1% Grant and Special Funds Federal State 75,191,000 26,235,000 39,967,000 8,630,000 (35,224,000) (17,605,000) ‐46.8% ‐67.1% 80,000,000 223,623,000 26,018,000 80,000,000 451,538,000 15,000,000 0 227,915,000 (11,018,000) 0.0% 101.9% ‐42.3% 85,156,000 202,827,000 117,671,000 138.2% 627,464,000 823,212,000 195,748,000 31.2% Local and State‐Shared Funds General Convention Center Bond Parking Management Grand Total Grand Total Capital Funds Loans and Bonds General Obligation Bonds Revenue Bonds County Transportation Bonds All Other All Other Grand Total Grand Total 22 SUMMARY OF RECOMMENDATIONS Fiscal 2021 Preliminary to Recommended Reconciliation The table below outlines the General Fund budget changes that occurred between the Preliminary Budget Plan, released April 1, 2020, and the Ordinance of Estimates, introduced May 6, 2020. These changes were made due to revenue projection changes resulting from the COVID‐19 pandemic. Agency Financial Assumptions All Agencies General Debt Service Miscellaneous General Police Self‐Insurance Visit Baltimore Revenue and Other Fund Sources Various Agencies General Fund Revenue Housing and Community Development Pause Planned Initiatives Various Agencies Police, States Attorney, Criminal Justice Schools Transportation Employee Pay and Benefits All Agencies Service Efficiences and Reductions All Agencies Fire Police, Fire Library Mayor’s Office / Miscellaneous General Miscellaneous General Public Works Police Action Savings Reduce projected inflation rate from 2.3% to 2.0% Reduce motor fuel projection by 11% Adjust debt service schedule to assume lower borrowing rate Reduce Rainy Day Fund contribution Reduce lawsuit and legal fees line item to reflect historical trend Defer Risk Management Fund contribution Reduce Visit Baltimore appropriation to reflect legal requirement at 40% of Hotel Tax receipts 0.7 1.0 1.2 4.0 0.7 2.4 5.2 Utilize available prior‐year Children and Youth Fund balance to preserve youth programming Implement modifications to existing tax credit programs Utilize available prior‐year CDBG funds to support Housing Inspector costs 8.0 Defer planned General Fund PAYGO Capital projects Pause all other planned new initiatives Pause five new district‐based Baltimore Community Intelligence Centers Pause planned additional year of Risk Management support Pause planned increase of 16 buses to 20 buses across four Circulator routes 10.7 0.5 3.4 Negotiate pay freeze or furlough across all bargaining units Negotiate active employee health benefit savings, beginning January 1, 2021 Offer a more cost‐effective retiree Medicare Advantage plan, beginning January 1, 2021 15.6 2.9 Reduce non‐essential spending Defund 240 vacant civilian positions and 4 contractual positions Reassign two Fire Suppression companies Achieve motor vehicle fleet savings Reduce library books and overtime budget Reduce Mayor’s office positions and discretionary spending 1.0 15.4 3.6 0.9 0.4 2.1 Reduce seasonal Special Events support due to pandemic restrictions Re‐organize Contracts and Training Units Eliminate Graffiti Removal service Re‐organize Mounted, Motorized, Fleet Safety, and Accident Investigation Units Reduce helicopter flight hours from 16 hours to 12 hours per day GRAND TOTAL Table in millions. 23 2.0 2.0 11.0 1.6 1.9 0.4 1.0 0.8 1.9 0.8 103.1 Intentionally Left Blank FISCAL 2021 EXECUTIVE SUMMARY Board of Estimates Recommendations Revenue Intentionally Left Blank REVENUE Fiscal 2021 Economic Outlook Uncertainty is the word that best describes the economic outlook for the City’s Fiscal 2021 Budget. Just weeks ago, the US economy was experiencing the longest period of economic expansion since World War II with 128 months of economic growth. Now, the sudden explosion and rapid expansion of the Coronavirus Disease 2019 (COVID‐19) pandemic has radically changed the economic reality and the outlook for the next year. The virus was first discovered in November 2019, declared a global pandemic by the World Health Organization on March 2020, and has now accounted for more than 2.48 million confirmed cases and more than 160,000 deaths worldwide as of April 21, 2020. The escalation of COVID‐19 has required communities to respond with social and economic restrictions intended to control the disease and preserve the general public health. These limits have led to severe short‐term economic effects locally, nationally and globally. Summary The current economic situation is unique in modern history. There are fundamental differences between this and other prior economic downturns, especially as compared with the Great Recession that began in 2008. • First, this 2020 economic downturn was originated by a factor external to the economy. On the contrary in 2008, there were earlier indications suggesting the potential for a recession. For example, residential investment and real estate transactions started showing deceleration in 2006, months before the burst of the housing bubble, and almost two years before the slowdown became a recessionary period. In 2020, there was no clear evidence or signals from economic data indicating a slowdown. • Second, during the Great Recession, no one sector experienced a complete shutdown in activity. That is not the case for the 2020 downturn, where certain areas of the economy are simply not operating. Restrictions placed on businesses, especially those that rely on human interaction, have disrupted supply and demand dynamics. Social distancing, stay‐home mandates and closure of non‐essential businesses are in place to control the outbreak, and these mandates inorganically imposed demand and supply restrictions for certain services. • Finally, there is no historical reference that can be used to predict the remedies for the economic disruption caused by an external factor. The closest examples would be the recovery after the Spanish Flu of 1918, or a post‐war situation, or the reactivation of the economy after a natural disaster. However, none of these examples share the same socioeconomic reality of today’s world, and the unique worldwide impact of the COVID‐19 pandemic surpasses the regional experiences of any historical downturn event. The following sections analyze the short and long‐term impact of COVID‐19 on the City’s economy and its capacity to generate revenues. Immediate Impacts The restrictions placed on certain sectors of the economy have created internal imbalances in the economic cycle affecting both the supply and demand sides of the economy. The executive orders preventing the spread of the virus have eliminated demand for certain recreational and non‐essential activities. Consequently, certain businesses have been forced to reduce supply for goods and services, which temporarily or permanently reduced demand for employment. 27 Fiscal 2021 REVENUE There are three areas of the economy where COVID‐19 has created a short‐term disruption in the economy: Tourism and Hospitality, Employment and the Real Estate Market. The following section explains the effect on these sectors and the corresponding negative impact on City revenues. Tourism and Hospitality The lodging and hospitality sector of the economy includes activities related to performing arts, spectator sports, museums, visits to historical sites, zoos, parks, amusement, gambling, recreation, food and drinking establish‐ ments, and accommodation services. Prior to growth of COVID‐19, the performance of the lodging and tourism industry was strong. Hotels in the City were on average 64.0% occupied during calendar 2019, 1.3% higher than 2018. Demand for rooms in the City totaled 2.5 million for this period, 0.9% above the 2.48 million in 2018, while the average rate per room per night was $95.60, $5.00 or 5.5% more than the annual price charged per rented room in 2018. The executive orders intended to control the expansion of COVID‐19 drastically reduced the stream of visitors to the City. The demand for local hotel rooms was virtually eliminated. Occupancy rates in March averaged 25.9% and were only 5% by the end of March. The number of passengers using the Baltimore Washington International (BWI) airport declined 54% in March 2020 compared to March 2019, and the number of visitors using BWI on March 31, 2020 was 94% less than the same day in 2019. Additionally, sailing cruises using the Port of Baltimore have temporarily paused activity. Similarly, many events at City venues have been cancelled or indefinitely postponed, including: • The indefinite postponement of the 2020 Major League Baseball season has eliminated any Orioles games and other events at the Camden Yard; • Regular admission and exhibitions have been canceled until June 2020 for the following: The Joseph Mey‐ erhoff Symphony Hall, The Hippodrome, Royal Farms Arena, all Baltimore City museums and the Maryland Zoo and the National Aquarium; • The Preakness has been postponed to a future date, with a cancellation of all Infield festivities; • Many bars and restaurants have been required to limit services or to permanently close doors; • Booked events at the Baltimore Convention Center have been cancelled at least until the end of May. The facility has been turned into a federal medical station for infected COVID‐19 patients. The sum of these circumstances has led to significant write‐downs of Hotel tax, Convention Center and Admissions and Amusement taxes, which are discussed in the Revenue Detail section of this publication. Travel Reduced activity due to the lockdown includes limitations to transit and highway travel as well. According to the State Highway Administration, the average traffic volume in the State experienced a reduction of 44.5% during the last week of March. Consequently, Highway User Revenues (HUR) have been effected as demand for fuel, purchases and rentals of vehicles are reduced. Finally, transportation services and parking activities have been diminished due to lack of demand. These circumstances have led to a write‐down of HUR, and parking related revenues including parking tax, garage income, metered parking, parking fines, traffic cameras and rideshare revenues. 28 REVENUE Fiscal 2021 Employment The most immediate and devastating consequence of the COVID‐19 pandemic so far has been its effect on busi‐ ness and employment. Many businesses have been partially or fully restricted coinciding with the stay‐at‐home orders that have reduced consumption and demand for these and other services. Prior to the pandmic, City un‐ employment rates had declined to 5.1%, the lowest average annual unemployment rate in recent history. More importantly, in a decade where the City lost more than 27,000 residents, its labor force followed a different trend and increased by more than 15,000 or 5.5% since 2010. Over the last 10 years, the City has gradually built a stronger employment base relying on service‐providing businesses. According to data from the State’s Department of Labor, Licensing and Regulation (DLLR), between 2010 and 2018 the number of jobs located in the City increased by 17,541 or 5.3%. While government jobs were reduced by almost 11,500 or 14.3%, employment in service providing industries including education and health, professional and business services, trade, transportation, utilities and leisure and hospitality services increased more than 29,200 during this time period. Remarkably, close to 5,400 or 18.4% of this increase was explained by the growth in the City’s leisure and hospitality sector. As a result of the pandemic, some businesses have adjusted their hours of operation, or been forced to close their doors either furlough or layoff many employees. According to the U.S. Department of Labor, more than 22 million claims for unemployment were filed during the four‐week period ended on April 11, 2020, and the projected insured unemployment rate reached 8.2% for the week ended on April 4, 2020. The following table compares the weekly claims for unemployment insurance since 2005. March 2020 reached 10 times more than the highest number claims of 665K for any week during the Great Recession. 8,000,000 US Total of Initial Claims For Unemployment Insurance (Seasonally Adjusted) 7,000,000 6,867,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 665,000 0 Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Seasonally Adjusted Source: US Department of Labor The City labor force is highly dependent on the jobs offered by trade, transportation, utilities and leisure, and hospitality service industries. More than 70,900 jobs or 28.0% of all private sector employees in the City are in these industries, which have been drastically affected by COVID‐19. These conditions affecting the City’s labor market will lead to lower income tax revenues for the City. 29 Fiscal 2021 REVENUE Real Estate Market Prior to the pandemic, the Fiscal 2020 picture for the City’s real estate market remained strong. Sales were solid with the number of transactions subject to transfer tax reaching more than 11,100 as of February 2020, the highest cumulative number of transactions for that month since Fiscal 2008. Similarly, with the help of historically low interest rates, transactions subject to recordation tax also reached record levels with 14,500 transactions processed as of February 2020. However, activity rapidly changed in mid‐March. Transactions subject to transfer tax dropped 54.8% from the 670 transactions processed during the first 15 days of the month to 303 for the remainder of March, while those sub‐ ject to recordation tax declined by 44.9% from 967 to 533 during the same segments of the month. Additionally, the March 2020 to March 2019 comparison shows 26.8% and 9.4% respective declines in transfer and recordation tax transactions, and both represent two of the historically lowest transactions ever recorded in March. Weekly residential real estate activity as tracked and reported by Live Baltimore, the City’s quasi‐agency promoting the benefits of Baltimore City living, indicated a drastic slowdown since mid‐March. As of April 12, 2020 compared to March 15, 2020, the number of new listings have decreased 26.3%, the number of new contracts declined 55.0%, and 30.0% fewer transactions were closed. Realtors and active buyers have tried innovative ways to keep the market moving, including virtual open house tours. The real estate market has stalled due to the combination of overall low consumer confidence and in‐ stability in the labor market. These conditions in the City’s real estate market led to significant reductions to recordation and transfer taxes detailed in the Revenue Detail section of this document. Long‐Term Impacts The long‐term impact of COVID‐19 on the economy is still unclear at this time. The length of the economic downturn will depend on three key questions: First, how quickly can both the United States and other countries control and slow the outbreak of COVID‐19? As of the time of publication, some states in the U.S. had begun to relax social distancing restrictions, even with warnings from public health experts that additional outbreaks are likely. Further outbreaks could lead to a cycle of re‐opening and then closing the economy again, which could lead to prolonged economic damage. Second, for how long can Federal stimulus prop up the economy during this period of disruption? As of the time of publication, four significant aid packages (referred to as CARES ACT 1, 2, 3 and 3.5) have already passed which include a myriad of assistance, including: paid sick leave mandates, payments to individual and families, supplemental unemployment insurance, support for hospitals and medical institutions, lending and direct aid to businesses, and assistance for State and local governments. Some of these programs have already run out of funding, and others are only expected to last for a few more weeks or months. Third, how has the pandemic affected consumers ongoing confidence in the economy? According to the Uni‐ versity of Michigan’s Survey of Consumers report for April 2020, consumer confidence declined by 18.1%, the largest monthly decline ever recorded. Other survey data suggest that, even if the economy is re‐opened, many individuals will be reluctant to re‐start spending due to the lingering health risks and their own personal financial situation. In summary, each of these risks suggests that the City’s financial outlook will remain highly uncertain for an indefinite period of time. 30 REVENUE Fiscal 2021 Major Revenues Forecast The Fiscal 2021 General Fund revenue forecast has been revised to reflect the anticipated impact on the economy due to the COVID‐19 pandemic. The General Fund revenue is projected at $1.93 billion, $83.6 million lower than the Fiscal 2021 Preliminary budget estimate, and $34.4 million lower than the Fiscal 2020 Adopted budget of $1.97 billion. Each major revenue source is detailed below. Revenue Category Property Taxes Income Tax Highway User Revenues State Aid Recordation & Transfer Taxes Energy Tax Telecommunication Tax Net Parking Revenues Net Hotel Tax Traffic Cameras Earnings on Investments Children and Youth Fund Total Tax Credits (Excl. Homestead) All Other Total General Fund Revenue FY20 Budget FY21 Prelim. Budget FY21 Estimate Dollar Change vs Prelim. Percent Change vs Prelim. 987,060,000 366,804,000 157,350,000 101,896,000 79,867,000 42,551,000 34,586,000 36,795,516 29,100,000 21,350,000 11,200,000 (13,105,000) (98,634,000) 210,429,484 1,967,250,000 1,022,386,000 406,594,000 162,430,000 104,522,000 84,501,000 44,253,000 34,582,000 33,034,444 29,758,375 22,055,000 2,960,000 (13,346,000) (115,175,000) 197,845,181 2,016,400,000 1,019,535,706 381,216,000 142,428,000 104,522,000 75,083,000 42,712,000 34,582,000 22,282,112 21,328,915 14,075,000 2,960,000 (5,346,000) (112,705,000) 190,126,267 1,932,800,000 (2,850,294) (25,378,000) (20,002,000) 0 (9,418,000) (1,541,000) 0 (10,752,332) (8,429,460) (7,980,000) 0 8,000,000 2,470,000 (7,718,914) (83,600,000) ‐0.3% ‐6.9% ‐12.7% 0.0% ‐11.8% ‐3.6% 0.0% ‐29.2% ‐29.0% ‐37.4% 0.0% ‐61.0% ‐2.5% ‐3.7% ‐4.2% Property Taxes The Real Property Tax rate will remain at $2.248 per $100 of assessed value. Consequently, the Personal Property Tax rate will remain at $5.62 per $100 of assessed value, 2.5 times the Real Property Tax Rate. Each year, the State Department of Assessments and Taxation (SDAT) estimates the value of all taxable real property and issues new assessments for approximately one‐third of properties. Personal property is assessed annually and valuations are established by SDAT based upon tax returns filed by individual businesses. Real and Personal Property Tax Revenues 777.6M FY 1 2A ctu FY 1 al 3A ct u FY 1 al 4A 848.0M 814.9M 781.9M 765.4M ctu FY 1 al 5A ct u FY 1 al 6A ctu FY 1 al 7A Real and personal property tax revenues are net of the Homestead Tax Credit. Chart in millions. 31 ctu FY 1 al 8A ctu FY 1 al 9A 1,019.5M 987.1M 964.1M 940.5M 876.1M ctu FY 2 al 0B ud FY 2 ge t 1E sti ma te Fiscal 2021 REVENUE The Fiscal 2021 Real and Personal Property Tax revenues are projected at $1,019.5 mil‐ lion, representing an increase of $32.5 mil‐ lion from the $987.1 million in Fiscal 2020. Real Property Taxes, excluding the $24.2 mil‐ lion reduction for the Homestead Tax Credit, are estimated to yield $922.7 million, an in‐ crease of 3.7% or $32.6 million from the Fis‐ cal 2020 budget. Personal Property Taxes are estimated to yield $121.1 million in Fis‐ cal 2021, $2.9 million or 2.3% lower than the Preliminary Fiscal 2021 projection and $0.9 million or 0.7% lower than the Fiscal 2020 budget. This decrease is driven by the po‐ tential for a number of businesses to go out of business, and the reduction of business investment in new property due to the eco‐ nomic downturn resulting from the COVID‐ 19 pandemic. Real property revenues are net of the Home‐ stead Tax Credit, which protects owner‐ occupied residential properties from assess‐ ment increases that exceed 4% growth. For example, if an eligible property were to ex‐ perience an annual inrease in assessment of 10%, the taxable value would only increase by 4% due to the Home‐ stead Tax Credit, generating tax savings to the property owner. Overall, the City’s Homestead Tax Credit cost is projected to decrease by $800,000 from $25.0 million in Fiscal 2020 to $24.2 million in Fiscal 2021. For Fiscal 2021, SDAT reassessed Group 2, which is indicated by the lightest shade of gray on the map above. Fiscal Year Assessment Group Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Group 1 Group 2 Group 3 Group 1 Group 2 Group 3 Group 1 Group 2 Group 3 Group 1 Group 2 Full Cash Value Assessment Increase (2.6%) (8.7%) (6.8%) (3.1%) 7.0% 9.6% 10.9% 6.2% 3.6% 8.4% 8.2% Assessments for properties in Group 2 grew an average of 8.2% over three years. This figure includes 8.3% growth for commercial property assessments and 8.2% growth for resi‐ dential property assessments. Comparatively, growth across the State averaged 8.9%, which reflects commercial assess‐ ment growth of 13.5% and residential assessment growth of 7.3%. The Fiscal 2021 reassessment represents the seventh consecutive year of assessment increases in the City after four consecutive years of decline. Assessment increases are phased in over three years, while assessment decreases are taken immediately. Group 2 as‐ sessment data shows that out of the 81,698 taxable proper‐ ties, 13,771 or 16.9% will experience immediate decline in Fis‐ cal 2021. Among the properties that have declined in value, 13,010 or 94.5% are residential properties. 32 REVENUE Fiscal 2021 Property Tax Credits The Fiscal 2021 estimate includes a total of $112.7 million of foregone property tax revenue due to the cost of tax credits and incentive programs, not including the Homestead Tax Credit, which is addressed separately. In Fiscal 2020, the City reached a significant milestone in fully implementing the 20 Cents by 2020 program. This tax reduction program, formally known as the Targeted Homeowners Tax Credit (THTC), provides tax relief for owner‐occupied properties. The average effective rate for owner‐occupied properties with the credit is esti‐ mated at $2.048 per $100 of assessed value, and now saves the average homeowner more than $325 annually in property taxes. In Fiscal 2021, the City will maintain this rate for owner‐occupied residents. The following plot shows the history of the program to date. Effective Property Tax Rate History (Per $100 of Assessed Value) 2.268 2.268 2.248 2.248 2.249 2.155 2.130 2.124 $0.20 Property Tax Reduction 2.107 2.100 2.074 2.048 2012 2014 2016 Property Tax Rate 2018 2.048 2020 Effective Rate From Fiscal 2011 to Fiscal 2015, tax credit and incentive programs, excluding the Homestead Tax Credit, accounted for an annual average cost of $34.1 million or 4.4% of the real property tax revenues. In Fiscal 2021, these pro‐ grams are expected to cost $112.7 million or 12.2% of the estimated real property taxes. Including the Homestead Tax Credit, forgone real property tax revenue due to tax credits and incentive programs is estimated at $136.9 million or 14.8% of this revenue source in Fiscal 2021. Tax Credits as a Percent of Real Property 16.5% 12.0% 7.1% 12.5% 13.7% 13.5% 9.8% 10.2% FY18 Actual FY19 Actual 13.9% 11.1% 15.1% 12.5% 8.2% 4.4% FY11-15 Avg. Cost FY16 Actual FY17 Actual Tax Credits Incl. Homestead 33 FY20 Budget Tax Credits Excl. Homestead FY21 Estimate Fiscal 2021 REVENUE Tax Credits Real Property Tax Targeted Homeowners Enterprise Zone Tax Credit Historic Property Brownfield and Other Supplemental Homeowner’s High‐Performance Market‐Rate Rental Housing Newly Constructed Dwellings Public Safety Officer Total Tax Credits (Excl. ATC) Homestead (ATC) Total Tax Credits (Incl. ATC) FY11‐15 Avg. Cost 770.6 (7.6) (11.7) (7.4) (4.0) (0.0) (0.0) FY16 Actual 780.8 (22.6) (14.9) (7.8) (7.6) (0.0) (0.4) FY17 Actual 815.8 (26.3) (17.2) (9.4) (9.2) (0.0) (2.6) FY18 Actual 851.6 (26.1) (24.0) (9.5) (15.6) (1.4) (5.0) FY19 Actual 856.9 (30.4) (23.4) (11.2) (13.1) (1.6) (4.4) FY20 Budget 890.1 (35.9) (24.3) (11.7) (16.6) (1.6) (5.3) FY21 Estimate 922.7 (35.0) (24.5) (11.1) (18.7) (1.4) (18.9) (3.4) (0.0) (34.1) (93.1) (127.2) (2.4) (0.0) (55.6) (38.2) (93.8) (2.3) (0.0) (67.0) (35.1) (102.1) (2.0) (0.0) (83.6) (33.1) (116.7) (2.2) (1.1) (87.5) (28.4) (116.0) (2.1) (1.1) (98.6) (25.0) (123.6) (2.1) (0.9) (112.7) (24.2) (136.9) Table in millions. Income Taxes Income Tax Revenue 346.7M FY 12 FY 13 Ac tua l 300.0M 284.4M 278.5M 262.2M Ac FY tua l 14 Ac tua FY 1 l 5A FY ctu 16 al FY 17 Ac tua l Chart in millions. 371.6M 346.8M 335.2M FY 18 Ac tu al FY 19 Ac tua l 381.2M 366.8M FY 20 Ac tua l FY 21 Bu d ge t Es tim ate The Fiscal 2021 estimate for local Income Taxes is $381.2 million. This is a reduction of $25.3 million or 6.2% from the Preliminary Budget Plan estimate of $406.6 million. Prior to the pandemic, Fiscal 2020 activity and targeted growth for Fiscal 2021 was trending up. Therefore, the Fiscal 2021 estimate is still $14.4 million or 3.9% higher than the Fiscal 2020 budget of $366.8 million. The City’s Income Tax rate is 3.2% – the maximum allowed under State law. The COVID‐19 pandemic will have a significant impact on the labor market and will last until the first quarter of Fiscal 2021 and likely much longer. A large number of City residents find employment in industries like leisure and hospitality, retail, restaurants, manufacturing, and trade and transportation. These industries have experienced significant disruptions such as limitations on travel, and facility and establishment closures. It is anticipated that unemployment may rapidly increase to double digits, as local and national unemployment claims have jumped, with national claims up to just over 26 million as of April 18th. This will lead to decreased income tax withholdings, which represent the largest component of income tax receipts for the City. Additionally, receipts from taxable capital gains are expected to be volatile, mirroring the stock market. The recently passed $2.3 trillion stimulus package, the federal CARES Act, will provide some support to employees and businesses through loan and grant programs and increased unemployment benefits coverage, but it is unclear if this package will be sufficient to 34 REVENUE Fiscal 2021 fully offset the impact of COVID‐19 in the labor market. Prior to the pandemic, the City’s taxable income base had strengthened considerably over the last decade. Recent data from the annual State’s Income Tax Summary reports show the number of high‐income households, defined as those earning above $100,000, has increased by 59.0% during the period of 2010 to 2018, making up 14.0% of all taxable returns. Despite population losses and a decrease in the number of tax returns filed, the City has seen an increase in the taxable value of filed returns, showing that the population in Baltimore City is earning a higher level of income than in years past. The average taxable value per return for tax year 2018 was $1,320, up 8.4% from tax year 2017 and 34.2% from tax year 2010. In addition, we also are seeing the impact of the Tax Cuts and Jobs Act 2017 (TCJA). The City’s tax receipts have increased for the 2018 tax year due to the limits placed on tax‐favorable deductions, which has led to lower refunds, and one‐time shifts in income and expenses. State Highway User Revenue State Highway User Revenue FY 1 2A ctu FY 1 al 3A ctu FY 1 al 4A 142.2M 137.7M 132.3M 129.9M 129.3M ctu FY 1 al 5A ctu FY 1 al 6A 146.2M 139.3M ctu FY 1 al Chart in millions. 7A ctu FY 1 al 8A 157.3M 146.1M ctu FY 1 al 9A ctu FY 2 al 0B 142.4M ud FY 2 ge t 1E sti ma te The Fiscal 2021 estimate for Highway User Revenue (HUR) is $142.4 million. This is a reduction of $20.0 million or 12.3% from the Preliminary Budget Plan estimate of $162.4 million. Automobile activity is anticipated to be lower through the first quarter of Fiscal 2021 by 30% as compared to pre‐COVID‐19 activity. HUR is generated by the Fuel Tax, Titling Tax, Vehicle Registration Fees, Corporate Income Tax, and a portion of the Sales and Use Tax. All of these components will be directly impacted by the reduction in driving activity and related automotive sales. Funds from HUR are distributed to localities by the State. A change to State law in 2018 raised the City’s share of total Statewide HUR from 7.7% to 8.3% for each fiscal year from Fiscal 2020 to Fiscal 2025, and is reflected in the HUR figures above. The City’s HUR is still $84.9 million or 37.4% below its Fiscal 2007 peak of $227.3 million. During the Great Recession, local shares of HUR were reduced and some funds were shifted to the State’s General Fund. The result for the City was a sharp reduction in funds available for transportation related capital projects. The City could see further reductions if the State takes similar actions to balance its current budget. 35 Fiscal 2021 REVENUE State Highway User Revenue (Historical) 227.3M 22 200M 142.4M 4M 150M 128.0M FY 06 FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 Ac Ac Ac Ac Ac Ac Ac Ac Ac Ac Ac Ac Ac Ac Bu Es tua tua tua tua tua tua tua tua tua tua tua tua tua tua tim dg et l ate l l l l l l l l l l l l l Chart in millions. State law requires that HUR funds must be used by local governments for eligible transportation‐related uses. Eligible uses include street construction or maintenance, transportation facilities, street cleaning, police enforce‐ ment of traffic laws, stormwater drainage of roads, street lighting, and maintenance of footpaths and bicycle trails. These expenditures must equal or exceed the amount of revenue from HUR, demonstrating that the City is compliant with State law. Any HUR‐eligible costs greater than revenue are subsidized by the General Fund. Fiscal 2021 Budget Service Transportation 500 ‐ Street Lighting 681 ‐ Administration 683 ‐ Street Management 684 ‐ Traffic Management 685 ‐ Special Events (Special Event Support only) 688 ‐ Snow and Ice Control 689 ‐ Vehicle Impounding and Disposal 690 ‐ Sustainable Transportation 691 ‐ Public Rights‐of‐Way Landscape Management 692 ‐ Bridge and Culvert Management 696 ‐ Street Cuts Management 697 ‐ Traffic Safety (Pedestrian Safety, Traffic Engineering, Sign Fabrication, Street Markings only) 20.9 9.8 34.4 11.1 1.1 6.7 8.2 4.4 4.0 3.7 1.0 5.8 Public Works 661 ‐ Public Right‐of‐Way Cleaning (Cleaning Business Districts, Street & Alley, Graffiti Removal only) 660/676 ‐ DPW Admin (admin. costs allocated for HUR‐eligible activities on budget basis) 16.2 0.7 Recreation and Parks 654 ‐ Urban Forestry (Tree Maintenance only) 4.6 Police 816 ‐ Special Operations Section (Traffic Section, Traffic Safety, Crossing Guards only) 6.5 Debt Service 123 – General Debt Service (Highways only) 17.8 Capital Budget Projects 0.0 Total Budgeted HUR‐Eligible Expenses Total Projected HUR Revenue HUR‐Eligible Expenses Subsidized by General Fund Table in millions. 157.0 142.4 14.6 36 REVENUE Fiscal 2021 State Aid State Aid Revenues 93.6M 95.6M FY 1 FY 1 2A ctu al 3A 105.1M 102.1M ct u FY 1 al 4A ctu FY 1 al 5A 104.6M ct u FY 1 al 6A 104.6M 101.4M ctu FY 1 al 7A ctu FY 1 al 8A ctu FY 1 al 9A 104.5M 101.9M 98.6M ctu FY 2 al 0B ud FY 2 ge 1E t sti ma te Chart in millions. State Aid budgeted in the General Fund is projected to increase by $2.6 million or 2.6% from the Fiscal 2020 bud‐ get. State Aid includes the Income Tax Disparity Grant, supplemental appropriation for teacher pension, security interest filing fees, police protection aid, support for public health initiatives, library services aid, and appropria‐ tion for maintenance of the War Memorial Building. The additional funding compared to Fiscal 2020 is primarily driven by an increase to the Income Tax Disparity Grant of $2.5 million. The Disparity Grant is based on a formula designed to assure that all subdivisions receive per capita income tax receipts equivalent to at least 75% of the statewide average. Note that the State budget passed the General Assembly prior to COVID‐19, and we believe further write‐downs to State Aid are likely in Fiscal 2021. Recordation and Transfer Taxes Recordation and Transfer Tax Revenues 91.9M 90.4M 92.0M 89.3M 79.9M 74.5M 75.1M 70.9M 55.9M 43.0M FY 1 2A ctu FY 1 al 3A ct u FY 1 al 4A ctu FY 1 al 5A ct u FY 1 al 6A ctu FY 1 al 7A ctu FY 1 al 8A ctu FY 1 al 9A ctu FY 2 al 0B ud FY 2 ge t 1E sti ma te Chart in millions. The Fiscal 2021 estimate for Transfer and Recordation Tax is $75.1 million. This is a reduction of $9.4 million or 11.1% from the Preliminary Budget Plan estimate of $84.5 million. This represents a reduction of $4.8 million or 6.0% from the Fiscal 2020 budget of $79.9 million. Recordation and Transfer Tax receipts depend on the number and value of real estate transactions. Recordation 37 Fiscal 2021 REVENUE Tax receipts, in particular, are also driven by refinancing activity. These revenues are highly sensitive to changes in the real estate market and can change dramatically from year to year. For example, receipts from these two revenue sources reached a combined peak of $116.7 million in Fiscal 2006 during the pre‐Great Recession housing boom. After the collapse of the housing market two years later, they fell to $41.2 million in Fiscal 2011, a decline of $75.5 million or 64.7%. Under the current circumstances, we expect weaker receipts during the first quarter of Fiscal 2021 due to social distancing requirements that have limited market activity. Refinancing transactions that are subject to recordation tax are expected to increase due to the Federal Reserve actions which reduced the U.S. interest rate to near zero in March 2020. In Fiscal 2019, the City Council passed City Council Bill 18‐0221 that implemented a “Yield Tax” on transactions over $1 million and directed the revenue to the Affordable Housing Trust Fund. The Yield Tax is 0.15% of the collected Recordation Tax and 0.6% of the collected Transfer Tax. Although the legislation exempts transactions under $1 million, most of the City’s General Fund Transfer and Recordation revenue comes from high‐value trans‐ actions. During calendar year 2019, the top 1.0% of transactions (over $1 million) produced nearly 34.0% of the Transfer and Recordation revenue. Even a minor impact on housing transactions due to the legislation could lead to lower General Fund revenue. Energy Taxes Energy Tax Revenues 41.2M 41.0M 40.9M 39.3M 43.1M 42.0M 39.7M 42.7M 42.6M 35.4M FY 1 2A ctu FY 1 al 3A ct u FY 1 al 4A ctu FY 1 al 5A ct u FY 1 al 6A ctu FY 1 al 7A ctu FY 1 al 8A ctu FY 1 al 9A ctu FY 2 al 0B ud FY 2 ge t 1E sti ma te Chart in millions. The Fiscal 2021 estimate for Energy Tax is $42.7 million. This is a reduction of $1.5 million or 3.5% from the Preliminary Budget Plan estimate of $44.3 million. This is virtually unchanged from the Fiscal 2020 Budget of $42.6 million. Energy Tax revenues include Electricity, Gas, Steam, Fuel Oil, and Liquid Petroleum Gas taxes. The Fiscal 2021 estimate is based on adjustments to rates and historical usage trends. First quarter Fiscal 2021 usage trends have been adjusted to account for an increase in residential use and a decline in commercial, as we expect to see some telework requirements continuing into early Fiscal 2021. This shift in usage has an impact on overall receipts as the tax rate for residential is lower than commercial. In recent years, efficiencies in usage have been offset by rate increases; however, unseasonably warm or cold weather can also impact total revenues. The Baltimore City Code mandates that the City’s Energy Tax be levied as a unit tax based on the number of units of energy delivered to users in Baltimore City. The units are as follows: kilowatt‐hours for electricity, therms for natural gas, pounds for steam, and gallons for fuel oil and liquefied petroleum gas. 38 REVENUE Fiscal 2021 In accordance with Article 28, Section 25‐14, the annual energy tax rates are adjusted by the annual percentage change in the Baltimore‐Columbia‐Towson CPI as reported by the United States Department of Labor. The metric is calculated by comparing December of the preceding calendar year to the December of the next preceding calendar year. The CPI used for Fiscal 2021 is 1.83%, up from 1.34% in Fiscal 2020. User Group Electricity (kWh) Natural Gas (therm) Fuel Oil (gal) LPG (gal) Steam (lbs) Commercial Residential Nonprofit 0.008820 0.002824 0.006184 0.114055 0.033522 0.090604 0.130352 0.047046 0.112504 0.159085 0.050390 0.138335 0.002774 0.000797 0.001641 Net Parking Revenues Parking Revenues (Net Transfer to the General Fund) 48.1M 43.4M 37.7M 32.5M 36.8M 33.6M 33.5M 30.3M 31.9M 22.3M FY 1 2A ctu FY 1 al 3A ctu FY 1 al 4A ctu FY 1 al 5A ctu FY 1 al 6A ctu FY 1 al 7A ctu FY 1 al 8A ctu FY 1 al 9A ctu FY 2 al 0B ud FY 2 ge t 1E sti ma te Chart in millions. Key parking revenues include the Parking Tax, meter revenues, fines, penalties on parking violations, and income from City‐owned garages. Parking revenues first cover related expenses such as enforcement, debt service and maintenance. Any remaining net proceeds then come to the General Fund. The Fiscal 2021 budget includes a reduction of parking revenues by $14.5 million based on year to date activity and impact of the COVID‐19 pandemic. Prior to COVID‐19 the City was experiencing a decline in revenues from parking taxes, garage income, parking fines, and parking meters due to changes in consumer behavior with the increased usage of dockless vehicles and ride sharing services, such as Uber and Lyft. The preliminary budget accounted only for the changes in consumer behavior. The COVID‐19 pandemic has caused these revenues to decline due to stay‐at‐home orders that have reduced transient parking. 39 Fiscal 2021 REVENUE Telecommunication Tax Telecommunication Tax Revenue 34.0M 33.3M 33.4M 33.5M 33.8M 34.4M FY 1 FY 1 FY 1 FY 1 FY 1 FY 1 2A ctu al 3A ctu al 4A ctu al 5A ctu al 6A ctu al 7A 32.8M ctu FY 1 al 8A ctu 34.5M 34.6M 34.6M FY 1 FY 2 FY 2 al 9A ctu al 0B ud ge 1E t sti ma te Chart in millions. Telecommunication Tax revenue for Fiscal 2021 is estimated at $34.6 million, which is no change compared to the Fiscal 2020 Budget. The Telecommunication Tax is charged at a rate of $0.40 per month for each Centrex local exchange line and $4 per month for other wireless or wired lines. Hotel Tax Hotel Tax Revenue (Net Transfer to the General Fund) 30.5M 29.6M 27.9M 26.7M 25.9M 29.1M 28.5M 28.4M 26.7M 21.3M FY 1 2A ctu FY 1 al 3A ct u FY 1 al 4A ctu FY 1 al 5A ct u FY 1 al 6A ctu FY 1 al 7A ctu FY 1 al 8A ctu FY 1 al 9A ctu FY 2 al 0B ud FY 2 ge t 1E sti ma te Amounts shown in plot represent total tax less convention center bonded debt service. Chart in millions. The Fiscal 2021 estimate for Hotel Tax is $21.3 million. This is a reduction of $8.5 million or 28.5% from the Preliminary Budget Plan estimate of $29.8 million. This represents a reduction of $7.8 million or 26.8% from the Fiscal 2020 budget of $29.1 million. An annual contribution of $4.6 million is allotted to the Baltimore Convention Center debt service payment, and the net hotel tax receipts are transferred from the Convention Center Bond Fund (CCBF) to the General Fund. In Fiscal 2020, the City completed its final debt service payment of $1.8 million for the bonds issued to fund the 1997 renovation of the Baltimore City Convention Center, with future year contributions to be made into the Convention Center Bond Fund to offset future Convention Center expansion or renovation costs. In Fiscal 2021, the contribution will be redirected to the Convention Center Hotel. Due to lost revenues from the COVID‐19 pandemic, this support is needed to make scheduled debt service payments. 40 REVENUE Fiscal 2021 The lodging and tourism industry will be directly impacted by the pandemic. We expect event cancellations at the Convention Center, the risk of cancellation or shortening of the 2020 baseball season, and a general reduction in the number of visitors to the City. This will lead to a sluggish first quarter of Fiscal 2021 with some rebounding in the remaining quarters. As a result, hotel occupancy will be significantly below average at the beginning of the fiscal year, averaging 17% versus a historical 68% rate in the first quarter, owing to a 75% decrease in room demand. As tourism resumes and room demand grows throughout the fiscal year, occupancy rates will stabilize to historical averages. Average daily room rates (ADR) are also expected to decline by 30% in the first quarter, returning to normal as room demand grows. Under State law, 40% of gross Hotel Tax receipts are appropriated to fund the local Tourism Bureau, Visit Balti‐ more. If revenue from a prior fiscal year differs from the budgeted amount, Visit Baltimore receives 40% of this difference during the next fiscal year. Additionally, Hotel Tax revenues generated by the Convention Center Hotel are reserved to pay for the debt service on the hotel. The following table demonstrates these allocations. Appropriation Category Fiscal 2019 Actual Fiscal 2020 Budget Fiscal 2021 Estimate Hotel Tax Revenue Convention Center Debt Service General Fund Subtotal Convention Center Hotel Visit Baltimore Net Hotel Tax in General Fund 33,016,708 (4,562,625) 28,454,083 (3,059,000) (13,206,683) 12,188,400 33,662,625 (4,562,625) 29,100,000 (3,430,690) (13,169,020) 12,500,290 21,328,915 0 21,328,915 (7,963,000) (7,767,843) 5,598,072 The following pie chart shows the distribution of Hotel Tax revenues. Visit Baltimore 7.8M (36.4%) Chart in millions. Convention Center Hotel 8.0M (37.3%) Net Hotel Tax in General Fund 5.6M (26.2%) In calendar year 2019, a new Baltimore Tourism Investment District (TID) was created, and a 2% surcharge in addition to the 9.5% Hotel Tax began to be levied in December 2019. This 2% surcharge will be managed by Visit Baltimore, and will fund additional marketing strategies to promote the City and increase tourism. This surcharge, which is remitted directly to Visit Baltimore, will first be needed to replace lost hotel tax revenue in Fiscal 2021. 41 Fiscal 2021 REVENUE Speed and Red Light Camera Violations Speed and Red Light Camera Violation Revenues 28.4M 26.3M 21.4M 20.3M 15.9M 2.5M FY 12 FY 13 Ac tua l Ac FY tua 14 A l ctu al 0.5M 0.2M FY FY 1 15 A ctu al 14.1M 0.1M FY 17 6A ctu a l FY 18 Ac tua FY 19 Ac tu al l Ac tua FY 20 l FY Bu dg 21 E sti ma te et Chart in millions. The Fiscal 2021 estimate for traffic camera revenue is $14.1 million. This is a reduction of $8.0 million or 36.2% from the Preliminary Budget Plan estimate of $22.1 million. This represents a reduction of $7.3 million or 34.1% from the Fiscal 2020 budget of $21.4 million. In Fiscal 2018, the City reintroduced an automated traffic camera program after suspending the initial program in Fiscal 2013 for technical and contractual reasons. As of July 2019, there are 100 red light and 100 speed cameras in operation. By State law, cameras are located within a half‐mile radius of schools and are added based on requests directly from constituents after a review process by the City’s Department of Transportation. The decrease in the Fiscal 2021 budget is partially explained by drivers’ adaptive behavior and the decline of citations that is supported by data from existing cameras. In addition to the observed decline, the COVID‐19 pandemic and the stay‐at‐home order have resulted in significant decreases in traffic volume throughout the city. This projection takes into account a decrease in overall traffic volume for Fiscal 2021. The projection assumes that the decline in traffic volume will lead to a 30% reduction in citations issued and paid. Earnings on Investments Earnings on Investments Revenue 12.0M 11.2M 5.3M 0.6M 0.4M FY FY 1.1M 0.8M 3.0M 2.4M (0.2M) 12 Ac tua 13 l Ac tu FY 14 al Ac tua l FY FY 15 Ac tu 16 al FY 1 FY 7A Ac tua l Chart in millions. 42 18 ctu al Ac tua l FY 19 FY 2 FY 0B Ac tua l ud ge 21 E t sti ma te REVENUE Fiscal 2021 The City anticipates earning $3.0 million on cash investments for Fiscal 2021, which is $8.2 million less than the Fiscal 2020 budget and 62% lower than Fiscal 2007 when these returns peaked at $16.2 million. Earnings on investments are the returns on the daily cash balances in the City Treasury and are a function of interest rates. The Fiscal 2021 estimate is based on average annual interest rate assumptions of 0.25% provided by the City’s Bureau of Treasury Management. At the time of this publication, the Federal Reserve had initiated two additional rate decreases due to instability in the market, which have led to less interest earned by the City on short‐term investments. Other Sources of Revenue All Other Revenue 230.2M 188.5M 149.3M FY 1 2A 182.5M 169.8M 210.4M 202.2M 196.7M 190.1M 142.6M ctu FY 1 al 3A ct u FY 1 al 4A ctu FY 1 al 5A ct u FY 1 al 6A ctu FY 1 al 7A ctu FY 1 al 8A ctu FY 1 al 9A ctu FY 2 al 0B ud FY 2 ge t 1E sti ma te Chart in millions. In addition to the major revenues referenced in this section, the City has over 150 other General Fund revenue sources. The Fiscal 2021 estimate for other sources of revenue is $190.1 million. This is a decline of $7.7 million or 3.9% from the Preliminary Budget Plan estimate of $197.8 million. The largest examples of other sources of revenue, which are not expected to be impacted, include annual con‐ tributions from utility funds of charges for central City services ($15.4 million), video lottery terminals ($12.6 million), building construction related permits ($9.2 million), and sanitation and waste removal related revenues ($9.0 million). Due to the pandemic, we have revised down some other smaller revenue sources. These in‐ clude the Convention Center (down $4.3 million), impounding and storage of vehicles (down $2.8 million), Admis‐ sion and Amusement tax (down $2.3 million), Business Licenses (down $400,000), and Stadium Security Charges (down $400,000). To compensate for declines in parking revenues, the City passed legislation to conform City Code with State law, enabling the City to impose taxes on transportation network services, such as Uber and Lyft. These taxes will be collected by the State and remitted to the City. The City is estimated to receive approximately $1.8 million of new revenue from this tax in Fiscal 2021. 43 Fiscal 2021 REVENUE Casino: Video Lottery Terminals and Table Games $44.3 $42.9 $3.2 $3.2 Casino Parking Garage Property Tax $5.4 $5.4 $31.8 Total $8.0 $7.4 Table Games Revenue $3.2 $3.0 $2.2 Park Heights/Pimlico Local Impact $13.7 $13.4 $9.3 South Baltimore/Horseshoe Local Impact Ground Lease Agreement $13.5 $14.0 $14.0 Fiscal 2019 Fiscal 2020 Fiscal 2021 Chart in millions. The City receives casino‐related revenue to support local neighborhoods impacted by the Pimlico Race Track and Horseshoe Casino, as well as support for citywide school construction, Baltimore City Recreation and Parks projects, property tax relief, and the General Fund at‐large. We expect sharp declines in some of these sources due to lower activity at the Casino and Pimlico Race Track. Horseshoe Ground Lease Agreement Revenue ‐ $14.00 million • The Horseshoe Casino ground lease payment to the City is calculated at either 2.99% of the Casino’s gross gaming revenue, comprised of both Table Games and Video Lottery Terminals, or an alternate minimum payment amount determined by the contract, whichever is higher. • The Fiscal 2021 estimated payment is the minimum payment of $14.00 million. • Of this amount, 90% is allocated to the General Fund to support the Targeted Homeowners Tax Credit (THTC) and 10% is dedicated to school construction. Horseshoe Ground Lease THTC School construction Minimum Ground Lease Payment 44 Allocation FY21 Estimate 90.0% 10.0% $12.60 million $1.40 million $14.00 million REVENUE Fiscal 2021 South Baltimore/Horseshoe Casino Local Impact Fund ‐ $9.34 million ‐ Baltimore City Allocation: 27% • The State combines gross terminal revenue from Video Lottery Terminals (VLTs) at Maryland Live, MGM National Harbor, and Horseshoe Casinos. • 5.5% of total combined VLT revenue is used as the starting point for the City’s local impact fund allocation. • 82% of the 5.5% total combined VLT revenue is then equally divided among Baltimore City, Anne Arundel, and Prince George’s counties, with the City receiving approximately 27.3% of this amount. • The Fiscal 2021 projection for Baltimore City is $9.34 million; $4.36 million less than the Fiscal 2020 budget and $5.17 million less than the Fiscal 2021 Preliminary Budget Plan estimate of $14.51 million. • State law requires that 50% of the City’s allocation must be remitted to the South Baltimore Gateway Com‐ munity Benefits District to support local projects. • The remaining 50% is budgeted for core City services within one mile of the casino area, such as the Police sub‐station, Fire unit, traffic enforcement, sanitation, and employment development. South Baltimore/Horseshoe Allocation FY21 Estimate 50.0% 50.0% $4.67 million $4.67 million $9.34 million South Baltimore District Horseshoe One‐Mile Radius Baltimore City Allocation Park Heights/Pimlico Local Impact Fund ‐ $2.22 million ‐ Baltimore City Allocation: 18% • The remaining 18% of the 5.5% of total combined VLT revenue is dedicated to Baltimore City. • Of the 18% distribution, $1 million is withheld for Prince George’s County and smaller jurisdictions; $500,000 is withheld for communities within 3 miles of the Laurel Race Course. • The Maryland General Assembly passed the Racing and Community Development Act of 2020. This amends the 18% allocation of total combined VLT revenue to provide $3.5 million annually to the State Lottery Fund for the redevelopment of the Pimlico Site starting in Fiscal 2022 through 2032. For Fiscal 2021 through 2032, the Park Heights Renaissance Inc. will receive an annual distribution that is the greater of $2.4 million or 24% of the total amount distributed in that year. • The Fiscal 2021 projection for Baltimore City is $2.22 million; $5.78 million less than the Fiscal 2020 budget and $6.35 million less than the Fiscal 2021 Preliminary Budget Plan estimate of $8.57 million. • At least 75% of the funds must be spent in the Park Heights neighborhood; the remaining funding must be spent within a one‐mile radius of the Pimlico Race Track. Park Heights/Pimlico Allocation FY21 Estimate 75.0% 25.0% $1.66 million $0.56 million $2.22 million Park Heights Pimlico One‐Mile Radius Baltimore City Allocation Table Games Revenue ‐ $3.04 million ‐ Baltimore City Allocation: 5% • Baltimore City receives 5% of gross Table Games revenue generated solely by the Horseshoe Casino. • The Fiscal 2021 projection for Baltimore City is $3.04 million; $2.36 million less than the Fiscal 2020 budget and $1.83 million less than the Fiscal 2021 Preliminary Budget Plan estimate of $4.87 million. 45 Fiscal 2021 REVENUE • State law requires that 50% of the funding be used to support citywide parks and recreation projects and 50% be allocated for school construction debt service. Table Games Revenue Parks and recreation School construction Baltimore City Allocation Allocation FY21 Estimate 50.0% 50.0% $1.52 million $1.52 million $3.04 million Casino Parking Garage Property Tax Agreement ‐ $3.20 million • As part of the Horseshoe Casino Ground Lease Agreement, the City grants a partial credit on the Real Property Tax due from the Casino’s garage. • If the net tax due is less than $3.20 million, the Casino must make an additional contribution so that the total minimum guarantee to the City equals $3.20 million. • The Casino garage’s Real Property Tax net of credits has never exceeded $3.20 million, and the Fiscal 2021 projection continues to assume the minimum guarantee. • This revenue supports the General Fund at large. Casino Parking Garage FY21 Estimate Minimum Guarantee $3.20 million 46 REVENUE Fiscal 2021 Gambling Local Impact Aid Expenditures In Fiscal 2021, the City projects receipt of $5.3 million of Local Impact Aid funding, consisting of $4.7 million of Baltimore Casino and $0.6 million of Pimlico funds. This funding may be used at the discretion of City leaders in collaboration with local communities. The following tables show Fiscal 2021 budgeted operating and capital expenditures for these funds. Budgeted expenditures are less than projected revenue because the unexpected closure of gambling establishments in Fiscal 2020 due to the COVID‐19 pandemic resulted in deficits in the City’s Local Impact Aid funds. To return these funds to balance, the City plans to spend less than it receives in Fiscal 2021, and reassign some funding in the capital budget to make it available for different projects. Operating Budget ‐ Projects Agency Baltimore Casino Funded Projects Fire Mayoralty M‐R: Office of Children and Family Success M‐R: Office of Criminal Justice M‐R: Office of Employment Development M‐R: Office of Homeless Services Planning Police Public Works Recreation and Parks Pimlico Impact Aid Funded Projects Department of General Services M‐R: Art and Culture M‐R: Office of Criminal Justice M‐R: Office of Children and Family Success Planning Project Description FY21 Budget Medic Services Project Coordination Educational Partnerships Summer Head Start Crime Cameras Community Outreach Employment Connection Job Training YouthWorks Summer Youth Jobs Homelessness Strategies Environmental Education Planning Studies: Middle Branch Police Coverage Sanitation Staffing Cleaning Waterways Carroll Park District Operations Baltimore Casino Funds Total 381,100 50,000 75,000 153,000 130,000 89,000 540,000 55,000 480,000 217,000 35,000 300,000 1,452,000 263,000 350,000 150,000 4,720,100 Langston Hughes Center Public Art Public Safety Youth Development Community Based Projects PCDA Admin 100,000 50,000 100,000 206,000 235,000 60,000 (277,000) 474,000 Adjustment to Fund Balance Pimlico Impact Aid Funds Total 47 Fiscal 2021 REVENUE Capital Budget ‐ Projects Agency Project Description FY21 Budget Baltimore Casino Funded Projects Housing and Community Development Animal Welfare Center Baltimore Development Corporation Infrastructure Upgrades Transportation South Baltimore Gateway Transportation Baltimore Casino Funds Total (500,000) (500,000) (575,000) (1,575,000) Pimlico Impact Aid Funded Projects Housing and Community Development Park Heights Redevelopment Recreation and Parks CC Jackson Park Expansion J.D. Gross Recreation Center Pimlico Impact Aid Funds Total (1,600,000) 1,400,000 150,000 (50,000) 48 REVENUE Fiscal 2021 Summary of City Real Property Tax Credit Programs The table below describes tax expenditure costs for all locally authorized Real Property Tax Credit programs. In Fiscal 2021, the City budget estimates Real Property Tax Credit expenditures totaling approximately $136.9 mil‐ lion. This represents an increase of $3.0 million compared to the total Fiscal 2020 projected expense of nearly $133.9 million. Fiscal 2020 Projection Homestead Tax (104% Assessment Phase-In) A 4% taxable assessment increase cap on owner-occupied dwellings. Targeted Homeowners Tax Credit An annual credit based on improvement assessment values. The credit is granted to owner-occupied properties only. Enterprise Zone Property Tax Credit (EZTC) A 10-year tax credit (80% in the first 5 taxable years and declining by 10 percentage points thereafter) in designated State Enterprise Zones on the increased value of a commercial property after improvements. Includes Enterprise Zone Tax Credit costs for real property, personal property, and PILOT projects. Historic Restoration and Rehabilitation Property Tax Credit A 10-year tax credit (100% for projects with costs below $3.5 million; and 80% in the first 5 taxable years and declining by 10 percentage points thereafter for projects with costs above $3.5 million) on the increased value of a historic property due to improvements. Brownfields Property Tax Credit A five-year tax credit (50%, except for projects that spend more than $250,000 in eligible work, in which case it is 70%) on the increased value of brownfields sites after eligible improvements are made. For sites located in a State-designated Enterprise Zone areas, the credit is for a 10-year period. Supplemental Homeowner’s Property Tax Credit An annual credit providing additional tax relief to low-income City residents eligible for the existing State Homeowner’s tax credit. High-Performance Market-Rate Rental Housing Property Tax Credit A 15 and 10-year tax credit (15-year if project is located within a targeted area and 10-year for all other City locations) on the increased assessment value of improvements on the construction or conservation of high-performance market rental housing. The 15-year credit is 100% for the first two taxable years, 80% for the following three, 70% and 60% for the next two, 50% for the following three, and declining by 10 percentage point annually thereafter. The 10- year credit is structured the same as the EZTC. Newly Constructed Dwelling Property Tax Credit A five-year tax credit (50% in the first taxable year and declining by 10 percentage points thereafter) on newly constructed or city owned, vacant rehabbed dwellings. Other Local Option Property Tax Credits Includes costs of the Public Safety Officers, Neighborhood Preservation, Vacant Dwellings, Fallen Heroes, Portability, and Cemetery Dwellings property tax credit programs. Total 49 Fiscal 2021 Estimate 24,819,000 24,183,000 35,549,000 35,000,000 23,200,000 24,518,000 11,000,000 11,114,000 21,408,000 18,696,000 1,600,000 1,450,000 13,900,000 18,897,000 1,700,000 2,100,000 693,000 930,000 133,869,000 136,888,000 Fiscal 2021 REVENUE Property Tax One‐Cent Yield ESTIMATED ASSESSABLE BASE REAL PROPERTY Subject to $2.248 Tax Rate Real Property Assessed Locally Appeals, Abatements and Deletion Reductions Adjustment for Assessment Increases over 4% New Construction Rail Road Property Total Real Property Subject to $2.248 tax rate Subject to $5.62 Tax Rate Public Utility Property Total Public Utility Real Property Subject to $5.62 tax rate Total Taxable Real Property Value TANGIBLE PERSONAL PROPERTY Subject to $5.62 Tax Rate Individuals and Firms Personal Property Ordinary Business Personal Property Public Utilities Operating Personal Property Total Tangible Personal Property Total Real and Personal Property Fiscal 2020 Fiscal 2021 40,049,061,477 (408,527,536) (1,153,910,485) 365,811,655 211,340,480 39,063,775,592 41,041,758,000 (103,040,000) (1,103,340,000) 541,762,000 215,161,000 40,592,301,000 Change 992,696,523 305,487,536 50,570,485 175,950,345 3,820,520 1,528,525,408 155,959,830 155,959,830 167,404,000 167,404,000 $11,444,170 11,444,170 39,219,735,422 40,759,705,000 1,539,969,578 54,238,525 1,140,615,020 1,031,115,978 2,225,969,523 26,366,000 1,105,502,000 1,077,525,000 2,209,393,000 41,445,704,944 42,969,098,000 ESTIMATED PROPERTY TAX YIELD Property Subject to $2.248 Tax Rate Real Property - Gross Tax Yield from $0.01 per $100 of Assessable Base Anticipated Rate of Collection Net Tax Yield from $0.01 per $100 of Assessable Base Estimated Total Tax Yield Property Tax Subject to 2.248 tax rate Property Subject to $5.62 Tax Rate (by law 2.5 times Real Property Tax Rate) Real Property (Public Utilities) - Gross Tax Yield from $0.01 per $100 of Assessable Base Tangible Personal Property - Gross Tax Yield from $0.01 per $100 of Assessable Base Total Gross Tax Yield from $0.01 per $100 of Assessable Base Anticipated Rate of Collection Net Tax Yield from $0.01 per $100 of Assessable Base Net Tax Yield from $0.025 per $100 of Assessable Base (2.5 times Real Property Tax Rate) (27,872,525) (35,113,020) 46,409,022 (16,576,523) 1,523,393,056 Fiscal 2020 $0.01/$100 4,059,230 97.5% 3,957,749 889,702,053 $0.01/$100 $0.01/$100 16,740 220,939 237,680 97.5% 231,738 579,344 Estimated Total Tax Yield Property Tax Subject to $5.62 tax rate 130,236,592 Total Estimated Property Tax Yield - Real and Personal Property 1,019,938,645 Net Tax Yield from $0.01 per $100 of Assessable Base - Real and Personal Property Note: Difference vs. Major Revenues Forecast is due to rounding 50 4,537,094 REVENUE Fiscal 2021 Selected Real Property Tax Expenditures Tax expenditures are foregone revenues, based on tax laws, which include exemptions, deductions, credits, defer‐ rals, payments in lieu of taxes (PILOTS), and differential tax rates. Tax expenditures are alternative government policy instruments that provide direct financial support (e.g. land cost write‐downs) to qualifying individuals, organizations, and businesses to encourage specific policy objectives. Because they are substitutes for direct operating expenditures, it is important to document and review their costs as part of the annual budget process. Newly Constructed Dwelling Tax Credit Report The Newly Constructed Dwelling Tax Credit (NCTC) law requires the Director of Finance to report to the Board of Estimates, Mayor, and City Council the public costs and benefits of the tax credit. Section 9‐304 of the Tax‐ Property section of the State law authorizing this credit expired on June 30, 2019. Therefore, the following table summarizes the number of credits and gross costs on an annual and cumulative basis for all applications approved before this expiration date: Number of Credits Granted Fiscal Year 1996 ‐ 2010* 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Dollar Value of Credits Granted Annual Total Cumulative Annual Total Cumulative 200 247 233 253 226 188 259 203 149 260 0 2,995 3,242 3,475 3,728 3,954 4,142 4,401 4,604 4,753 5,013 5,013 1,427,137 4,016,030 3,164,268 3,619,532 3,147,838 2,823,800 2,354,271 2,296,387 2,022,954 2,139,502 1,639,657 21,407,048 25,423,078 28,587,346 32,206,878 35,354,716 38,178,516 40,532,787 42,829,174 44,852,128 46,991,630 48,631,287 Annual amounts are averages for this period. Since the program’s adoption, administrative costs have been absorbed within existing City operations. After its expiration on June 30, 2019, no new credits have been granted under this program, but the cost associated with applications granted before its expiration still places it as the City’s seventh largest local Real Property Tax Credit expense. As an alternative to the NCTC expiration, the Mayor and City Council passed legislation establishing the High Performance Newly Constructed Tax Credit (HPNCTC), City Council Bill 19‐0456, which expires on June 30, 2021. The term and structure of this credit is identical to the NCTC prior to its expiration, but includes additional requirements to fit the description of “High Performance.” Analysis Public reporting on the annual costs and benefits is only required for the NCTC; however, this report will include references to the HPNCTC in Fiscal 2020. The online application for this tax credit program included a survey 51 Fiscal 2021 REVENUE completed by the recipients of this benefit and the Department of Finance has published its results since 2000. In preparing this report, the Department of Finance reviewed NCTC applications processed for Fiscal 2015‐2019 and HPNCTC applications during Fiscal 2020. The City promoted the NCTC program in several ways. The Office of Homeownership in the Department of Hous‐ ing and Community Development highlighted the NCTC in its realtor seminars, and provided information about the credit on the City government and Live Baltimore websites. Results from 2019’s applications showed that the most popular reported sources of information regarding the credit were developers (43.4%), and realtors (37.1%). The distribution of tax credits granted during Fiscal 2015‐2019 indicates the use of the credit is concentrated in certain geographic areas (see map on page 54). Over 37.0% of the credits granted during Fiscal 2015‐2019 are located within two neighborhoods, and 90.5% of the credits are granted to properties located within 25 neighbor‐ hoods. This represents less than 9.0% of the City’s 278 neighborhoods. However, much of the NCTC is focused away from centrally‐located areas, such as Downtown and the Inner Harbor. In recent years the neighborhoods receiving the highest number of credits has been spread to other parts of the City. In Fiscal 2015 through Fiscal 2019, Greektown, Uplands, Canton, Locust Point, and Downtown were the five neighborhoods with the most tax credits. As of publication, all 21 approved applicant properties for Fiscal 2020 and Fiscal 2021, are located in Greektown, Hampden, Brewers Hill, and Canton, with 61.9% in Greektown. High income households with higher than average priced homes still represent a substantial portion of the pro‐ gram’s applicants. Approximately, 92.2% of all survey respondents have incomes above the City’s median income of $48,840 and 69.8% have incomes above the State’s median household income of $81,868. Between Fiscal 2015 and Fiscal 2019, 57.3% of the NCTC survey respondents had incomes above $100,000. These results continued in Fiscal 2020 with responses from the HPNCTC applicants showing that 100% of respondents have incomes above the City’s median household income and 76.2% have income above the State’s median household income. Addi‐ tionally, 57.1% of the HPNCTC recipients have incomes at or above $100,000. The original concept of the NCTC program was to attract new residents to the city in order to create a stronger taxable base. Evidence has shown that the credit worked more as an incentive for current city residents who were already property owners than attracting new residents. Even though 67.0% of all respondents were first‐ time home buyers, the survey results show that 57.3% of the respondents in Fiscal 2015‐2019 already lived in Baltimore prior to purchasing the new home. Of Fiscal 2020’s survey respondents, 76.3% reported that they were only looking in the city for their new home. Of the HPNCTC survey respondents, 66.0% were first time buyers, 66.0% reported they were only looking within Baltimore, and 42.9% were already city residents. Fiscal 2015‐2019 survey results show that 66.4% of the respondents knew about the credit prior to purchasing their homes. Additionally, 79.7% of applicants who responded felt that the availability of the credit influenced their decision to purchase property. While historical data suggests that the credit did not significantly incentivize new residents or investment, current year data indicate a changing sentiment. Since the credit began in Fiscal 1996, the City has forgone nearly $48.6 million in real property tax revenues due to the availability of the NCTC. This value reflects actual forgone revenues through Fiscal 2020, which includes a projected $1.7 million total tax credit for the current fiscal year. Tax credits reduce the total funds available to the City and constrain expenditures in areas such as public safety, education, recreation and parks, blight elimination, sanitation, and other basic services that enhance a home purchaser’s desire to live within Baltimore. As the following table and maps at the end of this section illustrate, the NCTC and HPNCTC are heavily concen‐ trated in a very limited geographical area. 52 REVENUE Fiscal 2021 Fiscal 2015 to Fiscal 2019 Top 28 or 10% of all Neighborhoods Next 28 or 10% of all Neighborhoods Remaining 222 or 80% of all Neighborhoods Total Percentage of Total NCTC Received Number of NCTC Received 92.2% 6.5% 1.3% 100.0% 976 69 14 1,059 Maps on the following pages detail the location of properties that have received the NCTC and HPNCTC. The map labeled “FY 2015 – FY 2019” indicates properties that the City has granted a NCTC during the last five years, from Fiscal 2015 to Fiscal 2019. The map labeled “FY 2020 and FY 2021 YTD” indicates properties that received the HPNCTC in Fiscal 2020 as of March 2020 and properties where applications for the credit have been approved, but first year of the credit will begin in Fiscal 2021. Properties that received the credit in Fiscal 2020 will receive the credit once again in Fiscal 2021 as long as they continue to meet eligibility requirements. Although applications for the Newly Constructed Tax Credit are not evenly distributed throughout Baltimore’s neighborhoods, the maps on the following pages show that the program is not only benefiting areas such as the Downtown and Inner Harbor neighborhoods. 53 Fiscal 2021 REVENUE City of Baltimore Newly Constructed Tax Credits by Neighborhood FY 2015 -- FY 2019 μ Neighborhoods with Newly Constructed Tax Credits (No of Credits, Neighborhood Name) 278, Greektown 7, Patterson Place 1, Jonestown 141, Uplands 7, Cheswolde 1, Union Square 51, Canton 6, Orchard Ridge 1, Panway/Braddish Avenue 46, Downtown 5, Washington Hill 1, Waltherson 43, Inner Harbor 5, Cross Country 1, Penn North 42, Locust Point Industrial Area 5, Taylor Heights 1, Sharp-Leadenhall 39, Locust Point 5, Patterson Park Neighborhood 1, North Roland Park/Poplar Hill 35, Hampden 5, Oliver 1, Federal Hill 35, Brewers Hill 5, Woodberry 1, Better Waverly 34, Washington Village/Pigtown 4, Glen 1, The Orchards 34, Middle East 3, Bellona-Gittings 1, Original Northwood 33, Hoes Heights 3, Guilford 1, Loyola/Notre Dame 30, South Baltimore 3, Highlandtown 1, Pen Lucy 27, Riverside 3, Franklintown 1, Mid-Town Belvedere 12, Medfield 2, Madison Park 1, West Forest Park 12, Upper Fells Point 2, Harwood 1, Lake Walker 12, Johnston Square 2, Mount Washington 1, Central Forest Park 12, Barclay 2, Wyman Park 1, CARE 12, Greenmount West 2, Reservoir Hill 1, Mount Holly 9, Fells Point 2, Park Circle 1, Druid Heights 9, Beechfield 2, Glenham-Belhar 1, Frankford 8, Remington 2, Hamilton Hills 1, Overlea 0 54 0.5 1 2 3 4 Miles REVENUE Fiscal 2021 City of Baltimore High Performance Newly Constructed Tax Credits by Neighborhood FY 2020 -- FY 2021 μ High Performance Neighborhoods with Newly Constructed Tax Credits (No of Credits, Neighborhood Name) 13, Greektown 5, Hampden 2, Brewers Hill 1, Canton 0 55 0.5 1 2 3 4 Miles Fiscal 2021 REVENUE Revenue Estimates Funds Detail for Operating and Capital A001 ‐ General Fund A001 ‐ General Fund ‐ Account FY19 Actual FY20 Budget FY21 Estimate Dollar Change 872,523,493 60,901,886 890,129,000 62,500,000 922,655,000 60,576,000 32,526,000 (1,924,000) 2,617,124 2,972,000 1,444,706 (1,527,294) 57,873,950 56,500,000 59,043,000 2,543,000 8,044,291 3,051,469 2,500,000 2,500,000 2,500,000 2,500,000 0 0 12,150,000 6,659,691 (2,158,014) (1,180,615) 12,600,000 7,000,000 (2,300,000) (1,600,000) 12,600,000 7,306,000 (2,400,000) (1,450,000) 0 306,000 (100,000) 150,000 (147,254) (2,317,536) 0 (2,110,000) 0 (2,100,000) 0 10,000 (29,778,193) (25,041,000) (24,183,000) 858,000 (16,583,000) (24,294,000) (1,100,000) (11,746,000) 18,067,000 (18,726,000) (24,518,000) (900,000) (11,114,000) 18,395,000 (2,143,000) (224,000) 200,000 632,000 328,000 (35,941,000) (35,000,000) 941,000 (5,260,000) (18,897,000) (13,637,000) LOCAL TAXES Real and Personal Property Taxes ‐ Current Year 001 ‐ Real Property 004 ‐ Personal Property ‐ Ordinary Business Corps 007 ‐ Personal Property ‐ Individuals & Firms 008 ‐ Personal Property ‐ Public Utilities Real and Personal Property Taxes ‐ Prior Years 010 ‐ Real Property 011 ‐ Personal Property Real and Personal Property Taxes ‐ Other Revenues 016 ‐ Video Lottery Terminals 021 ‐ Penalties and Interest 022 ‐ Discounts 023 ‐ Supplemental Homeowner’s Tax Credit 024 ‐ Tax Sale Expense 025 ‐ Newly Constructed Dwellings Tax Credit Real and Personal Property Taxes ‐ Current Year 027 ‐ Phase in Tax Credit Real and Personal Property Taxes ‐ Other Revenues 028 ‐ Other Property Tax Credits (19,677,403) 029 ‐ Enterprise Zone Tax Credit (22,957,274) 031 ‐ Public Safety Officer Tax Credit (564,663) 032 ‐ Historic Property Tax Credits (10,551,624) 038 ‐ Tax Increment Financing 14,111,109 Districts 039 ‐ Targeted Homeowners Tax (31,284,921) Credit 040 ‐ High‐Performance Market‐Rate (7,246,489) Rental Housing Tax Credit 56 REVENUE Fiscal 2021 (continued) A001 ‐ General Fund ‐ Account Sales and Service 041 ‐ Heavy Equipment Gross Receipts 045 ‐ Gas 046 ‐ Electricity 047 ‐ Fuel Oil 049 ‐ Steam 050 ‐ Telephone 051 ‐ Homeless Relief Assistance Tax 052 ‐ Hotel Tax (transferred from CC Fund) 053 ‐ Property Transfer 054 ‐ Liquid Petroleum Gas 055 ‐ Refund Reserve ‐ Gas 056 ‐ Refund Reserve ‐ Electricity FY19 Actual FY20 Budget FY21 Estimate Dollar Change 138,904 150,000 150,000 0 14,158,198 27,780,357 276,294 1,192,327 34,471,940 275,251 28,454,083 13,893,000 27,735,000 263,000 1,145,000 34,586,000 500,000 29,100,000 14,250,000 27,502,000 273,000 1,191,000 34,582,000 500,000 21,328,915 357,000 (233,000) 10,000 46,000 (4,000) 0 (7,771,085) 46,345,068 166,940 (192,333) (264,361) 40,912,000 122,000 (253,000) (354,000) 37,520,000 127,000 (263,000) (368,000) (3,392,000) 5,000 (10,000) (14,000) Payment in Lieu of Taxes 060 ‐ Housing Authority 062 ‐ Urban Renewal 063 ‐ Off‐Street Parking Properties 064 ‐ Maryland Port and Stadium Authorities 065 ‐ Apartments 067 ‐ Economic Development 068 ‐ Annual Nonprofit Contributions 134,157 82,304 315,954 1,081,564 100,000 150,000 807,000 1,589,000 100,000 150,000 807,000 1,621,000 0 0 0 32,000 4,779,162 2,430,595 5,876,772 4,000,000 1,400,000 6,000,000 4,072,000 1,400,000 6,000,000 72,000 0 0 Other Local Taxes 075 ‐ Tax Sale Fees and Other 076 ‐ Simulated Slot Machines 077 ‐ Billboard tax 078 ‐ Taxicab Excise tax 355,042 737,467 1,463,148 11,722 400,000 1,200,000 1,700,000 25,000 400,000 695,000 1,400,000 1,767,000 0 (505,000) (300,000) 1,742,000 350,600,965 10,551,818 350,672,000 8,715,000 366,155,000 7,414,000 15,483,000 (1,301,000) 10,433,491 7,417,000 7,647,000 230,000 8,233,729 45,633,657 8,300,000 38,955,000 5,955,000 37,563,000 (2,345,000) (1,392,000) 146,085,087 157,350,000 142,428,000 (14,922,000) Income Tax 081 ‐ Income Tax ‐ State Collected 083 ‐ Unallocated Withholding ‐ Regular 084 ‐ Income Tax ‐ Fiduciary Returns Locally Imposed ‐ State Collected 085 ‐ Admissions 086 ‐ Recordation State Shared 101 ‐ State Highway User Revenue 57 Fiscal 2021 REVENUE (continued) A001 ‐ General Fund ‐ Account CATEGORY TOTAL CATEGORY TOTAL FY19 Actual FY20 Budget FY21 Estimate 1,651,678,329 1,665,372,000 1,670,098,621 Dollar Change 4,726,621 LICENSE AND PERMITS General Government 120 ‐ City/State Business 122 ‐ Alcoholic Beverage 123 ‐ Marriage 1,815,676 2,055,927 126,400 1,700,000 1,740,000 20,000 1,289,000 1,740,000 20,000 (411,000) 0 0 49,400 6,556,868 1,765,290 5,137,363 468,467 55,000 6,715,000 1,750,000 5,100,000 1,050,000 55,000 6,500,000 1,750,000 5,217,000 600,000 0 (215,000) 0 117,000 (450,000) 3,388,079 758,408 606,525 369,013 2,435 4,352,832 13,780 4,500,000 800,000 800,000 400,000 1,000 1,500,000 25,000 5,000,000 800,000 800,000 409,000 1,000 1,500,000 15,000 500,000 0 0 9,000 0 0 (10,000) 13,778 451,100 6,000 500,000 6,000 500,000 0 0 545,241 257,873 9,393 550,000 25,000 12,000 550,000 25,000 12,000 0 0 0 4,410 1,000 1,000 0 102,308 42,030 120,000 130,000 120,000 85,000 0 (45,000) 151 ‐ Food Dealer Permits 152 ‐ Swimming Pool Licenses 154 ‐ Solid Waste Collection Permits 1,414,905 45,625 223,681 1,800,000 65,000 158,000 1,500,000 50,000 158,000 (300,000) (15,000) 0 163 ‐ Minor Privilege Permits 1,454,353 1,500,000 1,500,000 0 Public Safety and Regulations 126 ‐ Media Production Services 127 ‐ Cable TV Franchise Fee 128 ‐ Fire Prevention ‐ Fire Code 129 ‐ Rental Property Registrations 131 ‐ Miscellaneous Building Inspection Revenue 132 ‐ Building Construction Permits 133 ‐ Electrical Installation Permits 134 ‐ Mechanical Equipment Permits 135 ‐ Plumbing Permits 136 ‐ Elevator Permits 137 ‐ Filing Fees ‐ Building Permits 138 ‐ Alarm System Registration Permits 139 ‐ Public Assembly Permits 140 ‐ Professional and Occupational Licenses 141 ‐ Vacant Structure Fee 143 ‐ Amusement Device Licenses 145 ‐ Dog Licenses and Kennel Permits 146 ‐ Special Police Appointment Fees 149 ‐ Vacant Lot Registration Fees 150 ‐ Trades Licenses Health Highways 58 REVENUE Fiscal 2021 (continued) A001 ‐ General Fund ‐ Account 164 ‐ Public Utility Pole Permits 169 ‐ Permits and Inspections ‐ Private Paving 170 ‐ Development Agreement Fee 171 ‐ Street Cut Permits 173 ‐ Special Event Permits CATEGORY TOTAL CATEGORY TOTAL FY19 Actual FY20 Budget FY21 Estimate Dollar Change 268,800 19,868 560,000 58,000 560,000 58,000 0 0 740,801 836,210 228,809 500,000 778,000 171,000 511,000 778,000 171,000 11,000 0 0 34,125,648 33,090,000 32,281,000 (809,000) 17,161 42,000 42,000 0 12,745 481,143 1,217,303 26,000 200,000 1,900,000 26,000 200,000 1,500,000 0 0 (400,000) FINES AND FORFEITS Fines and Forfeits 177 ‐ Court‐Ordered Restitution and Misc Fines 178 ‐ Civil Citations 179 ‐ Sheriff Revenue 180 ‐ Forfeitures Drug/Gambling Contraband 181 ‐ Minimum Wage Violations 182 ‐ Environmental Control Board Fines 185 ‐ Bad Check Charge 187 ‐ Liquor Board Fines 188 ‐ Library Fines 191 ‐ Red Light Fines 193 ‐ Speed Cameras 194 ‐ Commercial Truck Enforcement 44,780 6,485,010 230,000 6,500,000 50,000 6,500,000 (180,000) 0 21,976 280,675 81,503 12,996,258 13,300,311 0 30,000 178,000 40,000 10,250,000 11,000,000 100,000 30,000 178,000 40,000 6,400,000 7,500,000 175,000 0 0 0 (3,850,000) (3,500,000) 75,000 CATEGORY TOTAL CATEGORY TOTAL 34,938,865 30,496,000 22,641,000 (7,855,000) 12,048,409 39,119 11,200,000 60,000 2,960,000 60,000 (8,240,000) 0 69,950 35,000 35,000 0 0 0 221,122 100,000 30,000 300,000 0 0 300,000 (100,000) (30,000) 0 USE OF MONEY Use of Money 200 ‐ Earnings on Investments 206 ‐ Interest on Property Sale Proceeds 207 ‐ Interest on Gambling/Drug Confiscated Cash 227 ‐ Principal ‐ CDFC Loan 228 ‐ Interest ‐ CDFC Loan 255 ‐ Principal ‐ Economic Development Loan Program 59 Fiscal 2021 REVENUE (continued) A001 ‐ General Fund ‐ Account FY19 Actual FY20 Budget FY21 Estimate Dollar Change 44,674 70,000 70,000 0 7,475 2,000 2,000 0 7,723 10,000 10,000 0 12,438,472 11,807,000 3,437,000 (8,370,000) 3,793,312 10,346 475,792 2,450,000 12,000 830,000 2,450,000 12,000 830,000 0 0 0 1,901,407 2,054,000 2,218,000 164,000 0 20,000 20,000 0 94,498 80,000 80,000 0 8,885 15,000 15,000 0 256 ‐ Interest ‐ Economic Development Loan Program 259 ‐ Interest ‐ Community Development Fund Loans 260 ‐ Principal ‐ Community Development Fund Loans CATEGORY TOTAL CATEGORY TOTAL USE OF PROPERTY Use of Property 201 ‐ Rental of City Property 209 ‐ Expressway Air Space Leases 210 ‐ Rental from Inner Harbor Shoreline 214 ‐ SW Resource Recovery Facility ‐ Lease 240 ‐ Harbor Shoreline ‐ Docking Fees 241 ‐ Rental from Community Centers 243 ‐ Rentals from Wharfage ‐ Piers and Docks 244 ‐ Rental of City Poles 246 ‐ Royal Farm Arena Naming Rights 247 ‐ Convention Center 248 ‐ Municipal Advertising 1,127,885 187,500 225,000 250,000 225,000 250,000 0 0 10,562,252 0 9,800,000 1,000,000 5,717,000 500,000 (4,083,000) (500,000) CATEGORY TOTAL CATEGORY TOTAL 18,161,877 16,736,000 12,317,000 (4,419,000) 60,741 25,900 300,000 25,000 300,000 25,000 0 0 100,000 0 0 0 1,277,997 14,105 1,900,000 33,000 1,400,000 33,000 (500,000) 0 OTHER REVENUES Private Grants 280 ‐ Civil Defense 590 ‐ Interest ‐ Enoch Pratt Endowment 592 ‐ Voluntary Payment in Lieu of Taxes General Government 865 ‐ Vacant Struct & Boarding Fees 868 ‐ CHAP ‐ Miscellaneous Revenue 60 REVENUE Fiscal 2021 (continued) A001 ‐ General Fund ‐ Account 872 ‐ Miscellaneous Revenue 873 ‐ Penalties and Interest Excl Real and Personal 877 ‐ Sale of Scrap/Recycled Metal 879 ‐ Legal Settlement Proceeds 880 ‐ Innovation Fund 881 ‐ Gainsharing FY19 Actual FY20 Budget FY21 Estimate Dollar Change 3,330,107 554,110 1,575,484 1,000,000 1,625,316 1,000,000 49,832 0 56,651 1,932,474 750 305,716 28,000 0 0 0 28,000 0 0 0 0 0 0 0 23,660 27,000 27,000 0 7,682,211 4,888,484 4,438,316 (450,168) 76,012,567 76,580,000 79,052,000 2,472,000 10,047,596 10,048,000 10,048,000 0 3,839,105 8,513,407 176,646 8,593,000 6,500,000 175,000 8,747,000 6,500,000 175,000 154,000 0 0 98,589,321 101,896,000 104,522,000 2,626,000 28,968 9,433 26,934 60,590 1,565 12,460 1,747,906 966 12,648 46,000 4,000 25,000 80,000 0 12,000 1,975,000 5,000 17,000 46,000 4,000 25,000 80,000 0 12,000 1,858,950 5,000 17,000 0 0 0 0 0 0 (116,050) 0 0 39,208 465,842 12,741 0 48,829 51,000 400,000 34,000 12,000 40,000 51,000 413,000 34,000 0 40,000 0 13,000 0 (12,000) 0 Public Safety and Regulations 885 ‐ Police ‐ Miscellaneous CATEGORY TOTAL CATEGORY TOTAL STATE AID State Aid 401 ‐ Targeted Aid (Income Tax Disparity) 403 ‐ Teachers Retirement Supplemental Grant 415 ‐ Local Health Operations 475 ‐ Library Services 482 ‐ War Memorial CATEGORY TOTAL CATEGORY TOTAL CHARGES FOR CURRENT SERVICES General Government 618 ‐ Transcriber Service Charges 620 ‐ RBDL Administration Fee 621 ‐ Bill Drafting Service 623 ‐ Zoning Appeal Fees 624 ‐ Rehab Loan Application Fees 628 ‐ Civil Marriage Ceremonies 632 ‐ Lien Reports 633 ‐ Election Filing Fees 634 ‐ Surveys Sales of Maps and Records 636 ‐ 3rd Party Disability Recoveries 638 ‐ Semi ‐ Annual Tax Payment Fee 639 ‐ Tax Roll Service Charge 648 ‐ Sub‐division Plat Charges 649 ‐ Vending Machine Commissions 61 Fiscal 2021 REVENUE (continued) A001 ‐ General Fund ‐ Account 651 ‐ Reimbursement for Use of City Vehicles 654 ‐ Charges for Central City Services Public Safety and Regulations 657 ‐ Liquor Board Advertising Fees 659 ‐ Sale of Accident and Incident Reports 660 ‐ Stadium Security Service Charges 661 ‐ Port Fire Protection (MPA) 662 ‐ Sheriff ‐ District Court Service 663 ‐ False Alarm Fees 664 ‐ Fire Dept ‐ Sales of Reports 666 ‐ Child Support Enforcement FY19 Actual FY20 Budget FY21 Estimate Dollar Change 22,762 18,000 18,000 0 16,105,913 15,000,000 15,376,000 376,000 111,848 285,441 108,000 384,000 108,000 384,000 0 0 1,311,850 1,800,000 970,000 (830,000) 1,399,940 5,244,775 168,972 24,935 706,952 1,400,000 5,400,000 200,000 32,000 345,000 1,400,000 5,400,000 200,000 32,000 345,000 0 0 0 0 0 30,020 19,500 19,500 0 92,678 1,200 60,000 500 60,000 500 0 0 8,296 105,000 10,000 (95,000) 161,295 150,000 50,000 (100,000) 3,683,601 1,936,129 3,699,526 251,577 5,304,000 2,922,000 3,961,000 328,000 3,043,000 1,403,000 3,585,000 328,000 (2,261,000) (1,519,000) (376,000) 0 5,775,679 38,322 7,308,000 167,000 6,200,000 50,000 (1,108,000) (117,000) 3,476,946 746,531 2,595,000 966,000 2,595,000 966,000 0 0 47,753,278 51,274,000 45,128,950 (6,145,050) Health 680 ‐ Miscellaneous Environmental Fees 700 ‐ New Health Plan Review 701 ‐ Hazard Analysis Critical Control Point Plan Recreation and Culture 773 ‐ Video Rental and Other Charges 777 ‐ Swimming Pool Passes Highways 785 ‐ Impounding Cars ‐ Storage 787 ‐ Impounding Cars ‐ Towing 791 ‐ General Revenue Highways 792 ‐ Traffic Engineering Sanitation and Waste Removal 795 ‐ Landfill Disposal Tipping Fees 796 ‐ Boards and Commissions Pre‐Qualifications 797 ‐ Solid Waste Surcharge 799 ‐ Southwest Resource Recovery Facility CATEGORY TOTAL CATEGORY TOTAL 62 REVENUE Fiscal 2021 (continued) A001 ‐ General Fund ‐ Account FY19 Actual FY20 Budget FY21 Estimate Dollar Change 31,922,269 36,795,516 22,282,112 (14,513,404) (12,386,000) (13,105,000) (5,346,000) 7,759,000 19,536,269 23,690,516 16,936,112 (6,754,404) 17,800,000 28,000,000 21,000,000 (7,000,000) REVENUE TRANSFERS Revenue Transfers 952 ‐ From Parking Management Fund 957 ‐ From (To) Children’s Fund CATEGORY TOTAL CATEGORY TOTAL FUND BALANCE Prior Year Fund Balance 999 ‐ Prior Year Fund Balance FUND TOTAL 1,942,704,270 1,967,250,000 1,932,800,000 (34,450,000) 63 Fiscal 2021 REVENUE B022 ‐ Convention Center Bond Fund B022 ‐ Convention Center Bond Fund ‐ Account FY19 Actual FY20 Budget FY21 Estimate Dollar Change 33,016,708 33,662,625 21,328,915 (12,333,710) (28,454,083) (29,100,000) (21,328,915) 7,771,085 4,562,625 4,562,625 0 (4,562,625) LOCAL TAXES Sales and Service 052 ‐ Hotel Tax REVENUE TRANSFERS Revenue Transfers 953 ‐ Transfer to General Fund FUND TOTAL 64 REVENUE Fiscal 2021 B024 ‐ Conduit Enterprise Fund B024 ‐ Conduit Enterprise Fund ‐ Account FY19 Actual FY20 Budget FY21 Estimate Dollar Change 34,318,685 35,308,498 36,497,197 1,188,699 34,318,685 35,308,498 36,497,197 1,188,699 USE OF PROPERTY Use of Property 249 ‐ Conduit Rental FUND TOTAL 65 Fiscal 2021 REVENUE B070 ‐ Wastewater Utility Fund B070 ‐ Wastewater Utility Fund ‐ Account FY19 Actual FY20 Budget FY21 Estimate Dollar Change 165,337,515 60,491,612 197,278,723 84,500,527 191,073,325 71,999,297 (6,205,398) (12,501,230) 1,758,407 1,448,941 1,759,821 310,880 0 6,703,687 0 (6,703,687) 3,512,129 5,851,674 5,568,952 (282,722) 0 2,115,000 0 (2,115,000) 0 (13,671,694) 673,102 14,344,796 8,120,795 0 0 0 345,167 374,274 345,167 (29,107) 7,750 14,750 7,750 (7,000) (36,601) 5,628,233 1,876,078 (3,752,155) 239,536,774 290,244,115 273,303,492 (16,940,623) 1,427,124 3,500,000 0 (3,500,000) 240,963,898 293,744,115 273,303,492 (20,440,623) CHARGES FOR CURRENT SERVICES Charges ‐ Current Services 825 ‐ Sewerage Charges ‐ City 826 ‐ Sewerage Charges ‐ Counties Other Revenues 830 ‐ Sanitation and Waste Removal ‐ General Charges ‐ Current Services 831 ‐ Sewerage Charges ‐ City Agencies 832 ‐ Industrial Waste Surcharge ‐ City 833 ‐ Industrial Waste Surcharge ‐ Counties Fund Balance 834 ‐ From (To) Fund Balance Other Revenues 836 ‐ Reimbursable Billing Costs Charges ‐ Current Services 837 ‐ Pretreatment Permits Fines and Forfeits 838 ‐ Non ‐ Compliance Fines Charges ‐ Current Services 839 ‐ Penalties CATEGORY TOTAL CATEGORY TOTAL USE OF MONEY AND PROPERTY Use of Money and Property 835 ‐ Interest Income FUND TOTAL 66 REVENUE Fiscal 2021 B071 ‐ Water Utility Fund B071 ‐ Water Utility Fund ‐ Account FY19 Actual FY20 Budget FY21 Estimate Dollar Change 638,069 100,233,423 43,624,562 893,735 100,208,737 63,139,607 770,659 104,146,776 58,383,943 (123,076) 3,938,039 (4,755,664) (61,784) (147,652) (61,784) 85,868 21,612,982 28,498,908 30,594,203 2,095,295 524,304 241,858 524,304 282,446 (8,723,365) 1,333,948 74,680 0 1,901,300 83,243 (10,536,090) 1,333,948 74,679 (10,536,090) (567,352) (8,564) Use of Money and Property 851 ‐ Water ‐ Rental Real Property 100,234 0 100,235 100,235 Other Revenues 852 ‐ Sundry Water 384,848 0 1,063,682 1,063,682 1,733,258 10,718,388 2,031,098 (8,687,290) 0 (223,692) 4,017,500 4,241,192 (13,118) 3,000,000 0 (3,000,000) 0 7,216,422 0 3,628,233 7,216,423 1,876,078 7,216,423 (1,752,155) 0 10,820 0 (10,820) 168,678,463 211,953,485 201,535,654 (10,417,831) 168,678,463 211,953,485 201,535,654 (10,417,831) CHARGES FOR CURRENT SERVICES Charges ‐ Current Services 839 ‐ Metered Water ‐ Carroll County 840 ‐ Metered Water ‐ City 841 ‐ Metered Water ‐ Baltimore County 842 ‐ Metered Water ‐ Anne Arundel County 843 ‐ Metered Water ‐ Howard County 844 ‐ Metered Water ‐ Harford County 846 ‐ Special Water Supply Service 848 ‐ Private Fire Protection Service 849 ‐ Fire Hydrant Permits Charges ‐ Current Services 854 ‐ Water Charges to City Agencies Fund Balance 855 ‐ From (To) Fund Balance Use of Money and Property 856 ‐ Interest Income Charges ‐ Current Services 857 ‐ Reimbursable Billing Costs 858 ‐ Penalties Other Revenues 859 ‐ Scrap Meters CATEGORY TOTAL CATEGORY TOTAL FUND TOTAL 67 Fiscal 2021 REVENUE B072 ‐ Stormwater Utility Fund B072 ‐ Stormwater Utility Fund ‐ Account FY19 Actual FY20 Budget FY21 Estimate Dollar Change 8,000 0 0 0 Charges ‐ Current Services 105,750 790 ‐ Stormwater Management Fee 95,998 791 ‐ Sediment and Erosion Control Fee 24,629,142 825 ‐ Stormwater Fee 1,195,694 845 ‐ Penalties 0 0 30,125,359 0 0 0 32,893,306 0 0 0 2,767,947 0 CATEGORY TOTAL CATEGORY TOTAL 26,026,584 30,125,359 32,893,306 2,767,947 589,079 300,000 0 (300,000) 0 (1,004,994) 1,123,650 2,128,644 26,623,663 29,420,365 34,016,956 4,596,591 FINES AND FORFEITS Fines and Forfeits 189 ‐ Sediment and Erosion Control Penalties CHARGES FOR CURRENT SERVICES USE OF MONEY AND PROPERTY Use of Money and Property 835 ‐ Interest Income REVENUE TRANSFERS Revenue Transfers 900 ‐ From (To) Fund Balance FUND TOTAL 68 REVENUE Fiscal 2021 B075 ‐ Parking Enterprise Fund B075 ‐ Parking Enterprise Fund ‐ Account FY19 Actual FY20 Budget FY21 Estimate Dollar Change 29,528,347 31,600,000 24,200,000 (7,400,000) 845,656 830,000 830,000 0 Fines and Forfeits 181 ‐ Parking Fines 182 ‐ Penalties on Parking Fines 12,285,926 4,768,268 13,900,000 4,500,000 12,100,000 5,400,000 (1,800,000) 900,000 CATEGORY TOTAL CATEGORY TOTAL 17,054,194 18,400,000 17,500,000 (900,000) 19,882,578 20,995,000 18,300,000 (2,695,000) 13,890,182 14,155,000 11,600,000 (2,555,000) (53,222,108) (58,135,438) (45,875,919) 12,259,519 (5,905,669) (6,320,000) (4,840,000) 1,480,000 (59,127,777) (64,455,438) (50,715,919) 13,739,519 22,073,180 21,524,562 21,714,081 189,519 LOCAL TAXES Local Taxes 044 ‐ Parking Garages and Lots Tax LICENSE AND PERMITS License and Permits 165 ‐ Open Air Garage Permits FINES AND FORFEITS USE OF MONEY AND PROPERTY Use of Money and Property 579 ‐ Garage Income CHARGES FOR CURRENT SERVICES Charges ‐ Current Services 664 ‐ Parking Meters REVENUE TRANSFERS Revenue Transfers 952 ‐ From (To) Parking Management Fund 953 ‐ From (To) Special Fund CATEGORY TOTAL CATEGORY TOTAL FUND TOTAL 69 Fiscal 2021 REVENUE B076 ‐ Parking Management Fund B076 ‐ Parking Management Fund ‐ Account FY19 Actual FY20 Budget FY21 Estimate Dollar Change 583,516 580,000 490,000 (90,000) 3,800 4,500 3,100 (1,400) Charges ‐ Current Services 759 ‐ Temporary Parking Lots 760 ‐ Parking Garages 866 ‐ Booting Fee 867 ‐ ZIPCAR Income 872 ‐ Miscellaneous Revenue 148,799 2,644,151 585,469 68,280 145,165 190,000 3,100,000 615,000 85,000 100,000 125,000 2,150,000 530,000 75,000 80,000 (65,000) (950,000) (85,000) (10,000) (20,000) CATEGORY TOTAL CATEGORY TOTAL 3,591,864 4,090,000 2,960,000 (1,130,000) 53,222,108 (31,922,269) 58,135,438 (36,795,516) 45,875,919 (22,282,112) (12,259,519) 14,513,404 21,299,839 21,339,922 23,593,807 2,253,885 25,479,019 26,014,422 27,046,907 1,032,485 LICENSE AND PERMITS License and Permits 141 ‐ Residential Parking Permits USE OF MONEY AND PROPERTY Use of Money and Property 201 ‐ Rental of Property CHARGES FOR CURRENT SERVICES REVENUE TRANSFERS Revenue Transfers 950 ‐ From Parking Enterprise Fund 952 ‐ From (To) General Fund CATEGORY TOTAL CATEGORY TOTAL FUND TOTAL 70 REVENUE Fiscal 2021 Funds Detail for Operating Federal Funds Federal Funds ‐ Service Children and Families 308 Maternal and Child Health 310 School Health Services 316 Youth and Trauma Services 446 Educational Grants 605 Head Start 648 Community Recreation Centers 740 Dawson Center 741 Community Action Partnership 797 Workforce Services for Out of School Youth‐Youth Opportunity 798 Youth Works Summer Job Program 800 Workforce Services for WIOA Funded Youth Public Safety 115 Prosecution of Criminals 307 Substance Use Disorder and Mental Health 315 Emergency Services ‐ Health 600 Administration ‐ Fire 602 Fire Suppression and Emergency Rescue 608 Emergency Management 617 Criminal Justice Coordination 618 Neighborhood Safety and Engagement 621 Administrative Bureau 622 Police Patrol 623 Criminal Investigation Division 626 Data Driven Strategies 635 Recruitment Section 637 Special Operations ‐ K‐9 and Mounted Unit 638 Marine Unit 642 Crime Laboratory and Evidence Control 697 Traffic Safety 786 Victim and Witness Services 796 Workforce Services for Ex‐Offenders 807 Compliance Bureau 816 Special Operations Section 853 Patrol Support Services 889 Child Support Enforcement 71 FY20 Budget FY21 Budget Dollar Change 20,087,746 40,143 1,075,265 300,000 7,758,044 359,355 389,756 1,026,041 979,477 20,151,259 157,705 1,039,989 300,000 7,790,297 439,661 402,456 1,052,599 1,124,412 63,513 117,562 (35,276) 0 32,253 80,306 12,700 26,558 144,935 1,970,889 2,627,565 2,000,000 3,260,315 29,111 632,750 1,378,020 1,359,060 741,815 1,604,329 4,607,990 320,866 1,834,722 1,974,323 0 300,000 390,000 1,366,762 20,000 5,000 300,000 561,144 510,891 1,983,044 557,000 0 0 0 0 1,796,589 1,347,824 668,764 1,600,000 2,424,656 1,795,858 1,130,078 1,646,370 264,137 2,500,000 766,086 0 0 0 0 530,702 524,190 2,601,351 557,000 25,460 521,900 605,750 1,100,000 418,569 (11,236) (73,051) (4,329) (2,183,334) 1,474,992 (704,644) (327,953) 264,137 2,200,000 376,086 (1,366,762) (20,000) (5,000) (300,000) (30,442) 13,299 618,307 0 25,460 521,900 605,750 1,100,000 Fiscal 2021 REVENUE (continued) Federal Funds ‐ Service Clean and Healthy Communities 303 Clinical Services 305 Healthy Homes 356 Administration ‐ Human Services 593 Community Support Projects 611 Fire Code Enforcement 613 Fire Facilities Maintenance and Replacement 661 Public Right‐of‐Way Cleaning 662 Vacant and Abandoned Property Cleaning and Boarding 671 Water Management 674 Surface Water Management 681 Administration ‐ DOT 715 Administration ‐ Health 718 Chronic Disease Prevention 720 HIV Treatment Services for the Uninsured 721 Senior Centers 722 Administration ‐ CARE 723 Advocacy for Seniors 725 Community Services for Seniors 731 Facilities Management 737 Administration ‐ HCD 742 Promote Homeownership 745 Housing Code Enforcement 748 Affordable Housing 750 Housing Rehabilitation Services 762 Historic Preservation 763 Comprehensive Planning and Resource Management 765 Planning for a Sustainable Baltimore 893 Homeless Prevention and Support Services for the Homeless 894 Outreach to the Homeless 895 Temporary Housing for the Homeless 896 Permanent Housing for the Homeless Equitable Neighborhood Development 111 Economic Recovery 634 Crowd, Traffic, and Special Events Management 792 Workforce Public Assistance 794 Administration ‐ MOED 795 Workforce Services for Baltimore Residents 72 FY20 Budget FY21 Budget Dollar Change 1,650,197 1,288,423 2,920,088 9,677,581 168,003 3,142,168 2,000,000 1,100,000 200,000 100,000 550,000 5,497,264 45,024 28,784,739 1,702,320 236,795 71,313 3,654,719 1,000,000 1,615,878 141,007 360,000 743,856 3,746,375 100,000 150,000 535,120 621,431 1,792,441 1,021,902 4,240,570 25,083,253 171,867 3,628,628 2,046,000 1,100,000 204,600 100,000 560,962 5,620,731 45,471 28,676,268 1,861,384 242,857 108,693 3,711,222 1,023,000 1,238,222 185,368 363,986 717,564 6,121,682 100,000 150,000 518,105 237,844 142,244 (266,521) 1,320,482 15,405,672 3,864 486,460 46,000 0 4,600 0 10,962 123,467 447 (108,471) 159,064 6,062 37,380 56,503 23,000 (377,656) 44,361 3,986 (26,292) 2,375,307 0 0 (17,015) (383,587) 2,662,571 183,509 29,781,059 928,367 9,448,356 29,935,410 (1,734,204) 9,264,847 154,351 0 55,000 3,020,748 75,745 5,079,552 10,000,000 0 2,877,547 0 6,126,530 10,000,000 (55,000) (143,201) (75,745) 1,046,978 REVENUE Fiscal 2021 (continued) Federal Funds ‐ Service Innovative Government 110 Circuit Court 125 Executive Direction and Control ‐ Mayoralty Other 122 Miscellaneous General Expenses FUND TOTAL 73 FY20 Budget FY21 Budget Dollar Change 2,018,946 309,723 2,153,572 315,896 134,626 6,173 0 85,000 85,000 171,418,401 212,868,706 41,450,305 Fiscal 2021 REVENUE State Funds State Funds ‐ Service Children and Families 308 Maternal and Child Health 310 School Health Services 316 Youth and Trauma Services 605 Head Start 644 Administration ‐ Recreation and Parks 741 Community Action Partnership 788 Information Services 791 BCPS Alternative Options Academy for Youth 797 Workforce Services for Out of School Youth‐Youth Opportunity 798 Youth Works Summer Job Program Public Safety 115 Prosecution of Criminals 307 Substance Use Disorder and Mental Health 315 Emergency Services ‐ Health 600 Administration ‐ Fire 602 Fire Suppression and Emergency Rescue 608 Emergency Management 609 Emergency Medical Services 614 Fire Communications and Dispatch 617 Criminal Justice Coordination 618 Neighborhood Safety and Engagement 621 Administrative Bureau 622 Police Patrol 623 Criminal Investigation Division 624 Target Violent Criminals 626 Data Driven Strategies 637 Special Operations ‐ K‐9 and Mounted Unit 758 Coordination of Public Safety Strategy ‐ Administration 786 Victim and Witness Services 796 Workforce Services for Ex‐Offenders 807 Compliance Bureau 853 Patrol Support Services 882 Deputy Sheriff Enforcement Clean and Healthy Communities 117 Adjudication of Environmental Citations 303 Clinical Services 305 Healthy Homes 356 Administration ‐ Human Services 593 Community Support Projects 611 Fire Code Enforcement 613 Fire Facilities Maintenance and Replacement 74 FY20 Budget FY21 Budget Dollar Change 1,725,863 507,009 655,815 136,043 242,379 6,843,954 14,159,535 204,676 100,000 1,869,220 507,856 739,756 138,754 1,671,655 7,562,517 14,270,492 198,941 100,000 143,357 847 83,941 2,711 1,429,276 718,563 110,957 (5,735) 0 3,478,473 3,653,409 174,936 6,053,376 1,642,214 8,350,902 374,343 1,485,078 600,000 1,339,247 3,000 1,000,000 3,600,000 12,862,251 4,427,178 554,515 3,659,354 1,360,000 149,620 45,000 53,577 994,450 0 0 0 6,917,188 1,804,827 8,470,708 350,000 1,420,339 67,000 1,343,438 3,000 1,023,000 5,046,951 10,725,750 4,781,488 4,371,226 0 1,478,872 0 45,000 54,655 983,794 2,265,945 3,099,775 50,000 863,812 162,613 119,806 (24,343) (64,739) (533,000) 4,191 0 23,000 1,446,951 (2,136,501) 354,310 3,816,711 (3,659,354) 118,872 (149,620) 0 1,078 (10,656) 2,265,945 3,099,775 50,000 250,000 942,419 378,541 220,297 307,000 181,824 1,356,163 255,750 963,170 834,523 217,948 313,119 185,448 1,348,885 5,750 20,751 455,982 (2,349) 6,119 3,624 (7,278) REVENUE Fiscal 2021 (continued) State Funds ‐ Service FY20 Budget FY21 Budget Dollar Change 3,330,031 319,925 300,000 3,155,818 2,135,763 496,190 20,668,526 336,204 350,089 2,595,742 979,425 3,500,000 1,000,000 4,898,724 550,000 3,604,658 100,000 150,000 510,500 250,000 516,400 3,933,185 300,000 510,000 3,071,326 2,315,986 536,772 23,256,972 349,049 350,212 2,647,756 998,947 300,000 1,000,000 4,918,661 559,317 3,651,901 100,000 225,000 542,748 0 258,717 603,154 (19,925) 210,000 (84,492) 180,223 40,582 2,588,446 12,845 123 52,014 19,522 (3,200,000) 0 19,937 9,317 47,243 0 75,000 32,248 (250,000) (257,683) 296,578 1,945,310 26,995 39,523 1,965,534 2,801,536 (257,055) 20,224 2,774,541 Equitable Neighborhood Development 792 Workforce Public Assistance 795 Workforce Services for Baltimore Residents 855 Convention Center 100,000 100,000 6,136,377 100,000 473,380 6,409,831 0 373,380 273,454 Innovative Government 110 Circuit Court 125 Executive Direction and Control ‐ Mayoralty 5,640,399 410,529 5,974,379 418,712 333,980 8,183 0 144,648,279 15,000 157,158,843 15,000 12,510,564 646 Park Maintenance 673 Wastewater Management 674 Surface Water Management 690 Sustainable Transportation 715 Administration ‐ Health 718 Chronic Disease Prevention 720 HIV Treatment Services for the Uninsured 721 Senior Centers 723 Advocacy for Seniors 724 Direct Care and Support Planning 725 Community Services for Seniors 730 Public and Private Energy Performance 731 Facilities Management 738 Weatherization Services 750 Housing Rehabilitation Services 754 Summer Food Service Program 762 Historic Preservation 763 Comprehensive Planning and Resource Management 765 Planning for a Sustainable Baltimore 768 Administration ‐ Planning 893 Homeless Prevention and Support Services for the Homeless 894 Outreach to the Homeless 895 Temporary Housing for the Homeless 896 Permanent Housing for the Homeless Other 122 Miscellaneous General Expenses FUND TOTAL 75 Fiscal 2021 REVENUE Special Revenue Funds Special Revenue Funds ‐ Service Children and Families 109 Administration ‐ Children and Family Success 308 Maternal and Child Health 310 School Health Services 446 Educational Grants 605 Head Start 645 Aquatics 647 Youth and Adult Sports 648 Community Recreation Centers 649 Special Facilities Management ‐ Recreation 788 Information Services 797 Workforce Services for Out of School Youth‐Youth Opportunity 798 Youth Works Summer Job Program Public Safety 115 Prosecution of Criminals 609 Emergency Medical Services 614 Fire Communications and Dispatch 618 Neighborhood Safety and Engagement 621 Administrative Bureau 622 Police Patrol 624 Target Violent Criminals 684 Traffic Management 757 CitiWatch 758 Coordination of Public Safety Strategy ‐ Administration 853 Patrol Support Services 882 Deputy Sheriff Enforcement Clean and Healthy Communities 303 Clinical Services 305 Healthy Homes 311 Health Services for Seniors 356 Administration ‐ Human Services 613 Fire Facilities Maintenance and Replacement 646 Park Maintenance 650 Horticulture 651 Recreation for Seniors 653 Park Programs and Events 661 Public Right‐of‐Way Cleaning 663 Waste Removal and Recycling 690 Sustainable Transportation 715 Administration ‐ Health 717 Environmental Inspection Services 718 Chronic Disease Prevention 76 FY20 Budget FY21 Budget Dollar Change 0 768,000 1,197,222 12,950,157 150,000 900,000 175,995 1,871,546 2,982,928 853,182 165,000 280,775 894,644 5,024,751 16,926,000 152,990 0 173,945 1,721,132 3,124,192 996,122 132,781 280,775 126,644 3,827,529 3,975,843 2,990 (900,000) (2,050) (150,414) 141,264 142,940 (32,219) 1,690,000 1,747,469 57,469 313,959 19,982,716 7,394,643 1,087,000 500,000 1,305,000 2,264,281 667,967 130,000 0 0 235,290 320,216 20,035,571 9,226,149 1,138,584 6,302,782 1,469,485 0 681,280 179,460 300,000 1,000,000 239,980 6,257 52,855 1,831,506 51,584 5,802,782 164,485 (2,264,281) 13,313 49,460 300,000 1,000,000 4,690 104,681 316,715 4,993,373 1,243,394 278,191 1,986,800 578,843 37,675 1,244,801 1,700,000 200,000 6,607,986 1,690,657 32,882 30,690 102,698 316,324 5,244,140 728,065 0 1,823,996 483,485 38,500 1,121,889 1,622,021 204,600 5,749,637 1,700,000 33,537 31,302 (1,983) (391) 250,767 (515,329) (278,191) (162,804) (95,358) 825 (122,912) (77,979) 4,600 (858,349) 9,343 655 612 REVENUE Fiscal 2021 (continued) Special Revenue Funds ‐ Service 721 Senior Centers 723 Advocacy for Seniors 724 Direct Care and Support Planning 730 Public and Private Energy Performance 731 Facilities Management 737 Administration ‐ HCD 745 Housing Code Enforcement 748 Affordable Housing 762 Historic Preservation 763 Comprehensive Planning and Resource Management 765 Planning for a Sustainable Baltimore 896 Permanent Housing for the Homeless Equitable Neighborhood Development 693 Parking Enforcement 695 Dock Master 793 Employment Enhancement Services for Baltimore City Residents 794 Administration ‐ MOED 795 Workforce Services for Baltimore Residents 809 Retention, Expansion, and Attraction of Businesses 810 Real Estate Development 824 Events, Art, Culture, and Film 846 Discrimination Investigations, Resolutions and Concilations Innovative Government 125 Executive Direction and Control ‐ Mayoralty 152 Employees’ Retirement System ‐ Administration 154 Fire and Police Retirement System ‐ Administration 155 Retirement Savings Plan 700 Surplus Property Disposal 876 Media Production Other 122 Miscellaneous General Expenses 123 General Debt Service FUND TOTAL 77 FY20 Budget FY21 Budget Dollar Change 97,449 316,426 37,000 500,000 100,000 200,000 50,000 17,000,000 50,000 1,215,000 75,000 96,342 99,391 388,489 37,738 511,500 99,700 200,000 50,997 13,490,473 50,000 705,000 75,000 0 1,942 72,063 738 11,500 (300) 0 997 (3,509,527) 0 (510,000) 0 (96,342) 10,000 148,134 580,000 0 158,017 711,182 (10,000) 9,883 131,182 250,623 214,968 165,769 165,769 40,000 168,638 437,633 0 165,769 165,769 50,000 169,508 187,010 (214,968) 0 0 10,000 870 626,526 5,343,379 5,489,267 878,657 122,213 980,803 560,934 5,619,931 5,723,018 872,109 151,133 676,001 (65,592) 276,552 233,751 (6,548) 28,920 (304,802) 0 16,700,000 130,253,537 35,000 45,189,132 167,661,926 35,000 28,489,132 37,408,389 Fiscal 2021 REVENUE Special Grant Funds Special Grant Funds ‐ Service FY20 Budget FY21 Budget Dollar Change 1,231,073 25,000 0 0 1,186,302 25,000 300,000 165,000 (44,771) 0 300,000 165,000 0 1,200,000 1,200,000 Public Safety 315 Emergency Services ‐ Health 532,879 498,886 (33,993) Clean and Healthy Communities 663 Waste Removal and Recycling 715 Administration ‐ Health 718 Chronic Disease Prevention 721 Senior Centers 738 Weatherization Services 763 Comprehensive Planning and Resource Management 765 Planning for a Sustainable Baltimore 0 0 125,000 16,432 60,000 12,788 258,000 250,000 200,000 0 16,432 61,380 0 926,142 250,000 200,000 (125,000) 0 1,380 (12,788) 668,142 Equitable Neighborhood Development 761 Development Oversight and Project Support 795 Workforce Services for Baltimore Residents 0 0 51,000 200,000 51,000 200,000 Innovative Government 110 Circuit Court 125 Executive Direction and Control ‐ Mayoralty 212,362 606,957 0 272,438 (212,362) (334,519) 3,080,491 5,352,580 2,272,089 Children and Families 308 Maternal and Child Health 310 School Health Services 648 Community Recreation Centers 797 Workforce Services for Out of School Youth‐Youth Opportunity 798 Youth Works Summer Job Program FUND TOTAL 78 FISCAL 2021 EXECUTIVE SUMMARY Board of Estimates Recommendations Summary of Operating Budget Recommendations Intentionally Left Blank SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Operating Budget Recommendations Total Operating Budget: $3.05 billion Where the Money Comes from Charges for Services 590.5M (19.2%) Property Taxes 1.0B (33.1%) Income Tax 381.2M (12.4%) State Grants 261.7M (8.5%) Federal Grants 213.2M (6.9%) Special Revenues 175.7M (5.7%) Special Grants 5.4M (0.2%) Use of Money and Property 15.8M (0.5%) All Other 121.5M (3.9%) State Shared Taxes 142.4M (4.6%) Other Local Taxes 151.1M (4.9%) How the Money is Used Contractual 664.5M (21.4%) Salaries 950.5M (30.7%) Grants & Subsidies 570.2M (18.4%) Materials & Supplies 133.7M (4.3%) Debt Service 367.5M (11.9%) Other Personnel Costs 413.5M (13.3%) Totals may not equal 100% due to rounding. Charts in millions. 81 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Priority Outcomes Prior to Fiscal 2011, Baltimore used a traditional agency‐centric budget process similar to what was used by other local governments across the country. Each year, funding was allocated to agencies based on available resources and prior‐year spending patterns, and agencies were given freedom to allocate their resources among a variety of functions. Although this process kept the City’s budget in balance from a financial perspective, it was unclear which agency functions were most important to residents and which were demonstrating results. In Fiscal 2011, Baltimore implemented an innovative process called Outcome Budgeting. The process required agencies to make service‐level budget proposals that justify investments in strategies geared towards achieving City‐wide outcomes and goals. Although the process has evolved significantly over the past decade, the under‐ lying principle remains the same: to not only keep Baltimore’s budget sustainably balanced, but also to get the best use of City resources by devoting resources to services that achieve the best results for our residents. EQUITABLE NEIGHBORHOOD DEVELOPMENT CHILDREN & FAMILIES Academic Achievement College & Career Readiness Infant Mortality Employment Rate Number of Jobs Visitors to Baltimore CLEAN & HEALTHY COMMUNITIES Recycling Rate Citywide Energy Use Asthma Visits Recreational Opportunities Blight Elimination Water Cleanliness Childhood Asthma INNOVATIVE GOVERNMENT PUBLIC SAFETY Homicides & Non-Fatal Shootings Property Crime Opioid-Related Deaths Prompt Vendor Payment 311 Responsiveness Mayor Young’s Priority Outcomes guided the development of the Fiscal 2021 budget. The diagram above shows the population‐level indicators under each Outcome that are used to monitor progress on achieving strategic outcomes for the City. The indicators draw from a variety of data sources to capture citywide trends and are subject to review each year. Budget summaries for each of the Outcomes in the next section highlight how the Fiscal 2021 budget investments prioritize services that are highly impactful and closely aligned with the City’s strategic goals. 82 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Priority Outcome: Children and Families Fund Name General Water Utility Federal State Special Revenue Special Grant Total Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 364,664,524 0 36,614,281 28,053,747 23,704,030 1,256,073 454,292,655 378,406,426 459,999 37,718,693 30,712,600 31,174,801 2,876,302 481,348,821 13,741,902 459,999 1,104,412 2,658,853 7,470,771 1,620,229 27,056,166 Key results funded in the Fiscal 2021 Recommended Budget: • The Health Department’s Office of Youth and Trauma Services will provide trauma‐informed care trainings to 1,000 participants from City agencies, non‐profits, and other service providers. A Citywide task force and employee training on trauma prevention and response is required by the Elijah Cummings Healing City Act, enacted by the City in February. • The Enoch Pratt Free Library will develop virtual programming and activities as part of their Summer Learn‐ ing and School Readiness Programs, in partnership with City Schools, in response to the COVID‐19 pandemic • Baltimore City Recreation and Parks (BCRP) plans to have 128 playgrounds at full functionality. • Head Start has set a target of 90% of 3‐year‐olds scoring “ready” in each school readiness domain. • BCRP is creating modified summer programming for youth during the COVID‐19 pandemic. • The Health Department’s School Health Services expects to provide 350,000 health suite visits, including health and vision screenings, to youth enrolled in Baltimore City Public Schools. Key budget decisions in Children and Families: • In anticipation of the State’s Built to Learn Act, the City will set aside $30 million for school construction, which will be leveraged to receive up to $420 million of State and local funds for school construction. • The recommended budget includes $21.3 million for the newly constituted Mayor’s Office of Children and Family Success. The Office will coordinate the Head Start, the Community Action Partnership, and African‐ American Male Engagement programs. • The budget includes State funding of $3.5 million for the Children and Youth Fund and $1 million for Youth‐ Works. These additional funds are provided by the State’s Community Safety and Strengthening Act, which passed the Maryland General Assembly in 2019 and established the Johns Hopkins Police Department. • The recommended budget includes $658,360 to support the Mayor’s Scholars Program, providing last‐ dollar scholarships to Baltimore City Community College for recent high school graduates that reside in Baltimore City with a goal of enrolling 475 students, which began in Fiscal 2019. • The General Fund maintains funding of $9.4 million for Family League’s youth, community school, and out of school time programming, with an additional $300,000 in Community Development Block Grant (CDBG) funding to support youth programs. • The recommended budget reduces the Enoch Pratt Free Library budget by $350,000 by reducing book purchases and overtime staffing for programs and security at branch facilities. • The recommended budget includes $8 million of unspent prior‐year balances in the Children and Youth Fund to preserve a variety youth programs across multiple agencies. 83 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Indicator: Academic Achievement % of 3rd and 8th Graders Scoring 'Advanced' or 'Proficient' on MSA/PARCC/MCAP 80% 60% 40% 20% 2010 2012 2014 2016 2018 Source: Maryland State Department of Education, Maryland School Report Card 3rd Grade Reading 3rd Grade Math 8th Grade Reading 8th Grade Math In 2019, Maryland replaced the Partnership for Assessment of Readiness for College and Careers (PARCC) with the new Maryland Comprehensive Assessment Program (MCAP). MCAP focuses on the same academic content standards as previous years, but includes new assessments designed by Maryland educators to provide students, parents, and teachers with an understanding of student progress toward graduation and workforce readiness. Positive Factors Negative Factors • Quality instruction: Common Core, principal leadership, systematic instruction, phonics, tutoring • Low student attendance rates and high chronic absenteeism • Principal and teacher turnover rates • Literacy‐rich environments: access to books and extended learning opportunities • Summer learning loss • Low maternal education • Improving school climate and environment • Lack of concentrated literacy focus between 3rd and 8th grades • Campaign for Grade Level Reading / B’More Read More • Behavioral health challenges The Fiscal 2021 recommended budget invests in services and programs that will support the Academic Achieve‐ ment indicator: The City will make three significant investments in facilities that will improve the City Schools learning environ‐ ment. First, the City will provide an estimated $15 million for the 21st Century School Modernization Plan, includ‐ ing beverage tax and casino revenue, as well as leverage an additional $7.3 million in State Aid towards the City’s funding obligation for 21st Century Schools per the terms of the program agreement. Second, the City’s Fiscal 2021 Capital Improvement Program is providing $19 million in General Obligation Bond funding to City Schools for school facility improvements. Third, the City is setting aside $30 million for school construction, which will be leveraged to receive up to $420 million in State and local funds through the State’s Built to Learn Act. Supporting the Enoch Pratt Free Library with a $25.3 million General Fund appropriation will continue to support 22 neighborhood libraries, mobile library services, and the Central Library. In addition, this funding will support the digital library services and virtual programming throughout the COVID‐19 pandemic. 84 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Indicator: College and Career Readiness Baltimore City Public Schools 4-year Adjusted Cohort Graduation Rate 68.5% 65.8% 62.7% 69.7% 69.5% 70.7% 70.7% 70.7% 70.3% 66.5% 61.5% 2010 2012 2014 2016 2018 This indicator is currently measuring the four‐year adjusted cohort graduation rate for Baltimore City Public Schools. Positive Factors Negative Factors • High enrollment in Career Technology Educa‐ tion courses • Student absenteeism • Changing priorities as students enter high school (e.g. parenting, jobs) and school hours that don’t support these students • Pathways programs that merge coursework with work experience • Availability of out‐of‐school programs: YO Centers, Year Up, Civic Works, Living Class‐ rooms, Housing Authority, etc. • High student mobility rate • High youth unemployment • Most students enrolled in Career Technol‐ ogy Education courses not on track to earn credential • Availability of Advanced Placement and In‐ ternational Baccalaureate courses • Increased awareness of parental roles • Awareness of community‐based partners The Fiscal 2021 recommended budget invests in services and programs that will support the College and Career Readiness indicator: Including funding of $658,360 for the Mayor’s Scholars Program, which will provide last‐dollar scholarships to Baltimore City Community College for recent high school graduates that live in Baltimore City. Providing General Fund support of $2.9 million for the Mayor’s Office of Employment Development’s Youth Op‐ portunity centers and services, which served 900 out‐of‐school youth in Fiscal 2019. The agency is reviewing all programming and implementing new initiatives, including increased marketing, adoption of a job readiness manual, and streamlining the application process. 85 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Indicator: Infant Mortality # of Deaths of Children Less than One Year of Age Per 1,000 Live Births 13.5 11.0 10.5 9.7 10.4 10.3 8.4 2010 2012 2014 Positive Factors 8.8 2016 9.2 8.7 2018 Negative Factors • Multi‐agency and multi‐government collab‐ oration, such as the B’more for Healthy Ba‐ bies Initiative • Complex needs due to mental health, sub‐ stance abuse, unsafe homes, job loss • Population‐level behavioral changes • Inefficient paper‐based prenatal risk assess‐ ments • Community‐based initiatives • Lack of safe, stable housing • Improvements in access and quality of care • Continued practice of co‐sleeping • Insufficient messaging for impoverished families The Fiscal 2021 recommended budget invests in services and programs that will support the Infant Mortality indicator: Providing General Fund support of $3.0 million for the programs delivered by Maternal and Child Health and Fam‐ ily League will support home visiting services for at‐risk expectant mothers. These home visiting programs work to reduce risk factors such as substance use, high levels of stress, pre‐term labor, and chronic health conditions such as hypertension and diabetes. In Fiscal 2021, Maternal and Child Health plans to serve 138 families, while Family League will serve 380 families. Including General Fund support of $1.0 million for Baltimore City Health Department (BCHD) services to pre‐ vent exposure to lead and other health hazards, such as asthma triggers. One of the main drivers in reducing lead exposure for children with elevated blood lead levels is being able to quickly conduct a home inspection to assess environmental contributors. Through the Healthy Homes service, BCHD conducts health and safety risk inspections of all homes served by the lead and asthma programs. BCHD also conducts environmental home inspections, provides medical case management, refers families for lead abatement programs, and prosecutes non‐compliant property owners. 86 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Operating Budget Recommendation for Children and Families Service Courts: Orphans’ Court 817 Orphans’ Court Enoch Pratt Free Library 788 Information Services Health 308 Maternal and Child Health 310 School Health Services 316 Youth and Trauma Services Housing and Community Development 604 Before and After Care 740 Dawson Center M‐R: Baltimore City Public Schools 352 Baltimore City Public Schools M‐R: Educational Grants 446 Educational Grants Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 607,554 617,892 10,338 General State Special Revenue SERVICE TOTAL AGENCY TOTAL 26,178,994 14,159,535 853,182 41,191,711 41,191,711 26,185,090 14,270,492 996,122 41,451,704 41,451,704 6,096 110,957 142,940 259,993 259,993 General Federal State Special Revenue Special Grant SERVICE TOTAL General Federal State Special Revenue Special Grant SERVICE TOTAL General Federal State SERVICE TOTAL AGENCY TOTAL 2,054,708 20,087,746 1,725,863 768,000 1,231,073 25,867,390 14,983,639 40,143 507,009 1,197,222 25,000 16,753,013 747,106 1,075,265 655,815 2,478,186 45,098,589 1,995,168 20,151,259 1,869,220 894,644 1,186,302 26,096,593 15,711,762 157,705 507,856 5,024,751 25,000 21,427,074 687,692 1,039,989 739,756 2,467,437 49,991,104 (59,540) 63,513 143,357 126,644 (44,771) 229,203 728,123 117,562 847 3,827,529 0 4,674,061 (59,414) (35,276) 83,941 (10,749) 4,892,515 159,537 45,966 389,756 435,722 595,259 125,081 46,992 402,456 449,448 574,529 (34,456) 1,026 12,700 13,726 (20,730) General 278,412,181 287,346,700 8,934,519 General Federal 10,749,513 300,000 11,340,311 300,000 590,798 0 General General General Federal SERVICE TOTAL AGENCY TOTAL 87 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service M‐R: Health and Welfare Grants 385 Health and Welfare Grants Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Special Revenue SERVICE TOTAL AGENCY TOTAL 12,950,157 23,999,670 23,999,670 16,926,000 28,566,311 28,566,311 3,975,843 4,566,641 4,566,641 1,302,732 1,336,592 33,860 0 2,810,544 2,810,544 0 0 533,730 7,758,044 136,043 150,000 8,577,817 741,259 0 1,026,041 6,843,954 8,611,254 17,189,071 280,775 3,091,319 587,384 7,790,297 138,754 152,990 8,669,425 709,080 459,999 1,052,599 7,562,517 9,784,195 21,544,939 280,775 3,091,319 53,654 32,253 2,711 2,990 91,608 (32,179) 459,999 26,558 718,563 1,172,941 4,355,868 204,676 198,941 (5,735) General 3,080,755 3,089,492 8,737 Federal State Special Revenue Special Grant SERVICE TOTAL General 979,477 100,000 165,000 0 4,325,232 2,442,735 1,124,412 100,000 132,781 165,000 4,611,685 2,359,955 144,935 0 (32,219) 165,000 286,453 (82,780) Federal State Special Revenue Special Grant SERVICE TOTAL 1,970,889 3,478,473 1,690,000 0 9,582,097 2,000,000 3,653,409 1,747,469 1,200,000 10,960,833 29,111 174,936 57,469 1,200,000 1,378,736 General M‐R: Office of Children and Family Success 109 Administration Children and General Family Success Special Revenue SERVICE TOTAL 605 Head Start General Federal State Special Revenue SERVICE TOTAL 741 Community Action Partnership General Water Utility Federal State SERVICE TOTAL AGENCY TOTAL M‐R: Office of Employment Development 791 BCPS Alternative Options Academy for Youth 797 Workforce Services for Out of School Youth Youth Opportunity 798 Youth Works Summer Job Program State 88 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 800 Workforce Services for WIOA Funded Youth Federal 2,627,565 3,260,315 632,750 16,739,570 19,031,774 2,292,204 5,081,024 5,168,854 87,830 State SERVICE TOTAL General Special Revenue SERVICE TOTAL General Special Revenue SERVICE TOTAL General Federal Special Revenue Special Grant SERVICE TOTAL Special Revenue 242,379 5,323,403 2,603,668 900,000 3,503,668 785,230 175,995 961,225 14,154,193 359,355 1,871,546 0 16,385,094 2,982,928 1,671,655 6,840,509 2,526,786 0 2,526,786 831,042 173,945 1,004,987 14,930,009 439,661 1,721,132 300,000 17,390,802 3,124,192 1,429,276 1,517,106 (76,882) (900,000) (976,882) 45,812 (2,050) 43,762 775,816 80,306 (150,414) 300,000 1,005,708 141,264 AGENCY TOTAL 29,156,318 30,887,276 1,730,958 454,292,655 0 454,292,655 481,348,821 0 481,348,821 27,056,166 0 27,056,166 AGENCY TOTAL Recreation and Parks 644 Administration Recreation and Parks 645 Aquatics 647 Youth and Adult Sports 648 Community Recreation Centers 649 Special Facilities Management Recreation General GRAND TOTAL TOTAL OPERATING BUDGET LESS INTERNAL SERVICE TOTAL OPERATING APPROPRIATONS 89 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Special Exhibit: Funding for Children and Families Baltimore City Public Schools Public schools in Maryland are funded by both local governments and the State. By design, State Education Aid to public schools is distributed inversely to local wealth, whereby the less affluent school districts receive more State Education Aid. Wealth is measured in terms of county property values and personal income; by both measures, Baltimore is at or near the bottom per capita wealth calculation among Maryland jurisdictions. Since Baltimore City is among those jurisdictions with the least wealth as calculated for State Education Aid purposes in Maryland, City Schools received 70% of its funding from the State in Fiscal 2019. Other low wealth jurisdictions that contribute less than a quarter of their share of education funding include Allegany, Caroline, Somerset, and Wicomico Counties. Fiscal 2020 was the third and final year of Baltimore City’s three‐year, $99.2 million bridge funding plan to help City Schools address the district’s budget shortfalls. This included $25.4 million in Fiscal 2018, $35.3 million in Fiscal 2019, and $38.5 million in Fiscal 2020 above the Fiscal 2017 direct support funding level of $265,412,181. In Fiscal 2021, the City is providing $64 million for capital projects, including $15 million for the 21st Century Schools Program, $19 million in bond funding for school upgrades, and $30 million as part of the new Built to Learn Act, passed by the Maryland General Assembly in 2020. The Commission on Innovation and Excellence in Education, more commonly referred to as the “Kirwan Commis‐ sion”, was created by legislation in 2016 to generate recommendations to improve education across Maryland through funding, policies, and resources. One main goal for the Commission was to establish a new funding for‐ mula for school funding across Maryland. The Commission was expected to complete its work in January 2019, with legislation to implement the recommendations introduced during the Maryland General Assembly 2019 ses‐ sion. However, in December 2018, the Commission was asked to continue its work through Fall 2019, and was taken up again by the General Assembly during the 2020 session. As of publication, the Maryland General Assembly has passed the Kirwan legislation Blueprint for Maryland’s Future, House Bill 1300 (HB1300), which would dramatically change the current education funding formula in Maryland. HB1300, as amended by the House, requires implementation of the new funding formulas from Fiscal 2022 through Fiscal 2030, as well as an increase in State support for public schools in Fiscal 2021. The bill would require additional State Aid of $209.3 million over the amount required by current law in Fiscal 2022 for City Schools, growing to $613.2 million in Fiscal 2030. The bill also requires a significant increase in local support for City Schools, growing from $46.4 million in additional support over the amount required by current law in Fiscal 2022 to $170.6 million by Fiscal 2030. This represents a 55% increase in the level of direct local support for City Schools by Fiscal 2030, the highest rate of increase of local support proposed among Maryland’s jurisdictions. 90 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Support for City Schools Fiscal 2019 Adopted Direct Payment by the City to City Schools Maintenance of Effort Base Maintenance of Effort 227,706,071 Retiree Health Benefits 29,805,357 Teacher Pension 17,900,753 Maintenance of Effort Total 275,412,181 Other Direct Payments Additional City Funding for Schools 3,000,000 CATEGORY TOTAL 278,412,181 Support for City Schools Programs School Nurse Program (General Fund portion) 14,959,421 School Nurse Program (City Schools Fund portion) 73,130 School Crossing Guards 5,194,366 Risk Management for Schools 9,900,000 CATEGORY TOTAL 30,126,917 Capital ‐ City Support of City Schools Debt Service for School Construction 19,125,424 GO Bond support for School Construction Projects 17,000,000 PAYGO support for School Construction Projects 2,000,000 CATEGORY TOTAL 38,125,424 Capital ‐ City Support for 21st Century School Buildings Program Beverage Tax Contribution ‐ School Construction 12,400,000 Casino Lease Contribution ‐ School Construction 1,350,000 Table Games Aid ‐ School Construction 2,740,150 CATEGORY TOTAL 16,490,150 Other Support for City Schools ‐ Guaranteed Tax Base GTB Leveraged from Retiree Health Benefits 6,145,431 Contribution GTB Leveraged from Additional Direct Payments 2,680,486 CATEGORY TOTAL 8,825,917 Capital ‐ Built to Learn Act Supplemental School Construction Program Fund Balance ‐ School Construction 0 CATEGORY TOTAL 0 GRAND TOTAL TOTAL CITY SUPPORT FOR BCPS 371,980,589 Fiscal 2020 Adopted Fiscal 2021 Budget 227,426,818 29,805,357 17,900,753 275,132,928 239,640,590 29,805,357 17,900,753 287,346,700 3,279,253 278,412,181 0 287,346,700 14,983,639 897,222 5,336,637 13,100,000 34,317,498 15,711,762 4,718,771 5,140,809 0 25,571,342 20,116,409 19,000,000 0 39,116,409 24,373,887 19,000,000 0 43,373,887 12,600,000 1,400,000 2,700,000 16,700,000 12,268,000 1,400,000 1,521,132 15,189,132 5,518,519 5,036,976 2,406,810 7,925,329 2,244,212 7,281,188 0 0 30,000,000 30,000,000 376,471,417 408,762,249 $30 million of School Construction and $4 million of School Health comes from one-time sources (Fund Balance). 91 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Priority Outcome: Public Safety Fund Name General Federal State Special Revenue Special Grant Total Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 849,966,528 19,731,274 48,554,105 33,880,856 532,879 952,665,642 861,943,937 22,406,715 54,302,956 40,893,507 498,886 980,046,001 11,977,409 2,675,441 5,748,851 7,012,651 (33,993) 27,380,359 Key results funded in the Fiscal 2021 Recommended Budget: • The Baltimore Police Department will increase the number of available officers in Fiscal 2021, with a goal of hiring 240 recruits. The Department regularly has approximately 200 officer vacancies, hindering its ability to fight crime and negatively impacting officer wellness. Partnerships with the Mayor’s Office of Performance and Innovation and the Mayor’s Office of Employment Development are helping to attract a larger and more diverse applicant pool. • The Safe Streets program will mediate 1,500 conflicts in high‐crime neighborhoods to prevent escalation to violence in Fiscal 2021. The program is now operating 10 sites, where staff canvass local communities to build relationships with residents and interrupt patterns of violence. • Emergency Medical Services will work to achieve its target of responding to 90% of incidents within nine minutes. To deal with increasing call volume (158,400 calls in Fiscal 2019), the agency is using computer‐ aided dispatch technology to more efficiently direct responding units. The City also utilizes a two‐tiered system that deploys both advanced life support (ALS) and basic life support (BLS) units, enabling the agency to better prioritize calls and send the most appropriate resources. • The Fire Department anticipates investigating 460 fires in Fiscal 2021, and determining the cause of at least half. The Department investigates fires that result in damage to City property, fatalities, or injuries, and any fires considered suspicious. Key budget decisions in Public Safety: Baltimore Police Department (BPD) • The recommended budget provides an additional $1.4 million across multiple agencies for operation of Baltimore City Intelligence Centers (BCIC) in four police districts. BPD began piloting this model last year, establishing two strategic decision support centers that use data analysis to help target crime prevention and enforcement efforts. The Fiscal 2021 budget includes funding for BPD and the State’s Attorney’s Office to staff the centers. Based on a similar initiative in Chicago with promising results, the BCICs also will engage the Mayor’s Office of Criminal Justice to oversee case management services. • The BPD Central District will move to a new home in the former Baltimore Sun building at 501 N. Calvert Street. The District has been operating out of police headquarters since its former building shut down over a year ago due to emergency repairs. The new facility also will house the Warrant Apprehension Task Force, other specialized Police operational units, and peak Emergency Medical Services units. The BPD budget includes $1.2 million of federal Asset Forfeiture funds for rental costs. • BPD will reorganize its Mounted, Aviation, and traffic‐related units to achieve savings of $3.4 million. Offi‐ 92 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS • • • • • Fiscal 2021 cers in these units will be re‐assigned to Patrol functions, resulting in: use of horses or motorcycles only for high‐priority special events and traffic control; reducing helicopter flight time from 16 hours to 12 hours each day; and focusing traffic investigations on fatal and serious injury accidents. By implementing policy changes that will improve efficiency, BPD plans to achieve $3.4 million in savings. Key policies include continued oversight of overtime spending by each unit; privatizing some building se‐ curity functions; and review of rules for special event staffing and court appearances. The budget for BPD reflects an intensive effort to analyze past spending, audit the location of officer as‐ signments and budget positions in the correct programs, reorganize activities to better represent organi‐zational structure, and strategically allocate resources to achieve results. BPD leadership worked with the Department of Finance and external consultants on this initiative to make its budget more transparent and a better tool for fiscal accountability. The recommended budget reduces funding by $1.2 million for legal settlement payouts by BPD. The change reflects a downward trend in small settlements over the past few years, which may be attributable to expanded use of body worn cameras. The budget defunds 37 vacant positions as part of a City‐wide savings initiative. These positions were selected to minimize impact on services. Overall, the budget includes an additional $10.5 million of grant and special revenue expenditures, as the City is applying for new grants and making plans to spend federal Asset Forfeiture fund balances on critical equipment. Although there are several savings initiatives, the BPD’s General Fund budget increases by $3.0 million, or 0.6%, primarily due to annual inflation of personnel benefits and equipment costs. Fire Department (BCFD) • The recommended budget supports an independent study of BCFD’s operational and management prac‐ tices. The consultant will assess staffing methods and assignments; time‐keeping and leave policies; over‐ time staffing; policies, schedules, and compensation plans; and current fees for BCFD services. • Special fund revenue from 911 surcharge fees increases the recommended budget by $2 million. Last year, a State law increased the surcharge fee that helps fund Maryland’s 911 services for the first time since 2003, raising it from $1 to $1.25 per phone line. Of that amount, local jurisdictions receive $0.75 per phone line. This revenue will be used for equipment upgrades as well as to defray other costs. • BCFD is implementing a comprehensive inventory management system that encompasses inventory and asset management, medication and narcotics tracking, and fleet maintenance oversight. The system is expected to save BCFD at least $500,000 based upon performance of other similar departments. • BCFD will ensure their members in the Mobile‐Integrated Healthcare Community Paramedicine (MIH‐CP) program are trained in the Screening, Brief Intervention, and Referral to Treatment (SBIRT) methodology. • In the Fall of 2020, BCFD will participate in the Emergency Triage, Treat, and Transport (ET3) Model, which is a voluntary five‐year payment model that will provide greater flexibility to ambulance care teams to address emergency health care needs of Medicare Fee‐for‐Service beneficiaries following a 911 call. • This budget includes savings of $3.6 million from reassigning personnel in two Fire Suppression companies. • The Department will defund 7 positions to achieve savings required to balance the Fiscal 2021 budget. Mayor’s Office of Criminal Justice (MOCJ) • The recommended budget includes $400,000 of additional funding for case management services to sup‐ port the BCIC initiative, which takes a collaborative approach to reducing crime. The case management services will use targeted violence prevention efforts to supplement law enforcement activities. • The budget for MOCJ provides $200,000 of new funding for Metro Crime Stoppers, a community initiative that works to collect information to help solve felony crimes. The organization offers a tip hotline and cash 93 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS rewards for information that leads to arrests. State’s Attorney’s Office (SAO) • The recommended budget includes new SAO positions as part of the interagency BCIC initiative. To enhance collaboration with BPD and crime prevention efforts, SAO will locate two Assistant State’s Attorneys at each of the four centers. Department of Transportation (DOT) • The recommended budget saves $944,000 in overtime costs for the traffic camera program by adjusting staff assignments. Light‐duty Police officers will review red light camera citations during their regular shifts, instead of officers who get paid overtime for citation review. 94 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Indicator: Homicides & Non‐Fatal Shootings Total Non-Fatal Shootings and Homicides (All Weapons) 401 282 234 2008 240 224 2010 197 217 235 2012 369 635 666 342 318 703 342 770 680 309 348 211 2014 2016 2018 Source: Batimore Police Department Open Data; Baltimore Sun Total Non-Fatal Shootings Total Homicides This information is sourced from the Baltimore Police Department’s Open Data resource, a publicly available and easily accessible online data archive. This indicator measures number of homicides (from all weapons) and non‐fatal shootings that occur in Baltimore on an annual basis. These figures do not include police‐involved or self‐inflicted incidents. Positive Factors Negative Factors • Targeted enforcement of specific neighbor‐ hoods and known violent offenders • Violence in the drug and gun marketplace • Use of technology to assist with gunshot de‐ tection and criminal investigations • Barriers to legitimate economic opportunity, particularly for low‐skill individuals and/or those with a criminal background The Fiscal 2021 recommended budget invests significant resources to support positive movement on the Non‐ Fatal Shootings and Homicides indicator: The City will build interagency collaboration to combat violent crime by operating Baltimore City Intelligence Centers (BCICs) in four police districts. The Centers will utilize crime data analysis, strategic deployment of po‐ lice officers, case management services designed to prevent violence, and close cooperation with prosecutors. Chicago launched a similar model in 2017, and researchers found it caused a statistically significant decrease in crime. BPD started piloting strategic decision support centers in two districts last year, and will use this experi‐ ence to inform BCIC expansion. MOCJ continues to support two programs that work to interrupt cycles of violence in high‐crime neighborhoods. Safe Streets now operates ten sites across the City, using outreach and mediation to prevent violence and connect residents to social services. Roca seeks out young men at high risk of engaging in violence and provides them with wrap‐around services and employment opportunities. The program is working to build multi‐year relationships with more than 150 young men to make sustainable change in their lives. 95 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Indicator: Property Crime Total Property Crime per 100,000 Residents 4,909 4,758 4,566 4,660 4,554 4,837 4,618 4,545 4,600 4,475 4,235 2010 2012 2014 2016 2018 Source: Batimore Police Department Open Data; United States Census Property crime data includes burglary, larceny, theft, and motor vehicle theft. Because they may involve violence, arson and vandalism incidents are excluded. Positive Factors Negative Factors • Focus on community‐based policing in‐ creases officer presence in communities • Available resources for responding to, inves‐ tigating, and processing property crimes • Employment and recreational opportunities for Baltimore youth, such as YouthWorks • Barriers to upward economic mobility and community support systems The Fiscal 2021 recommended budget invests in services and programs that will support positive movement on the Property Crimes indicator: BPD is working to expand its presence in the community, with a goal of deterring theft and other property crimes. BPD is partnering with the Mayor’s Offices of Performance and Innovation and Employment Development to introduce job fairs, consult with neighboring jurisdictions, and recruit and retain more officers to fully staff Patrol units. The number of BPD applications is increasing. BPD received 4,023 completed applications in Fiscal 2019, as compared to 2,770 the previous year. Moreover, the application pool has a higher percentage of women than prior years. In addition, BPD is encouraging proactive policing strategies like business checks and field interviews that make officers more visible in neighborhoods. The CitiWatch program is making plans to modernize its network of CCTV cameras by upgrading the software that supports camera monitoring and linking cameras in public‐private partnerships. City officials are exploring options to coordinate different technologies – such as cameras, license plate readers, and gunshot detection units – in order to gather evidence of crimes in real time. The City also is seeking grant funding to support a rebate program that would offer residents financial incentives to install home security cameras and register them with CitiWatch, so police can request footage if crimes occur near those cameras. 96 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Indicator: Opioid‐Related Deaths Total Number of Opioid-Related Deaths 814 628 692 354 199 139 2010 142 189 275 212 2012 2014 2016 2018 Source: Maryland Department of Health Annual Overdose Death Reports This indicator captures all deaths that occurred in the City of Baltimore (including non‐residents) related to opi‐ oids. In previous years, this indicator only included deaths from heroin. As the number of deaths from fentanyl has grown (120 deaths in 2015 to 758 deaths in 2018) and now exceeds heroin‐related fatalities, the indicator was changed this year to better illustrate the scale of this crisis. Data is not yet available for 2019. Positive Factors Negative Factors • Tougher legal and regulatory stance on opi‐ oid prescription drugs, reducing abuse that leads to addiction • Increasing prevalence of fentanyl, which is more potent than prescription drugs or heroin • Use of Naloxone to reverse overdoses and training on harm reduction practices • Mixture of heroin with other substances, in‐ cluding fentanyl, without users’ knowledge The Fiscal 2021 recommended budget invests significant resources that will support positive movement on the Opioid‐Related Deaths indicator: The Health Department continues its syringe exchange program, which includes the Overdose Response Program that trains individuals in responding to opioid‐related overdoses with Naloxone and other interventions. The initiative has trained more than 40,000 residents and observed a significant increase over the past year in clients reporting overdose reversals. Demand for Emergency Medical Services continues to rise, driven partly by opioid‐related overdoses. BCFD em‐ ploys several strategies to handle the high demand, such as: transporting chronic substance users to the Health Department’s Stabilization Center for treatment services when appropriate; using computer‐aided dispatch tech‐ nology to more efficiently direct responding units; and using a two‐tiered system that deploys both advanced life support (ALS) and basic life support (BLS) units, enabling the Department to better prioritize calls. 97 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Operating Budget Recommendation for Public Safety Service Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 600 Administration Fire General Federal State SERVICE TOTAL General 9,160,725 1,604,329 374,343 11,139,397 162,388,270 9,550,556 1,600,000 350,000 11,500,556 162,475,629 389,831 (4,329) (24,343) 361,159 87,359 Federal State SERVICE TOTAL General Federal State SERVICE TOTAL General State Special Revenue SERVICE TOTAL General 4,607,990 1,485,078 168,481,338 687,496 320,866 600,000 1,608,362 30,257,988 1,339,247 19,982,716 51,579,951 391,371 2,424,656 1,420,339 166,320,624 870,805 1,795,858 67,000 2,733,663 32,341,664 1,343,438 20,035,571 53,720,673 392,034 (2,183,334) (64,739) (2,160,714) 183,309 1,474,992 (533,000) 1,125,301 2,083,676 4,191 52,855 2,140,722 663 784,186 13,014,395 749,195 8,901,044 (34,991) (4,113,351) 3,000 7,394,643 20,412,038 5,187,873 259,584,516 3,000 9,226,149 18,130,193 4,755,552 258,302,490 0 1,831,506 (2,281,845) (432,321) (1,282,026) 1,601,148 1,533,047 (68,101) 1,359,060 1,642,214 4,602,422 906,554 741,815 8,350,902 532,879 10,532,150 15,134,572 1,347,824 1,804,827 4,685,698 920,394 668,764 8,470,708 498,886 10,558,752 15,244,450 (11,236) 162,613 83,276 13,840 (73,051) 119,806 (33,993) 26,602 109,878 General 1,461,797 1,466,905 5,108 General 2,194,751 2,243,178 48,427 Fire 602 Fire Suppression and Emergency Rescue 608 Emergency Management 609 Emergency Medical Services 610 Fire and Emergency Community Outreach 612 Fire Investigation 614 Fire Communications and Dispatch 615 Fire Training and Education Health 307 Substance Use Disorder and Mental Health 315 Emergency Services Health Housing and Community Development 752 Community Outreach Services General General State Special Revenue SERVICE TOTAL General AGENCY TOTAL General Federal State SERVICE TOTAL General Federal State Special Grant SERVICE TOTAL AGENCY TOTAL Law 871 Police Legal Affairs 98 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service Liquor License Board 851 Liquor License Compliance M‐R: Office of Criminal Justice 617 Criminal Justice Coordination 618 Neighborhood Safety and Engagement 757 CitiWatch 758 Coordination of Public Safety Strategy Administration M‐R: Office of Employment Development 796 Workforce Services for Ex Offenders Fiscal 2021 Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget General 1,227,614 1,187,954 (39,660) General Federal State SERVICE TOTAL General 803,913 1,834,722 1,000,000 3,638,635 3,211,753 744,496 1,130,078 1,023,000 2,897,574 3,643,620 (59,417) (704,644) 23,000 (741,061) 431,867 Federal State Special Revenue SERVICE TOTAL General Special Revenue SERVICE TOTAL General 1,974,323 3,600,000 1,087,000 9,873,076 2,653,256 130,000 2,783,256 897,516 1,646,370 5,046,951 1,138,584 11,475,525 2,706,297 179,460 2,885,757 1,130,143 (327,953) 1,446,951 51,584 1,602,449 53,041 49,460 102,501 232,627 State Special Revenue SERVICE TOTAL AGENCY TOTAL 45,000 0 942,516 17,237,483 45,000 300,000 1,475,143 18,733,999 0 300,000 532,627 1,496,516 186,799 189,287 2,488 557,000 994,450 1,738,249 1,738,249 557,000 983,794 1,730,081 1,730,081 0 (10,656) (8,168) (8,168) 675,121 691,685 16,564 80,438,389 0 12,862,251 500,000 93,800,640 196,412,213 300,000 4,427,178 1,305,000 202,444,391 52,554,451 390,000 554,515 93,109,603 264,137 10,725,750 6,302,782 110,402,272 223,160,490 2,500,000 4,781,488 1,469,485 231,911,463 55,152,054 766,086 4,371,226 12,671,214 264,137 (2,136,501) 5,802,782 16,601,632 26,748,277 2,200,000 354,310 164,485 29,467,072 2,597,603 376,086 3,816,711 General Federal State SERVICE TOTAL AGENCY TOTAL Office of Equity and Civil Rights 848 Police Community Relations Police 621 Administrative Bureau 622 Police Patrol 623 Criminal Investigation Division General General Federal State Special Revenue SERVICE TOTAL General Federal State Special Revenue SERVICE TOTAL General Federal State 99 Fiscal 2021 (continued) Service 624 Target Violent Criminals 625 SWAT ESU 626 Data Driven Strategies 627 Emergency Communications 628 Public Integrity Bureau 632 Manage Police Records 635 Recruitment Section 637 Special Operations K 9 and Mounted Unit 638 Marine Unit 640 Special Operations Aviation 642 Crime Laboratory and Evidence Control 807 Compliance Bureau 816 Special Operations Section 853 Patrol Support Services Sheriff 881 Courthouse Security 882 Deputy Sheriff Enforcement SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget SERVICE TOTAL General State Special Revenue SERVICE TOTAL General General Federal State SERVICE TOTAL General General General General Federal SERVICE TOTAL General 53,498,966 46,822,659 3,659,354 2,264,281 52,746,294 10,877,390 13,566,666 1,366,762 1,360,000 16,293,428 14,064,986 12,995,906 7,483,083 22,602,468 20,000 22,622,468 4,354,708 60,289,366 0 0 0 0 0 8,901,421 0 1,478,872 10,380,293 0 9,160,770 0 20,401,253 0 20,401,253 0 6,790,400 (46,822,659) (3,659,354) (2,264,281) (52,746,294) (10,877,390) (4,665,245) (1,366,762) 118,872 (5,913,135) (14,064,986) (3,835,136) (7,483,083) (2,201,215) (20,000) (2,221,215) (4,354,708) Federal State SERVICE TOTAL General Federal SERVICE TOTAL General General 5,000 149,620 4,509,328 2,465,832 300,000 2,765,832 7,054,321 23,048,260 0 0 0 0 0 0 0 22,633,504 (5,000) (149,620) (4,509,328) (2,465,832) (300,000) (2,765,832) (7,054,321) (414,756) Federal SERVICE TOTAL General Federal State SERVICE TOTAL General Federal SERVICE TOTAL General Federal State Special Revenue SERVICE TOTAL AGENCY TOTAL 561,144 23,609,404 0 0 0 0 0 0 0 0 0 0 0 0 536,376,477 530,702 23,164,206 35,133,390 25,460 2,265,945 37,424,795 25,687,548 521,900 26,209,448 15,910,128 605,750 3,099,775 1,000,000 20,615,653 549,959,519 (30,442) (445,198) 35,133,390 25,460 2,265,945 37,424,795 25,687,548 521,900 26,209,448 15,910,128 605,750 3,099,775 1,000,000 20,615,653 13,583,042 General General State Special Revenue SERVICE TOTAL 4,155,371 10,355,587 0 235,290 10,590,877 4,095,269 10,770,075 50,000 239,980 11,060,055 (60,102) 414,488 50,000 4,690 469,178 100 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service 883 Service of Protective and Peace Orders 884 District Court Sheriff Services 889 Child Support Enforcement State’s Attorney 115 Prosecution of Criminals 781 Administration State’s Attorney 786 Victim and Witness Services Transportation 500 Street Lighting 684 Traffic Management 689 Vehicle Impounding and Disposal 697 Traffic Safety Fiscal 2021 Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 2,099,188 2,284,288 185,100 General General Federal SERVICE TOTAL AGENCY TOTAL 2,730,331 1,661,994 0 1,661,994 21,237,761 2,692,305 1,752,886 1,100,000 2,852,886 22,984,803 (38,026) 90,892 1,100,000 1,190,892 1,747,042 General Federal State Special Revenue SERVICE TOTAL General General Federal State SERVICE TOTAL AGENCY TOTAL 27,725,528 1,378,020 6,053,376 313,959 35,470,883 7,263,805 1,848,678 1,983,044 53,577 3,885,299 46,619,987 27,452,899 1,796,589 6,917,188 320,216 36,486,892 7,634,737 1,866,465 2,601,351 54,655 4,522,471 48,644,100 (272,629) 418,569 863,812 6,257 1,016,009 370,932 17,787 618,307 1,078 637,172 2,024,113 General General Special Revenue SERVICE TOTAL General 21,644,607 11,380,065 667,967 12,048,032 8,008,638 20,876,886 11,054,645 681,280 11,735,925 8,229,565 (767,721) (325,420) 13,313 (312,107) 220,927 General Federal SERVICE TOTAL AGENCY TOTAL 18,658,878 510,891 19,169,769 60,871,046 17,490,271 524,190 18,014,461 58,856,837 (1,168,607) 13,299 (1,155,308) (2,014,209) 952,665,642 0 952,665,642 980,046,001 0 980,046,001 27,380,359 0 27,380,359 General GRAND TOTAL TOTAL OPERATING BUDGET LESS INTERNAL SERVICE TOTAL OPERATING APPROPRIATONS 101 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Priority Outcome: Clean and Healthy Communities Fund Name General Internal Service Conduit Enterprise Wastewater Utility Water Utility Stormwater Utility Federal State Special Revenue Special Grant Total Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 281,433,483 97,776,304 12,308,498 277,356,115 192,375,485 27,145,365 104,429,440 55,653,122 40,783,905 472,220 1,089,733,937 286,044,870 94,265,509 13,487,197 273,228,492 200,735,075 33,996,956 131,184,753 58,751,985 34,908,482 1,453,954 1,128,057,273 4,611,387 (3,510,795) 1,178,699 (4,127,623) 8,359,590 6,851,591 26,755,313 3,098,863 (5,875,423) 981,734 38,323,336 Key results funded in the Fiscal 2021 Recommended Budget: • The Parking Authority will pilot a Virtual Parking Permit program that will use a vehicle’s license plate num‐ ber instead of adhesive decals and paper visitor permits within the Residential Permit Parking Program (RPP). The program will streamline the RPP application and renewal processes. • Baltimore City Recreation and Parks (BCRP) will continue Saturday operations at all 48 recreation centers. • The Department of Housing and Community (DHCD) collaborated with YouthWorks participants to review aerial photographs of every vacant in the City and score the quality of the roof. DHCD used this data to pilot a more robust stabilization program. The agency aims to release 500 structures for demolition or stabilization for Fiscal 2021. • The Health Department will continue the Healthy Home Program in order to address major home‐based sources of chronic health issues through services such as home visits for children with asthma, inspec‐ tions/education for pregnant and postpartum women in hazardous housing, and blood lead testing pro‐ motion for all children ages one and two. Key budget decisions in Clean and Healthy Communities: • The recommended budget includes $63.1 million for the newly constituted Mayor’s Office of Homeless Ser‐ vices. The Office administers the federal, State, and local funding that is awarded to the City of Baltimore to address homelessness. The agency contracts with more than 50 local service providers to provide per‐ manent, transitional, and temporary housing, in addition to emergency shelter, supportive services, and outreach to individuals experiencing homelessness. • The recommended budget will invest $1.2 million from the Innovation Fund to support BCRP’s Camp Small project, a zero‐waste initiative that aims to capture the highest value from the City’s wood and organic waste, while creating useful products for the growing green economy. BCRP will use the funds to purchase equipment to produce high‐quality lumber slabs, mulch, playground fiber, firewood, and biochar for gov‐ ernment, nonprofit, private sector, and individual buyers. • The capital budget includes $500,000 in PAYGO funding for improvements at the Bowley’s Lane waste dis‐ posal facility. • The recommended budget will invest $9.6 million towards the City’s Quarantine Road Landfill expansion, 102 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS • • • • Fiscal 2021 with $6.6 million from the operating budget and $3 million from the capital budget. The Landfill is expected to reach capacity by 2026. The Fiscal 2021 recommended budget eliminates DPW’s graffiti removal services. This budget reduces the Circulator operating budget by $1.6 million. Service will be maintained with 16 buses across routes, but planned enhancements to add 4 additional buses to improve reliability with aver‐ age headways of 15‐20 minutes will be paused. The Department of General Services (DGS) is coordinating with the Police and Fire Departments to achieve $500,000 and $400,000, respectively, in savings from more efficient operations and maintenance of the City’s Police and Fire fleet. The Fiscal 2021 budget reflects increased federal and State assistance in response to COVID‐19: – $13.1 million in additional appropriations to the Community Development Block Grant (CDBG) to create and expand facilities for COVID‐19 testing, treatment, and supply manufacturing, to expand group living facilities, expand job trainings for health care workers, and to stabilize the local housing market. – $6.61 million in additional appropriations to the Emergency Solutions Grants program to provide shel‐ ters, hotel and motel vouchers, and other support services for Baltimore’s homeless population. – $1.2 million in additional appropriations to the Housing Opportunities for Persons With AIDS (HOPWA) program to provide services to Americans with compromised immune systems, including rental and utility assistance, short term lodging, medical care, mental health treatment, nutritional services, and job training and placement. 103 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Indicator: Recycling Rate Recycling Rate 33% 30% 30% 27% 29% 28% 24% 19% 18% 2008 2010 2012 2014 24% 20% 2016 2018 Source: Maryland Department of the Environment, Maryland Solid Waste Management and Diversion Report The City’s recycling rate is provided by the Maryland Recycling Act, or MRA. MRA data includes private and com‐ mercial recycling rates, in addition to the public recycling data collected by the Department of Public Works. After 2012, ash from incinerated waste was no longer considered a recyclable material for use as a landfill cover material; this reduced the City’s MRA‐defined recycling rate. Negative Factors Positive Factors • Single‐stream recycling and 1+1 collections • Few direct incentives or penalties associated with household recycling • City school recycling initiatives • Gaps in environmental literacy – not know‐ ing what items are recyclable or when recy‐ cling takes place • Education/Awareness • Global changes in the demand for recycled goods makes recycling more costly The Fiscal 2021 recommended budget invests in services and programs that will support the Recycling Rate indi‐ cator: In Fiscal 2021, DPW is finalizing its 10‐year Solid Waste Management Plan. The Plan will include measures to improve the recycling rate and divert more waste from the landfill, as well as educate the public on recycling while maximizing the number and types of materials that can be recycled. The Baltimore Office of Sustainability released its 2019 Sustainability Plan, which provides strategies to divert trash from the landfill and incinerator, launches an anti‐litter, pro‐recycling campaign, and implements a plan to achieve zero waste. The plan also uses a racial equity lens to heighten awareness of disparities and the need for equity in addressing environmental sustainability. It articulates strategies, actions, and measures of success across 5 core themes and 23 topic areas. 104 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Indicator: Citywide Energy Use Citywide Gas Energy Usage (therms) 365 350 322 364 349 339 321 294 346 329 288 2010 2012 2014 2016 2018 Source: Baltimore Gas and Electric Citywide Electric Energy Usage (kWh) 6,904 6,207 6,343 6,250 2010 6,344 2012 6,443 2014 6,484 6,449 6,437 2016 6,388 6,272 2018 Source: Baltimore Gas and Electric These data points come directly from the Baltimore Gas and Electric Company and include all residential, com‐ mercial, and industrial energy consumption. Positive Factors Negative Factors • The Baltimore Energy Challenge • Declining or limited tree canopy and “Heat Island Effect” which increases energy de‐ mand • Smart metering projects for City buildings and energy retrofits • Lack of public information and education about energy use • Low price of natural gas The Fiscal 2021 recommended budget invests in services and programs that will reduce energy usage: DHCD will continue the Baltimore Energy Challenge which teaches residents, businesses, and nonprofits low‐ to no‐cost ways to save energy through grassroots efforts in neighborhoods, businesses, and schools. Participants sign a pledge committing to reduce their energy use through changes in behavior. For Fiscal 2021, the Baltimore Energy Challenge will advance low‐income solar installations in the City. The Energy Office will move from DPW to DGS, and funding will move from an internal service fund to the General Fund. The Energy Office oversees energy efficiency measures through contracts and grant‐funded projects from the Maryland Energy Administration and US Department of Energy. 105 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Indicator: Asthma Visits Number of Childhood Asthma ER Visits per 100,000 People 3,525 3,602 3,588 3,369 3,415 3,132 3,031 3,007 2,544 2010 2012 2014 2016 Source: Baltimore City Health Department Asthma is a chronic lung disease that impacts more than 25 million people throughout the United States. The number of childhood asthma ER visits per 100,000 people is used as a headline measure for prevalence of chronic disease and conditions within the City of Baltimore. Positive Factors Negative Factors • Ongoing medical management of asthma through medication and education • Quality of Baltimore’s housing stock and housing insurance policies (i.e. historical dis‐ criminatory practices such as redlining) • Asthma home visiting programs identify and reduce household asthma triggers • Lack of preventative care; more dependency on Emergency Rooms • School and home renovations remove mold and other asthma triggers. • Tobacco smoke in the home • Reduced federal and State grant funding for the asthma program The Fiscal 2021 recommended budget invests in services and programs that will help reduce childhood asthma: The Health Department’s Community Asthma Program provides home visits for Baltimore children with asthma and expects 80% percent of children in the asthma program to have improved symptoms. Since 2016, the Health Department has exceeded this 80% benchmark. The service works to reduce emergency room visits, the number of symptom days, and absences from school due to asthma. B’more for Healthy Babies (BHB) is a citywide initiative, led by the Baltimore City Health Department with Family League and HealthCare Access Maryland, to reduce infant mortality and improve the health of mothers and babies. Family League serves as the lead for the home visiting strategy. The Health Department helps students manage their asthma by keeping an Asthma Action Plan (AAPlan) on file in the health suite. The AAPlan provides school health professionals with individualized treatment plans for each student with asthma. 106 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Indicator: Recreational Opportunities Number of Visits to City Operated Recreation Facilities 1,038,658 939,710 1,019,390 882,355 847,423 783,037 525,327 2012 496,443 2013 2014 2015 2016 2017 2018 2019 Source: Baltimore City Recreation and Parks The indicator captures the reported number of visits to City‐operated recreation facilities, which includes recre‐ ation centers, city pools, and horticulture facilities (Rawlings Conservatory and Cylburn Arboretum). Also in‐ cluded in this indicator is total enrollment in youth and adult sports programs. The number of visitors in Fiscal 2019 is less than the number recorded in Fiscal 2018. This may be due to a data collection issue that occurred during the transition from the old recreation software system to CivicRec, a cloud‐based platform. Positive Factors Negative Factors • Collaborative programs with other City agen‐ cies has increased Recreation Center atten‐ dance • Inefficient customer experience signing up and paying for programs • Increase in the number of event rentals at Cylburn Arboretum • Extended hours at recreation centers The Fiscal 2021 recommended budget invests in services and programs that will increase Recreation Facility Visits: BCRP implemented CivicRec in Spring 2019. CivicRec is a cloud‐based point‐of‐sale and user tracking software intended to improve users’ access to BCRP programs and facilities in addition to providing more data for the department. The data is currently being used to develop BCRP programs for girls and teens. BCRP will continue extended Saturday operations at all 48 recreation centers. In addition to CivicRec data, BCRP is conducting focus groups with teens to inform program offerings. 107 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Indicator: Blight Elimination Number of Vacant Residential Buildings 16,969 16,810 16,708 16,461 16,610 16,771 16,836 16,357 16,084 2010 15,957 16,053 2012 2014 2016 2018 Source: Baltimore City Department of Housing and Community Development Vacant properties are defined as any residential buildings that have been deemed uninhabitable by building code standards, and given vacant building notices by the Department of Housing and Community Development (DHCD). Positive Factors Negative Factors • Vacants to Value, Baltimore Homeowner‐ ship Incentive Program (B‐HiP), and other home buying incentive programs • Barriers in rehabilitation financing • Challenges around aligning other City ser‐ vices (such as Police and Street Resurfacing) with Vacants to Value plans • Marketing efforts and incentives such as Live Near Your Work that attract new residents and keep current residents The Fiscal 2021 recommended budget invests in services and programs that will support Blight Elimination: The City continues its demolition efforts. DHCD demolished or stabilized 893 structures in 2019, well exceeding the goal of 500. The Fiscal 2021 capital budget recommendations include $21.8 million in general obligation bonds for DHCD and programs for demolition, homeownership incentives, development incentives, and affordable housing. 108 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Indicator: Water Cleanliness Geometric Mean for E.coli in Baltimore City Watersheds (MPN*/100 ml) 2014 2015 2016 2017 2018 2019 Source: Baltimore City Department of Public Works *Most Probable Number Herring Run Moores Run Jones Falls Gwynns Falls DPW measures fecal bacteria at 23 stations throughout Baltimore. The City is required to meet State and local water quality standards, including bacteriological standards identified under State law as part of the 2002 Consent Decree. Data are divided into four watersheds across the City. When pollutants enter waterways, it is detrimental to the environment and public health. Although the Jones Falls and Herring Run watersheds have increased since Fiscal 2018, the increase is within acceptable ranges for this pollutant. Also, Fiscal 2019 was a record‐setting period for rainfall, temporarily increasing pollutant measurements. Positive Factors Negative Factors • Trees and green infrastructure along water‐ ways • Sanitary sewer overflows and leaks from sewer pipes • Proactive sewer maintenance and sewer re‐ pairs required through the Consent Decree • Discharges to the storm water system The Fiscal 2021 recommended budget invests in services and programs that will support the cleanliness of City waterways: The capital budget recommendation includes $275.7 million from the Wastewater Utility Fund to invest in projects related to wastewater treatment facilities, pumping stations, and underground pipes. Additional capital funds from the Stormwater Utility Fund of $31 million invest in pollution and erosion control and stormwater management, such as stream restorations, drainage improvements and repairs, and environmental site design. The City will maintain its tree canopy cover of 28% through BCRP’s Urban Forestry division. 109 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Operating Budget Recommendation for Clean and Healthy Communities Service Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 611 Fire Code Enforcement General Federal State SERVICE TOTAL General 5,450,582 168,003 181,824 5,800,409 18,900,562 5,268,877 171,867 185,448 5,626,192 19,275,231 (181,705) 3,864 3,624 (174,217) 374,669 Federal State Special Revenue SERVICE TOTAL AGENCY TOTAL 3,142,168 1,356,163 278,191 23,677,084 29,477,493 3,628,628 1,348,885 0 24,252,744 29,878,936 486,460 (7,278) (278,191) 575,660 401,443 Internal Service General General 66,604,647 633,055 0 65,812,561 44,126 533,926 (792,086) (588,929) 533,926 Internal Service State Special Revenue SERVICE TOTAL General Internal Service Federal State Special Revenue SERVICE TOTAL General 2,411,187 3,500,000 500,000 6,411,187 7,321,838 28,760,470 1,000,000 1,000,000 100,000 38,182,308 959,724 0 300,000 511,500 1,345,426 7,652,699 28,452,948 1,023,000 1,000,000 99,700 38,228,347 968,458 (2,411,187) (3,200,000) 11,500 (5,065,761) 330,861 (307,522) 23,000 0 (300) 46,039 8,734 AGENCY TOTAL 112,790,921 106,398,918 (6,392,003) 5,363,718 1,650,197 942,419 104,681 8,061,015 928,920 1,288,423 378,541 4,735,681 1,792,441 963,170 102,698 7,593,990 1,032,840 1,021,902 834,523 (628,037) 142,244 20,751 (1,983) (467,025) 103,920 (266,521) 455,982 Fire 613 Fire Facilities Maintenance and Replacement General Services 189 Fleet Management 726 Administration General Services 730 Public and Private Energy Performance 731 Facilities Management 734 Capital Projects Division Design and Construction Health 303 Clinical Services 305 Healthy Homes General Federal State Special Revenue SERVICE TOTAL General Federal State 110 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service 311 Health Services for Seniors 715 Administration Health 716 Animal Services 717 Environmental Inspection Services 718 Chronic Disease Prevention 720 HIV Treatment Services for the Uninsured 721 Senior Centers 722 Administration CARE 723 Advocacy for Seniors 724 Direct Care and Support Planning Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Special Revenue SERVICE TOTAL Special Revenue General Federal State Special Revenue Special Grant SERVICE TOTAL General General 316,715 2,912,599 4,993,373 4,290,359 5,497,264 2,135,763 1,690,657 0 13,614,043 3,680,648 3,115,769 316,324 3,205,589 5,244,140 4,582,757 5,620,731 2,315,986 1,700,000 200,000 14,419,474 3,374,999 3,065,526 (391) 292,990 250,767 292,398 123,467 180,223 9,343 200,000 805,431 (305,649) (50,243) Special Revenue SERVICE TOTAL General Federal State Special Revenue Special Grant SERVICE TOTAL General 32,882 3,148,651 411,013 45,024 496,190 30,690 125,000 1,107,917 1,271,654 33,537 3,099,063 241,466 45,471 536,772 31,302 0 855,011 1,289,372 655 (49,588) (169,547) 447 40,582 612 (125,000) (252,906) 17,718 Federal State SERVICE TOTAL General Federal State Special Revenue Special Grant SERVICE TOTAL General Federal SERVICE TOTAL General Federal State Special Revenue SERVICE TOTAL State 28,784,739 20,668,526 50,724,919 867,621 1,702,320 336,204 97,449 16,432 3,020,026 551,834 236,795 788,629 107,410 71,313 350,089 316,426 845,238 2,595,742 28,676,268 23,256,972 53,222,612 1,490,638 1,861,384 349,049 99,391 16,432 3,816,894 589,957 242,857 832,814 93,605 108,693 350,212 388,489 940,999 2,647,756 (108,471) 2,588,446 2,497,693 623,017 159,064 12,845 1,942 0 796,868 38,123 6,062 44,185 (13,805) 37,380 123 72,063 95,761 52,014 111 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service 725 Community Services for Seniors Housing and Community Development 593 Community Support Projects 737 Administration HCD 738 Weatherization Services 742 Promote Homeownership 745 Housing Code Enforcement 747 Register and License Properties and Contractors 748 Affordable Housing 749 Property Acquisition Disposition and Asset Management 750 Housing Rehabilitation Services 751 Building and Zoning Inspections and Permits 754 Summer Food Service Program 815 Live Baltimore Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Special Revenue SERVICE TOTAL General Federal State SERVICE TOTAL AGENCY TOTAL 37,000 2,632,742 195,486 3,654,719 979,425 4,829,630 100,359,430 37,738 2,685,494 198,519 3,711,222 998,947 4,908,688 104,199,767 738 52,752 3,033 56,503 19,522 79,058 3,840,337 General Federal State SERVICE TOTAL General Federal Special Revenue SERVICE TOTAL General State Special Grant SERVICE TOTAL General Federal SERVICE TOTAL General Federal Special Revenue SERVICE TOTAL General 2,000,000 9,677,581 307,000 11,984,581 5,156,053 1,615,878 200,000 6,971,931 702,459 4,898,724 60,000 5,661,183 415,282 141,007 556,289 14,121,544 360,000 50,000 14,531,544 585,296 2,206,289 25,083,253 313,119 27,602,661 5,306,686 1,238,222 200,000 6,744,908 799,439 4,918,661 61,380 5,779,480 459,038 185,368 644,406 11,676,930 363,986 50,997 12,091,913 621,062 206,289 15,405,672 6,119 15,618,080 150,633 (377,656) 0 (227,023) 96,980 19,937 1,380 118,297 43,756 44,361 88,117 (2,444,614) 3,986 997 (2,439,631) 35,766 Federal Special Revenue SERVICE TOTAL General 743,856 17,000,000 17,743,856 3,192,718 717,564 13,490,473 14,208,037 3,586,699 (26,292) (3,509,527) (3,535,819) 393,981 Federal State SERVICE TOTAL General 3,746,375 550,000 4,296,375 6,389,837 6,121,682 559,317 6,680,999 6,546,353 2,375,307 9,317 2,384,624 156,516 State General 3,604,658 584,865 3,651,901 596,522 47,243 11,657 112 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service M‐R: Environmental Control Board 117 Adjudication of Environmental Citations M‐R: Office of Homeless Services 356 Administration Human Services 893 Homeless Prevention and Support Services for the Homeless 894 Outreach to the Homeless 895 Temporary Housing for the Homeless 896 Permanent Housing for the Homeless Municipal and Zoning Appeals 185 Board of Municipal and Zoning Appeals Planning 762 Historic Preservation Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget AGENCY TOTAL 76,103,133 88,754,941 12,651,808 General 1,488,016 1,497,623 9,607 State SERVICE TOTAL AGENCY TOTAL 250,000 1,738,016 1,738,016 255,750 1,753,373 1,753,373 5,750 15,357 15,357 General Federal State Special Revenue SERVICE TOTAL Federal 1,910,976 2,920,088 220,297 1,243,394 6,294,755 621,431 1,577,506 4,240,570 217,948 728,065 6,764,089 237,844 (333,470) 1,320,482 (2,349) (515,329) 469,334 (383,587) State SERVICE TOTAL General Federal State SERVICE TOTAL General 516,400 1,137,831 996,532 2,662,571 296,578 3,955,681 8,757,780 258,717 496,561 1,016,250 928,367 39,523 1,984,140 9,476,717 (257,683) (641,270) 19,718 (1,734,204) (257,055) (1,971,541) 718,937 Federal State SERVICE TOTAL General 183,509 1,945,310 10,886,599 770,518 9,448,356 1,965,534 20,890,607 252,181 9,264,847 20,224 10,004,008 (518,337) Federal State Special Revenue SERVICE TOTAL AGENCY TOTAL 29,781,059 26,995 96,342 30,674,914 52,949,780 29,935,410 2,801,536 0 32,989,127 63,124,524 154,351 2,774,541 (96,342) 2,314,213 10,174,744 General 656,762 577,288 (79,474) General 676,945 713,462 36,517 113 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service 763 Comprehensive Planning and Resource Management 765 Planning for a Sustainable Baltimore 768 Administration Planning Public Works 660 Administration Solid Waste 661 Public Right of Way Cleaning 662 Vacant and Abandoned Property Cleaning and Boarding 663 Waste Removal and Recycling 664 Waste Re Use and Disposal 670 Administration Water and Wastewater Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Federal State Special Revenue SERVICE TOTAL General 100,000 100,000 50,000 926,945 2,185,208 100,000 100,000 50,000 963,462 2,165,567 0 0 0 36,517 (19,641) Federal State Special Revenue Special Grant SERVICE TOTAL General 150,000 150,000 1,215,000 12,788 3,712,996 1,316,292 150,000 225,000 705,000 0 3,245,567 1,317,800 0 75,000 (510,000) (12,788) (467,429) 1,508 Federal State Special Revenue Special Grant SERVICE TOTAL General State SERVICE TOTAL AGENCY TOTAL 535,120 510,500 75,000 258,000 2,694,912 1,431,666 250,000 1,681,666 9,016,519 518,105 542,748 75,000 926,142 3,379,795 1,512,590 0 1,512,590 9,101,414 (17,015) 32,248 0 668,142 684,883 80,924 (250,000) (169,076) 84,895 General General Stormwater Utility Federal Special Revenue SERVICE TOTAL General 1,619,876 17,829,031 5,009,349 2,304,687 18,031,225 4,152,328 684,811 202,194 (857,021) 2,000,000 1,700,000 26,538,380 11,530,497 2,046,000 1,622,021 25,851,574 12,124,600 46,000 (77,979) (686,806) 594,103 1,100,000 12,630,497 30,912,452 200,000 0 31,112,452 24,984,891 30,007,954 1,100,000 13,224,600 32,216,421 204,600 250,000 32,671,021 25,593,910 26,504,789 0 594,103 1,303,969 4,600 250,000 1,558,569 609,019 (3,503,165) Federal SERVICE TOTAL General Special Revenue Special Grant SERVICE TOTAL General Wastewater Utility 114 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service 671 Water Management 672 Water and Wastewater Consumer Services 673 Wastewater Management 674 Surface Water Management 675 Engineering and Construction Management Water and Wastewater 676 Administration DPW Recreation and Parks 646 Park Maintenance 650 Horticulture 651 Recreation for Seniors Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Water Utility SERVICE TOTAL Water Utility Federal SERVICE TOTAL Wastewater Utility Water Utility Stormwater Utility SERVICE TOTAL Wastewater Utility State SERVICE TOTAL Wastewater Utility Water Utility Stormwater Utility Federal State SERVICE TOTAL Wastewater Utility Water Utility SERVICE TOTAL General Wastewater Utility SERVICE TOTAL AGENCY TOTAL 22,616,194 52,624,148 85,705,288 200,000 85,905,288 13,376,133 18,377,957 44,882,746 86,728,786 204,600 86,933,386 13,468,223 (4,238,237) (7,741,402) 1,023,498 4,600 1,028,098 92,090 16,221,148 4,158,622 10,931,837 4,158,622 (5,289,311) 0 33,755,903 142,648,301 28,558,682 127,605,593 (5,197,221) (15,042,708) 319,925 142,968,226 1,720,594 300,000 127,905,593 1,741,591 (19,925) (15,062,633) 20,997 422,193 17,977,394 450,725 25,686,006 28,532 7,708,612 100,000 300,000 20,520,181 89,603,133 100,000 510,000 28,488,322 102,457,449 0 210,000 7,968,141 12,854,316 67,410,662 157,013,795 2,810,865 0 84,245,770 186,703,219 2,833,998 1,450,847 16,835,108 29,689,424 23,133 1,450,847 2,810,865 592,484,502 4,284,845 607,402,585 1,473,980 14,918,083 General State Special Revenue SERVICE TOTAL General Special Revenue SERVICE TOTAL General 10,658,308 3,330,031 1,986,800 15,975,139 1,390,357 578,843 1,969,200 308,847 13,056,596 3,933,185 1,823,996 18,813,777 1,307,879 483,485 1,791,364 477,710 2,398,288 603,154 (162,804) 2,838,638 (82,478) (95,358) (177,836) 168,863 115 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service 652 Therapeutic Recreation 653 Park Programs and Events 654 Urban Forestry Transportation 548 Conduits 681 Administration DOT 683 Street Management 688 Snow and Ice Control 690 Sustainable Transportation 691 Public Rights of Way Landscape Management 692 Bridge and Culvert Management 694 Survey Control 696 Street Cuts Management 727 Real Property Management Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Special Revenue SERVICE TOTAL General Special Revenue General AGENCY TOTAL 37,675 346,522 463,959 1,244,801 4,476,641 24,476,262 38,500 516,210 489,992 1,121,889 4,573,199 27,306,431 825 169,688 26,033 (122,912) 96,558 2,830,169 Conduit Enterprise General Federal SERVICE TOTAL General General General State Special Revenue SERVICE TOTAL General 12,308,498 13,487,197 1,178,699 9,122,248 550,000 9,672,248 33,326,488 6,740,227 6,666,477 3,155,818 6,607,986 16,430,281 3,897,871 9,749,799 560,962 10,310,761 34,189,988 6,726,609 4,514,539 3,071,326 5,749,637 13,335,502 3,977,994 627,551 10,962 638,513 863,500 (13,618) (2,151,938) (84,492) (858,349) (3,094,779) 80,123 General General General General AGENCY TOTAL 3,631,232 272,013 1,004,365 2,397,896 89,681,119 3,707,953 238,371 980,051 2,604,670 89,559,096 76,721 (33,642) (24,314) 206,774 (122,023) GRAND TOTAL TOTAL OPERATING BUDGET LESS INTERNAL SERVICE TOTAL OPERATING APPROPRIATONS 1,089,733,937 1,128,057,273 97,776,304 94,265,509 991,957,633 1,033,791,764 116 38,323,336 (3,510,795) 41,834,131 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Priority Outcome: Equitable Neighborhood Development Fund Name General Convention Center Bond Parking Enterprise Parking Management Federal State Special Revenue Special Grant Total Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 72,430,683 4,562,625 21,524,562 26,014,422 8,231,045 6,336,377 1,743,901 0 140,843,615 59,522,600 0 21,714,081 27,041,907 19,004,077 6,983,211 1,857,878 251,000 136,374,754 (12,908,083) (4,562,625) 189,519 1,027,485 10,773,032 646,834 113,977 251,000 (4,468,861) Key results funded in the Fiscal 2021 Recommended Budget: • The Office of Equity and Civil Rights hired an additional full‐time Wage Investigator, reinforcing the agency’s oversight of proper administration and operation of the minimum, living, and prevailing wage laws and enforcement of the Displaced Workers Protection law. The Wage Commission expects to collect $300,000 in Fiscal 2021 as a result of enforcement actions. • After designing a comprehensive job readiness curriculum, the Mayor’s Office of Employment Development (MOED) will teach 9,000 residents the skills necessary for workplace success. The training will include a skills assessment and lessons about technology and effective communication. • Top Golf and CBAC Gaming LLC is beginning construction on a 65,000 square foot facility, in coordination with the Baltimore Development Corporation (BDC). The entertainment chain invested $7.9 million to pur‐ chase City‐owned land and will bring 500 new jobs. Key budget decisions in Equitable Neighborhood Development: • The recommended budget includes $10 million in Service 111, Economic Recovery and Stimulus, which will be used in Fiscal 2021 for any new federal stimulus funds received to help the City and residents recover from the COVID‐19 pandemic. • The budget includes $42.1 million of capital funding across multiple funding sources to support Department of Housing and Community Development projects in demolition, development, homeownership incentives, and affordable housing. • Fiscal 2021 marks the first full year of the Baltimore Tourism Improvement District, which was intended to leverage an additional $6.9 million in revenue for Visit Baltimore. Due to the decline in hotel tax collection the TID will first need to be used to backfill some of this loss. These funds are intended to be used for financial incentives, leisure marketing, and other activities to promote tourism and Baltimore. • The recommended budget includes $900,000 in Innovation Fund funding for the Convention Center to construct a digital sign at the corner of Howard and Conway Streets that will display paid and public content, which will generate additional revenues for the City. Approximately 60,000 cars pass the sign’s location daily. • The Mobile Workforce Center will cease operations, allowing MOED to focus on services at career centers and community job hubs, saving $280,000 annually in vehicle and equipment costs. 117 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Indicator: Employment Rate City Resident Employment Rate 88.8% 89.4% 89.8% 90.3% 91.4% 92.5% 54.1% 54.4% 52.7% 54.7% 53.8% 53.9% 2010 2012 2014 93.4% 93.7% 94.3% 56.9% 56.9% 58.1% 2016 2018 Source: U.S. Census Bureau American Community Survey 5-Year Estimates; U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics Ages 16 and Older Employment Rate Labor Force Employment Rate The labor force employment rate is the percentage of people in the labor force (i.e. those seeking work) who are employed, or the inverse of the unemployment rate for Baltimore City. The employment rate for ages 16 and older shows the percent of people employed out of all working‐age city residents, including those who are not seeking work due to school attendance, retirement, discouragement, or other reasons. The 16 and older data is a new metric for how the City is measuring the employment rate. In prior years the City has used the employment rate indicator for ages 16‐64. This indicator has been phased out by the Census. Positive Factors Negative Factors • Workforce development collaboration and programming among City, private, and non‐ profit groups • Barriers to employment including mental health issues, racial disparities, and lack of access to childcare and reliable transporta‐ tion • Expansion of key industries, including the health and technological sectors, within Bal‐ timore City • A weak education system that limits resi‐ dents’ exposure to the skills and training needed to be competitive in the global econ‐ omy • An increase in the number of small busi‐ ness start‐ups and self‐employed individuals within the City • External economic factors, such as the COVID‐19 pandemic, which has disrupted employment The Fiscal 2021 recommended budget invests in services to support the Employment Rate indicator: Total funding of $9 million across all fund sources for five Community Action Partnership (CAP) Centers throughout the City to connect low‐income families to programs that promote economic stability, including financial literacy and tax preparation. Through the career center network, the Mayor’s Office of Employment Development will serve 30,000 residents and continue refining strategies to help residents get living‐wage jobs. A standardized “access points” intake process will launch at career centers, in order to evaluate residents’ specific needs and direct them to relevant services. 118 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Indicator: Number of Jobs Annual Average of Non-Farm Jobs in Baltimore City (in Thousands) 384.0 377.4 351.2 2010 351.7 356.0 2012 358.2 363.7 361.4 2014 366.6 371.0 2016 2018 Source: U.S. Bureau of Labor Statistics, Current Employment Statistics Non‐farm payrolls, which are captured by the U.S. Bureau of Labor Statistics Current Employment Statistics (CES) dataset, include all public and non‐public sector jobs (full‐time and part‐time) in the City of Baltimore, with the exception of farm workers, household workers, proprietors, armed services, and the self‐employed. Positive Factors Negative Factors • General improvement in the local economy • Barriers to job growth and private develop‐ ment, including both the negative percep‐ tion of Baltimore and limitations on ease of doing business with the City • A metropolitan region with a highly‐ educated, millennial workforce • Increased public and private investment in the region The Fiscal 2021 recommended budget invests in services to support the Jobs in Baltimore indicator: Funding of $2.3 million in BDC to promote real estate development, negotiate the sale or lease of City‐owned properties and managing urban renewal areas and business parks. The City’s Emerging Technologies Center was named one of the top 5 best public business incubators in the world by UBI Global. The ETC has supported approximately 500 growing companies, providing funding, rentable space, community, mentorship, and other resources to the startups and entrepreneurs who are working to bring their ideas to life in Baltimore. 119 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Indicator: Visitors to Baltimore Total Number of Visitors to Baltimore (in Millions) 23.3 24.5 23.9 25.2 25.9 26.2 26.7 22.3 21.3 20.4 2010 2012 2014 2016 2018 Source: Visit Baltimore This dataset comes from Visit Baltimore and includes domestic visitors to Baltimore for leisure and business travel. Positive Factors Negative Factors • Limited shopping options • Baltimore is conveniently located to many destination events, art and culture institu‐ tions, world‐class sports teams, and other celebrated tourist attractions • A negative perception of safety com‐ pounded by strained police‐community re‐ lations • An aging Convention Center that struggles to compete with larger, newer, East Coast convention facilities • The City’s investment in the Inner Harbor wa‐ terfront and Downtown areas The Fiscal 2021 recommended budget invests in services and programs that will help to increase Visitors to Bal‐ timore: Funding of $1.7 million for the Waterfront Partnership and the Department of Transportation (DOT) to manage special events and Inner Harbor services, which are essential for creating an inviting and vibrant Downtown core. As the most recognized feature of downtown, the Inner Harbor is a key contributor to Baltimore’s economic vitality. The Baltimore Tourism Investment District (TID) was created in 2019 and a 2% surcharge in addition to the 9.5% hotel tax began to be levied in December 2019. This 2% surcharge is managed by Visit Baltimore. The TID will serve as backfill funding for the agency in Fiscal 2021 due to a decline in hotel tax revenue. 120 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Operating Budget Recommendation for Equitable Neighborhood Development Service Housing and Community Development 809 Retention Expansion and Attraction of Businesses 810 Real Estate Development 811 Inner Harbor Coordination 813 Technology Development Emerging Technology Center Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget General 2,332,676 2,342,730 10,054 Special Revenue SERVICE TOTAL General Special Revenue SERVICE TOTAL General General 165,769 2,498,445 2,332,676 165,769 2,498,445 434,775 621,504 165,769 2,508,499 2,342,730 165,769 2,508,499 443,441 833,934 0 10,054 10,054 0 10,054 8,666 212,430 AGENCY TOTAL 6,053,169 6,294,373 241,204 General 491,949 511,170 19,221 General 1,036,356 1,112,928 76,572 General General Special Revenue SERVICE TOTAL General AGENCY TOTAL 6,026,750 2,883,811 40,000 2,923,811 98,726 9,049,287 6,497,627 2,431,323 50,000 2,481,323 100,693 9,079,643 470,877 (452,488) 10,000 (442,488) 1,967 30,356 General General 1,152,670 13,170,469 1,175,643 7,794,837 22,973 (5,375,632) AGENCY TOTAL 14,323,139 8,970,480 (5,352,659) 7,955,690 12,456,302 4,500,612 577,577 12,941,587 6,136,377 19,077,964 606,237 12,362,139 6,409,831 18,771,970 28,660 (579,448) 273,454 (305,994) Law 869 Minority and Women’s Business Opportunity Office Liquor License Board 850 Liquor Licensing M‐R: Art and Culture 493 Art and Culture Grants 824 Events Art Culture and Film 828 Bromo Seltzer Arts Tower M‐R: Civic Promotion 590 Civic Promotion Grants 820 Convention Sales and Tourism Marketing M‐R: Convention Center Hotel 535 Convention Center Hotel M‐R: Convention Complex 540 Royal Farms Arena Operations 855 Convention Center General General General State SERVICE TOTAL 121 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service Fund Name 857 Convention Center Debt Service Convention Center Bond AGENCY TOTAL Federal State SERVICE TOTAL General M‐R: Office of Employment Development 792 Workforce Public Assistance 793 Employment Enhancement Services for Baltimore City Residents Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 4,562,625 0 (4,562,625) 24,218,166 19,378,207 (4,839,959) 3,020,748 100,000 3,120,748 1,403,333 2,877,547 100,000 2,977,547 1,510,914 (143,201) 0 (143,201) 107,581 580,000 1,983,333 687,758 75,745 250,623 1,014,126 5,079,552 711,182 2,222,096 1,021,781 0 437,633 1,459,414 6,126,530 131,182 238,763 334,023 (75,745) 187,010 445,288 1,046,978 100,000 214,968 0 5,394,520 548,765 12,061,492 473,380 0 200,000 6,799,910 0 13,458,967 373,380 (214,968) 200,000 1,405,390 (548,765) 1,397,475 Federal 0 10,000,000 10,000,000 General 682,981 751,460 68,479 General 1,134,026 1,344,743 210,717 Special Revenue SERVICE TOTAL AGENCY TOTAL 168,638 1,302,664 1,985,645 169,508 1,514,251 2,265,711 870 211,587 280,066 General 1,213,217 951,978 (261,239) Special Grant SERVICE TOTAL 0 1,213,217 51,000 1,002,978 51,000 (210,239) Special Revenue SERVICE TOTAL 794 Administration MOED General Federal Special Revenue SERVICE TOTAL 795 Workforce Services for Baltimore Federal Residents State Special Revenue Special Grant SERVICE TOTAL 806 Mobile Workforce Center General AGENCY TOTAL Mayoralty 111 Economic Recovery Office of Equity and Civil Rights 656 Wage Investigation and Enforcement 846 Discrimination Investigations Resolutions and Concilations Planning 761 Development Oversight and Project Support 122 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 1,213,217 1,002,978 (210,239) General 11,555,040 0 (11,555,040) Federal SERVICE TOTAL AGENCY TOTAL 55,000 11,610,040 11,610,040 0 0 0 (55,000) (11,610,040) (11,610,040) Parking Enterprise Parking Management SERVICE TOTAL General General 21,524,562 21,714,081 189,519 10,576,821 10,615,967 39,146 32,101,383 1,709,402 1,438,945 32,330,048 1,628,482 1,301,508 228,665 (80,920) (137,437) 15,437,601 16,425,940 988,339 10,000 15,447,601 148,134 50,845,465 0 16,425,940 158,017 51,843,995 (10,000) 978,339 9,883 998,530 140,843,615 0 140,843,615 136,374,754 0 136,374,754 (4,468,861) 0 (4,468,861) AGENCY TOTAL Police 634 Crowd Traffic and Special Events Management Transportation 682 Parking Management 685 Special Events 687 Inner Harbor Services Transportation 693 Parking Enforcement 695 Dock Master Parking Management Special Revenue SERVICE TOTAL Special Revenue AGENCY TOTAL GRAND TOTAL TOTAL OPERATING BUDGET LESS INTERNAL SERVICE TOTAL OPERATING APPROPRIATONS 123 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Priority Outcome: Innovative Government Fund Name General Internal Service Water Utility Federal State Special Revenue Special Grant Total Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 124,433,490 46,181,788 0 2,328,669 6,050,928 13,440,845 819,319 193,255,039 138,978,966 43,953,753 265,580 2,469,468 6,393,091 13,603,126 272,438 205,936,422 14,545,476 (2,228,035) 265,580 140,799 342,163 162,281 (546,881) 12,681,383 Key results funded in the Fiscal 2021 Recommended Budget: • The City Ethics Board will be relocated under the purview of the Office of the Inspector General (OIG) in order to increase effectiveness and strengthen enforcement of prohibitions related to conflicts of interest. • In Fiscal 2021, the OIG expects to identify $1.5 million in waste and receive 350 hotline complaints. • In Fiscal 2021, the 311 Call Center will aim to answer 90% of calls within 60 seconds, with an average time of 30 seconds. • Baltimore City Information and Technology (BCIT) expects to resolve 99% of Helpdesk critical priority tickets within 4 hours. Key budget decisions in Innovative Government: • The budget includes $17 million to continue the transition from standalone legacy systems for human re‐ source management, purchasing, payroll, accounting, and budget to a fully integrated Enterprise Resource Planning (ERP) system. Phase I, which will transition human resources and payroll from legacy systems onto the new cloud‐based platform, will be implemented in Fiscal 2021. Additional, Phase II which includes func‐ tions such as Budget, Grants Management, and Procurement will launch in late Fiscal 2021. • The Mayor’s Office of Performance and Innovation (OPI) Innovation Team will be partially funded by the General Fund in Fiscal 2021. OPI, which also includes CitiStat and the Data Fellows program, has been critical in creating meaningful change by using data, research, and human‐centered design. • The City’s cable channel, CharmTV, will receive a newly designed and constructed studio facility utilizing $8 million in public, educational, and governmental (PEG) channel capital funding. The new space will reduce the City’s rental costs and provide upgraded and permanent facilities to manage live, pre‐recorded, and digital functions. • The Fiscal 2021 recommended budget includes over $650,000 to fully fund the Department of Human Resources Office of Learning and Development. The Office of Learning and Development will be the primary training unit for the rollout of ERP and lead change management across agencies. The Office also will provide diversity, equity, and inclusion training for City employees. • In Fiscal 2020, the City committed $5 million in cash and secured $9.5 million in financing to complete a $14.5 million upgrade of user radios on the 800 MHz radio network. The Fiscal 2021 budget sustains this investment by committing $2 million of Internal Service funds for debt service and $100,000 of Internal Service funds for a new position to manage the network, maintain the equipment, and ensure the long‐ term fiscal health of the operation. 124 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Indicator: Prompt Vendor Payment % of Vendors Paid on Time 76% 75% 71% 70% 69% 64% 52% 48% 2012 2013 2014 2015 2016 2017 2018 2019 Source: Baltimore City Department of Finance The prompt vendor payment rate is the percent of invoices paid within 30 days of receipt. In 2019, there were 125,000 invoices paid. Fifty‐two percent or 65,444 were paid within 30 days. The overall cycle time decreased from 56 to 55 days on average in 2019. Positive Factors Negative Factors • Comfort of City staff and vendors with pro‐ cesses, such as procurement, purchasing, and invoicing • Communication differences between agen‐ cies and vendors • Vendor filing errors • Technical and internal errors, such as lost documentation and missing information The Fiscal 2021 recommended budget invests in services and programs that will support positive movement on the indicator: Procurement will continue to provide training to City staff and vendors on the proper procedures. In Fiscal 2019, Procurement trained 217 employees and vendors. Procurement also will see a full year of results from new training materials and tools. The tools released included new manuals, templates, and intranet portals. These solutions are intended to develop efficiency and proficiency among City fiscal staff to decrease internal processing errors. 125 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Indicator: 311 Responsiveness Average Time to Close for 311 Service Requests (Days) 10.2 10.2 9.4 9.2 7.2 2015 2016 2017 2018 2019 Source: Open Baltimore This indicator measures how many days it takes various agencies responding to 311 calls for service to complete the request. This figure includes all categories of 311 requests opened and closed within the fiscal year except traffic calming studies, which average 6 months. In Fiscal 2019, the City took an average of 10.2 days to close a 311 request. This measure was created in 2015. Negative Factors Positive Factors • Variety of processes and policies depending on the request type • Strong communication between agencies The Fiscal 2021 recommended budget invests in services and programs that will support positive movement on this indicator: The 311 Call Center is the City’s call intake system where residents can request services and receive general infor‐ mation. The 311 Call Center is also responsible for the development, implementation, and continuing support of the Customer Service Request System which provides universal, standardized, and inter‐agency call intake and work order management. BCIT has recently finished implementing a new Customer Relationship Management (CRM) system with self‐serve options to allow callers to check requests and perform other tasks independently. The Call Center is currently undergoing a consolidation study. The study will assess the costs, benefits, and im‐ plementation requirements. Call center consolidation is a nationwide best practice, which would result in 311, Police, Fire, and agency‐specific dispatch utilizing the same space and infrastructure and opportunities for cross‐ training. In Fiscal 2020, Mayor Young introduced CleanStat, a CitiStat initiative that aims to create timely and effective service delivery related to trash, littering, and other illegal dumping issues. CitiStat convenes stakeholders each month to review key performance indicators, track progress towards goals, and analyze how city operations can be made more efficient and equitable regarding city cleanliness. In February 2020, the City launched the Clean It Up! Campaign which successfully reduced the backlog of 311 cleaning service requests and will resume when the City returns to normal operations. 126 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Operating Budget Recommendation for Innovative Government Service Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Board of Elections 899 Fair Conduct of Elections General 7,618,893 7,428,423 (190,470) City Council 100 City Council General 8,427,656 8,179,164 (248,492) General 1,697,733 1,698,700 967 General General 5,272,064 1,140,866 5,082,109 1,043,554 (189,955) (97,312) 10,690,513 820,908 19,622,084 10,732,691 941,093 19,498,147 42,178 120,185 (123,937) 777,036 794,090 17,054 General Federal State Special Grant SERVICE TOTAL AGENCY TOTAL 17,905,168 2,018,946 5,640,399 212,362 25,776,875 25,776,875 17,657,644 2,153,572 5,974,379 0 25,785,595 25,785,595 (247,524) 134,626 333,980 (212,362) 8,720 8,720 Special Revenue 5,343,379 5,619,931 276,552 Special Revenue 5,489,267 5,723,018 233,751 Special Revenue AGENCY TOTAL 878,657 11,711,303 872,109 12,215,058 (6,548) 503,755 General Water Utility SERVICE TOTAL General General General Special Revenue Internal Service General General General Internal Service 6,993,881 0 6,993,881 1,174,131 1,930,465 3,624,808 122,213 3,431,896 1,028,253 3,527,572 1,831,274 8,817,673 6,437,091 265,580 6,702,671 1,254,755 1,813,523 3,300,236 151,133 3,672,135 892,289 3,612,749 2,212,411 5,436,993 (556,790) 265,580 (291,210) 80,624 (116,942) (324,572) 28,920 240,239 (135,964) 85,177 381,137 (3,380,680) General 2,012,063 1,887,254 (124,809) Comptroller 130 Executive Direction and Control Comptroller 131 Audits 132 Real Estate Acquisition and Management 133 Municipal Telephone Exchange 136 Municipal Post Office Council Services 103 Council Services Courts: Circuit Court 110 Circuit Court Employees’ Retirement Systems 152 Employees’ Retirement System Administration 154 Fire and Police Retirement System Administration 155 Retirement Savings Plan Finance 148 Revenue Collection 150 Treasury and Debt Management 698 Administration Finance 699 Procurement 700 Surplus Property Disposal 701 Printing Services 702 Accounts Payable 703 Payroll 704 Accounting 707 Risk Management for Employee Injuries 708 Operating Budget Management Internal Service Internal Service AGENCY TOTAL General 127 Fiscal 2021 (continued) Service 710 Fiscal Integrity and Recovery 711 Finance Project Management Human Resources 770 Administration Human Resources 771 Benefits Administration 772 Civil Service Management 773 Learning and Development Law 860 Administration Law 861 Controversies 862 Transactions 872 Workers’ Compensation Practice Legislative Reference 106 Legislative Reference Services 107 Archives and Records Management M‐R: Cable and Communications 876 Media Production M‐R: Office of Information and Technology 802 Administration 803 Enterprise Innovation and Application Services 804 311 Call Center 805 Enterprise IT Delivery Services M‐R: Office of the Inspector General 836 Inspector General SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget General General AGENCY TOTAL 1,177,595 0 35,671,824 1,197,953 1,373,154 33,507,256 20,358 1,373,154 (2,164,568) 2,713,370 3,824,968 1,111,598 General Internal Service SERVICE TOTAL General General AGENCY TOTAL 3,251,200 2,338,013 5,589,213 3,417,533 0 11,720,116 2,615,410 2,369,868 4,985,278 3,455,947 891,666 13,157,859 (635,790) 31,855 (603,935) 38,414 891,666 1,437,743 General General Internal Service SERVICE TOTAL General Internal Service SERVICE TOTAL Internal Service AGENCY TOTAL 1,450,486 5,048,601 2,610,490 7,659,091 1,942,957 99,906 2,042,863 857,050 12,009,490 1,361,662 4,841,821 2,723,652 7,565,473 1,929,801 86,221 2,016,022 4,476,049 15,419,206 (88,824) (206,780) 113,162 (93,618) (13,156) (13,685) (26,841) 3,618,999 3,409,716 749,718 549,392 741,867 561,521 (7,851) 12,129 AGENCY TOTAL 1,299,110 1,303,388 4,278 General Special Revenue SERVICE TOTAL AGENCY TOTAL 663,953 980,803 1,644,756 1,644,756 720,363 676,001 1,396,364 1,396,364 56,410 (304,802) (248,392) (248,392) General General 3,194,490 6,219,527 2,691,631 22,389,776 (502,859) 16,170,249 5,163,500 8,778,865 16,515,339 25,294,204 39,871,721 5,287,451 8,396,949 13,515,051 21,912,000 52,280,858 123,951 (381,916) (3,000,288) (3,382,204) 12,409,137 1,578,928 1,808,349 229,421 General General General General General Internal Service SERVICE TOTAL AGENCY TOTAL General M‐R: Office of the Labor Commissioner 128 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service 128 Labor Contract Negotiations and Administration Mayoralty 125 Executive Direction and Control Mayoralty Fiscal 2021 Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget General 839,749 906,751 67,002 General 12,731,763 10,687,934 (2,043,829) Federal State Special Revenue Special Grant SERVICE TOTAL AGENCY TOTAL 309,723 410,529 626,526 606,957 14,685,498 14,685,498 315,896 418,712 560,934 272,438 12,255,914 12,255,914 6,173 8,183 (65,592) (334,519) (2,429,584) (2,429,584) 193,255,039 46,181,788 147,073,251 205,936,422 43,953,753 161,982,669 12,681,383 (2,228,035) 14,909,418 GRAND TOTAL TOTAL OPERATING BUDGET LESS INTERNAL SERVICE TOTAL OPERATING APPROPRIATONS 129 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Priority Outcome: Other Fund Name General Conduit Enterprise Wastewater Utility Water Utility Stormwater Utility Parking Management Federal State Special Revenue Total Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 224,321,292 0 0 0 0 0 0 0 16,700,000 241,021,292 207,403,201 10,000 75,000 75,000 20,000 5,000 85,000 15,000 45,224,132 252,912,333 (16,918,091) 10,000 75,000 75,000 20,000 5,000 85,000 15,000 28,524,132 11,891,041 Budget appropriations included in this section include centralized fixed costs of City operations, including debt service, retiree health benefits, self‐insurance costs, and contributions to the City’s retirement systems. 130 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Operating Budget Recommendation for Other Service Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget M‐R: Conditional Purchase Agreements 129 Conditional Purchase Agreement General Payments 9,082,710 6,523,070 (2,559,640) M‐R: Contingent Fund 121 Contingent Fund 1,000,000 1,000,000 0 78,845,808 16,700,000 95,545,808 95,545,808 87,103,413 45,189,132 132,292,545 132,292,545 8,257,605 28,489,132 36,746,737 36,746,737 3,558,858 5,235,987 1,677,129 30,920,061 0 28,470,900 10,000 (2,449,161) 10,000 0 75,000 75,000 0 0 75,000 20,000 75,000 20,000 M‐R: Debt Service 123 General Debt Service Fund Name General General Special Revenue SERVICE TOTAL AGENCY TOTAL M‐R: Employees’ Retirement Contribution 355 Employees’ Retirement General Contribution M‐R: Miscellaneous General Expenses 122 Miscellaneous General Expenses General Conduit Enterprise Wastewater Utility Water Utility Stormwater Utility Parking Management Federal State Special Revenue SERVICE TOTAL AGENCY TOTAL 0 5,000 5,000 0 0 0 30,920,061 30,920,061 85,000 15,000 35,000 28,790,900 28,790,900 85,000 15,000 35,000 (2,129,161) (2,129,161) M‐R: Retirees’ Benefits 351 Retirees’ Benefits General 46,344,685 46,466,870 122,185 M‐R: Self‐Insurance Fund 126 Contribution to Self Insurance Fund General 40,875,291 19,224,075 (21,651,216) M‐R: TIF Debt Service 124 TIF Debt Service General 13,693,879 13,378,886 (314,993) 241,021,292 0 241,021,292 252,912,333 0 252,912,333 11,891,041 0 11,891,041 GRAND TOTAL TOTAL OPERATING BUDGET LESS INTERNAL SERVICE TOTAL OPERATING APPROPRIATONS 131 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Operating Budget by Agency, Service, and Fund Service Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Board of Elections 899 Fair Conduct of Elections General 7,618,893 7,428,423 (190,470) City Council 100 City Council General 8,427,656 8,179,164 (248,492) General 1,697,733 1,698,700 967 General General 5,272,064 1,140,866 5,082,109 1,043,554 (189,955) (97,312) 10,690,513 820,908 19,622,084 10,732,691 941,093 19,498,147 42,178 120,185 (123,937) 777,036 794,090 17,054 17,905,168 2,018,946 5,640,399 212,362 25,776,875 25,776,875 17,657,644 2,153,572 5,974,379 0 25,785,595 25,785,595 (247,524) 134,626 333,980 (212,362) 8,720 8,720 607,554 617,892 10,338 Special Revenue 5,343,379 5,619,931 276,552 Special Revenue 5,489,267 5,723,018 233,751 Special Revenue AGENCY TOTAL 878,657 11,711,303 872,109 12,215,058 (6,548) 503,755 General State Special Revenue 26,178,994 14,159,535 853,182 26,185,090 14,270,492 996,122 6,096 110,957 142,940 Comptroller 130 Executive Direction and Control Comptroller 131 Audits 132 Real Estate Acquisition and Management 133 Municipal Telephone Exchange 136 Municipal Post Office Council Services 103 Council Services Courts: Circuit Court 110 Circuit Court Courts: Orphans’ Court 817 Orphans’ Court Employees’ Retirement Systems 152 Employees’ Retirement System Administration 154 Fire and Police Retirement System Administration 155 Retirement Savings Plan Enoch Pratt Free Library 788 Information Services Internal Service Internal Service AGENCY TOTAL General General Federal State Special Grant SERVICE TOTAL AGENCY TOTAL General 132 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service Finance 148 Revenue Collection 150 Treasury and Debt Management 698 Administration Finance 699 Procurement 700 Surplus Property Disposal 701 Printing Services 702 Accounts Payable 703 Payroll 704 Accounting 707 Risk Management for Employee Injuries 708 Operating Budget Management 710 Fiscal Integrity and Recovery 711 Finance Project Management Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget SERVICE TOTAL AGENCY TOTAL 41,191,711 41,191,711 41,451,704 41,451,704 259,993 259,993 General Water Utility SERVICE TOTAL General General General Special Revenue Internal Service General General General Internal Service 6,993,881 0 6,993,881 1,174,131 1,930,465 3,624,808 122,213 3,431,896 1,028,253 3,527,572 1,831,274 8,817,673 6,437,091 265,580 6,702,671 1,254,755 1,813,523 3,300,236 151,133 3,672,135 892,289 3,612,749 2,212,411 5,436,993 (556,790) 265,580 (291,210) 80,624 (116,942) (324,572) 28,920 240,239 (135,964) 85,177 381,137 (3,380,680) General General General AGENCY TOTAL 2,012,063 1,177,595 0 35,671,824 1,887,254 1,197,953 1,373,154 33,507,256 (124,809) 20,358 1,373,154 (2,164,568) General Federal State SERVICE TOTAL General 9,160,725 1,604,329 374,343 11,139,397 162,388,270 9,550,556 1,600,000 350,000 11,500,556 162,475,629 389,831 (4,329) (24,343) 361,159 87,359 Federal State SERVICE TOTAL General Federal State SERVICE TOTAL General State Special Revenue SERVICE TOTAL General 4,607,990 1,485,078 168,481,338 687,496 320,866 600,000 1,608,362 30,257,988 1,339,247 19,982,716 51,579,951 391,371 2,424,656 1,420,339 166,320,624 870,805 1,795,858 67,000 2,733,663 32,341,664 1,343,438 20,035,571 53,720,673 392,034 (2,183,334) (64,739) (2,160,714) 183,309 1,474,992 (533,000) 1,125,301 2,083,676 4,191 52,855 2,140,722 663 Fire 600 Administration Fire 602 Fire Suppression and Emergency Rescue 608 Emergency Management 609 Emergency Medical Services 610 Fire and Emergency Community Outreach 133 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 611 Fire Code Enforcement General Federal State SERVICE TOTAL General General 5,450,582 168,003 181,824 5,800,409 784,186 18,900,562 5,268,877 171,867 185,448 5,626,192 749,195 19,275,231 (181,705) 3,864 3,624 (174,217) (34,991) 374,669 Federal State Special Revenue SERVICE TOTAL General 3,142,168 1,356,163 278,191 23,677,084 13,014,395 3,628,628 1,348,885 0 24,252,744 8,901,044 486,460 (7,278) (278,191) 575,660 (4,113,351) State Special Revenue SERVICE TOTAL General AGENCY TOTAL 3,000 7,394,643 20,412,038 5,187,873 289,062,009 3,000 9,226,149 18,130,193 4,755,552 288,181,426 0 1,831,506 (2,281,845) (432,321) (880,583) Internal Service General General 66,604,647 633,055 0 65,812,561 44,126 533,926 (792,086) (588,929) 533,926 Internal Service State Special Revenue SERVICE TOTAL General Internal Service Federal State Special Revenue SERVICE TOTAL General 2,411,187 3,500,000 500,000 6,411,187 7,321,838 28,760,470 1,000,000 1,000,000 100,000 38,182,308 959,724 0 300,000 511,500 1,345,426 7,652,699 28,452,948 1,023,000 1,000,000 99,700 38,228,347 968,458 (2,411,187) (3,200,000) 11,500 (5,065,761) 330,861 (307,522) 23,000 0 (300) 46,039 8,734 AGENCY TOTAL 112,790,921 106,398,918 (6,392,003) 5,363,718 1,650,197 942,419 4,735,681 1,792,441 963,170 (628,037) 142,244 20,751 612 Fire Investigation 613 Fire Facilities Maintenance and Replacement 614 Fire Communications and Dispatch 615 Fire Training and Education General Services 189 Fleet Management 726 Administration General Services 730 Public and Private Energy Performance 731 Facilities Management 734 Capital Projects Division Design and Construction Health 303 Clinical Services General Federal State 134 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service 305 Healthy Homes 307 Substance Use Disorder and Mental Health 308 Maternal and Child Health 310 School Health Services 311 Health Services for Seniors 315 Emergency Services Health 316 Youth and Trauma Services 715 Administration Health 716 Animal Services Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Special Revenue SERVICE TOTAL General Federal State Special Revenue SERVICE TOTAL General 104,681 8,061,015 928,920 1,288,423 378,541 316,715 2,912,599 1,601,148 102,698 7,593,990 1,032,840 1,021,902 834,523 316,324 3,205,589 1,533,047 (1,983) (467,025) 103,920 (266,521) 455,982 (391) 292,990 (68,101) Federal State SERVICE TOTAL General Federal State Special Revenue Special Grant SERVICE TOTAL General Federal State Special Revenue Special Grant SERVICE TOTAL Special Revenue General Federal State Special Grant SERVICE TOTAL General Federal State SERVICE TOTAL General Federal State Special Revenue Special Grant SERVICE TOTAL General 1,359,060 1,642,214 4,602,422 2,054,708 20,087,746 1,725,863 768,000 1,231,073 25,867,390 14,983,639 40,143 507,009 1,197,222 25,000 16,753,013 4,993,373 906,554 741,815 8,350,902 532,879 10,532,150 747,106 1,075,265 655,815 2,478,186 4,290,359 5,497,264 2,135,763 1,690,657 0 13,614,043 3,680,648 1,347,824 1,804,827 4,685,698 1,995,168 20,151,259 1,869,220 894,644 1,186,302 26,096,593 15,711,762 157,705 507,856 5,024,751 25,000 21,427,074 5,244,140 920,394 668,764 8,470,708 498,886 10,558,752 687,692 1,039,989 739,756 2,467,437 4,582,757 5,620,731 2,315,986 1,700,000 200,000 14,419,474 3,374,999 (11,236) 162,613 83,276 (59,540) 63,513 143,357 126,644 (44,771) 229,203 728,123 117,562 847 3,827,529 0 4,674,061 250,767 13,840 (73,051) 119,806 (33,993) 26,602 (59,414) (35,276) 83,941 (10,749) 292,398 123,467 180,223 9,343 200,000 805,431 (305,649) 135 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service Fund Name 717 Environmental Inspection Services 718 Chronic Disease Prevention 720 HIV Treatment Services for the Uninsured 721 Senior Centers 722 Administration CARE 723 Advocacy for Seniors 724 Direct Care and Support Planning 725 Community Services for Seniors Housing and Community Development 593 Community Support Projects Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget General 3,115,769 3,065,526 (50,243) Special Revenue SERVICE TOTAL General Federal State Special Revenue Special Grant SERVICE TOTAL General 32,882 3,148,651 411,013 45,024 496,190 30,690 125,000 1,107,917 1,271,654 33,537 3,099,063 241,466 45,471 536,772 31,302 0 855,011 1,289,372 655 (49,588) (169,547) 447 40,582 612 (125,000) (252,906) 17,718 Federal State SERVICE TOTAL General Federal State Special Revenue Special Grant SERVICE TOTAL General Federal SERVICE TOTAL General Federal State Special Revenue SERVICE TOTAL State 28,784,739 20,668,526 50,724,919 867,621 1,702,320 336,204 97,449 16,432 3,020,026 551,834 236,795 788,629 107,410 71,313 350,089 316,426 845,238 2,595,742 28,676,268 23,256,972 53,222,612 1,490,638 1,861,384 349,049 99,391 16,432 3,816,894 589,957 242,857 832,814 93,605 108,693 350,212 388,489 940,999 2,647,756 (108,471) 2,588,446 2,497,693 623,017 159,064 12,845 1,942 0 796,868 38,123 6,062 44,185 (13,805) 37,380 123 72,063 95,761 52,014 Special Revenue SERVICE TOTAL General Federal State SERVICE TOTAL AGENCY TOTAL 37,000 2,632,742 195,486 3,654,719 979,425 4,829,630 160,592,591 37,738 2,685,494 198,519 3,711,222 998,947 4,908,688 169,435,321 738 52,752 3,033 56,503 19,522 79,058 8,842,730 2,000,000 9,677,581 2,206,289 25,083,253 206,289 15,405,672 General Federal 136 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service 604 Before and After Care 737 Administration HCD 738 Weatherization Services 740 Dawson Center 742 Promote Homeownership 745 Housing Code Enforcement 747 Register and License Properties and Contractors 748 Affordable Housing 749 Property Acquisition Disposition and Asset Management 750 Housing Rehabilitation Services 751 Building and Zoning Inspections and Permits 752 Community Outreach Services 754 Summer Food Service Program 809 Retention Expansion and Attraction of Businesses 810 Real Estate Development Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget State SERVICE TOTAL General General Federal Special Revenue SERVICE TOTAL General State Special Grant SERVICE TOTAL General Federal SERVICE TOTAL General Federal SERVICE TOTAL General Federal Special Revenue SERVICE TOTAL General 307,000 11,984,581 159,537 5,156,053 1,615,878 200,000 6,971,931 702,459 4,898,724 60,000 5,661,183 45,966 389,756 435,722 415,282 141,007 556,289 14,121,544 360,000 50,000 14,531,544 585,296 313,119 27,602,661 125,081 5,306,686 1,238,222 200,000 6,744,908 799,439 4,918,661 61,380 5,779,480 46,992 402,456 449,448 459,038 185,368 644,406 11,676,930 363,986 50,997 12,091,913 621,062 6,119 15,618,080 (34,456) 150,633 (377,656) 0 (227,023) 96,980 19,937 1,380 118,297 1,026 12,700 13,726 43,756 44,361 88,117 (2,444,614) 3,986 997 (2,439,631) 35,766 Federal Special Revenue SERVICE TOTAL General 743,856 17,000,000 17,743,856 3,192,718 717,564 13,490,473 14,208,037 3,586,699 (26,292) (3,509,527) (3,535,819) 393,981 Federal State SERVICE TOTAL General 3,746,375 550,000 4,296,375 6,389,837 6,121,682 559,317 6,680,999 6,546,353 2,375,307 9,317 2,384,624 156,516 General State General 1,461,797 3,604,658 2,332,676 1,466,905 3,651,901 2,342,730 5,108 47,243 10,054 Special Revenue SERVICE TOTAL General Special Revenue 165,769 2,498,445 2,332,676 165,769 165,769 2,508,499 2,342,730 165,769 0 10,054 10,054 0 137 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service 811 Inner Harbor Coordination 813 Technology Development Emerging Technology Center 815 Live Baltimore Human Resources 770 Administration Human Resources 771 Benefits Administration 772 Civil Service Management 773 Learning and Development Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget SERVICE TOTAL General General 2,498,445 434,775 621,504 2,508,499 443,441 833,934 10,054 8,666 212,430 General AGENCY TOTAL 584,865 84,213,358 596,522 97,090,748 11,657 12,877,390 2,713,370 3,824,968 1,111,598 General Internal Service SERVICE TOTAL General General AGENCY TOTAL 3,251,200 2,338,013 5,589,213 3,417,533 0 11,720,116 2,615,410 2,369,868 4,985,278 3,455,947 891,666 13,157,859 (635,790) 31,855 (603,935) 38,414 891,666 1,437,743 General General Internal Service SERVICE TOTAL General Internal Service SERVICE TOTAL General 1,450,486 5,048,601 2,610,490 7,659,091 1,942,957 99,906 2,042,863 491,949 1,361,662 4,841,821 2,723,652 7,565,473 1,929,801 86,221 2,016,022 511,170 (88,824) (206,780) 113,162 (93,618) (13,156) (13,685) (26,841) 19,221 General Internal Service AGENCY TOTAL 2,194,751 857,050 14,696,190 2,243,178 4,476,049 18,173,554 48,427 3,618,999 3,477,364 749,718 549,392 741,867 561,521 (7,851) 12,129 AGENCY TOTAL 1,299,110 1,303,388 4,278 General General AGENCY TOTAL 1,036,356 1,227,614 2,263,970 1,112,928 1,187,954 2,300,882 76,572 (39,660) 36,912 General Law 860 Administration Law 861 Controversies 862 Transactions 869 Minority and Women’s Business Opportunity Office 871 Police Legal Affairs 872 Workers’ Compensation Practice Legislative Reference 106 Legislative Reference Services 107 Archives and Records Management Liquor License Board 850 Liquor Licensing 851 Liquor License Compliance General General 138 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service M‐R: Art and Culture 493 Art and Culture Grants 824 Events Art Culture and Film 828 Bromo Seltzer Arts Tower M‐R: Baltimore City Public Schools 352 Baltimore City Public Schools M‐R: Cable and Communications 876 Media Production M‐R: Civic Promotion 590 Civic Promotion Grants 820 Convention Sales and Tourism Marketing Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 6,026,750 2,883,811 40,000 2,923,811 98,726 9,049,287 6,497,627 2,431,323 50,000 2,481,323 100,693 9,079,643 470,877 (452,488) 10,000 (442,488) 1,967 30,356 278,412,181 287,346,700 8,934,519 663,953 980,803 1,644,756 1,644,756 720,363 676,001 1,396,364 1,396,364 56,410 (304,802) (248,392) (248,392) General General 1,152,670 13,170,469 1,175,643 7,794,837 22,973 (5,375,632) AGENCY TOTAL 14,323,139 8,970,480 (5,352,659) 9,082,710 6,523,070 (2,559,640) General General Special Revenue SERVICE TOTAL General AGENCY TOTAL General General Special Revenue SERVICE TOTAL AGENCY TOTAL M‐R: Conditional Purchase Agreements 129 Conditional Purchase Agreement General Payments M‐R: Contingent Fund 121 Contingent Fund General 1,000,000 1,000,000 0 M‐R: Convention Center Hotel 535 Convention Center Hotel General 7,955,690 12,456,302 4,500,612 M‐R: Convention Complex 540 Royal Farms Arena Operations 855 Convention Center 857 Convention Center Debt Service M‐R: Debt Service 123 General Debt Service General General State SERVICE TOTAL Convention Center Bond AGENCY TOTAL 577,577 12,941,587 6,136,377 19,077,964 4,562,625 606,237 12,362,139 6,409,831 18,771,970 0 28,660 (579,448) 273,454 (305,994) (4,562,625) 24,218,166 19,378,207 (4,839,959) General Special Revenue 78,845,808 16,700,000 87,103,413 45,189,132 8,257,605 28,489,132 139 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget SERVICE TOTAL AGENCY TOTAL 95,545,808 95,545,808 132,292,545 132,292,545 36,746,737 36,746,737 General Federal Special Revenue SERVICE TOTAL AGENCY TOTAL 10,749,513 300,000 12,950,157 23,999,670 23,999,670 11,340,311 300,000 16,926,000 28,566,311 28,566,311 590,798 0 3,975,843 4,566,641 4,566,641 M‐R: Employees’ Retirement Contribution 355 Employees’ Retirement General Contribution 3,558,858 5,235,987 1,677,129 M‐R: Environmental Control Board 117 Adjudication of Environmental Citations General 1,488,016 1,497,623 9,607 State SERVICE TOTAL AGENCY TOTAL 250,000 1,738,016 1,738,016 255,750 1,753,373 1,753,373 5,750 15,357 15,357 General 1,302,732 1,336,592 33,860 30,920,061 0 28,470,900 10,000 (2,449,161) 10,000 0 75,000 75,000 0 0 75,000 20,000 75,000 20,000 0 5,000 5,000 0 0 0 30,920,061 30,920,061 85,000 15,000 35,000 28,790,900 28,790,900 85,000 15,000 35,000 (2,129,161) (2,129,161) M‐R: Educational Grants 446 Educational Grants M‐R: Health and Welfare Grants 385 Health and Welfare Grants M‐R: Miscellaneous General Expenses 122 Miscellaneous General Expenses General Conduit Enterprise Wastewater Utility Water Utility Stormwater Utility Parking Management Federal State Special Revenue SERVICE TOTAL AGENCY TOTAL M‐R: Office of Children and Family Success 140 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service Fund Name 109 Administration Children and Family Success General 605 Head Start 741 Community Action Partnership M‐R: Office of Criminal Justice 617 Criminal Justice Coordination 618 Neighborhood Safety and Engagement 757 CitiWatch 758 Coordination of Public Safety Strategy Administration M‐R: Office of Employment Development 791 BCPS Alternative Options Academy for Youth 792 Workforce Public Assistance Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 0 2,810,544 2,810,544 Special Revenue SERVICE TOTAL General Federal State Special Revenue SERVICE TOTAL General Water Utility Federal State SERVICE TOTAL AGENCY TOTAL 0 0 533,730 7,758,044 136,043 150,000 8,577,817 741,259 0 1,026,041 6,843,954 8,611,254 17,189,071 280,775 3,091,319 587,384 7,790,297 138,754 152,990 8,669,425 709,080 459,999 1,052,599 7,562,517 9,784,195 21,544,939 280,775 3,091,319 53,654 32,253 2,711 2,990 91,608 (32,179) 459,999 26,558 718,563 1,172,941 4,355,868 General Federal State SERVICE TOTAL General 803,913 1,834,722 1,000,000 3,638,635 3,211,753 744,496 1,130,078 1,023,000 2,897,574 3,643,620 (59,417) (704,644) 23,000 (741,061) 431,867 Federal State Special Revenue SERVICE TOTAL General Special Revenue SERVICE TOTAL General 1,974,323 3,600,000 1,087,000 9,873,076 2,653,256 130,000 2,783,256 897,516 1,646,370 5,046,951 1,138,584 11,475,525 2,706,297 179,460 2,885,757 1,130,143 (327,953) 1,446,951 51,584 1,602,449 53,041 49,460 102,501 232,627 State Special Revenue SERVICE TOTAL AGENCY TOTAL 45,000 0 942,516 17,237,483 45,000 300,000 1,475,143 18,733,999 0 300,000 532,627 1,496,516 204,676 198,941 (5,735) 3,020,748 2,877,547 (143,201) State Federal 141 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service Fund Name State 793 Employment Enhancement Services for Baltimore City Residents SERVICE TOTAL General Special Revenue SERVICE TOTAL 794 Administration MOED General Federal Special Revenue SERVICE TOTAL 795 Workforce Services for Baltimore Federal Residents State Special Revenue Special Grant SERVICE TOTAL 796 Workforce Services for Ex General Offenders Federal State SERVICE TOTAL 797 Workforce Services for Out of General School Youth Youth Opportunity Federal State Special Revenue Special Grant SERVICE TOTAL 798 Youth Works Summer Job General Program Federal State Special Revenue Special Grant SERVICE TOTAL 800 Workforce Services for WIOA Federal Funded Youth 806 Mobile Workforce Center General AGENCY TOTAL 142 Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 100,000 100,000 0 3,120,748 1,403,333 2,977,547 1,510,914 (143,201) 107,581 580,000 1,983,333 687,758 75,745 250,623 1,014,126 5,079,552 711,182 2,222,096 1,021,781 0 437,633 1,459,414 6,126,530 131,182 238,763 334,023 (75,745) 187,010 445,288 1,046,978 100,000 214,968 0 5,394,520 186,799 473,380 0 200,000 6,799,910 189,287 373,380 (214,968) 200,000 1,405,390 2,488 557,000 994,450 1,738,249 3,080,755 557,000 983,794 1,730,081 3,089,492 0 (10,656) (8,168) 8,737 979,477 100,000 165,000 0 4,325,232 2,442,735 1,124,412 100,000 132,781 165,000 4,611,685 2,359,955 144,935 0 (32,219) 165,000 286,453 (82,780) 1,970,889 3,478,473 1,690,000 0 9,582,097 2,627,565 2,000,000 3,653,409 1,747,469 1,200,000 10,960,833 3,260,315 29,111 174,936 57,469 1,200,000 1,378,736 632,750 548,765 30,539,311 0 34,220,822 (548,765) 3,681,511 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget General Federal State Special Revenue SERVICE TOTAL Federal 1,910,976 2,920,088 220,297 1,243,394 6,294,755 621,431 1,577,506 4,240,570 217,948 728,065 6,764,089 237,844 (333,470) 1,320,482 (2,349) (515,329) 469,334 (383,587) State SERVICE TOTAL General Federal State SERVICE TOTAL General 516,400 1,137,831 996,532 2,662,571 296,578 3,955,681 8,757,780 258,717 496,561 1,016,250 928,367 39,523 1,984,140 9,476,717 (257,683) (641,270) 19,718 (1,734,204) (257,055) (1,971,541) 718,937 Federal State SERVICE TOTAL General 183,509 1,945,310 10,886,599 770,518 9,448,356 1,965,534 20,890,607 252,181 9,264,847 20,224 10,004,008 (518,337) Federal State Special Revenue SERVICE TOTAL AGENCY TOTAL 29,781,059 26,995 96,342 30,674,914 52,949,780 29,935,410 2,801,536 0 32,989,127 63,124,524 154,351 2,774,541 (96,342) 2,314,213 10,174,744 3,194,490 6,219,527 2,691,631 22,389,776 (502,859) 16,170,249 5,163,500 8,778,865 16,515,339 25,294,204 39,871,721 5,287,451 8,396,949 13,515,051 21,912,000 52,280,858 123,951 (381,916) (3,000,288) (3,382,204) 12,409,137 General 1,578,928 1,808,349 229,421 General 839,749 906,751 67,002 M‐R: Office of Homeless Services 356 Administration Human Services 893 Homeless Prevention and Support Services for the Homeless 894 Outreach to the Homeless 895 Temporary Housing for the Homeless 896 Permanent Housing for the Homeless M‐R: Office of Information and Technology 802 Administration 803 Enterprise Innovation and Application Services 804 311 Call Center 805 Enterprise IT Delivery Services M‐R: Office of the Inspector General 836 Inspector General M‐R: Office of the Labor Commissioner 128 Labor Contract Negotiations and Administration General General General General Internal Service SERVICE TOTAL AGENCY TOTAL 143 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service M‐R: Retirees’ Benefits 351 Retirees’ Benefits M‐R: Self‐Insurance Fund 126 Contribution to Self Insurance Fund M‐R: TIF Debt Service 124 TIF Debt Service Mayoralty 111 Economic Recovery 125 Executive Direction and Control Mayoralty Municipal and Zoning Appeals 185 Board of Municipal and Zoning Appeals Office of Equity and Civil Rights 656 Wage Investigation and Enforcement 846 Discrimination Investigations Resolutions and Concilations 848 Police Community Relations Planning 761 Development Oversight and Project Support 762 Historic Preservation Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget General 46,344,685 46,466,870 122,185 General 40,875,291 19,224,075 (21,651,216) General 13,693,879 13,378,886 (314,993) Federal General 0 12,731,763 10,000,000 10,687,934 10,000,000 (2,043,829) Federal State Special Revenue Special Grant SERVICE TOTAL AGENCY TOTAL 309,723 410,529 626,526 606,957 14,685,498 14,685,498 315,896 418,712 560,934 272,438 12,255,914 22,255,914 6,173 8,183 (65,592) (334,519) (2,429,584) 7,570,416 General 656,762 577,288 (79,474) General 682,981 751,460 68,479 General 1,134,026 1,344,743 210,717 Special Revenue SERVICE TOTAL General AGENCY TOTAL 168,638 1,302,664 675,121 2,660,766 169,508 1,514,251 691,685 2,957,396 870 211,587 16,564 296,630 General 1,213,217 951,978 (261,239) Special Grant SERVICE TOTAL General Federal State 0 1,213,217 676,945 100,000 100,000 51,000 1,002,978 713,462 100,000 100,000 51,000 (210,239) 36,517 0 0 144 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service 763 Comprehensive Planning and Resource Management 765 Planning for a Sustainable Baltimore 768 Administration Planning Police 621 Administrative Bureau 622 Police Patrol 623 Criminal Investigation Division 624 Target Violent Criminals 625 SWAT ESU 626 Data Driven Strategies Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Special Revenue SERVICE TOTAL General 50,000 926,945 2,185,208 50,000 963,462 2,165,567 0 36,517 (19,641) Federal State Special Revenue Special Grant SERVICE TOTAL General 150,000 150,000 1,215,000 12,788 3,712,996 1,316,292 150,000 225,000 705,000 0 3,245,567 1,317,800 0 75,000 (510,000) (12,788) (467,429) 1,508 Federal State Special Revenue Special Grant SERVICE TOTAL General State SERVICE TOTAL AGENCY TOTAL 535,120 510,500 75,000 258,000 2,694,912 1,431,666 250,000 1,681,666 10,229,736 518,105 542,748 75,000 926,142 3,379,795 1,512,590 0 1,512,590 10,104,392 (17,015) 32,248 0 668,142 684,883 80,924 (250,000) (169,076) (125,344) General Federal State Special Revenue SERVICE TOTAL General Federal State Special Revenue SERVICE TOTAL General Federal State SERVICE TOTAL General State Special Revenue SERVICE TOTAL General General 80,438,389 0 12,862,251 500,000 93,800,640 196,412,213 300,000 4,427,178 1,305,000 202,444,391 52,554,451 390,000 554,515 53,498,966 46,822,659 3,659,354 2,264,281 52,746,294 10,877,390 13,566,666 93,109,603 264,137 10,725,750 6,302,782 110,402,272 223,160,490 2,500,000 4,781,488 1,469,485 231,911,463 55,152,054 766,086 4,371,226 60,289,366 0 0 0 0 0 8,901,421 12,671,214 264,137 (2,136,501) 5,802,782 16,601,632 26,748,277 2,200,000 354,310 164,485 29,467,072 2,597,603 376,086 3,816,711 6,790,400 (46,822,659) (3,659,354) (2,264,281) (52,746,294) (10,877,390) (4,665,245) 145 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service 627 Emergency Communications 628 Public Integrity Bureau 632 Manage Police Records 634 Crowd Traffic and Special Events Management 635 Recruitment Section 637 Special Operations K 9 and Mounted Unit 638 Marine Unit 640 Special Operations Aviation 642 Crime Laboratory and Evidence Control 807 Compliance Bureau 816 Special Operations Section 853 Patrol Support Services Public Works 660 Administration Solid Waste Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Federal State SERVICE TOTAL General General General General 1,366,762 1,360,000 16,293,428 14,064,986 12,995,906 7,483,083 11,555,040 0 1,478,872 10,380,293 0 9,160,770 0 0 (1,366,762) 118,872 (5,913,135) (14,064,986) (3,835,136) (7,483,083) (11,555,040) Federal SERVICE TOTAL General Federal SERVICE TOTAL General 55,000 11,610,040 22,602,468 20,000 22,622,468 4,354,708 0 0 20,401,253 0 20,401,253 0 (55,000) (11,610,040) (2,201,215) (20,000) (2,221,215) (4,354,708) Federal State SERVICE TOTAL General Federal SERVICE TOTAL General General 5,000 149,620 4,509,328 2,465,832 300,000 2,765,832 7,054,321 23,048,260 0 0 0 0 0 0 0 22,633,504 (5,000) (149,620) (4,509,328) (2,465,832) (300,000) (2,765,832) (7,054,321) (414,756) Federal SERVICE TOTAL General Federal State SERVICE TOTAL General Federal SERVICE TOTAL General Federal State Special Revenue SERVICE TOTAL AGENCY TOTAL 561,144 23,609,404 0 0 0 0 0 0 0 0 0 0 0 0 536,376,477 530,702 23,164,206 35,133,390 25,460 2,265,945 37,424,795 25,687,548 521,900 26,209,448 15,910,128 605,750 3,099,775 1,000,000 20,615,653 549,959,519 (30,442) (445,198) 35,133,390 25,460 2,265,945 37,424,795 25,687,548 521,900 26,209,448 15,910,128 605,750 3,099,775 1,000,000 20,615,653 13,583,042 1,619,876 2,304,687 684,811 General 146 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 661 Public Right of Way Cleaning General Stormwater Utility Federal Special Revenue SERVICE TOTAL General 17,829,031 5,009,349 18,031,225 4,152,328 202,194 (857,021) 2,000,000 1,700,000 26,538,380 11,530,497 2,046,000 1,622,021 25,851,574 12,124,600 46,000 (77,979) (686,806) 594,103 1,100,000 12,630,497 30,912,452 200,000 0 31,112,452 24,984,891 30,007,954 1,100,000 13,224,600 32,216,421 204,600 250,000 32,671,021 25,593,910 26,504,789 0 594,103 1,303,969 4,600 250,000 1,558,569 609,019 (3,503,165) 22,616,194 52,624,148 85,705,288 200,000 85,905,288 13,376,133 18,377,957 44,882,746 86,728,786 204,600 86,933,386 13,468,223 (4,238,237) (7,741,402) 1,023,498 4,600 1,028,098 92,090 16,221,148 4,158,622 10,931,837 4,158,622 (5,289,311) 0 33,755,903 142,648,301 28,558,682 127,605,593 (5,197,221) (15,042,708) 319,925 142,968,226 1,720,594 300,000 127,905,593 1,741,591 (19,925) (15,062,633) 20,997 422,193 17,977,394 450,725 25,686,006 28,532 7,708,612 100,000 300,000 20,520,181 100,000 510,000 28,488,322 0 210,000 7,968,141 662 Vacant and Abandoned Property Cleaning and Boarding 663 Waste Removal and Recycling 664 Waste Re Use and Disposal 670 Administration Water and Wastewater 671 Water Management 672 Water and Wastewater Consumer Services 673 Wastewater Management 674 Surface Water Management Federal SERVICE TOTAL General Special Revenue Special Grant SERVICE TOTAL General Wastewater Utility Water Utility SERVICE TOTAL Water Utility Federal SERVICE TOTAL Wastewater Utility Water Utility Stormwater Utility SERVICE TOTAL Wastewater Utility State SERVICE TOTAL Wastewater Utility Water Utility Stormwater Utility Federal State SERVICE TOTAL 147 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 675 Engineering and Construction Management Water and Wastewater Wastewater Utility Water Utility SERVICE TOTAL General Wastewater Utility SERVICE TOTAL AGENCY TOTAL 89,603,133 102,457,449 12,854,316 67,410,662 157,013,795 2,810,865 0 84,245,770 186,703,219 2,833,998 1,450,847 16,835,108 29,689,424 23,133 1,450,847 2,810,865 592,484,502 4,284,845 607,402,585 1,473,980 14,918,083 5,081,024 5,168,854 87,830 State SERVICE TOTAL General Special Revenue SERVICE TOTAL General State Special Revenue SERVICE TOTAL General Special Revenue SERVICE TOTAL General Federal Special Revenue Special Grant SERVICE TOTAL Special Revenue 242,379 5,323,403 2,603,668 900,000 3,503,668 10,658,308 3,330,031 1,986,800 15,975,139 785,230 175,995 961,225 14,154,193 359,355 1,871,546 0 16,385,094 2,982,928 1,671,655 6,840,509 2,526,786 0 2,526,786 13,056,596 3,933,185 1,823,996 18,813,777 831,042 173,945 1,004,987 14,930,009 439,661 1,721,132 300,000 17,390,802 3,124,192 1,429,276 1,517,106 (76,882) (900,000) (976,882) 2,398,288 603,154 (162,804) 2,838,638 45,812 (2,050) 43,762 775,816 80,306 (150,414) 300,000 1,005,708 141,264 General Special Revenue SERVICE TOTAL General Special Revenue SERVICE TOTAL General Special Revenue General AGENCY TOTAL 1,390,357 578,843 1,969,200 308,847 37,675 346,522 463,959 1,244,801 4,476,641 53,632,580 1,307,879 483,485 1,791,364 477,710 38,500 516,210 489,992 1,121,889 4,573,199 58,193,707 (82,478) (95,358) (177,836) 168,863 825 169,688 26,033 (122,912) 96,558 4,561,127 676 Administration DPW Recreation and Parks 644 Administration Recreation and Parks 645 Aquatics 646 Park Maintenance 647 Youth and Adult Sports 648 Community Recreation Centers 649 Special Facilities Management Recreation 650 Horticulture 651 Recreation for Seniors 652 Therapeutic Recreation 653 Park Programs and Events 654 Urban Forestry General 148 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Service Sheriff 881 Courthouse Security 882 Deputy Sheriff Enforcement 883 Service of Protective and Peace Orders 884 District Court Sheriff Services 889 Child Support Enforcement State’s Attorney 115 Prosecution of Criminals 781 Administration State’s Attorney 786 Victim and Witness Services Transportation 500 Street Lighting 548 Conduits 681 Administration DOT 682 Parking Management 683 Street Management 684 Traffic Management Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget General General State Special Revenue SERVICE TOTAL General 4,155,371 10,355,587 0 235,290 10,590,877 2,099,188 4,095,269 10,770,075 50,000 239,980 11,060,055 2,284,288 (60,102) 414,488 50,000 4,690 469,178 185,100 General General Federal SERVICE TOTAL AGENCY TOTAL 2,730,331 1,661,994 0 1,661,994 21,237,761 2,692,305 1,752,886 1,100,000 2,852,886 22,984,803 (38,026) 90,892 1,100,000 1,190,892 1,747,042 General Federal State Special Revenue SERVICE TOTAL General General Federal State SERVICE TOTAL AGENCY TOTAL 27,725,528 1,378,020 6,053,376 313,959 35,470,883 7,263,805 1,848,678 1,983,044 53,577 3,885,299 46,619,987 27,452,899 1,796,589 6,917,188 320,216 36,486,892 7,634,737 1,866,465 2,601,351 54,655 4,522,471 48,644,100 (272,629) 418,569 863,812 6,257 1,016,009 370,932 17,787 618,307 1,078 637,172 2,024,113 General Conduit Enterprise General Federal SERVICE TOTAL Parking Enterprise Parking Management SERVICE TOTAL General General 21,644,607 12,308,498 20,876,886 13,487,197 (767,721) 1,178,699 9,122,248 550,000 9,672,248 21,524,562 9,749,799 560,962 10,310,761 21,714,081 627,551 10,962 638,513 189,519 10,576,821 10,615,967 39,146 32,101,383 33,326,488 11,380,065 32,330,048 34,189,988 11,054,645 228,665 863,500 (325,420) 149 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Service 685 Special Events 687 Inner Harbor Services Transportation 688 Snow and Ice Control 689 Vehicle Impounding and Disposal 690 Sustainable Transportation 691 Public Rights of Way Landscape Management 692 Bridge and Culvert Management 693 Parking Enforcement 694 Survey Control 695 Dock Master 696 Street Cuts Management 697 Traffic Safety 727 Real Property Management Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Special Revenue SERVICE TOTAL General General 667,967 12,048,032 1,709,402 1,438,945 681,280 11,735,925 1,628,482 1,301,508 13,313 (312,107) (80,920) (137,437) 6,740,227 8,008,638 6,726,609 8,229,565 (13,618) 220,927 General State Special Revenue SERVICE TOTAL General 6,666,477 3,155,818 6,607,986 16,430,281 3,897,871 4,514,539 3,071,326 5,749,637 13,335,502 3,977,994 (2,151,938) (84,492) (858,349) (3,094,779) 80,123 General Parking Management Special Revenue SERVICE TOTAL General Special Revenue General General Federal SERVICE TOTAL General AGENCY TOTAL 3,631,232 15,437,601 3,707,953 16,425,940 76,721 988,339 10,000 15,447,601 272,013 148,134 1,004,365 18,658,878 510,891 19,169,769 2,397,896 201,397,630 0 16,425,940 238,371 158,017 980,051 17,490,271 524,190 18,014,461 2,604,670 200,259,928 (10,000) 978,339 (33,642) 9,883 (24,314) (1,168,607) 13,299 (1,155,308) 206,774 (1,137,702) General General GRAND TOTAL TOTAL OPERATING BUDGET LESS INTERNAL SERVICE TOTAL OPERATING APPROPRIATONS 3,071,812,180 3,184,675,604 112,863,424 143,958,092 138,219,262 (5,738,830) 2,927,854,088 3,046,456,342 118,602,254 150 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 Comparison of Current and Prior Year Operating Budget Summary by Fund Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 1,917,250,000 4,562,625 12,308,498 277,356,115 192,375,485 27,145,365 21,524,562 26,014,422 171,418,401 144,648,279 130,253,537 3,080,491 2,927,937,780 1,932,300,000 0 13,497,197 273,303,492 201,535,654 34,016,956 21,714,081 27,046,907 212,868,706 157,158,843 167,661,926 5,352,580 3,046,456,342 15,050,000 (4,562,625) 1,188,699 (4,052,623) 9,160,169 6,871,591 189,519 1,032,485 41,533,997 12,510,564 37,408,389 2,272,089 118,602,254 Agency Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Comptroller Finance General Services Human Resources Law M‐R: Office of Information and Technology Total 11,511,421 12,249,569 97,776,304 2,338,013 3,567,446 16,515,339 11,673,784 9,109,128 94,265,509 2,369,868 7,285,922 13,515,051 162,363 (3,140,441) (3,510,795) 31,855 3,718,476 (3,000,288) 143,958,092 138,219,262 (5,738,830) General Convention Center Bond Conduit Enterprise Wastewater Utility Water Utility Stormwater Utility Parking Enterprise Parking Management Federal State Special Revenue Special Grant Total Internal Service Fund by Agency 151 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Changes to Permanent Full‐Time Positions By Agency Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 5 0 ‐5 71 81 10 70 35 105 66 35 101 ‐4 0 ‐4 6 6 0 82 14 26 2 124 86 13 33 0 132 4 ‐1 7 ‐2 8 5 5 0 79 80 1 Enoch Pratt Free Library General State Special Revenue AGENCY TOTAL 345 95 10 450 350 95 10 455 5 0 0 5 Finance General Internal Service Water Utility Special Revenue AGENCY TOTAL 271 30 0 2 303 252 32 3 2 289 ‐19 2 3 0 ‐14 1,676 1,646 ‐30 Fund Name Board of Elections General City Council General Comptroller General Internal Service AGENCY TOTAL Council Services General Courts: Circuit Court General Federal State Special Grant AGENCY TOTAL Courts: Orphans’ Court General Employees’ Retirement Systems Special Revenue Fire General 152 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Federal Special Revenue AGENCY TOTAL 0 57 1,733 3 85 1,734 3 28 1 General Services General Internal Service AGENCY TOTAL 53 348 401 57 347 404 4 ‐1 3 Health General Federal State Special Revenue Special Grant AGENCY TOTAL 188 257 83 277 9 814 181 277 116 331 8 913 ‐7 20 33 54 ‐1 99 Housing and Community Development General 378 Federal 58 State 5 Special Revenue 1 AGENCY TOTAL 442 365 63 5 5 438 ‐13 5 0 4 ‐4 68 2 70 72 2 74 4 0 4 79 31 110 75 32 107 ‐4 1 ‐3 Legislative Reference General 6 6 0 Liquor License Board General 22 20 ‐2 4 4 0 151 147 ‐4 Human Resources General Internal Service AGENCY TOTAL Law General Internal Service AGENCY TOTAL M‐R: Cable and Communications General M‐R: Convention Complex General 153 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 8 0 21 3 17 88 129 21 3 17 88 129 14 4 18 15 2 17 1 ‐2 ‐1 M‐R: Office of Employment Development General 45 Federal 110 State 6 Special Revenue 7 AGENCY TOTAL 168 45 113 6 7 171 0 3 0 0 3 0 0 0 0 16 31 3 50 16 31 3 50 26 33 85 18 162 0 0 0 0 0 ‐26 ‐33 ‐85 ‐18 ‐162 M‐R: Office of Information and Technology General 144 Internal Service 6 AGENCY TOTAL 150 142 4 146 ‐2 ‐2 ‐4 13 15 2 6 6 0 M‐R: Environmental Control Board 8 General M‐R: Office of Children and Family Success 0 General Water Utility 0 Federal 0 State 0 AGENCY TOTAL 0 M‐R: Office of Criminal Justice General Federal AGENCY TOTAL M‐R: Office of Homeless Services General Federal Special Revenue AGENCY TOTAL M‐R: Office of Human Services General Federal State Special Revenue AGENCY TOTAL M‐R: Office of the Inspector General General M‐R: Office of the Labor Commissioner General 154 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS Fiscal 2021 (continued) Fund Name Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget Mayoralty General Special Revenue Special Grant AGENCY TOTAL 83 1 4 88 74 0 2 76 ‐9 ‐1 ‐2 ‐12 Municipal and Zoning Appeals General 10 4 ‐6 21 23 2 Office of Equity and Civil Rights General Planning General Police General Federal State Special Revenue AGENCY TOTAL 57 48 ‐9 3,158 13 60 10 3,241 3,111 13 71 9 3,204 ‐47 0 11 ‐1 ‐37 Public Works General Internal Service Wastewater Utility Water Utility Stormwater Utility Special Revenue AGENCY TOTAL 753 9 872 940 146 3 2,723 713 0 899 944 146 3 2,705 ‐40 ‐9 27 4 0 0 ‐18 Recreation and Parks General State Special Revenue AGENCY TOTAL 300 2 12 314 341 18 13 372 41 16 1 58 Sheriff General 218 213 ‐5 State’s Attorney General Federal State 326 22 45 325 34 47 ‐1 12 2 155 Fiscal 2021 SUMMARY OF OPERATING BUDGET RECOMMENDATIONS (continued) Fund Name AGENCY TOTAL Transportation General Conduit Enterprise Parking Management Federal State Special Revenue AGENCY TOTAL TOTAL Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 393 406 13 924 119 154 3 1 2 1,203 865 120 154 3 1 2 1,145 ‐59 1 0 0 0 0 ‐58 13,694 13,734 40 By Fund Fund Name General Internal Service Conduit Enterprise Wastewater Utility Water Utility Stormwater Utility Parking Management Federal State Special Revenue Special Grant Total Fiscal 2020 Budget Fiscal 2021 Budget Change in Budget 9,586 461 119 872 940 146 154 514 408 479 15 13,694 9,404 452 120 899 950 146 154 569 480 550 10 13,734 ‐182 ‐9 1 27 10 0 0 55 72 71 ‐5 40 156 FISCAL 2021 EXECUTIVE SUMMARY Board of Estimates Recommendations Summary of Capital Budget Recommendations Intentionally Left Blank SUMMARY OF CAPITAL BUDGET RECOMMENDATIONS Fiscal 2021 Capital Budget Recommendations Total Capital Budget: $823.2 million Where the Money Comes From All Other 202.8M (24.6%) Revenue Bonds 451.5M (54.9%) General Obligation Bonds 80.0M (9.7%) Federal 40.0M (4.9%) Conduit Enterprise 23.0M (2.8%) County Transportation Bonds 15.0M (1.8%) State 8.6M (1.0%) Stormwater Utility 1.7M (0.2%) General 0.5M (0.1%) How the Money is Used Transportation 63.9M (7.8%) Conduit 41.0M (5.0%) Community Development 35.5M (4.3%) Administrative 26.7M (3.2%) Education 20.1M (2.4%) Recreation 18.1M (2.2%) Public Works 5.6M (0.7%) Economic Development 4.2M (0.5%) Water, Wastewater & Stormwater 608.1M (73.9%) Totals may not equal 100% due to rounding. Charts in millions. 159 Fiscal 2021 SUMMARY OF CAPITAL BUDGET RECOMMENDATIONS Capital Budget Overview The recommendation for the Fiscal 2021 capital program is $823.2 million, an increase of $195.8 million or 31.2% from Fiscal 2020. The capital budget can fluctuate considerably from year to year due to project schedules, the timing of borrowing, and the availability of grant funding. Per Board of Estimates policy, a capital project is a physical betterment or improvement costing more than $50,000 and any preliminary studies relative to that project. It does not include projects that cost less than $50,000, vehicular equipment, repairs and maintenance costing less than $100,000, and salaries for positions that are not part of the cost of the project. The Planning Commission submits a Six‐Year Capital Improvement Plan (CIP) to the Board of Estimates, the first year of which becomes the recommended Capital Budget. Funding for capital programs comes from either current revenues (referred to as “Pay‐As‐You‐Go” or “PAYGO”) or from borrowed funds (referred to as “Loans and Bonds”). Bond fund amounts are constrained by the need to ensure that future repayment of debt service can be made from the City’s operating budget. The City also must ensure that outstanding debt meets reasonable benchmarks and does not put an undue financial burden on future generations. Every five years, the City partners with an external expert who evaluates the City’s debt burden and makes recommendations on appropriate annual borrowing levels. As in many older cities, Baltimore’s aging infrastructure often leads to higher costs for the City, either through emergency repairs, maintenance needs, or energy inefficiency. In addition, many City assets and buildings were built decades ago and might not best meet current City needs. Therefore, capital budget planning requires the City to target limited resources to upgrading and maintaining structures and infrastructure to maintain function‐ ality of City assets. In Fiscal 2020, the Department of Planning began development of a comprehensive City asset management sys‐ tem to house data on a variety of City assets, such as roads, bridges, recreation centers, libraries, and parks. While it is expected to take several years to gather data on all assets and their conditions, such a system will allow the City to make better decisions about investment in its physical infrastructure. The system will allow the City to better understand the total funds that would be needed to address infrastructure that is not currently in an acceptable condition and will help ensure the City is investing in capital projects with the greatest potential to maximize City capital investments. 160 SUMMARY OF CAPITAL BUDGET RECOMMENDATIONS Fiscal 2021 Capital Budget Fund Sources Capital Funds Fiscal 2020 Budget Fiscal 2021 Budget Dollar Change Percent Change Pay‐As‐You‐Go General Conduit Enterprise Wastewater Utility Water Utility Stormwater Utility 50,000,000 23,000,000 16,388,000 19,578,000 2,275,000 500,000 23,000,000 0 0 1,750,000 (49,500,000) 0 (16,388,000) (19,578,000) (525,000) ‐99% 0% ‐100% ‐100% ‐23% Grant and Special Funds Federal State 75,191,000 26,235,000 39,967,000 8,630,000 (35,224,000) (17,605,000) ‐47% ‐67% 80,000,000 223,623,000 26,018,000 80,000,000 451,538,000 15,000,000 0 227,915,000 (11,018,000) 0% 102% ‐42% 85,156,000 202,827,000 117,671,000 138% 627,464,000 823,212,000 195,748,000 Loans and Bonds General Obligation Bonds Revenue Bonds County Transportation Bonds All Other All Other GRAND TOTAL General Fund The City’s General Fund typically supports several fund sources in the capital budget, including capital General Funds (PAYGO capital), General Obligation Bonds (debt), Highway User Revenues (PAYGO capital dedicated to transportation), and County Transportation Revenue Bonds (debt dedicated to transportation). In Fiscal 2021, the capital budget also includes a recommendation for short‐term financing of information technology projects, supported by the City’s General Fund. General Funds and Highway User Revenue A portion of the City’s General Fund revenues is dedicated to capital improvements. Using recurring General Funds for PAYGO is considered to be good fiscal practice, as it reduces the City’s debt burden. Unlike most fund sources, these funds are flexible and can be used to support any capital projects. In addition, the City dedicates a portion of its annual State Highway User Revenue (HUR) allocation to capital improvements. HUR is collected by the State and allocated to jurisdictions for certain eligible uses, such as transportation projects. In Fiscal 2021, $500,000 is recommended in General Funds and HUR for capital projects for the Department of Public Works Bureau of Solid Waste. This is a reduction of $45.5 million from Fiscal 2020, which was an unprecedented amount of funding from these sources due to a projected revenue surplus for Fiscal 2020 and the prioritization of investments in one‐time capital projects. The projected deficit due to the COVID‐19 pandemic has required the City to greatly reduce its General Fund contribution to the capital budget for Fiscal 2021. 161 Fiscal 2021 SUMMARY OF CAPITAL BUDGET RECOMMENDATIONS General Obligation Bonds In 2018, voters authorized $80 million in General Obligation bonds per year for Fiscal 2020 and 2021. Bonds must be used for affordable housing, schools, parks and public facilities, and community and economic development in accordance with the loan authorization approved by voters. The debt service to repay the bonds is paid from the City’s future General Funds. MDOT County Transportation Revenue Bonds Following the dramatic loss of HUR funds in 2010, the City has partnered with the Maryland Department of Transportation since 2014 to issue $15 million annually in MDOT County Transportation Revenue Bonds to be repaid with future General Fund HUR. These funds must be used on eligible projects such as transportation projects. Federal and State Funds For Fiscal 2021, approximately $40 million is recommended in Federal Funds and $8.6 million in State Funds. Some agencies routinely have access to Federal and State Funds, while other agencies must rely on local fund sources. Below are some examples of Federal and State Funds: • Transportation typically receives $30 million per year in Federal Highway Transportation funds. The City must provide a 20% match for eligible projects such as bridges. • Recreation and Parks typically receives $7 million per year in Program Open Space funds from the State. Some of these funds require a 25% match. • Housing and Community Development typically programs federal Community Development Block Grant (CDBG) funds towards select capital projects that serve low and moderate income residents. Utility Funds The water, wastewater, and stormwater programs within the Department of Public Works are fully funded with utility funds, which are the fees paid for water, sewer, and stormwater services. Capital projects within these programs are paid for by a combination of current revenue (utility funds), debt that will be repaid by future utility funds (revenue bonds and State or federal loans), and other sources such as County grants. The Fiscal 2021 recommended funding for the utility programs totals $608.1 million. 162 SUMMARY OF CAPITAL BUDGET RECOMMENDATIONS Fiscal 2021 Capital Budget Recommendations by Agency Nine City agencies participate in the capital budget process. The Department of General Services coordinates projects for some City agencies including Fire, Police, Health, and Circuit Court. Department of Public Works Fund Source Solid Waste City General Funds General Obligation Bonds PROJECT TOTAL Fiscal 2021 Budget The Fiscal 2021 recommendation includes a total of $613.7 million across General Obligation Bonds and Other funding sources. 500,000 5,100,000 5,600,000 Solid Waste The Fiscal 2021 recommendation includes a total of $5.6 million across General Obligation Bonds and General Funds. Investments focus on providing services needed to keep the city clean. Specific projects include the Quarantine Road Landfill Expansion ($3 million), solid waste employee facilities and Citizens’ Convenience Cen‐ ters ($2.1 million), and PAYGO funding for improvements at Bowley’s Lane facility ($500,000). Wastewater Utility Revenue Bonds County Grants PROJECT TOTAL 175,742,000 82,921,000 258,663,000 Water Utility Revenue Bonds County Grants PROJECT TOTAL 227,725,000 71,856,000 299,581,000 Stormwater Utility Revenue Bonds Utility Funds PROJECT TOTAL 48,071,000 1,750,000 49,821,000 AGENCY TOTAL 613,665,000 Wastewater Utility The Fiscal 2021 recommendation in‐ cludes $258.7 million from the Wastewater Utility Fund. In‐ vestments focus on treatment facilities, pumping stations, and the underground pipes that carry wastewater away from customers and to treatment facilities. Many of the projects are related to the 2016 Modified Consent Decree with the Environmental Protection Agency (EPA). Water Utility The Fiscal 2021 recommendation includes a total of $299.6 million from the Water Utility Fund. In‐ vestments focus on water treatment facilities, pumping stations, and infrastructure to deliver water to customers (e.g. proactive replacement of 15 miles of water lines). Stormwater Utility The Fiscal 2021 recommendation in‐ cludes $49.8 million from the Stormwater Utility Fund. Investments focus on pollution and erosion control and stormwater management, such as stream restorations, drainage improvements and repairs, and environmental site design. 163 Fiscal 2021 SUMMARY OF CAPITAL BUDGET RECOMMENDATIONS Department of Transportation Fund Source Fiscal 2021 Budget Alleys and Footways General Obligation Bonds Other PROJECT TOTAL 3,750,000 1,500,000 5,250,000 Bridges General Obligation Bonds County Trans. Bonds Federal Funds Other PROJECT TOTAL 1,934,000 1,000,000 21,557,000 4,500,000 28,991,000 Conduit Construction Other 14,000,000 Conduit Utility Other 27,000,000 PROJECT TOTAL 41,000,000 Street Resurfacing County Trans. Bonds 12,500,000 Streets and Hwys. General Obligation Bonds County Trans. Bonds Federal Funds State Funds PROJECT TOTAL 1,831,000 1,500,000 8,240,000 (575,000) 10,996,000 Traffic Engineering General Obligation Bonds Federal Funds Other PROJECT TOTAL 1,240,000 1,403,000 3,500,000 6,143,000 AGENCY TOTAL 104,880,000 The Fiscal 2021 recommendation includes a total of $104.9 million across General Obligation Bonds, Federal and State Funds, and Other funding sources. Investments focus on more vulnerable road users, such as pedestrians, bikers, and transit users, as well as continuation of bridge mainte‐ nance and replacement and upgrades to the City’s Conduit Utility. Alleys and Footways The Fiscal 2021 recommendation includes a total of $5.3 million from Other Funds. Invest‐ ments focus on sidewalk and alley reconstruction. Bridges The Fiscal 2021 recommendation includes $29 million across General Obligation Bonds, Federal and State Funds, and Other funding sources. Investments focus on the Remington Avenue Bridge, Russell Street Bridge, and Hanover Street Bridge. Conduit Construction The Fiscal 2021 recommendation includes a total of $41 million from the Conduit Utility Fund. Investments focus on new conduit construction and man‐ hole reconstruction. Street Resurfacing The Fiscal 2021 recommendation in‐ cludes $12.5 million from Revenue Loans. Investments fo‐ cus on an equitable dispersal of funds across the City. Streets and Highways The Fiscal 2021 recommendation includes a total of $11 million across General Obligation Bonds, Federal Funds, and Revenue Loans. Investments focus on improvements along MTA priority bus lanes and Martin Luther King Boulevard intersection improvements. Traffic Engineering The Fiscal 2021 recommendation in‐ cludes $6.1 million across General Obligation Bonds, Fed‐ eral Funds, and Other funding sources. Investments focus on traffic mitigation and the Toward Zero pedestrian safety initiative. Although DOT has a sizable capital budget in com‐ parison with other City agencies, DOT has the largest back‐ log of capital projects. Historically, DOT depended heavily on State HUR for its capital program. HUR peaked at $220 million in 2007, but fell to $128 million in 2010 during the height of the Great Recession. 164 SUMMARY OF CAPITAL BUDGET RECOMMENDATIONS Fiscal 2021 Department of Housing and Community Development Fund Source Fiscal 2021 Budget General Obligation Bonds Federal Funds State Funds Other AGENCY TOTAL 21,800,000 8,767,000 1,400,000 3,500,000 35,467,000 The Fiscal 2021 recommendation includes $35.5 million from General Obligation Bonds, Federal and State Funds, and Other fund sources. Investments focus on demolition, homeownership incentives, development incentives, and affordable housing. The capital program complements other funding sources, such as the local Neighbor‐ hood Impact Investment Fund (NIIF); State BRNI, CORE, Community Legacy; and federal Low‐Income Housing Tax Credits and HOME funds. Department of General Services Fund Source Fiscal 2021 Budget General Obligation Bonds Other AGENCY TOTAL 10,600,000 9,600,000 19,100,000 The Fiscal 2021 recommendation includes a total of $19.1 million across General Obligation Bonds and Other funding sources. Investments focus on improvements to City‐owned buildings, including office buildings, police stations, fire stations, health centers, courts, library branches, the Mayor’s Office of Employment Development facilities, and the Convention Center. Project examples include roof repairs, window replacements, HVAC re‐ placements, and electrical upgrades. 165 Fiscal 2021 SUMMARY OF CAPITAL BUDGET RECOMMENDATIONS Baltimore City Public Schools Fund Source Fiscal 2021 Budget Construction General Obligation Bonds 2,250,000 Systemics General Obligation Bonds 16,750,000 AGENCY TOTAL 19,000,000 The Fiscal 2021 recommendation includes a total of $19 million from General Obligation Bonds, which leverages approximately $30 million in State funding that goes directly to City Schools. Investments focus on routine capital replacement items, such as roofs, HVACs, and fire suppression systems. Baltimore City Recreation and Parks Fund Source Fiscal 2021 Budget General Obligation Bonds State Funds AGENCY TOTAL 9,300,000 8,805,000 18,105,000 The Fiscal 2021 recommendation includes a total of $18.1 across General Obligation Bonds and State Funds. Investments focus on routine capital maintenance across all parks and facilities, as well as several significant up‐ grades to specific facilities. Examples include the Bocek Park gymnasium addition ($1.8 million) and upgrades to the Chick Webb Recreation Center ($1.75 million). 166 SUMMARY OF CAPITAL BUDGET RECOMMENDATIONS Fiscal 2021 Baltimore City Office of Information and Technology Fund Source Fiscal 2021 Budget General Obligation Bonds Other AGENCY TOTAL 1,000,000 7,300,000 8,300,000 The Fiscal 2021 recommendation includes a total of $8.3 million, of which $7.3 will be funded through a short‐ term lease and be repaid through the operating budget. Investments focus on infrastructure, network improve‐ ments, cyber‐security, and improving the user experience. Mayoralty & Planning Fund Source Fiscal 2021 Budget General Obligation Bonds Other AGENCY TOTAL 1,145,000 150,000 1,295,000 The Fiscal 2021 recommendation includes a total of $1.3 million from General Obligation Bonds and Other fund sources. Investments focus on capital improvements for a variety of Baltimore’s cultural organizations ($975,000) and implementation of the INSPIRE program ($170,000). Baltimore Development Corporation Fund Source Fiscal 2021 Budget General Obligation Bonds State Funds AGENCY TOTAL 3,300,000 (1,000,000) 2,300,000 The Fiscal 2021 recommendation includes $2.3 million from General Obligation Bonds. Investments focus on façade improvement, micro loans, and commercial and industrial financing, as well as the Rash Field ($1 million) and Lexington Market ($500,000) redevelopments. 167 Intentionally Left Blank FISCAL 2021 EXECUTIVE SUMMARY Board of Estimates Recommendations Appendix Intentionally Left Blank APPENDIX Fiscal 2021 Glossary ACTIVITY: A subdivision of a service that specifies how the service is performed. Some services may be accom‐ plished through the performance of only one activity, while other services may require the performance of two or more activities. AGENCY: An organization authorized by the Mayor and City Council to operate in the best interest of the public. Each agency is obligated by the City Charter to submit a budget request outlining projected costs of operation for the upcoming fiscal year to the Director of Finance and/or Planning Commission, as applicable. APPROPRIATION: The legislative authority to spend and obligate a specified amount from a designated fund account for a specific purpose. ASSESSABLE BASE: The value of all taxable property within the boundaries of the City of Baltimore. ASSESSED VALUATION: A valuation set upon real estate and other taxable property by the State Department of Assessments and Taxation and utilized by the City of Baltimore as a basis for levying taxes. All taxable real property follows a 3‐year reassessment cycle, and the resulting assessed valuation is an estimate of the current market value. BUDGET: A proposed plan of revenue and expenditure for a given year. CAPITAL FUND: A set of budget accounts established to plan for specific capital projects financed by revenues received from other City funds, revenue, and general obligation bond borrowing, State, federal, county, private, and other miscellaneous sources. CAPITAL BUDGET: The appropriations for capital projects, which comprise the first year of the Capital Improve‐ ment Program. CAPITAL IMPROVEMENT PROGRAM: A six‐year plan specifying physical improvements recommended by the Planning Commission after reviewing the requests of City agencies. CAPITAL PROJECT: An improvement to City property, which by policy of the Board of Estimates must meet defined criteria. CONDUIT ENTERPRISE FUND: Established to budget for revenue charged to private and public entities renting space in the City‐owned and operated underground conduit system and for operating and capital expenses for the system. CONVENTION CENTER BOND FUND: Established in Fiscal 1995 to budget and account for hotel tax revenues to be dedicated to support the payment of principal and interest associated with City indebtedness to finance one‐third of the $150 million cost of the joint City‐State expansion of the Baltimore Convention Center. In Fiscal 2020, the City fully paid off the bonds associated with this expansion; however, the City may continue appropriating funds for future renovation or expansion of the Center. CURRENT LEVEL OF SERVICES BUDGET: Estimates of the appropriations needed by each municipal agency for the next ensuing fiscal year. These estimates are formulated in order to maintain the same service level for each particular service, purpose, activity, or project included in each agency’s budget. DEBT SERVICE: Principal and interest payments on debt (bonds) incurred by the City. 171 Fiscal 2021 APPENDIX DEDICATED FUNDS: Includes revenue, which by law, contract, or regulation may be used only to support appro‐ priations for specific purposes. FISCAL YEAR: The time frame to which the annual budget applies. For the City of Baltimore, this period is from July 1 through June 30. FUND: A sum of money segregated for specific activities. Use of this money requires adherence to special regula‐ tions established for each type of fund. The funds identified within Baltimore City’s budget are the Capital Fund, Conduit Enterprise Fund, Convention Center Bond Fund, General Fund, Internal Service Fund, Parking Enterprise Fund, Parking Management Fund, Special Grant Fund, Special Revenue Fund, Stormwater Utility Fund, Water Utility Fund, and Wastewater Utility Fund. FUNDING SOURCE: Income/revenue received which supports an appropriation. GENERAL FUND: A central fund into which most of the City’s tax and unrestricted revenues are budgeted to support basic City operations and pay‐as‐you‐go (PAYGO) capital projects. GRANT: A contribution made from either the private sector to the City or by one governmental unit to another unit. The contribution is usually made to support a specified service, function, or project. INDICATOR: A measure that represents a quality of life improvement that the City tracks and is ultimately aiming to improve. The City has 17 measurable Indicators organized within each of the Priority Outcomes that reflect many of the City’s greatest challenges. INTERNAL SERVICE FUND: Established to budget for the financing of goods and/or services provided by certain City agencies to other City agencies or programs on a cost reimbursement basis. LOAN AND GUARANTEE ENTERPRISE FUND: Established to budget for the self‐supporting program of loans and guarantees administered by the Department of Finance pursuant to policies and procedures approved by the Board of Estimates. Closed in Fiscal 2018 and transferred into General Fund in Fiscal 2019. MAJOR GOVERNMENTAL FUNCTION: For purposes of comparison, a group of similar services rendered by various agencies within the City will be grouped, e.g., Adjudications and Corrections, Economic Development, General Government, Legislative, Public Safety, Social Services, et cetera. MAYOR’S OFFICE OF PERFORMANCE AND INNOVATION: An innovative accountability tool for measuring per‐ formance and monitoring the effective use of public resources by major City agencies. This division conducts performance management reviews for all major agencies. OBJECT OF EXPENDITURE: A group of similar services, commodities, equipment, or personnel costs used to clarify spending within the budget. Objects of expenditure identified within Baltimore City’s budget are: • Salaries: Payment to personnel for services rendered to the City including overtime, shift differential, sick leave conversion, full‐time, part‐time, and contractual personnel costs. • Other Personnel Costs: Payment for benefits provided to City personnel. Included are charges to the City for social security, retirement, health plans, and prescription drug costs. • Contractual Services: Payment for services rendered to the City under contractual arrangements such as rents and telephone service. • Materials and Supplies: Payment for consumable materials and supplies such as custodial supplies and heating fuel. • Equipment: Payment for replacement or procurement of City property other than real property. 172 APPENDIX Fiscal 2021 • Grants, Subsidies and Contributions: Payment in support of various non‐profit, private sector activities which will provide health, welfare, educational, cultural, and/or promotional benefits to residents of Balti‐ more. • Debt Service: Payments for interest and principal of bonds issued by or on behalf of the City. • Capital Improvements: Payment for the acquisition of real property or improvements made to existing City property. OPERATING BUDGET: A plan, approved by the Mayor and City Council, for appropriating funds to agencies for operating costs during the fiscal year. This plan establishes legal expenditure limits and will reflect appropriations budgeted according to services, sources of funding, and costs of service operation other than capital improve‐ ments over $50,000; items of repair, maintenance or emergency nature over $100,000; or Bureau of Water and Wastewater items of repair, maintenance, or emergency nature over $250,000. ORDINANCE OF ESTIMATES: A bill enacted by the City Council, and approved by the Mayor, which gives legal effect to the appropriations included in the annual budget. OTHER POST EMPLOYMENT BENEFITS (OPEB): The Government Accounting Standards Board (GASB) has insti‐ tuted an accounting rule which mandates that OPEB be recorded as accrued liabilities in the annual financial statements of governmental entities. Therefore, an annual contribution to a Post‐Employment Benefits Trust Fund is required. OUTCOME BUDGETING: A budget process that aligns resources with results that matter most to residents. It’s a budgeting tool that integrates strategic planning, long‐range financial planning, and performance management. OVERTIME: Payments to employees eligible for additional compensation for services rendered after a regularly scheduled work period subject to the provisions of negotiated labor contracts and the federal Fair Labor Standards Act. PARKING ENTERPRISE FUND: Established to budget for operating and debt service expenses for City financed garages substantially supported by revenues derived from operation of these garages. PARKING MANAGEMENT FUND: Established to budget for the administration of the City’s parking garages and lots, parking enforcement activities, and operation of the parking garages and lots financed with General Obliga‐ tion Bonds. PAY‐AS‐YOU‐GO (PAYGO): Capital projects funded from current year revenues. PERFORMANCE MEASURES: Show the results or public benefits of the services provided. The benefits can be in the form of an amount of products or services provided (outputs); reflect the cost per unit of output or out‐ come (efficiency); gauge how well a service meets customer expectations (effectiveness); or changes in attitudes, behaviors, knowledge, skills, and conditions as a result of the service (outcome). POSITIONS: Represents those permanent full and part‐time jobs that have a job number assigned. • Permanent Full‐Time: Payments to an employee filling a permanent full‐time budgeted position for ser‐ vices rendered on a continuing basis. • Permanent Part‐Time: Payments to an employee who works less than a full‐time schedule on a continuing basis. 173 Fiscal 2021 APPENDIX PRIORITY OUTCOMES: Goals established by the Mayor for improving the quality of life for Baltimore’s residents. The current Priority Outcomes are: • • • • • Children and Families Public Safety Clean and Healthy Communities Equitable Neighborhood Development Innovative Government REVENUE: Income generated by taxes, fines, penalties, notes, bonds, investment income, property rental, user charges, federal grants, state grants, private grants, county grants, and miscellaneous services. SALARY AND WAGE DIFFERENTIAL: Added compensation received by certain employees when regularly assigned to night or shift work and to certain employees when required to work under various hazardous conditions. SALARY AND WAGE SAVINGS: An adjustment made to appropriations resulting from the number of permanent full‐time positions which are either vacant, filled by an employee in a lower pay classification, or through em‐ ployee turnover within the agency. SERVICE: Replaces program in the budget structure. An activity or set of activities performed by an agency that has: identifiable costs for budgeting purposes; a clear public purpose and measurable objectives; and clear lines of accountability for its performance and fiscal management. Services are the means to achieving desired Out‐ comes for City residents. SERVICE CODE: A three‐digit numeric code used to identify services or programs within an agency. SEVERANCE PAY: Payments to permanent full‐time and permanent part‐time employees for amounts due them for accumulated leave balances to include vacation, personal, sick, et cetera, pursuant to provisions of negotiated labor agreements. SPECIAL FUNDs: Established to budget for revenues derived from certain state, federal and private governmental grants, and other revenue sources that are restricted to expenditures for specific purposes. STIPENDS: Payments to participants in certain grant‐funded programs for a specific purpose. STORMWATER UTILITY FUND: Established to budget for the operating and capital expenses of the City’s stormwa‐ ter management system. SUB‐OBJECT OF EXPENDITURE: A subdivision of an object of expenditure in which groups of similar services or related articles are further delineated into more specific types of expenditures. SUPPLEMENTARY APPROPRIATIONS: Additional spending authority provided by the City Council and approved by the Mayor derived from revenues from any source, other than the full rate property tax and other taxes, imposed in excess of or in addition to those relied upon by the Board of Estimates in determining the tax levy required to balance the annual Ordinance of Estimates. These appropriations include grants from private or governmental sources which could not be expected with reasonable certainty at the time of the formulation of the proposed Ordinance of Estimates, additional appropriations for services included in the annual budget made necessary by a material change in circumstances, or new services which could not be reasonably anticipated at the time of formulation of the Ordinance of Estimates. All such appropriations must be embodied in a separate ordinance limited to a single service, purpose, activity, or project and provide the revenue necessary to support the appropriation. 174 APPENDIX Fiscal 2021 STORMWATER UTILITY FUND: Established to budget for the operating and capital expenses of the City’s stormwa‐ ter system. TARGET: Targets are the annual numerical benchmarks an agency aims to achieve for a performance measure in a given year. TRANSFERS: Charges or expenditure reimbursements used as follows: • To reimburse a program for costs which are charged as overhead to special grants. • To transfer expenditures between funds in order to adjust the amounts derived from various sources for a multi‐funded program rather than split each object and sub‐object of expenditure. • To reimburse a program for services rendered where the reimbursement is calculated on a fee basis rather than for specific expenditures. WASTEWATER UTILITY FUND: Established to budget for the operating and capital expenses of the City’s sewage facilities. WATER UTILITY FUND: Established to budget for the operating and capital expenses of the City’s water supply system. 175 Intentionally Left Blank Finance Director: Henry J. Raymond Deputy Finance Director: Stephen M. Kraus Budget Director: Robert Cenname Deputy Budget Director: Daniel Ramos Director of Revenue and Long-Term Financial Planning: Pedro Aponte Budget Operations Manager: Mira Green Budget Management Analyst III: Rachel Zinn Budget Management Analyst II: Philip Gear Budget Management Analyst I: Ashley Daughtry Samantha Louie Christopher Quintyne Revenue and Long-Term Financial Planning Analyst: Scott Carpenter Zhenya Egorova Data Analytics Lead: Lillian Nguyen Business Analyst: Aaron Moore Legislative and Engagement Lead: Mara James Information Systems Analyst: William Kyei Executive Assistant: Jeanine Baumgardner-Murphy The City of Baltimore budget publications are available at the Enoch Pratt Free Library Central Branch in the Maryland Room and online at budget.baltimorecity.gov. For additional information, contact the Department of Finance, Bureau of the Budget and Management Research: 469 City Hall - 100 N. Holliday Street; Baltimore, MD 21202 P: 410.396.3652 or Email: budget@baltimorecity.gov. Department of Finance Bureau of the Budget and Management Research 469 City Hall,100 N. Holliday Street Baltimore, Maryland 21202 410-396-5944