FY2021 CiTy Budgef .. ..Ci?ry Council Budget Meeting June 8, 2020 ANNAPOLIS General Fund Revenues  Source of Funds 2 FY21 Projected  Real property $54,518,000 (based on constant rate)  Personal property $ 2,435,000  Penalties & Interest $  Licenses & Permits $ 2,764,600  Fines and Forfeitures $  Interest, Rent, Other $ 1,568,000  Intergovernmental $12,471,000  Charges for Services $ 5,341,000  Other Revenues $ 3,262,200 TOTAL 100,000 300,000 $ 82,759,800 General Fund Expenditures by Dept.  Department FY21 Projected  City Council, Law, & Mayor $ 3,497,400  Human Resources $  Mgmt Info Systems $ 2,031,200  Finance (incl. nonalloc.) $18,360,050  Planning & Zoning $ 4,344,400  OEP $  Police $21,853,200  Fire $20,899,500  OEM $  Public Works $ 8,210,200  Rec & Parks $ 5,612,600  TOTAL 995,100 - 463,800 $ 86,267,450 3 GF Expenditures by Category  Expenditure Type FY21 Projected  Salaries & Benefits $59,242,400 (68.7%)  Contract Services $ 8,379,100  Supplies & Other $ 1,959,800  Capital Outlay $ 1,226,000  Debt Service $ 7,860,000  Community Grants $  Self Insurance $ 2,015,000  OPEB $ 1,309,300  Interfund Transfers $ 3,055,650  Contingencies & Other $  TOTAL 429,700 790,000 $ 86,267,450 4 General Fund FY2021Budget Totals  General Fund Revenue  Fund Balance appropriated: 5 $ 82,759,800  Capital Reserve Fund for pay-go capital projects $ 1,707,850  One–time Uses Fund for nonrecurring expenses $ 1,326,000  Budget Stabilization Fund for recurring expenses $ 473,800*  Total Revenue and Appropriated Fund Balance $86,267,450  General Fund Appropriations (expenditures) $86,267,450 Difference $  0 *Includes $233,000 GF structural deficit and $240,800 transfer to Transportation. Proposed Reductions to General Fund  Reductions Amount  Reduce contribution to Fleet Ops and Replacement Funds $828,400  Reduce contribution to Self Insurance Fund $300,000  Remove funding for two School Resource Officers $310,000  Eliminate City contribution to 401(a) Plan $160,000  Remove Funding for Grant Writer in Mayor’s Office $ 42,700  Remove funding for tree planting in Planning & Zoning $ 50,000  Reduce planned increase in OPEB funding $ 25,000  Add 2% personnel turnover allowance in the departments $572,890  Anticipated savings from retiree & employee 65 and over benefit plan $365,700  Rec & Park, OEM, HR, P&Z and Law reductions $ 93,000  DPW reductions $145,700  MIT reductions $102,000  Finance Department reductions $ 34,000  Fire Department reductions $ 50,000  Police Department reductions $ 50,000  Defer COLA for all City employees from July 1, 2020 to January 1, 2021 $689,000 TOTAL $3,818,390 6 Note: These reductions were already removed from the projected expenditures in the Mayor’s Budget. Proposed COLA Deferral Savings  Employee Group Estimated COLA Savings*  IAFF Local 1926 - Fire $193,300  UFCW Local 400 - Police $ 78,200  AFSCME 3162 $ 32,700  AFSCME 3406 $ 44,800  Nonrepresented and Management employees $340,000  TOTAL 7 $689,000 *These estimated savings are from a 6-month deferment of COLA implementation. The COLA will be 1.5% for UFCW Local 400 personnel, and 3% for all other City employees. Plan B - No COLA Deferral Savings  Eliminate  GF Savings  Eliminate  Transfer to Transportation due to Transit CARES Funding ($240,800) COLA Deferral Savings GF Additional Expenditures  Balance $689,000 $448,200 Alternate Plan  Personnel Turnover Allowance in Departments  2% Allowance in original list of cuts $ 572,890  Additional Turnover Allowance to balance $ 448,200  TOTAL $1,021,090 8 General Fund Position Vacancies ACCOUNTING ASSOC I SENIOR BUYER MIT ADMINISTRATIVE SUPPORT ANALYST MIT SPECIALIST POLICE CAPTAIN POLICE SERGEANT POLICE OFFICER 1/C POLICE OFFICER 1/C POLICE OFFICER 1/C POLICE OFFICER 1/C POLICE OFFICER 1/C POLICE OFFICER 1/C POLICE OFFICER 1/C POLICE COMM OPER 1 POLICE PLANNING ANALYST POLICE ID SPECIALIST POLICE ID SPECIALIST PROF STANDARDS DIR I.T. PROJECT MANAGER PROJECT COORDINATOR / MCIN MANAGER TRAFFIC ENGINEER PW MAINT WORKER I EQUIPMENT OPERATOR I EQUIP OPERATOR II PW MAINT WORKER I 9 Fund Balances  General Fund 10 FY19 Actual FY20 Projected  Unassigned $14,338,668 $16,443,961  Budget Stabilization Fund $ 3,071,439 $ 3,071,439  Capital Reserve Fund $ 4,686,903 $ 2,343,903  Assigned for One-Time Uses $ 2,383,539 $ 1,862,539 $ 24,480,549 $ 23,721,842  TOTAL Note: In FY19 Actual, Unassigned GF Balance is 15.5% of revenue, and BSF is 3.3%. For FY20 Projected, Unassigned GF Balance is 18.1% of revenue, and BSF is 3.4%. Constant Rate vs Yield - Property Tax Comparison of Constant Yield Tax Rate to Actual Tax Rate Per $100 of Assessed Value Adopted Tax Rate Constant Yield Rate Adopted Rate More/(Less) Constant Yield Rate FY2007 0.5300 0.4970 0.0330 FY2008 0.5300 0.4740 0.0560 FY2009 0.5300 0.4760 0.0540 FY2010 0.5300 0.5300 0.0000 FY2011 0.5300 0.5179 0.0121 FY2012 0.5600 0.5149 0.0451 FY2013 0.6400 0.6377 0.0023 FY2014 0.6500 0.6504 (0.0004) FY2015 0.6490 0.6494 (0.0004) FY2016 0.6490 0.6410 0.0080 FY2017 0.6490 0.6287 0.0203 FY2018 0.6490 0.6270 0.0220 FY2019 0.7380 0.6430 0.0950 FY2020 0.7380 0.7228 0.0152 FY2021 0.7380 0.7165 0.0215 Fiscal Year 11 Constant Rate – Impact on residents  FY20 Home Value FY20 Tax FY21 Tax 12 Tax Increase  $100,000 $ 738 $ 760 $ 22  $250,000 $1,845 $1,900 $ 55  $500,000 $3,690 $3,800 $110  $650,000 $4,797 $4,940 $143  $800,000 $5,904 $6,080 $176  $1,000,000 $7,380 $7,600 $220 Based on constant rate of $0.7380 per $100 of assessed value and 3% increase in assessed value. Structural Deficit  Mayor’s  13 Budget  Structural Deficit $233,000  Will be covered with funds from the Budget Stabilization Fund Constant Yield Rate for Property Tax  Additional Structural Deficit  Options for Deficit  $1,500,000 Use Fund Balance – The Budget Stabilization fund would be drawn down from $3,071,439 to $1,097,639.  Reduce expenditures – Would need savings in Personnel Salary & Benefits  Full Year COLA Deferment – Requires Agreement with Unions (Savings: $1.378M)  Deferment of Step Increases – Requires Agreement with Unions (Savings: $1.04M)  Furloughs (reduced work hours) – Requires Agreement with Unions  Layoffs (reduction in force) – Does not require Union agreements Budget Execution in FY2021  Monthly update of the revenue and expenditure projections based on COVID status  Commitment to develop a list of potential budget actions to address deteriorating budget situation, if needed  Bi-monthly updates to Finance Committee and/or City Council of budget status 14