BUILDING A STRONGER NASHVILLE...Nashville, Davidson Chattanooga, Hamilton Knoxville, Knox Memphis,...

BUILDING A STRONGER NASHVILLE

Talia Lomax-O’dneal Director of Finance

Metropolitan Government of Nashville and Davidson County Mayor David Briley

FY 2020 RECOMMENDED BUDGET

Where are we now? - FY2019

■ Revenues

■ Non-recurring revenues

■ Expenditures and savings targets

■ Supplemental appropriations

■ Fund balances

2

FY2019 Revenues

■ Property tax revenue projected to meet budgeted estimate

■ Local option sales tax projected to meet or exceed budgeted estimate

■ Decreases expected in excise tax and certain fines

– Excise Tax ($1.4 million)

– Moving Violation Fines ($600,000)

3

FY2019 Non-Recurring Revenues

4

Entity Budget Planned Close Status

General Fund

• 3800 Charlotte

• 2025 Richard Jones Rd

$10,000,000

• $7,450,000

• $4,000,000

• Under Contract

• Under Contract

GSD Debt Service

• Parking

$15,000,000

$15,000,000

• Delayed until 2020

• FY 2019 General

Fund supplemental

appropriation has

been filed

MNPS

• 2795 Pennington Bend

• 1015 Davidson Rd

• 3125 Ironwood Dr

• $13,000,000

• Amount not realized

will be offset by

increased sales

taxes and by fund

balance

• $56,001

• $4,100,000

• $680,000

• Sold

• Under Contract

• Bidding closed

FY2019 Expenditures and Savings Targets

■ FY19 $11.5 million Savings Target

– Most departments on track to meet their target

– Some will exceed their target

■ General Fund is expected to be under budget as a whole after supplemental

appropriation

5

FY 2019 General Fund Supplemental Appropriations

■ Debt Service: $15,000,000 to replace budgeted parking revenue

■ MDHA TIF: $2,261,900 (includes $827,700 for Schools)

■ Industrial Development Board TIF for Bellevue Mall Project: $1,066,700

■ Sheriff: $986,700 for contractual increases, salaries, and repairs and maintenance

■ Community Oversight Board: $375,000

■ Fairgrounds: $300,000 due to various revenue shortfalls, coupled with no fund

balance availability to offset the shortfalls

6

FY2019 General Fund Supplemental Appropriations

7

Amounts in millions

0

10

20

30

FY15 FY16 FY17 FY18 FY19

4.3

14.5

23.2 20.6 20.0

8

Fund Balances General, Schools and Debt Service Funds

Amounts in millions

50

70

90

110

130

150

170

FY16 CAFR FY17 CAFR FY18 CAFR FY19 Est

158.0

112.0

102.4

111.0

CAFR: Comprehensive Annual Financial Report

FY 2020 Budget Priorities

■ Funding for Schools

■ Pay plan for all employees

■ Debt Service obligations

9

FY2020 Recommended Budget

$2,331,618,000

4.55% increase over FY2019

$101,517,400

10

11

Total Budget Growth

1,400

1,600

1,800

2,000

2,200

2,400


1,968

2,087

2,210 2,230

2,332

Budget amounts taken from Substitute Budget Ordinances as approved by Metro Council

Amounts in millions

Where the Money Comes From

Property Taxes 45.7%

Local Option Sales Tax

20.6%

Grants & Contributions

18.3%

Fund Balance Appropriated

0.3%

12

All Other Revenues 15.1%

13

Total Projected Revenue Growth $103.6 million / 4.7%

■ Property Taxes: $29.2 million

■ Local Option Sales Tax: $40.8 million

■ Grants and Contributions: $10.2 million

■ All Other: $23.4 million

Includes non-recurring revenue in GSD Debt Service of:

• $30 million up-front parking concession payments

• $11.5 million District Energy System

Fund balance use decreased by $2.1 million

14

Budgeted Revenue Growth

Amounts in millions

0

30

60

90

120

150


75.2

121.5 119.1

86.3

103.6

Major City/County FY2019 Property Tax Rates

$3.15

$5.04

$4.58

$7.25

$3.05 $3.16

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

Nashville,Davidson

Chattanooga,Hamilton

Knoxville,Knox

Memphis,Shelby

Mufreesboro,Rutherford

Franklin,Williamson

15

Property Tax Trends

16

Amounts in millions

860

880

900

920

940

960

980

1,000

1,020

1,040

1,060

1,080


938.8

972.0

1,021.3

1,036.3

1,065.5

941.8

970.0

995.7

Budget Actuals

17

Sales Tax Trends Amounts in millions

300

325

350

375

400

425

450

475


360.9

388.2

413.2

438.1

478.9

365.7

382.9

414.2

Millio

ns

Budget Actuals

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Recommended Use of Fund Balance

Fund Appropriated for use in

FY2020 Budget

Estimated June 30, 2019 Balance as a

Percent of FY2020 Budget

OPERATING FUNDS:

GSD General Fund $0 5.0%

USD General Fund $7,300,000 5.1%

Schools Fund $0 3.5%

DEBT SERVICE FUNDS:

GSD Debt Service Fund $0 2.3%

USD Debt Service Fund $0 1.8%

Schools Debt Service Fund $0 9.3%

19

Budgeted Use of Fund Balance

0

20

40

60

80

100

120


73.9 71.9 75.2

9.4 7.3

Amounts in millions

20

Where the Money Goes

General Government

11%

Public Safety

21%

Other

2%

Health & Social Services

4% Recreation & Culture

4%

Infrastructure &

Transportation

5%

Education

39%

Total Debt Service

14 %

21

Where the Money Goes – Total Schools Funding

General Government

10%

Public Safety

21%

Other

2%

Health & Social Services

4% Recreation & Culture

4%

Infrastructure &

Transportation

5%

Education Including Debt

Service

44%

GSD/USD Debt Service

10%

22

Increase in Appropriations $101.5 Million

■ MNPS Operating: $28.2 million

■ General Government Pay Plan: $23.3 million

■ Debt Service: $44.1 million

■ Increase in General Government savings target: ($1.4 million)

■ Other operational changes, net: $7.3 million

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Schools Operating and Debt Service Increase $34.9 Million

$110,554,700

$6.7 million increase

6.5% over FY19

$914,475,600

$28.2 million increase

3.2% over FY19

Operating Budget Debt Service Budget

Total Schools Funding

674.0 720.4 746.4 790.0 810.0 843.3 879.3 884.3 914.5

42.7 53.6 69.6

76.4 78.0 84.4 94.4 103.8 110.5

716.7 774.0 816.0

866.4 888.0 927.7 973.7 988.1 1025.0

0

200

400

600

800

1000

1200

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Operating Debt Service

Budgeted Amounts shown- in millions

24

25

Local Funding Revenue Sources

FY2019 FY2020 GROWTH

PROPERTY TAXES $362,854,400 $372,615,200 $9,760,800

SALES TAXES $294,161,500 $328,535,100 $34,373,600

OTHER REVENUE $20,732,200 $26,082,200 $5,350,000

PROPERTY SALE $13,000,000 $0 ($13,000,000)

TOTAL $690,748,100 $727,232,500 $36,484,400

Total Schools Local Funding

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Historical State and Total Local Combined Contributions

Schools

226.1 240.4 252.3 257.0 266.8 279.0 290.3 285.8 286.4

446.3 522.7 539.6 548.1 592.0

617.3 644.0 690.7 727.2

79,217

80,969

82,688

84,081 85,307

86,052

84,594 84,385 84,104

68,000

70,000

72,000

74,000

76,000

78,000

80,000

82,000

84,000

86,000

88,000

0

200

400

600

800

1,000

1,200


BEP Funding Metro Funding Enrollment

FY2012-FY2018 – Actual

FY2019-FY2020 - Budget

Amounts in Millions

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Historical State and Total Local Combined Contributions

Schools

33.6% 31.5% 31.9% 31.9% 31.1% 31.1% 31.1% 29.3% 28.3%

66.4% 68.5% 68.1% 68.1% 68.9%

68.9% 68.9% 70.7% 71.7%

79,217

80,969

82,688

84,081

85,307 86,052

84,594 84,385 84,104

68,000

70,000

72,000

74,000

76,000

78,000

80,000

82,000

84,000

86,000

88,000

0

200

400

600

800

1,000

1,200


BEP Funding Metro Funding Enrollment

FY2012-FY2018 – Actual

FY2019-FY2020 - Budget

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Metro Employees $23.3 Million

■ 3.0% Cost of Living Adjustment (COLA)

■ Increments for eligible employees (effective increment date)

■ 2.0% for open range increases (effective July 1)

■ All full-time employees under Metro’s general pay plan will be paid a living wage of at least $15 per hour

■ No increase in General Government employee health insurance cost

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Debt Service Amounts in millions

FY2019

Budgeted FY2020

Budgeted $ Change % Change

GSD 169.3 207.6 38.3 22.7%

USD 19.7 18.7 (1.0) -5.1%

MNPS 103.8 110.5 6.7 6.6%

Total 292.8 336.9 44.1 15.1%

Historical Annual Debt Service Requirement FY2016-FY2020

11.27% 11.52% 12.72%

13.13% 14.45%

0

50

100

150

200

250

300

350

400


GSD Schools USD Total Debt Service as % of Budget

Amounts in millions

30

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Annual Debt Report

As required by BL2014-696,

the Annual Debt Report will be emailed to Metro Council members

today and will include new information required by BL2019-1602

New Information:

• Percentage Increase or Decrease in GO Bonds

• Authorized Unbonded Debt

• Debt Per Capita

• Debt Instruments other than bonds (Sports Authority)

32

Blue Ribbon Commission Recommendations

■ Increased targeted savings for the General Fund from $11,500,000 to $12,907,300

■ Established a targeted savings goal for MNPS of $6,209,000

■ Short Term Rental Permit fee revenue increase of $1,140,000

■ Public Property Performance Audit budgeted at $200,000

■ Expanded Parthenon hours budgeted at $206,000 of net revenue

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■ $43.1 million - General Hospital

– Funds 100% of requested subsidy

■ $3.5 million - Bordeaux Nursing Home

– Funds contract with Signature

■ $2 million - Knowles Assisted Living Facility

– Funds contract with Anthem Care

Selected Budget Highlights

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Tax Increment Financing Amounts in millions

FY2019

Budget FY2019

Actual FY2020

Budget

Budget

Increase

GSD 11.9 13.9* 15.7 3.8

USD 2.9 3.2 3.9 1.0

MNPS 8.5 8.5 11.2 2.7

Total 23.3 25.6 30.8 7.5

*Includes increase for MNPS


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■ Continued Barnes Fund Affordable Housing Funding: $10 million

■ Body Worn Cameras: $3 million

■ Community Oversight Board: $1.5 million

■ Public Safety and Public Works Staffing Studies: $250,000

■ Equal Business Opportunity Program Implementation: $442,300

■ GRAD Program: $1 million

■ Study and Formulating Committee: $150,000

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■ Metro Facility Openings, including security: $2.6 million

– Bellevue Community Center

– New Police Headquarters

– Family Safety Center

■ Recycling increased to every other week (1/2 year): $518,100

■ 2020 Elections: $2.5 million

■ Short- Term Rental Administration: $458,100

– Codes – Enforcement

– Fire - Inspectors

– Finance - Collections

Legislation to Track with

FY 2020 Operating Budget Operating Budget Ordinance Urban Council Resolution

Tax Levy Ordinance Tax Anticipation Notes Resolution

Property Tax Relief Ordinance Parking System Legislation

Short Term Rental Property Fee Ordinance Pay Plan Resolutions and

Position Classifications Update Ordinance

FY19 Supplemental Resolution

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FOR MORE INFORMATION VISIT THE CITIZENS’ GUIDE TO THE METRO BUDGET

38

Nashville.gov/citizens_budget

BUILDING A STRONGER NASHVILLE...Nashville, Davidson Chattanooga, Hamilton Knoxville, Knox Memphis,...

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