March 6, 2014 Macedonia Financial Town Hall Meeting

Presented By; Scott M. Svab, Finance DirectorSylvia Hanneken , Finance Committee Chair

Major City Revenue Sources

2007-2013 Income Tax Revenues

Rec. Center Income Tax Revenues

Fire Prop. Tax 1 mill Levy

Local Gov't Tax (50% State Cut)

Inheritance Tax (100% State Cut)

$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

$7,000,000.00

$8,000,000.00

Major Revenue Sources

City Debt 2014-2018

City Debt 2014-2018 $-

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

$1,400,000.00

$1,600,000.00

$1,800,000.00

$1,516,173.00

$1,536,373.00

$1,474,973.00

$547,923.00

$550,573.00

2014 2015 2016 2017 2018

What is the General Fund?

A fund used to account for all financial resources that are not restricted for specific purposes or otherwise required to be set aside and accounted for in another fund.

This is the only fund that is required by the Ohio Revised Code for all government entities to have.

Macedonia’s top 3 funds are General, Recreation, and Streets.

Special Revenue Funds

These funds are restricted by law or contractual agreements to specific purposes other than debt service or major capital projects.

Examples: Fund 211 Fire Operating Levy Fund 212 Vehicle License Tax Fund 213 Police Pension Fund Fund 224 Wireless 911 fund

Beginning Balance Ending Balance

2008 936,082.50 $ 1,035,836.60

2009 1,035,836.60 $ 998,967.78

2010 998,967.78 $ 1,755,760.99

2011 1,755,760.99 $ 3,254,286.41

2012 3,254,286.41 $ 2,513,151.20 *adjusted for reserve $500,000.

2013 2,513,151.20 $ 3,278,489.14

2014 3,278,489.14 $2513,151. Projected

**Encumbrances are not included.

Historical Summary of General Funds Cash Basis Balance

The expenditures for capital improvements in the previous three years averaged $851,075.

Major Projects included:-South Bedford Rd.- Sheppard Hills Blvd.-New Police Cruisers-Snow Plow Trucks-Playground Equipment-Pick-up truck (Fire Dept)-Upgrade Computer Server

General Fund Operating Expense 2013

Mayor Admin242979.26

3%

Bldg & Maintenance235369.6

3% Council139876.21

2%

Building Dept.504490.18

5%

Finance & Clerk339268.11

4%

Health Dept147020.42

2%Legal

219277.962%

Income Tax229213.6

2%

Other Depts310,000.00

3%

Mayors Court217938.11

2%

Fire1821460.33

20%Police

2517507.5227%

Dispatch460109.18

5%

Street Dept1150000

12%

Debt Payments713055.68

8%

2013 General Fund Expense Activity by Departments

* Over 52% of General Fund Expenses goes to safety forces.

2013Personnel Expense (General Fund) $ 5,706,052.08 General Fund Expense (%)

52%

2013Operating Expense

(General Fund) 5,243,991.08 General Fund Expense (%)48%

2013Total General Fund Expense $ 10,950,043.16

2013 General Fund Expenses

52%48%

2013 General Fund Expenses

Personnel Operating

2013 General Fund Operating Expenses

Total Operating Expenses $5,243,991

60% Mandated Expenses

Transfer to Parks5%

Trans-fer to Capi-

tal15%

Transfer to Streets17%

Debt11%

Audit & Taxes11%

Other expense40%

Transfer to Parks 310,000.00

Transfer to Capital 1,018,028.00

Transfer to Streets 1,150,000.00

Debt 713,055.68

Tax- Ins. Audit Fees 751,524.24

Other Expenses 2,629,411.16

Already Committed to Operating 50% Ea. Year

7719978; 71%

1590007; 15%

450306; 4%

296496; 3%296196; 3%

219584; 2%197850; 2%

100000; 1%

2013 Actual General Fund Revenue

Income Tax

Real Estate Tax

All Mayors Court Revenue

Inheritance Taxes

EMS Fees

Local Govt. Funds

Admission Taxes

J.E.D.D. Taxes

TOTAL GENERAL FUND:$11,811,300

6400000; 69%

1590000; 17%

438110; 5%

290000; 3%

219000; 2%200000; 2%

100000; 1%

2014 General Fund Estimated Revenue

Income Tax

Real Estate Tax

All Mayors Court Revenue

Inheritance Taxes

EMS Fees

Local Govt. Funds

Admission Taxes

J.E.D.D. Taxes

TOTAL GENERAL FUND:$10,147,898

2014 Proposed General Fund Budget

Mayor Admin269981

2%

Bldg & Maintenance329370

3% Council124564

1%

Dispatch475169

4% Finance & Clerk409727

4%

Fire1995372

18%

Health Dept. Cemetery etc.560,577.00

5%Legal

2192772%

Income Tax225000

2%Transfers 550000

5%

Mayors Court239693

2%

Police2928778

27%

Street Dept1244240

12%

Building Dept.497728

5%

Debt Payments749026

7%

General Fund Expense Activity by Departments

Projected Spending In General Fund for 2014

Proposed General Fund Expenses

Estimated Revenues

Expenses Exceeding Revenues

Resulting in reduced Carryover to $2.5 million

(reduced income tax revenue, inheritance tax, local Govt. tax)

$10,818,502

$10,147,898

$670,604.00

General Fund 2015 Increased Liabilities

RTE. 271 SIB LOAN $50,000

SNOW PLOW TRUCK LEASE $45,000

RTE. 82 PHASE 1 WIDENING $105,000

SAFETY CENTER ROOF REPLACE $100,000

WAGE CONTRACTS @2% AVG. $103,000

Total $403,000

2014-2015Projected Deficit Spending

$670,604.00 2014 General Fund Deficit.

$403,000.00 2015 Est. added General Fund Deficit.

$1,073,000.00 2015 Est. Total General Fund Spending.

Projected General Fund carryover in 2015 reduced to $1.4 million.

Summary

Drawing down General Funds Carryover in 2014-2016.

Safety Center / Rec. Center. Bonds paid off in 2016, reducing annual city debt payments from the General Fund $475,000 and $625,000 from Recreation Fund.

2010 General Fund Bond Payment increases $150,000 a year in 2017.

Recreation Center Construction .25% City Income Tax ends in July 2017. Income tax rates drop to 1.75% in July 2017.

BACKUP SLIDES

Debt Summary

2011 Bond- Rec. Center /City Hall Retires 2016

Approx. Savings $460 K General Fund Approx savings $615 K Rec. Center Fund 2010 SIB Loan Bond thru 2030 year. Average Debt graduated $160 K in 2014 to $380 K in 2030. 2003 Highland Rd. Special Assessment. thru

2022 $10 K avg from General Fund OPWC non Interest loans Special Assessment

2010-2013 Gross Wages by DepartmentCMI ACCOUNT# Department Year 2010 total

earningsYEAR 2011

TOTAL ERNGS

Year 2012 total earnings

Year 2013 total earnings

% Change from 2012-2013

101.101.5230 COUNCIL $67,851.34 $70,529.53 $71,659.44 $74,019.013%

101.120.5230 MAYOR'S OFFICE $147,707.27 $149,698.89 $151,685.67 $131,157.55-16%

101.130.5230 FINANCE DEPT $174,886.45 $163,696.80 $175,005.14 $191,952.999%

101.140.5230 MAYOR’S COURT $100,735.64 $102,111.15 $106,529.88 $125,464.7315%

101.150.5230 LAW DEPT $70,599.32 $70,389.80 $72,460.65 $74,676.423%

101.170.5230 CUSTODIAN CITY CTR $39,199.33 $35,240.88 $49,201.77 $79,619.8238%

101.180.5230 BUILDING DEPT $213,700.10 $212,277.33 $220,985.25 $230,863.004%

101.201.5230 SERVICE DEPT ADM $162,366.54 $144,113.54 $172,794.98 $126,793.40-36%

101.210.5230 POLICE DEPT $1,499,068.35 $1,458,554.29 $1,599,399.39 $1,604,394.250%

101.222.5230 FIRE DEPT $1,042,140.75 $996,700.35 $1,091,881.82 $1,240,059.8012%

101.310.5230 DISPATCH $289,291.48 $272,090.61 $246,811.58 $302,525.6318%

2010-2013 Gross wages by Department

201.350.5230

SERVICE DEPT $569,442.16 $477,038.27 $495,487.09 $515,578.46

4%201.354.5230

SERVICE MAINT. $106,291.10 $107,457.49 $108,363.63 $114,160.86

5%201.355.5230

SIGN SHOP $58,817.38 $101,331.08 $53,401.16 $53,145.50

0%204.203.5230

SERVICE/PARKS $100,141.54 $124,804.22 $124,236.88 $120,686.81

-3%204.204.5230

PARKS & REC $53,319.78 $53,363.67 $52,338.65 $52,193.49

0%205.207.5230

RECREATION CTR $479,990.05 $459,257.97 $466,604.78 $465,398.57

0%211.211.5230

FIRE LEVY $152,240.36 $164,500.36 $185,735.44 $204,765.21

9%Grand Total-

5,327,788.94 5,163,156.23

5,444,583.20

5,707,455.50

2012 $ 5,444,583.00 281,427 5.2%

2013 $ 5,707,455.00 262,872. 4.6%

CMI ACCOUNT#

Department Year 2010 total earnings

YEAR 2011 TOTAL ERNGS

Year 2012 total earnings

Year 2013 total earnings

% Change from 2012-2013