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- Dayton City Commission Work Session – October 22, 2008
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- Since our last meeting, a significant financial crisis has occurred that
has both local, national and international effects.
- Dayton is seeing the impact of
the recession in its budget.
- Through September, 2008, we have mixed results in meeting our budget
goals
- While we continue to fall short of our revenue targets, we have been
able to contain spending to offset the loss
- Our 2009 budget planning progresses as we continue to manage our
challenges in a very difficult and worsening economic climate
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- Overall, General Fund revenues are below the estimate by 2.8% (or $3.7
million)
- General Fund expenditures are below budget by 5.1% (or $6.4 million)
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- Income tax collections are 1.0% under the original estimate
- Collections are down 3.4% from the same period in 2007. We are estimating that we will see a
4.0% decline ($4.5 million) in income tax revenues in 2008
- Withholding collections are down 4.6%
- Non-withholding collections are up 1.1%
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- In order to meet the revised income tax estimate for 2008, the final
three months’ collections will need to result in a decline of no more
than 5.7%
- Income tax amnesty program started Sept.24 – early results are positive
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- Property tax revenues are 1.6% below the estimate, or $146,163
- Receipts from delinquencies are higher than planned but collections on
current year values appear to be lagging
- Fees/Charges/Other revenues continue to reflect downward trends overall
- Declines in inheritance tax, indirect cost, permit fees, and Police
contract patrol all contribute to the reduced revenue
- Offsetting these declines (in part) are increases in contract waste
collection and Convention Center revenues
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- Fees/Charges/Other revenues are 4.8% below the estimate due to several
factors:
- Revenue Source 9/07 YTD 9/08 YTD % Chng. $ Change
- Significant Reductions Include:
- Inheritance Tax $2,095,433 $783,060 -62.6% $-1,312,373
- Indirect Cost $3,159,284 $2,765,271 -12.5% $-394,013
- All Permits $1,193,631 $848,281 -28.9% $-345,350
- Police contract patrol $857,630 $642,485 -25.1% $-215,145
- Significant Increases Include:
- Contract Waste Collection $213,709 $1,044,562 388.8% $830,852
- Convention Center $1,924,541 $2,279,555 18.4% $355,014
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- Personnel costs are 3.1% below budget (or $2.9 million)
- The average number of filled positions is down 1.4% (or 22 full-time
positions) primarily civilian
- The major cost driver of the personnel category is sworn (Police and
Fire) wages which are up 7.6% (or $2.2 million) reflecting the higher
number of filled positions in Police and Fire in 2008 compared to 2007
- Note: Expenditures in 2007 YTD are understated due to FOP and DPSU
increases that were delayed due to negotiations
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- General Fund overtime is down 14.4% (or $451,669)
- Fire overtime down 56.7% (due to higher filled positions)
- Police up 7.1% due to higher level of civilian overtime as transition
to contract transcription services is made
- Public Works up 18.1% due to snow removal efforts early in the year
- Workers’ Compensation payroll transfers are down 15.4% (or $408,018)
- The payroll deductions have been eliminated from department budgets
effective August 11, 2008. The
2008 budget savings (estimated at $1.1 million) will be transferred
out of each department budget to fund needed safety equipment.
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- Contracts and materials expenditures are 10.6% below budget (or $2.9
million) -- and reflect growth of 2.2% over the prior year
- Current cost trends are attributed to:
- Contributions are down 48.9% reflecting our one-time contribution to
Dayton Public Schools ($350,000) in 2007
- Electric costs are down 11.9% (one-time street lighting costs were
incurred in 2007)
- Expenses for real estate taxes are up 32.4% (or $403,744) due to
additional property acquisitions made for development purposes
- Gasoline/Diesel fuel costs are up 32.4% (or $338,954)
- Fleet Charges up 9.5% (or $172,603)
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- Transfers In:
- Miscellaneous $13,415
- Transfers Out:
- Cash Capital (670,000)
- Development (3,830,000)
- Downtown (1,000,000)
- Other Transfers:
- Street Maintenance Subsidy (2,055,000)
- Grant Matches and Closings (25,679)
- Mediation Center (120,000)
- Sub-total Other Transfers (7,700,679)
- Net Special Projects 143,546
- Net Operating Transfers ($7,543,718)
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- Our goal is to transfer $2.0 million from 2008 budget savings to assist
with funding the cash capital improvement program in 2009
- Transfer will only be made if revenues exceed expenditures and
transfers by this amount
- If the transfer does not occur, there will be several transportation
project matches deferred from 2009 to 2010
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- Department budget proposals are being reviewed and meetings of the CFRG
are being scheduled. Tentative
Budget Work Session Schedule:
- December 3 (PM) Overview: Economic Update, Revenue Estimates,
Expenditure Summaries
- Departments Present Budgets –
- Saturday, December 6, 2008 (AM & PM)
- Wednesdays, December 10 (AM), 17 (PM), 31 (AM)
- All budget sessions will be taped for internal use
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- Neighborhood Stabilization Program (NSP)
- Ohio was second highest funded state in the nation but Dayton only
awarded $5,582,902
- First Priority: Demolition ($3.1 million)
- Other programs aimed at target populations are being developed by staff
for remaining $1.9 million
- City will pursue collaboration with community partners
- Administration funds allowed at 10% = $558,290
- We also plan to aggressively pursue State NSP funding
- Action Plan due to HUD no later than December 1
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- A second fiscal stimulus bill is being considered by the federal
government with goal of stimulating a weakening economy
- Support of Federal Reserve Chairman Bernanke expressed on Monday, Oct.
20
- Potential components:
- Extended jobless benefits
- Funding for infrastructure projects (e.g. roads and bridges) for state
and local governments
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- We are on track to balance the 2008 budget as long as spending continues
to be contained – departments have been doing a very good job in this
regard
- Local and national economic issues continue to be a major area of
concern – staff is preparing a special work session presentation on debt
issues given the impact of the recent financial crisis on the municipal
bond market
- Work on the 2009 budget continues
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Notes