2010 Cincinnati Budget

The City Manager has announced his proposed budget-balancing measures now being considered by the Mayor and City Council, reproduced below from his News Release and spreadsheet. Please ensure your opportunity to let the Mayor and Council know your thoughts is taken advantage of! Links to the Mayor's office, City Council and the City Manager follow at the bottom of this post so you may contact them.

ALSO: Please come our next EPHIA Membership Meeting on Monday December 21st. Meetings begin at 7:30PM in the fellowship hall of Elberon United Methodist Church, 704 Elberon Avenue in East Price Hill. Map

NEW RELEASE
November 23, 2009
Contact:
Meg Olberding, 352-5358 or 368-1083

CITY MANAGER PRESENTS “REDEFINED REALITY” IN 2010 BUDGET

The City of Cincinnati is facing an unprecedented $51.5 million shortfall in the General Fund budget which totals $353.5 million.

“The budget I am presenting today addresses that this government, like the people and businesses in our community, our region, our state and the country, are facing a Redefined Reality,” said City Manager Milton Dohoney, Jr.

The Administration’s budget recommends using:
1. A10% cut in spending.
2. A transfer money from other accounts, where possible,
and tapping one-time reserve accounts.
3. Fees to offset service delivery.
4. Restructuring of some departments.
5. Layoffs and the cost saving days for unrepresented employees.
6. Attempts to restructure some debt.

1) A 10% CUT IN SPENDING.

The Administration looked at ways to cut spending and the service impacts this would cause before looking at other kinds of cuts like personnel. These include:

Establish Yard Waste and White Goods Collection as a single fee based program
Reduce hours at Recreation Centers
Reduce funding for Keep Cincinnati Beautiful
Reduce funding for Cincinnati Human Relations Commission by 50%
Reduce funding for Human Services agencies by $625,000
Reduce funding for the Neighborhood Right-of-Way program and corner can collection in the Central Business District (CBD)
Reduce Health Department inspections for unsanitary living conditions, junk, abandoned vehicles, rodents and insect infestation
Reduce funding for Greenspace Maintenance
Change recycling from weekly to twice a month
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• Close 20 pools and reduce pool season by two weeks
Eliminate the Day Care Center Inspection program
Eliminate funding for non-City operated health clinics
Eliminate the Neighborhood Gardens Program
Eliminate the Private Lot Abatement Program
Eliminate the Litter Control Program
Eliminate funding for the Poison Control Center
Eliminate the Mayor’s Youth Job Fair
Eliminate funding for the Cincinnati Film Commission
Eliminate funding for the Center for Closing the Health Gap
Eliminate funding for the Hilton Davis Consultant
Eliminate funding for Park’s Nature Education program
Eliminate funding for Police Visibility Overtime
Do not fund the Environmental Justice Ordinance implementation
Cancel Police and Fire recruit classes
Temporary Fire Company Closures (staffing for one truck in fire houses where there are two)
Reduction/elimination of special programs in Police such as Vortex.

2) TRANSFERRING MONEY FROM OTHER ACCOUNTS, WHERE POSSIBLE, AND TAPPING ONE-TIME RESERVE ACCOUNTS

The Administration has recommended one-time sources, totaling $10.5 million.

$2 million from the Cincinnati Housing Development Loan Fund, used to expand long-term economic opportunities in the City to help the tax base; however, this $2 million is needed now.

$30,000 from the Special Events fund.

$3.7 million from the Police Comp Time Reserve Account. These funds are in excess of the amount needed to secure the Police Compensatory balances. These funds will go towards paying the costs associated with layoffs (unemployment compensation and lump sum payouts).

Refinancing seven prior year capital project accounts that contain Anthem Demutualization resources or General Fund resources. The Anthem Demutualization funds were a one time unrestricted payment to the City when Anthem demutualized in 2001; therefore these funds can be returned to the General Fund, unlike other Capital fund resources, which are restricted by the City Charter and State Law to be used for permanent improvements. This Totals $667,500.

-more-

$4.1 million from the Working Capital Reserve Fund. In conferring with the rating agencies, we can take this amount without jeopardizing our current bond rating. Our combined reserve level would be 7.5% of General Fund revenues.

3) FEES TO BRING SERVICES MORE IN LINE WITH WHAT THEY ACTUALLY COST.

Solid Waste
This fee would offset the expenses associated with the weekly garbage collection provided by Public Services.

The solid waste fee now being proposed is $10.00 per month per unit and $11.50 per business and it would be billed to property owners quarterly through Water Works.

Since it would not be ready to roll out January 1, 2010, it would generate $6.7 million for next calendar year. In 2011, when it would be in effect for a full year, it would generate $13.1 million.

Special Collection Services (White Goods and Yard Waste)
White Goods and Yard waste services have been eliminated in 2009, yet both are popular with the public.

The workers who actually provided the yard waste service have been displaced.

To fund these as a Special Collections Service would require a fee of $1.06 per month.

Since it would not be ready to roll out January 1, 2010 it would generate $676,000 for next calendar year. In 2011, when it would be in effect for a full year, it would generate $1.1 million.

If the City cannot charge for these services, we will not be able to restore them.

4) RESTRUCTURING SOME DEPARTMENTS.
The City will restructure Public Services to take out an entire layer of management;

Collocate Citizens Complaint Authority and Internal Audit;

and Consolidate Fire and Police E911 operations, which is projected to save $193,030 in the first year. This will come under a civilian leader.

5) Workforce Reduction

Cutting programs, combining functions, tapping reserves, restructuring debt, ten cost saving days from the non-represented employees, and introducing revenue generators still does not fully erase the $51.5 million shortfall.




-more-
Today, the City Manager’s budget recommendation includes eliminating 315 filled positions; 297 are in the General Fund and 18 are in Restricted Funds (those are funds that can only be used under the terms of the funding source).
AFSME declines by 39
CODE declines by 13
Fire declines by 47
Non-represented declines by 13
Police declines by 112
Part time declines by 91

Most of the recommended position reductions will be filled or occupied as compared to vacant positions.

The largest staff reductions will be in the Recreation, Health, Fire, and Police departments.

Additionally, Cost saving days for the City Manager, Directors and all levels of unrepresented employees will yield $800,000.

Labor Participation

The Administration did not build this budget on the assumption that unions would take any cost saving days or make other concessions. Each affected labor group was given the number of affected workers from their bargaining unit. They were not asked specifically to take cost saving days, but to consider a concession at whatever level they prefer to save as many jobs as possible. They were asked to respond, in writing, by December 7.

6) DEFER THE OCTOBER 2010 PAYMENT ($2.5 MILLION) TO OCTOBER OF 2012 FOR CINCINNATI PUBLIC SCHOOLS.

MISCELLANEOUS MEASURES FROM 2009
• Non personnel Reductions such as reevaluating fleet needs, reviewing contracts, reducing Call Center hours (591-6000) and freezing non-essential travel. Approximately $1.5 million.

• Savings from the 27 Full-Time employees laid off in 2009. $1.8 million.

• 16 funded vacant positions eliminated in the General Fund. $0.6 million for 2010.

• COPS hiring grant. $2.7 million

“It is time to redefine our reality, but that reality does not have to be a purely negative one for this government and this community. True, there are some painful cuts—especially the staffing cuts,” said Dohoney. “However, there are opportunities ahead of us if we have the courage to maximize them. It is time for us to lift our heads up and look this new reality in the face to find the best we can be,” he continued.

“I look forward to working with the Mayor and Members of Council to find common ground and finalize this budget.”
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Spreadsheet:


2010 General Fund Gap Plan
2010 Estimated Revenues
$332,688,950
Continuation Budget Less Est. 2009 Cuts
$384,141,590
Gap
$ (51,452,640)
Specific 2010 Department Reductions
$ 22,831,120
Police Visibility Overtime Reduction
$ 1,800,000
School Board Payment Deferment
$ 2,500,000
Misc. Employee Benefits Savings
$ 3,097,460
Misc. Non-Dept Savings
$ 398,720
Total Reductions
$ 30,627,300
Estimated Expenditure Savings
$ 1,767,570
Solid Waste Fee
$ 6,700,000
Special Collections Fee
$ 676,000
Miscelleanous, Fees/Fines
$ 1,417,000
Revenue Impact from Program Reductions
$ (260,000)
Total Revenue Enhancements
$ 8,533,000
Neighborhood Housing Development Fund
$ 2,000,000
Anthem/General Fund in Capital Projects
$ 667,500
Special Events Fund
$ 30,000
Police Comp Time Reserve Transfer
$ 3,700,000
Working Capital Reserve Transfer
$ 4,127,270
Total Transfers
$ 10,524,770
Total Reductions, Revenues and Transfers
$ 51,452,640

Links:

2010 Budget Update

Mayor Mallory

City Council

City Manager Dohoney