City of Chicago 2013 Budget Overview potx

City of Chicago 2013 Budget Overview Mayor Rahm Emanuel e Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Chicago, Illinois for their Annual Budget beginning January 1, 2012. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. 2013 Budget Overview L   M Dear Fellow Chicagoans, Last year, by working together and making tough choices, we were able to put Chicago on the path to long-term financial stability by closing a $635 million budget gap, reducing the cost of City services, and making government work more efficiently and effectively. Next year’s budget will continue to build on this progress. Over the past month, I met with people from all areas of Chicago to discuss the City’s priorities and how we build a budget to support them. Many people joined these discussions online and posted ideas on our budget website. I heard from people who were worried about keeping their children safe and engaged after school; from small business owners who wanted the City to be a partner instead of a barrier to business growth; and from many people facing financial difficulties who wanted to make sure that the City was being as careful with its money as they are with theirs. e 2013 budget proposal reflects this honest, transparent, and collaborative process. During these challenging economic times, this budget does not raise taxes or introduce new fees. It eliminates the employee head tax, which penalized job creation. It includes important investments in the programs that matter most to the people of Chicago, and it reforms City government to reduce operating costs and provide better services to residents. By continuing and expanding the reforms and spending controls that were put in place in the first year of my administration, this budget proposal keeps Chicago on the path to financial stability and a more prosperous future, and improves services without burdening Chicago’s taxpayers. Rahm Emanuel Mayor 2013 B O T  C This Budget Overview is a companion to the other documents that together comprise the City’s annual proposed operating budget, all of which are avail- able on the City’s website - the 2013 Budget Recommendations, which contain the City’s proposed line-item budget, the 2013 Anticipated Grants Budget, and the Draft Action Plan, which relates to federal Community Development Block Grant funding. L   M S  P B 1 D  P B Overview 9 Revenue Discussion 11  • CorporateFund 11  • SpecialRevenueFunds 15  • EnterpriseFunds 18   • PensionFunds 19  • DebtServiceFunds 19  • PropertyTaxLevy 20  • GrantFunds 21 Expenditure and Workforce Discussion 22  • PersonnelCosts 22  • Non-PersonnelCosts 23 Performance Metrics and the Budget 25 P  B S  D Finance and Administration 29  • OfficeoftheMayor 31  • OfficeofBudgetandManagement 33  • DepartmentofInnovationandTechnology 35  • OfficeoftheCityClerk 37  • DepartmentofFinance 39  • CityTreasurer’sOffice 43  • DepartmentofAdministrativeHearings 45  • DepartmentofLaw 47  • DepartmentofHumanResources 51  • DepartmentofProcurementServices 53  • DepartmentofFleetandFacilityManagement 55 Legislative and Elections 60  • CityCouncil 61  • BoardofElectionCommissioners 64 City Development 66  • DepartmentofCulturalAffairsandSpecialEvents 67  • DepartmentofHousingandEconomicDevelopment 69 Community Services 71  • DepartmentofPublicHealth 73  • CommissiononHumanRelations 77 2013 B O T  C ()  • Mayor’sOfficeforPeoplewithDisabilities 79  • DepartmentofFamilyandSupportServices 82  • ChicagoPublicLibrary 85 Public Safety 87  • ChicagoPoliceBoard 88  • IndependentPoliceReviewAuthority 89  • ChicagoPoliceDepartment 91  • OfficeofEmergencyManagementandCommunications 94  • ChicagoFireDepartment 96 Regulatory  98  • OfficeoftheInspectorGeneral 99  • DepartmentofBuildings 101  • DepartmentofBusinessAffairsandConsumerProtection 104  • CommissiononAnimalCareandControl 107  • LicenseAppealCommission 108  • BoardofEthics 109 Infrastructure Services 111  • DepartmentofStreetsandSanitation 112  • DepartmentofTransportation 117 Public Service Enterprise 123  • DepartmentofAviation 124  • DepartmentofWaterManagement 127 General Financing Requirements 132 C I P  • IntroductionandRelationshiptoOperatingBudget 137  • 2013CapitalImprovementProgram 138  • 2013TaxIncrementFinancingProgram 139 H C B  • BudgetProcess 143  • BudgetDocuments 144  • BudgetCalendar 145  • BasisofBudgeting 146  • FinancialPolicies 147  • CityofChicagoOrganizationalChart 149  • Glossary 150 B D  • HowtoReadBudgetDetail 157  • Revenue 158  • Expenditures 165  • Personnel 167  • Grants 171 A  • AppendixA-ChicagoFactsandDemographics 175  • AppendixB-2013CapitalProjects 185 Summary of Proposed Budget 2013 Budget Overview 2013 Budget Overview Summary of Proposed Budget 2013 PROPOSED BUDGET SUMMARY $ Millions Table 1 Corporate Fund   2%    2% Pension Funds   1%    10% Enterprise Funds 2,001.6  5% Grant Funds   1% Total Resources   3% Less Proceeds of Debt   - Less Internal Transfers (330.3)  - Net Appropriations $8,084.4 $8,346.9 3% 2012 B 2013 P B % C I One year ago, the City presented a 2012 budget that began the difficult process of addressing its structural deficit. e 2012 budget closed a $635 million budget gap by reforming City government while maintaining the programs and services most important to the people of Chicago. is process involved many tough choices, but by working with aldermen, residents, and community organizations, the City was able to implement key initiatives that saved taxpayer dollars, significantly reduced the City’s long-term structural deficit, improved the quality of City services, and increased the efficiency of City government. ese initiatives ranged from changing the way the City picks up garbage to expanding healthcare options for Chicago communities to implementing a wellness program for City employees. is year, because of the choices made last year and the structural reforms put into place, the City faced the smallest  budget builds on this progress. is budget balances the City’s finances without raising a single tax or introducing a single new fee. It encourages job growth by completely eliminating the employee head tax by the end of 2013. It also makes a significant investment in programs that enhance the health, safety, and education of the children of Chicago, making this a children-first budget. Further, it makes important investments in programs that enhance the quality of life for Chicagoans, promote small business development, and increase public safety. In addition, because of the reforms made over the past year, the City is able to continue to build its reserves in order to enhance its long-term financial stability. e 2013 proposed budget makes a $15 million investment in the City’s reserves, following up on the $20 million investment made last year. B O Total net appropriations under the 2013 proposed budget           proposed corporate fund budget for 2013 is $3.16 billion. Proceeds of debt issuances transferred between funds and reimbursements or internal transfers between funds are deducted from the total resources to more accurately reflect the City appropriation. Total resources include revenues generated during the year and prior year savings and available resources. 1 2013 Budget Overview Summary of Proposed Budget (continued) By taking an aggressive approach to fiscal management, the City made substantial progress towards reducing its structural deficit in 2012. e $369 million corporate fund gap announced in July was nearly half the size of the   tighter spending controls, effective reforms, and better-than- anticipated revenue results due to economic growth. R Growth in the economy and improved collections are expected to increase City revenues in 2013 without increasing the financial burden on residents by increasing taxes and fees. As Chicago’s economy continues to grow, the City projects increases in revenues from economically sensitive sources such as the real property transfer tax, hotel tax, and income taxes. e City will build on these growing revenues with a focus on collecting from institutions and individuals who already owe the City money but have failed to pay. In 2012, the City made significant improvements to its debt collection processes to ensure that its collection efforts are efficient, accurate, timely, and fair, so that Chicago taxpayers do not foot the bill for people and businesses who owe the City money. Collections that were previously scattered among various City departments have now been consolidated under the City Comptroller, who has specifically targeted large debtors like corporations and financial institutions. e 2012 budget projected an additional $31 million in such collections, but the City now anticipates that it will collect   in debt collections in 2013. e 2012 collections include a number of large payments that will not be repeated in 2013.  Even as revenues grow, the City continues to make the lasting structural changes necessary to keep its expenditures in check and its finances sustainable. Personnel costs make  percent of the corporate fund budget. e City has worked in partnership with unions representing City employees to reach agreements that reduce costs and increase the flexibility  11 agreements that are expected to save the City more than  with Laborers Local 1001 that will help save taxpayers more than $30 million dollars in that period. Over the past year, the City has also aggressively managed its healthcare costs and, as a result, healthcare costs came in under budget in 2011 and are expected to come in under budget in 2012. To promote a healthier workforce and counter rising health insurance costs, the City has begun implementation of a ground-breaking wellness program   family members have signed up for the program – an almost           a result, the City expects to see a significant reduction in its long-term healthcare costs. e City also achieved more than $20 million in savings in 2011 and 2012 by aggressively managing healthcare plans  to the PPO’s vision plan; issuing an RFP with the sister  and aggressively submitting claims for the Early Retirement Reinsurance Program. e City has also established a healthcare fraud detection program that has resulted in $5 million in savings for the City. Finally, another important 2 [...]... Budget $0 5 2013 Budget O ve rv i ew Discussion of Proposed Budget 2 0 1 3 B u d g e t O v e r v i e w Discussion of Proposed Budget Overview The 2013 proposed City budget for all local funds is $6.54 billion, $3.16 billion of which makes up the City s corporate fund budget The 2013 proposed budget also includes an anticipated $1.81 billion in grant funding, bringing the total proposed budget for 2013. .. Summary of Proposed Budget (continued) driver of healthcare savings has been declining enrollment in the City s healthcare plans, which is reflected in the City s lower and more honest projection of healthcare costs in the 2013 budget While the number of officers retiring or leaving the police force has remained basically stable over the years, the number of new recruits has not To ensure that the Chicago. .. Funds Property Tax Levy budget increases the library levy to $83.9 million, or 10 percent of the total City levy, as a result of the expiration and termination of TIF districts In 2013, 43 percent of the City s property tax levy, or $346.9 million, and 6 percent of the library’s portion of the property tax levy, or $5.3 million, will be used to fund pension contributions for City employees Debt service-related... implementation of the City s employee wellness program, and declining enrollment in City plans The 2013 budget proposes expenditures totaling $6.54 billion for all local funds, and expenditures of $8.35 billion when grant funds are included Proposed expenditures for the City s corporate fund total $3.16 billion This section discusses the 2013 proposed budget both in terms of the types of expenditures... percent of proposed 2013 local fund costs, respectively City Development and Community The following section sets forth the proposed 2013 budget, including both local and grant funding, for each City department and program, organized by functional category PROPOSED BUDGET BY FUNCTION $ Millions Table 9 All Local Funds Grant Funds 2013 2012 -2013 Budget Proposed Change 2012 Finance and Administration 2013. .. is set forth in the 2013 Grants Budget, available on the City s website, and with respect to the Community Development Block Grant program, which represents $81.6 million of anticipated 2013 grant funding, additional details can be found in the 2013 Draft Action Plan, also available on the City s website The City anticipates receiving a total of $1.81 billion in grant revenue in 2013, up slightly from... information on the Chicago Public Library’s budget and programming for 2013 can be found in its departmental summary in the following section of this document Emergency Communications Funds The City maintains segregated funds to support the 911-related operations of the Office of Emergency Management and Communications and to pay debt service on bonds issued to fund the construction of the City s 911 call... healthcare are budgeted separately from City departments and accounted for under the Finance General category These expenses represents 49 percent of the proposed local fund budget, or $3.2 billion, in 2013 Public Safety represents the largest functional category of expenses, at $1.9 billion, or 29 percent, of the proposed local fund budget and 59 percent of the proposed corporate fund budget Public... ongoing City services, programs, and capital improvements Grant funds are received on various fiscal year time periods and many grants awarded to the City are for multiple years The annual amount of appropriated grant funds varies with the availability of grants that meet City needs and the City s ability to apply for and obtain such grants At the time of the finalization of the 2012 budget, the City. .. will work on the City s rodent abatement program until they are able to return to their original assignment Through this program, the City expects to bait an additional 1,800 alleys in 2013, a 34 percent increase 4 2 0 1 3 B u d g e t O v e r v i e w Summary of Proposed Budget (continued) Closing the 2013 Budget Gap Original Gap $369,000,000 2012 -2013 Cost Savings $26,000,000 2012 -2013 Revenue Growth . AppendixB- 2013 CapitalProjects 185 Summary of Proposed Budget 2013 Budget Overview 2013 Budget Overview Summary of Proposed Budget 2013 PROPOSED BUDGET. Balanced Budget $0 clOsing the 2013 Budget gap 5  2013 B O 2013 Budget Overview Discussion of Proposed Budget Other