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FY 2020-21 Manager’s Recommended Budget Amendment

September 22, 2020

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Overview

  • Overview of budget process
  • Brief Financial Update
  • FY 2020-21 Manager’s Recommended Budget Amendment
    • Reimagining Public Safety
    • Investment Recommendations
  • Next Steps: FY 2021-22 Budget Process

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Key Takeaways

  • FY 2019-20 financial results better than expected but ongoing uncertainty.
  • Budget amendment includes the initial reallocation and reinvestment of approximately $770,000 from the Police Department budget.
  • Budget recommendations are only the beginning of the effort to reimagine the delivery of public safety services in Asheville.

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Budget Process Overview

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Department Requests (Oct-Jan)

Budget Review (Jan-Feb)

Council Work Session

(Jan 14)

Council Retreat

(March 13)

Council Work Session

(April 14)

Council Work Session

(May 12)

Mgr’s Proposed Budget (May 26)

Adoption of Interim Budget (June 23)

Budget Public Hearing

(July 28)

Annual Budget Adoption

(July 30)

Community Engagement

(Jul-Sept)

Amend Annual Budget

(Sept 22)

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Budget Process Overview

  • Required public hearing held on July 28.
  • Adopted annual budget on July 30 with three months of funding for each department.
  • Tonight’s budget amendment if approved will:
    • Fund departments for the remaining 9 months.
    • Amend departmental budgets to reallocate funding from Police to other departments.

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9-Month Budget Amendment

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Fund

3 month

9 month

Total

General

57,554,202

77,209,368

134,763,570

Water

14,119,391

19,115,921

33,235,312

Transit

11,094,571

1,162,082

12,256,653

Parking

1,900,948

4,746,732

6,647,680

Stormwater

1,692,915

4,887,427

6,580,342

HCCA

1,145,557

2,658,501

3,804,058

Street Cut

582,825

1,294,279

1,877,104

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Financial Update

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Preliminary Year-End Results

  • Sales tax revenue losses were unprecedented but not as bad as expected.
  • Coronavirus Relief Funding (CRF) helped offset expenses.
  • Fund balance usage less than originally estimated.
    • Final numbers after the financial audit is completed in October.

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Sales Tax Update

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FY20 Final Quarter

April

May

June

Estimate

-30.00%

-20.00%

-10.00%

Actual

-19.35%

-8.27%

1.38%

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FY20 Total

May Estimate

Actual

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Total Receipts

$ 26,049,399

$ 26,921,766

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Sales Tax Budget

$ 27,650,204

$ 27,650,204

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Amount Under Budget

$ (1,600,805)

$ (728,438)

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General Fund Balance Update

  • Original estimate:
    • Decline of $2.5 - $4.5M.
    • Available fund balance of 14-16%.

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  • Updated estimate:
    • Decline of $0.5M - $2.0M.
    • Available fund balance of 16-17%.

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Financial Update Summary

  • Economic outlook remains uncertain.
  • No budget additions recommended at this point.
  • Continuation of soft hiring freeze through first half of fiscal year.
  • Update Council after completion of annual audit.

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Fiscal Year 2020-21 (FY21) Manager’s Recommended Budget Amendment

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Budget Recommendations

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4 Animal Control positions (reassigned to DSD)

$220,000

1 Assistant to the Chief position (funding reassigned to CAPE; individual moving into another position)

$110,000

2 Park Warden positions (1 position reassigned to Parks and Recreation and 1 vacant position to a partner agency)

$90,000

6 Telecommunicator positions (all currently vacant; funding being reassigned to ITS and DSD)

$300,000

Salary savings from sworn police officer positions (resignations between July and September - one-time payment to partner organization(s))

$50,000

Total

$770,000

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Potential Recommendations for FY21-22

  • Work with Buncombe County to consolidate the 911 emergency call center to more efficiently respond and deploy resources.
  • Create a collaborative rapid response team for mental health, drugs and alcohol, homeless, and domestic violence calls.
  • Develop new model(s) for School Resource Officers to support student mentoring and other identified needs in schools.
  • Work with tenants and Housing Authority staff on new model(s) to enhance safety in Housing Authority communities.

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Key Takeaways

  • FY 2019-20 financial results better than expected but ongoing uncertainty.
  • Budget amendment includes the initial reallocation and reinvestment of approximately $770,000 from the Police Department budget.
  • Budget recommendations are only the beginning of the effort to reimagine the delivery of public safety services in Asheville.

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Questions

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