Mayor Eric Papenfuse City of Harrisburg November 22, 2016 2017 Budget Presentation Mayor Eric Papenfuse City of Harrisburg November 22, 2016

AGENDA Balancing the Budget Revenue and Expenditure Highlights Maintaining Critical Capacity Building Critical Capacity Policing Initiatives Capital Improvements Budget Next Steps through Year End

BALANCING THE BUDGET Revenues Expenditures 2014 Budget $59,464,885 $59,462,248 2014 Actual $61,714,169 $55,766,537 2015 Budget $59,370,699 $59,359,748 2015 Actual $51,660,686 $55,538,752 2016 Budget $60,191,666 $60,061,584 2016 Actual (estimated) $64,000,000 $56,700,000* *Includes est. $1.5m in rollover encumbrances 2017 Budget (operating) $61,423,582 $61,394,574 2017 Budget (capital) $ 4,256,764 $ 4,256,764 2017 Total $65,680,346 $65,661,338

DOING THE MATH Year-on-Year, Revenues – Expenditures 2013: $ 0 2014: $ 5,947,632 2015: $ (3,878,066) 2016: $ 7,300,000 Plus (internal escrows for health care & workers comp) $ 3,500,000 EOY City Cash Balance (approximation) $ 12,869,566 Subtract (10% Revenue operating reserve) $ (6,000,000) Total Available for Capital Improvements $ 6,869,566

Take Away # 1 City has both a balanced and sustainable operating budget for 2017. Due to careful management of spending over past three years, City can finally begin to invest millions in long neglected capital improvements and infrastructure.

2017 Budget Revenue Highlights 2016 2017 Property Taxes $16,715,001 $16,631,432 EIT $10,716,430 $10,818,927 LST $ 4,664,334 $ 5,569,740 Mercantile/Business $ 7,430,009 $ 7,332,208 Other Taxes $ 1,440,010 $ 1,438,000 Departmental (includes State Public Safety $5m) $ 9,286,686 $ 9,429,606 Fines, Licenses & Permits $ 1,325,753 $ 1,314,745 Pension State Aid $ 2,200,000 $ 2,532,920 Ground Lease Payments $ 1,166,990 $ 1,202,000 Priority Parking Payments $ 954,810 $ 1,798,000 Other/Miscellaneous (PILOTs, Employee medical, CRW Shares Srvs, Comcast franchise, etc) $ 4,071,561 $ 3,382,007 Little overall change year-over-year

Take Away #2 Parking payments are essential revenues for City sustainability. Movement to open up waterfall payment structure and take these away would devastate the City’s recovery and betray the promise of the Strong Plan.

Take Away #3 Balanced budget is sustainable ONLY with the revenue available from the taxing powers afforded Harrisburg through Act 47 City must push for legislative change on state level to take these powers with us upon exiting Act 47 after 2018, as mandated by law City Council must initiate the Home Rule process to allow taxing powers such as the current EIT level to exist by right in a new City charter Citizens must be aware that even if the state legislature abolishes school property taxes, City real estate taxes may need to be increased to fill this void

2017 Budget Expenditure Highlights 2016 2017 Personnel: $29,266,693 $31,053,556 Health Care: $11,000,000 $11,660,000 Pension Expense: $ 3,187,172 $ 3,646,263

MAINTAINING CRITICAL CAPACITY 6 Management Position Reclass/Upgrades: - Health & ADA Compliance Officer - Director of Business & Resource Development - Traffic Signal and Streetlight Manager - Procurement Services and Compliance Manager - Solid Waster Logistics and Composting Manager - Arborist and Parks Maintenance Director

BUILDING CRITICAL CAPACITY 12 New AFSCME positions: General Fund - 1 new Traffic Engineering Tech - 3 new Codes Officers Neighborhood Services - 6 new Laborers, all focused on Parks Maintenance - 1 new Parks Maintenance Secretary - 1 new Park Ranger

Policing Initiatives Officer Elliott was justified in using lethal force and Dauphin County’s investigation was thorough, professional, and fair. The President’s Taskforce on 21st Century Policing provides a roadmap forward for all communities, including updating policing policies, increasing transparency, improving training, examining hiring practices, and insuring officers have the proper tools.

4 Take Aways for Harrisburg 1) Officers need more non-lethal options and training New Tasers for every officer Deployment of 303s for every shift 2) City needs to build trust through transparency and better communication with the public Body Cameras for every officer Two new positions: Public Safety IT Specialist and Crime Analyst 3) Officers need: Enhanced training opportunities (FATS simulator) Modern equipment (new gear) Upgraded technology (new computers, data and SMARTBoards) Upfitted and new vehicles (pursuit, traffic safety) Improved physical workplace environment (Public Safety Building repairs) 4) More community-focused officers needed (looking to hire 19 in 2017) along with strategy to retain them (5-yr payback period)

CAPITAL PROJECTS 2017 GENERAL FUND

CAPITAL PROJECTS 2017 GENERAL FUND

CAPITAL PROJECTS 2017 GENERAL FUND

CAPITAL PROJECTS 2017 GENERAL FUND

CAPITAL PROJECTS 2017 NEIGHBORHOOD SERVICES

CAPITAL PROJECTS 2017 STATE LIQUID FUELS TAX FUND

2018/2019 Capital Projects Over $17m already identified in needs After 2017 only $2.5m in available resources presently to fund across all departments

NEXT STEPS THROUGH YEAR END 2 public budget hearings on December 7th and 8th Anticipated 2017 Budget passage on December 13th