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

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

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

4. DOING THE MATH Year-on-Year, Revenues – Expenditures
2013: $
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

5. 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.

6. 2017 Budget Revenue Highlights
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 $ ,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

7. 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.

8. 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

9. 2017 Budget Expenditure Highlights
Personnel: $29,266,693 $31,053,556 Health Care: $11,000,000 $11,660,000 Pension Expense: $ 3,187,172 $ 3,646,263

10. 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

11. 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

12. 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.

13. 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)

14. CAPITAL PROJECTS 2017 GENERAL FUND

15. CAPITAL PROJECTS 2017 GENERAL FUND

16. CAPITAL PROJECTS 2017 GENERAL FUND

17. CAPITAL PROJECTS 2017 GENERAL FUND

18. CAPITAL PROJECTS 2017 NEIGHBORHOOD SERVICES

19. CAPITAL PROJECTS 2017 STATE LIQUID FUELS TAX FUND

20. 2018/2019 Capital Projects Over $17m already identified in needs
After 2017 only $2.5m in available resources presently to fund across all departments

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