1. Agenda 1) Process Overview 25 Min. 2) Budget Presentation 25 Min. 3) Budget Priorities 60 Min. 4) Next Steps 10 Min. Committee of the Whole Workshop February 8, 2012 1

2. ActivityDate(s) COW Meetings (4)Feb. 8 – Mar. 21 Next meeting: Revenues and ExpensesFeb. 22 Budget due to CouncilApr. 16 Public Hearing and Dept. HearingsApr./May Budget due to Mayor from CouncilMay 21 Final Adoption (no later than)May 31 Interactive Budget Process 2

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4. 4 City of Hartford FY 11-12 Adopted Budget & Headcount FULL TIME EXPENSES HEAD COUNT General Government 22,829,194 204 Infrastructure 13,472,376 224 Development Services 5,057,716 56 Health & Human Services 5,091,418 42 Public Safety 74,065,368 1,002 Sundry Expenditures 135,397,506 0 Hartford Public Schools 283,365,643 2,227 Hartford Public Library 7,915,000 73 Total General Fund 547,194,221 3,828

5. Adopted Budget History * Budget of $547,194,221 includes the FY 11-12 Adopted Budget of 545,944,221 and the FY 11-12 Supplemental Appropriation of $1,250,000 for the Livable and Sustainable Neighborhoods Initiative (LSNI). 5

6. 6 General Fund Balance Annual Change

7. 7 General Fund Balance

8. FY 11-12 Where Does The Money Go? FY 11-12 - General Fund As Amended Appropriation Budget $ 547,194,221 Education $ 283,365,64351.8% Hartford Public Library $ 7,915,0001.4% Municipal $ 255,913,57846.8% General Fund Budget $ 547,194,221100.0% 8

9. FY 11-12 Financial Forecast ($ in thousands) 9

10. FY 11-12 Mitigation Strategies ($ in thousands) 10 CHALLENGES: Revenues: Tax Lien Sales1,500 Intergovernmental (Pequot) 1,500 License, Inspections & Use of Money1,093 Total4,093 Expenses: Benefit & Turnover Reduction Targets4,550 Police Overtime1,700 October Snow Storm1,100 Hartford Public Schools & Other 784 Total8,134 Total Challenges 12,227 MITIGATION/OPERATIONAL: Revenues: Property Taxes (Prior Year Levies)1,500 Other Revenues 800 Total2,300 Expenses: Salary Savings2,500 Employee Benefits2,400 Tipping Fees & Property Insurance1,250 Total6,150 Total Mitigation/Operational 8,450 NET (3,777)

11. City of Hartford FY 12-13 Budget Forecast 11

12. Revenues: > currently projected to be $508,679,000 … … a decrease of 7.0% Expenditures: > currently projected to be $563,070,000 … … an increase of 2.9% The FY 12-13 budget gap as of 2/8/12 is currently projected to be: $54,391,000 Initial FY 12-13 Budget Projection 12

13. Revenue Drivers: Dollars Mills –General Property Tax Reduction 35,428 10.36 –Other Sources of Revenue Reduction 3,087 0.91 Total Revenue Reduction 38,515 11.27 Expenditure Drivers: –Pension and Insurance Increase 7,315 2.14 –Departmental Payroll Increase 5,889 1.72 –Other Expenditures Increase 2,672 0.78 Total Expenditure Increases 15,876 4.64 Estimated Budget Gap 54,391 15.91 The DO NOTHING Scenario Major FY 12-13 Budget Drivers & Impact On The Mill Rate Comparison To 11-12 Budget ($ in thousands) 13

14. 14 Reduction: Impact of Revaluation22,890 Elimination of Commercial Surcharge12,538 Total Change 35,428 Revenue Loss Distribution (% of loss): Residential 15 % Commercial 72 % Personal & Auto 13 % Total Distribution 100 % Property Tax Revenue ($ in thousands)

15. Budget Priorities 15

16. Proposed ScheduleProposed Date Revenues and Expenditures February 22 nd (Wednesday) Debt Service, Capital and PensionMarch 8 th (Thursday) Board of Education, Library and Hartford Parking AuthorityMarch 21 st (Wednesday) Mayor finalizes Recommended BudgetLate March-Early April Budget Due to CouncilApril 16 th (Monday) Public Hearing & Dept. HearingsLate April-Mid May Budget Due to MayorMay 21 st (Monday) Final Adoption (no later than)May 31 st (Thursday) Next Steps 16