1. Agenda 1) Process Overview 25 Min. 2) Budget Presentation 60 Min. 3) Budget Priorities 25 Min. 4) Next Steps 10 Min. Committee of the Whole Workshop February 22, 2012 1

2. ActivityDate(s) COW Meetings (5)Feb. 8 – Mar. 28 Next meeting: Debt Service, Capital & PensionMar. 8 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

3. Presentation Objectives 3 > City of Hartford Financial Overview > Preliminary 2012-13 Budget

4. City of Hartford Financial Overview 4 > Ratios, A Snapshot Comparison > Revenues > Expenses

5. Adopted Budget History 5

6. Net Grand List As % Of Gross Grand List Combined Average Assessment Ratio Across All Property Categories In Affect The “Tax Yield” 47% Source: State of Connecticut, Office of Policy & Management, Municipal Indicators FY 2010 6

7. MUNICIPALITYRESCOMMOTH Bridgeport56.125.918.0 Hartford22.251.026.8 New Britain61.822.415.8 New Haven52.234.912.9 Waterbury55.628.216.2 West Hartford75.614.69.8 % Net Grand List Assessment By Category Percent of Total Assessed Property By Category Source: State of Connecticut, Office of Policy & Management, Municipal Indicators FY 2010 7

8. Debt As % of Total Expenditures Total Debt Expense Divided By Total City Expenses 55% Source: State of Connecticut, Office of Policy & Management, Municipal Indicators FY 2010 8

9. Debt Service As % of Total Expenditures Total Interest and Principal Divided By Total City Expenses 6.7% Source: State of Connecticut, Office of Policy & Management, Municipal Indicators FY 2010 Target Between 6% and 8% 9

10. 10 FY 11-12 Revenue Budget $547,194,221

11. FY 11-12 Multi-Year Grant Revenue Budget By Department (Total = $104,507,548) Multi-Year Revenues 11

12. 12 FY 11-12 Expenditure Budget $547,194,221 Note: Education Excludes $642,545 Appropriation Resulting From Adjustment Associated With Minimum Budget Requirements

13. Staffing By Department FY 11-12 Budget Combined General Fund & Grants 13

14. Staffing By Department FY 11-12 Budget Combined General Fund & Grants Municipality HC% Hartford Public Schools3,01764% Public Safety1,02722% General Government2395% Infrastructure2265% Health & Human Services802% Library772% Development Services712% Total4,737100% 14

15. Preliminary 2012-13 Budget 15 > Budget Preparation > Summary > Revenues > Expenses

16. Preliminary 2012-13 Budget Assumptions 16 Revenue: Property Tax Revenue Projection Based On Revaluation of Property Without Modification to Mill Rate Revenue: Intergovernmental Revenues Are Based on the Governor’s Preliminary Budget Proposal Expenses: Are Driven By Contractual Obligations and Inflationary Pressure Departmental Expenses: Have Been Instructed To Keep Their Budgets Flat O O O O

17. Preliminary 2012-13 Budget ($ In Millions) 17 BUD EST 11-12 12-13VAR Revenues: Taxes273,394 237,713 (35,681) Intergov’t251,528 255,349 3,821 Other 22,272 19,040 (3,232) Total547,194 512,102 (35,092) Expenses: Payroll100,020 105.908 5,888 Pension 24,882 35,466 10,584 Benefits 37,730 37,361 (369) Leases, Cont. & Svs. 17,959 17,281 (678) Debt Service 36,509 36,509 0 Utilities 18,988 19,048 60 Schools283,366 288,816 5,450 Library 7,915 7,915 0 Other 19,825 20,040 215 Total547,194 568,344 21,150 Net Surplus/(Deficit) 0 (56,242) (56,242)

18. Revenues Forecast BUDGETFORECASTVARIANCE FY 2011-2012FY 2012-2013 GENERAL PROPERTY TAXES273,394,264237,713,151(35,681,113) LICENSES AND PERMITS5,328,5805,344,78016,200 FINES FORFEITS & PENALTIES240,000246,0006,000 REVENUE MONEY AND PROPERTY5,178,2872,195,488(2,982,799) INTERGOVERNMENTAL REVENUES251,827,741255,348,7703,521,029 CHARGES FOR SERVICES2,787,1352,729,935(57,200) REIMBURSEMENTS3,426,1143,321,771(104,343) OTHER REVENUES657,1001,747,1001,090,000 OTHER FINANCING SOURCES4,355,0003,455,000(900,000) TOTAL REVENUE547,194,221512,101,995(35,092,226) 18

19. Net Property Tax Revenues Reduction of $35.7 (Dollars In Millions ) 19

20. Impact of Revaluation On Gross Tax Levy ($ in Millions) Category20102011VAR Residential56.751.3(5.4) Commercial153.9128.6(25.3) Personal & Auto70.265.5(4.7) Total280.8245.4(35.4) 20

21. Intergovernmental Revenues Increase of $3.5 (Dollars In Millions ) 21

22. FY 12-13 Governor’s Proposed Budget Impact On City Revenues FY 11-12FY 12-13Variance Education Cost Sharing 187,974,890 192,783,0014,808,111 Pilot: Colleges and Hospitals 25,078,308 0 Pilot: State Owned Property 12,691,078 12,670,364 (20,714) Pequot-Mohegan Grant 7,236,716 7,437,118 200,402 Transportation Grant 1,685,397 1,626,522 (58,875) Town Aid Road Grant 608,585 0 Manufacturing Transition Grant 1,126,251 0 Property Tax Relief Grant 5,650,845* 5,650,8450 Total 242,052,070 246,980,994 4,928,924 * Estimate provided by Connecticut Conference of Municipalities. 22

23. Other Revenues Reduction of $3.0 (Dollars In Millions ) 23

24. Expenditure Driver: PENSION Increase of $9.6 Million 24

25. Expenditure Driver: BENEFITS 25

26. Expenditure Driver: DEBT SERVICE 26

27. Expenditure Driver: Non-Operating 27

28. Net Taxable & Non-Taxable Property 28

29. Net Taxable & Non-Taxable Property 29 09-1010-1111-12 Taxable53.7%52.0%50.6% Non Taxable46.3%48.0%49.4% Total100.0%

30. PILOT Overview 2011-2012(GL 2010) Mill Rate71.79 Taxable Grand List3,738,377,678 Exempt Grand List3,644,266,317 Total Grand List7,382,643,995 %Taxable51% %Exempt49% Tax if exempt were taxable$261,621,879 PILOT Reimbursed$ 37,769,386 (1) Lost Revenue$223,852,493 % Potential Revenue Reimbursed 14% (1) Includes State Owned Properties, Colleges, Universities and Hospitals 30

31. Hartford FY 2010 Non-Taxable Property (Total = $3,302,822,000) 31

32. Mitigation Strategies  Benefits  PILOT (Voluntary)  Pension  Education  Shared Services  Furloughs & Other Personnel 32

33. Proposed ScheduleProposed Date Debt Service, Capital and PensionMarch 8 th (Thursday) Board of Education, Library and Hartford Parking Authority March 21 st (Wednesday) Fifth COW Meeting… Mitigation StrategyMarch 28 th (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 33

34. Overtime by Major Category FY 10-11 Actual Expenditures 34

35. 35 Overtime by Department FY 10-11 Actual Expenditures