DEPARTMENT OF FINANCE 2014 CITY COUNCIL BUDGET REVIEW SEPTEMBER 25, 2013

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1 DEPARTMENT OF FINANCE 2014 CITY COUNCIL BUDGET REVIEW SEPTEMBER 25, 2013

2 DOF Strategic Overview Citywide Vision: We will deliver a world-class city where everyone matters - 2 -

3 Department of Finance Mission Level Metrics Priority Metrics YTD 2014 Goal City s Bond Rating AAA AAA AAA AAA Percent of General Fund undesignated Balance 17.1% (Actual) 15.9% (Actual) 16.8% (Budget) 13.8% Basis points by which the City s total return on investment portfolio exceeds benchmark Annual Financial Audit with No Negative Comments Yes Yes Yes Yes Debt per Capita $1,519 $1,412 $1,428 $1,339 DIA Bond Rating A+/A1 A+/A1 A+/A1 A+/A1 Customer Wait Time at DMV 0:55:17 0:48:45 0:50:06 0:25:00 CoPIRG Spending Transparency Rating n/a B B A % Citywide Funds Collected by Credit Card Payment 5.3% 5.6% 6.3% 12% GFOA Awards (Budget and CAFR) Yes Yes Yes Yes % of Denver Residents rating Value of Services for Taxes Paid to Denver as Excellent or Good 50% 54% n/a n/a Vacancy Rates for City Buildings n/a n/a 12% 11% Percent of Valuations Appealed 3.6% 0.09% 1.22% 0.04% Sales Tax Delinquency Rate 1.92% 1.47% 1.40% 1.20% - 3 -

4 Department of Finance Organization Chart Department of Finance Organization Chart 2014 Total FTE: Cary Kennedy Manager of Finance Office of the CFO 8 FTE Brendan Hanlon Budget and Management 26.5 FTE Beth Machann Controller s Office 91.0 FTE Steve Ellington Treasury Division FTE Paul Jacobs Assessment Division 52.0 FTE Bob Gibson Cash, Risk & Capital Funding 32.0 FTE Jeff Steinberg Division of Real Estate 6.0 FTE - 4 -

5 DOF Budget Overview Expenditures 2011 Actual 2012 Actual 2013 Revised 2014 Proposed Budget Variance General Fund $33,948,946 $32,773,462 $38,750,800 $40,950,800 $2,200,000 Special Revenue Fund Other Funds Workers Comp ISF $37,702,859 $24,039,543 $25,140,110 $26,557,894 $1,417,784 $12,774,937 $10,053,051 $13,048,473 $12,145,000 ($903,473) Capital Payments $8,090,140 $4,967,620 $6,799,485 $9,038,030 $2,238,545 TOTAL $92,516,882 $71,833,676 $83,738,868 $88,691,724 $4,952,856 Summary of 2014 Budget Proposal Expenditures Variance in General Fund is primarily due to the consolidation of the credit card fee budgets, waiving convenience fees, and personnel growth. Increase in SRF Budget is due to projected increase in payments to Denver Preschool Program and Convention Center Hotel. Decrease in Workers Compensation ISF is due to a reduction in payments as a result of reduced claims over time. Increase in Capital Payments due to an increase in Property, Planning, and Evaluation for a Safety Master Plan, and a $2M increase in Capital Project Payments. Revenue 2011 Actual 2012 Actual 2013 Revised 2014 Proposed Budget Variance General Fund $613,260 $748,985 $583,600 $592,100 $8,500 Summary of 2014 Budget Proposal Revenues Revenue does not include citywide revenues such as taxes or those collected on behalf of other agencies. Revenue includes GIS Data Sales and Maps (Assessment Division), and Billings for Services (Controller s Office) 1% increase projected in Billings for Services - 5 -

6 DOF General Fund CSA Personnel Overview Career Service Authority (CSA) Employees 2011 Actual 2012 Actual 2013 Revised Budget 2014 Projected Total Personnel Budget $26,732,362 $27,839,226 $29,551,181 $30,592,569 Comp Time $17,159 $20,313 $0 $0 Overtime $50,440 $88,095 $45,000 $45,000 Total FTE On-Call Budget $170,293 $117,401 $116,000 $128,000 On-Call FTE CSA Key Drivers: Increase of 6 FTE and no budget due to 6 Limited Peak Academy Positions, funded out of the ifund. Transfer of 1 Mayoral Appointee position to the Office of Economic Development for the Citywide Marketing Director position

7 2014 Budget Decisions for DOF Key Expansion Proposals Cash, Risk & Capital Funding Title: Eliminate Convenience Fees on Credit Card Transactions Description: The Fines and Fees Committee voted to eliminate convenience fees currently being paid to the city for online and over-the-counter transactions to influence migration of more payments to online, which is the least expensive way for the City to receive payment, and provide a better, more consistent customer experience. Convenience fees are charged by the following agencies: Treasury, County Courts, DMV, Public Works Financial Impact: $975,450 $475,450 Revenue Loss $595,000 Expenditure Growth Performance Metrics: 2011 Actual 2012 Actual 2013 Estimated 2014 Projected % Citywide Funds Collected by Credit Card Payment 5.3% 5.6% 6.3% 12% Title: Consolidation of Non-Enterprise Credit Card Fees Description: Consolidate credit card budgets from six agencies and increase the budget related to Public Works fees. Financial Impact: $350,

8 2014 Budget Decisions for DOF Key Expansion Proposal Denver Motor Vehicle Title: DMV Data Mailer Pilot Description: DMV to design and distribute postage paid data mailer to increase mail in and online renewal rate. Financial Impact: $180,000 - Temporary Performance Metrics: 2010 Actual 2011 Actual 2012 Actual 2013 Estimated 2014 Projected Workload Metric: Manual Renewal Rate Mission Level Metric Impact: Customer Wait Time at DMV 55% 52% 59% 52% 40% 0:38:46 0:55:17 0:48:45 0:50:06 0:25:00-8 -

9 2014 Budget Decisions for DOF Key Expansion Proposals - Other Title: Reduce CIP Transfer to General Fund for 2014 Description: Reduce CIP Transfer to GF for 2014 to allow for additional capital projects to be funded. Financial Impact: ($2,000,000) Revenue Title: Reinstate the Downtown Historic Denver Rebate Description: Budget increase to restore the rebate program after it had been put on hold in Financial Impact: $300,000 Title: Fraud Hotline Description: Implement an external audit recommendation for a Fraud Hotline where employees can anonymously report via phone or website suspected fraud. Financial Impact: $15,000 Title: Personnel Changes Description: Net zero FTE impact due to abolishing a Sr. Real Property Appraiser position whose workload has been redistributed and absorbed by existing staff, and converting an on-call position to a permanent FTE. Budget for benefits has been absorbed in the base. Financial Impact: ($70,132) - 9 -