City Manager Presents Recommended 2017 Fiscal Year Budget

Mayor Submitted His Budget Updates to City Council on May 31

CINCINNATI – City Manager Harry Black proudly presented his proposed 2017 Fiscal Year budget to Mayor John Cranley on the morning of May 19.

The structurally balanced proposal includes an All-Funds Operating Budget totaling $1.2 billion for the fiscal year and a Capital Budget totaling $466.6 million for all funds, which includes $89.9 million in General Capital.

“Like last year’s recommendation, this proposal does not use one-time sources to balance and continues our efforts to strategically invest in making Cincinnati the best managed local government in the country,” wrote City Manager Black in his budget message.

The recommendation does not propose layoffs in any of the City’s departments.

• VIEW THE BUDGET DOCUMENT
• VIEW MAYOR'S TRANSMITTAL MESSAGE (SUBMITTED MAY 31)

The Proposed Budget points to several encouraging factors that suggest the Cincinnati economy will continue to grow in the years to come. Those include a 4.6% increase in municipal income tax, which represents 71.2% of total General Fund revenue; building permits are trending 8% higher than last year; the historic pension agreement continues to have a tremendous stabilizing effect on City finances; and the Affordable Care Act keeps producing revenue opportunities resulting in enhanced patient care at less cost to local taxpayers.

 “I am pleased to report that the condition of our City finances is fundamentally strong and thanks to the support and leadership of Mayor Cranley and the City Council, is getting stronger,” the City Manager added.

“That is not to say that arriving at this point has been without challenges. The (Fiscal Year) 2017 expected budget deficit of $13.9 million was higher than originally anticipated; however, through shared sacrifice and targeted reductions, we have been able to address this gap while maintaining our strong commitment to public safety and core municipal services.”

Since taking over the job of City Manager in September 2014 the City Manager has worked to implement his vision for the day-to-day operations of City Hall. That is evident in the Proposed Budget, which reflects the next phase of his data-driven performance management initiative and the CincyStat program.

Much like last year’s biennial budget, this Proposed Budget update is guided and informed by five strategic priorities.

• Safer streets
• Thriving and healthy neighborhoods
• A growing economy
• Innovative government
• Fiscal sustainability and strategic investment

“As this budget shows, the City is laser-focused on using performance metrics to increase accountability and enhance customer service,” Black said. “Through strategic investment and innovation we have met the challenges presented by this budget while maintaining our strong commitment to public safety and core municipal services.”

Another major emphasis of the budget recommendation is the continued support of the historic Capital Acceleration Program (CAP), which is investing almost $100 million over the next 6 years to fix roads and modernize City vehicles.

Also, the Streetcar project is on time and on budget, and an operating budget has been approved using sources identified specifically for operations and does not rely on City General Funds.

“With the help of the Mayor and City Council, it’s our intent to make Cincinnati the best managed city in the country,” the City Manager added. “This proposed budget takes a large step in that direction.”

With the receipt of the budget proposal, Mayor Cranley had 15 days to review the document and make any revisions before delivering the amended version to the members of City Council, per City Charter. The Mayor transmitted his updated budget document May 31.

After taking part in a series of public hearings, the City Council is expected to vote on a final version of the budget June 15.

The public hearings will take place at Oakley Recreation Center (3882 Paxton Ave.) on June 2, the Reds Urban Youth Academy (2026 Seymour Ave.) on June 6 and the College Hill Recreation Center (5545 Belmont Ave.) on June 7. All hearings will begin at 6 p.m.

The budget must be passed by City Council before the start of the new fiscal year on July 1.