Budget: Roads, cops – and a pension payment

Cincinnati City Manager Harry Black Wednesday unveiled his recommended 2016-2017 Fiscal Year Budget, with an eye on performance metrics, he said.

The budget proposal delivers more police officers and firefighters, includes a plan to bring the roads back into good condition, bolsters economic development and even gives the streetcar an infusion of cash.

"This proposed budget places the city on stronger financial footing and begins a new era of innovation in Cincinnati," Black said.

Black passed it to Mayor John Cranley, who passed it with no amendments to Cincinnati City Council. Council will comb through it over the next month. Council's Budget and Finance Committee Chairman Charlie Winburn is calling for a vote by mid-June.

There's more money to get thing done. The All-Funds budget is $1 billion for FY 2016 and $1.1 billion for FY 2017. The operating budget, which pays for services like police, fire, garbage collection and road paving, clocked in at $375.5 million, $17.3 million more than last year – a 4.8 percent increase.

In FY 2017, the budget is expected to increase to $383.1 million.

Next year's gains are mostly due to a 3.7 percent increase in the city's income tax collections. There are more jobs and better jobs, Black said.

Black is launching an Office of Performance and Data Analytics, aimed at increasing customer service and efficiency. It includes CincyStat, the Innovation Lab and performance management agreements.

Winners and losers

Of the city's 20 departments, most see incremental increases or decreases.

Some of an 11.8 percent cut to the health department is attributable to the federal government paying a larger share of health care costs. The City's Health Centers will get less money, but they are not being asked to cut personnel or services, according to the city administration.

A 27.4 percent increase to Community and Economic Development was written into the budget to add staff and oversight to the department charged with growing the city and handing out incentives.

The budget allocates $1.6 for the United Way. This is likely to be the most controversial topic. Council last fall unanimously asked that $3 million be set aside. And Cradle Cincinnati, which got $250,000 last year to much fanfare, gets nothing this time around. Human Services – including Cranley's Hand Up Initiative and Strategies to End Homelessness – will see $3.7 million.

Paving-palooza and updated fleet

After years of neglect, the city's roads face a fix totaling $172 million. Black is proposing a capital project, which would up the city's debt load by $90.8 million. The city has traditionally had a very conservative approach to debt, with a 60/40 cash to debt ratio. Black explained the new policy is a 50/50 cash to debt ratio, which is still conservative, he said.

Under the plan, from 2016 through 2021, the city will budget an average of $24.7 million annually for road paving, which means instead of 100 lane miles paved, 150 will be paved. In the first year of the paving program, road conditions are expected to improve from fair to good.

The city's fleet, woefully out of date and in constant need of repair, gets a $6 million infusion of cash this year. Over the life of the capital budget, 2016 to 2021, $35.4 million will be put into the fleet – snow plows, fire trucks and police cruisers among them. As the new vehicles hit the road, Black said the city will save about $3 million a year in fuel, repair and parts.

More police officers and no more brown ours

Cincinnati's sworn officer count is 1,001, up from years past. Black, over the next two years, will bring the sworn strength to 1,024 officers. Police Union President Kathy Harrell has called for the city to bring the force to 1,135 officers, saying that's what's needed to keep streets safe.

Money for targeted hot-spot policing, in-car cameras and Tasers are also part Black's budget.

Black pledged to end brown outs, a money-saving tactic that takes an engine or ladder company out of service temporarily. Black is pursuing a federal grant to pay for a 40-person recruit class.

Paying to run the streetcar

Black set aside $850,000 in FY 2016 and another $1.5 million in FY 2017 to run the streetcar. The amount is not a surprise. It has been debated for months.

Making the $38 million pension payment

The city will issue bonds to cover a $38 million pension payment, part of the deal to stabilize the city's pension system. It's a new cost, but the city will actually pay less into the pension system on a yearly basis.

The estimated debt service payment is expected to be $2.6 million a year, for 25 years. Currently, as part of the pension system, the city makes an Early Retirement Incentive Program (ERIP) payment of almost $6.2 million a year, but that ends with the $38 million payment. The pension agreement also calls for the city to increase its 14 percent payment to 16.25 percent.

Water rates will likely go up again.

People are using less water, but the city still has to maintain the system. Black's budget calls for a 5 percent increase in water rates. The average customer's quarterly bill would increase from $59.96 percent to $62.95 – $3 a quarter.

More budget tidbits

• No layoffs.

• Community councils are set to get $6,800 in FY 2016, a $2,000 increase.

• The Citizen Complaint Authority, which has suffered from staffing declines, will get enough money to make sure investigators keep up with caseloads.

• Buildings inspection fees go up 1 percent – lot abatement fines increase too.

About Fiscal Year 2016: Police, fire & roads

* In Fiscal Year 2016, a $375.5 million operating budget – a 4.8 percent increase compared to FY 2015

* $90.1 million over six years to upgrade roads and the fleet

* $2.35 million for streetcar start up costs

* A 5 percent water hike, meaning the average customer's quarterly bill would increase from $59.96 percent to $62.95 – $3 a quarter.

* No more Fire Department brown outs

* 24 additional police officers

* No layoffs