Houston Police Department FY2018 Proposed Budget Presentation Overview

Houston Police Department FY2018 Proposed Budget Presentation May 22, 2017

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FY2018 Department Initiatives Initiative Mayor's Priority Plan Houston Strategy Reduce violent crime in Houston, especially murders Public Safety Complete Communities Protect/conserve resources Nurture safe/healthy neighborhoods Public Safety Services & Infrastructure Complete Communities Focus on technology platforms that work to help address crime problems Partner with others Nurture safe/healthy neighborhoods Develop alternative/diversion programs for minor offenses to allow limited personnel to focus on crime fighting Public Safety Complete Communities Partner with others Nurture safe/healthy neighborhoods Public Safety Services & Infrastructure Sound Financial Management Complete Communities Spend money wisely Grow responsibly Connect people and places Nurture safe/healthy neighborhoods Allocate personnel to maximize service delivery (e.g., reallocation, deployment changes, and call diversion strategies) Public Safety Services & Infrastructure Complete Communities Improve communications, transparency, and accountability to the public Communicate clearly/transparently Nurture safe/healthy neighborhoods Increase efficiencies through process improvement and paperwork reduction efforts Public Safety Services & Infrastructure Complete Communities Grow responsibly Connect people and places Communicate clearly/transparently 3

Revenues by Funds ($ in thousands) Variance FY18 Prop/ FY17 Est FY16 Actual FY17 Budget FY17 Estimates FY18 Proposed % Change Fund $ 34,634 $ 33,475 $ 35,314 $ 35,090 $ (224) (0.6%) General Fund $ 7,221 $ 6,900 $ 6,900 $ 7,010 $ 110 1.6% Auto Dealers $ 10,550 $ 7,662 $ 10,085 $ 7,181 $ (2,904) (28.8%) Police Special Services $ 5,166 $ 6,003 $ 6,040 $ 4,849 $ (1,191) (19.7%) Asset Forfeiture $ 3,539 $ 3,429 $ 3,429 $ 3,429 $ - 0.0% Child Safety $ 9,025 $ 7,226 $ 7,199 $ 7,239 $ 40 0.6% Forensic Transition $ 70,135 $ 64,694 $ 68,967 $ 64,798 $ (4,169) (6.0%) Total 4

FY2018 Revenue Variance Highlights ($ in thousands) Key Revenue Budget Variances FY17 Estimate to FY18 Proposed Police Special Services Fund: Reimbursements for Super Bowl LI in FY17 ($2,904) Asset Forfeiture: Declining Judgements (FY18) ($1,191) 5

Expenditures by Funds ($ in thousands) Variance FY18 Prop/ FY17 Est FY16 Actual FY17 Budget FY17 Estimates FY18 Proposed % Change Fund $ 815,202 $ 823,455 $ 823,455 $ 827,311 $ 3,856 0.5% General Fund $ 8,352 $ 8,011 $ 7,601 $ 8,288 $ 687 9.0% Auto Dealers $ 10,237 $ 11,627 $ 11,627 $ 9,473 $ (2,154) (18.5%) Police Special Services $ 5,653 $ 8,448 $ 6,195 $ 10,000 $ 3,805 61.4% Asset Forfeiture $ 3,433 $ 3,539 $ 3,539 $ 3,429 $ (110) (3.1%) Child Safety $ 9,024 $ 7,226 $ 7,199 $ 7,239 $ 40 0.6% Forensic Transition $ 851,901 $ 862,306 $ 859,616 $ 865,740 $ 6,124 0.7% Total 6

FY2018 Expenditure Variance Highlights ($ in thousands) Key Expenditure Budget Variances FY17 Estimate to FY18 Proposed General Fund: Budget reduction initiatives and mandatory adjustments $3,856 Police Special Services Fund: Security services for Super Bowl LI in FY17 ($2,154) Asset Forfeiture: Increased in fund balance due to unanticipated one-time receipt $3,805 7

FY2018 Gen Fund Budget: $827,310,800 Classified Compensation includes $4,347,617 for Overtime Civilian Compensation $79,706,548 9.6% Classified Compensation $702,013,829 84.9% HPD Supplies & Services $17,471,263 (2.1%) Cut 52% over last 10 years City Allocations $28,119,160 (3.4%) 93% increase last 10 years Classified + Civilian Compensation & Benefits = 94.5% 8

FY2018 Expenditures Net Change ($ in thousands) Net Change to FY2017 Current Budget FY2017 Current Budget Operating Budget Restricted Budget TOTAL Explanation of FY2018 Incremental Increase/Decrease Operating Budget Adjustments Budget reduction initiatives Personnel budget utilization savings Subtotal Operating Budget Adjustments % Change from FY2017 Operating Budget Notes 3 $ $ $ 797,722 25,733 823,455 $ (20,000) $ $ (20,000) 2.5% Contractual/Mandated Adjustments Personnel Allowance (Pension adjustments) Budget Allowances One Time Adjustments Health Benefits Hope Allowance Contract Escalation Other Restricted Accounts Subtotal Contractual/Mandated $ (4,091) (2,101) 12,337 1,419 16,328 (37) 23,856 1 3 3 4 2,5 3 $ FY2018 Proposed Budget Operating and Contractual Adjustments $ $ 827,311 3,856 FY 2018 Proposed Budget Notes: 1 Houston Police Officers Pension System (HPOPS) 2 Meet & Confer Agreement (COH and HPOU) 3 Finance Department 4 Meet & Confer Agreement (COH and HOPE) 5 Houston Municipal Employees Pension System (HMEPS) % Change from FY2017 Current Budget 0.5% 9

FY2018 General Fund Budget Reduction Initiatives ($ in thousands) Reduction Impact Initiative Classified Compensation due to FY17 incremental attrition of 100 over 250 $ (4,476) No budget for essential police operations such as SWAT, late call-outs, planned/unplanned events requiring police presence (73 FTEs). Reduce Classified overtime (65% reduction compared to FY17) $ (7,394) Decreased flexibility to meet state/federal regulations for reporting of crime statistics; impedes dispatch s ability to meet demand for police services during peak periods. Reduce Civilian overtime (82% reduction compared to FY17) $ (1,500) $ (2,948) Reduces classified headcount by 65. Eliminate Cadet class (June 2017) Jail Processing Center opens - eliminate 60 (FTEs) jail attendants (April June 2018) $ (1,490) $ (1,356) Backfilling of vacant positions with classified staff. Civilian attrition due to hiring freeze Will affect items such as contingency food, consultants, hardware/software, etc. (52% cut over last 10 years) $ (500) Reduction in supplies and services Eliminate executive staff (3 positions) net of phase down costs $ (336) Reorganized the department for efficiency. $ (20,000) Total 10

Classified Headcount Projections 6 Year Total FY17 FY18 FY19 FY20 FY21 FY22 2 2 2 2 2 2 12 Classes starting Jul Dec 2 2 2 2 2 2 12 Classes starting Jan Jun 4* 4 4 4 4 4 24 Total classes starting during FY 280 280 280 280 280 280 1,680 Cadets starting per FY (@ 70 per class) 2 2 2 2 2 2 12 Classes graduating Jul Dec 3 2 2 2 2 2 13 Classes graduating Jan Jun 5 4 4 4 4 4 25 Total classes graduating during FY 330 260 260 260 260 260 1,630 Cadets graduating per FY (@ 65 per class) 5,207 5,187 5,197 5,207 5,217 5,227 Fiscal Year beginning headcount 330 260 260 260 260 260 1,630 Plus: Cadets graduating during fiscal year (350) (250) (250) (250) (250) (250) (1,600) Less: Projected attrition 5,187 5,197 5,207 5,217 5,227 5,237 Projected fiscal year ending headcount (20) 10 10 10 10 10 30 Headcount growth vs. prior year * Assumes class #233 will be eliminated to meet the budget reduction target 11

Functional Organization Chart ($ in thousands) Police 1000 FTEs: Exp.: 6,296.4 $827,311 Investigative & Support Operations 100005 FTEs: Exp.: Chiefs Command 100001 FTEs: Exp.: Field Operations 100004 FTEs: Exp.: 2,331.1 $340,590 205.8 $30,039 3,759.5 $456,682 12

HPD Race/Ethnic Diversity Asian or Pacific Islander 7.19% Civilian Classified Asian or Pacific Islander 6.81% White White (Not Hispanic) 21.42% (Not Hispanic) 44.22% Black 45.56% Black 21.34% Hispanic 25.68% Hispanic 27.39% Native American or Alaskan Native 0.23% Native American or Alaskan Native 0.15% As of May 2, 2017 13

HPD Gender Composition As of April 2017 14

Department FY2017 Accomplishments Responded to 1.2 million calls for service while adjusting for the loss of 350 classified personnel Overcame major turnover in senior management, reorganizing to reduce upper management, save resources, streamline command, and increase accountability Widely praised for efforts to make Super Bowl LI a safe and positive experience for players and fans Created a specialized investigative team for officer involved shootings Established a greater investigative presence for assault cases Instituted changes to the panhandling and accumulation ordinances to address homelessness from a more holistic perspective Deployed multiple large-scale technology applications Issued more than 1,700 BWCs during the FY to date, and established a Video Records Unit to package video for criminal justice partners 15

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