Savannah FY18 Proposed Budget Summary

FY18 FY18 PROPOSED PROPOSED BUDGET BUDGET City Council Budget Workshop City Council Budget Workshop December 21, 2017 Melissa Carter, Chief Budget Officer

By the Numbers By the Numbers FY18 Preliminary Preliminary Total Budget: $376,366,969 $376,366,969 FY18 Proposed Proposed Total Budget: $408,035,141 $408,035,141 FY18 Preliminary Preliminary General Fund Budget: $187,215,647 $187,215,647 FY18 Proposed Proposed General Fund Budget: $182,246,578 $182,246,578 City of Savannah / Office of Management and Budget/ FY18 Proposed Budget Presentation 2

Preliminary Budget Preliminary Budget Balancing Strategy Balancing Strategy (Surplus)/Deficit Fee Increase - Summer Camp Fee Changes for Resident and Non-Resident Fee Increase - Cemetery Fees Fee Increase - Liquor, Beer, Wine Taxes Fee Increase - Athletic Turf Fields (Professional Level Athletics) Fee Increase - License for Encroachment Eliminate 3% GF Performance-Based Wage Increase for Employees Reduce Operational Contingency Reduce Fire Rescue Service - Closing Fire Stations and Eliminating 36 FF Positions Reduce Police Recruiting - Digital Advertising Delete Vacant Position - (2) Police Majors Reduce Grass Cutting Contract Reduce Stump Removal Contract Eliminate FY18 Community Partnerships Program Contribution (Social Services) Eliminate FY18 Cultural Contributions Program Eliminate Special Events, Sponsorships, and Community Celebrations (Fireworks, Christmas Decorating, Employee Events, Etc.) Reduce/Delay Capital Plan - Strategic Improvements (Budget & Performance Tracking Software) Reduce/Delay Capital Plan - Pump Station Rehabilitation Reduce/Delay Capital Plan - Liberty at Bull Signal Installation Reduce/Delay Capital Plan - Joe Tribble Park Impose Hiring Freeze - 2.25% Vacancy Rate $12,967,932 (10,000) $ (19,760) $ (150,400) $ (20,000) $ (23,500) $ (2,298,001) $ (1,090,313) $ (3,100,000) $ (150,000) $ (157,033) $ (500,000) $ (200,000) $ (643,177) $ (680,400) $ Assumptions: Assumptions: No new major No new major sources of revenue sources of revenue (No Fire Fee) (No Fire Fee) Millage rate 12.48 Millage rate 12.48 20% Freeport 20% Freeport Inventory Phase Inventory Phase- -In In Operational changes Operational changes due to reorganization due to reorganization (210,000) $ (700,000) $ (500,000) $ (250,000) $ (410,000) $ (1,855,348) $ NEW (Surplus)/Deficit $0 City of Savannah / Office of Management and Budget/ FY18 Proposed Budget Presentation 3

FY18 Proposed Spending Plan FY18 Proposed Spending Plan TOTAL CITY BUDGET: $408,035,141 Operating Budget $408,035,141 Capital Budget $64,190,840 General Fund $182,246,578 General Fund $6,348,840 All Other Funds $225,788,563 All Other $57,842,000 Restructuring Parking Matters Study Arena Development District Savannah Police Department Fire Fee

FY18 Proposed General Fund FY18 Proposed General Fund Major Revenue Details Major Revenue Details Revenue Source FY17 Adopted FY17 EOY Projected FY18 Proposed Change Projected to Proposed % Growth Projected to Proposed $187,111,305 $195,211,079 $182,246,578 -$12,964,501 -6.6% All GF Revenue Property Taxes (Millage decrease - 11.48) $64,607,606 $66,402,914 $62,760,191 -$3,642,723 -5.5% Sales Tax $38,062,500 $40,560,000 $41,979,600 +$1,419,600 +3.5% GF Hotel/Motel $9,913,750 $10,800,000 $11,448,000 +$648,000 +6% Chatham County Police Reimbursement $14,482,772 $14,482,772 $3,177,000 -$11,305,772 -78.1% Policies: Policies: Unknowns/Revisit at Mid Unknowns/Revisit at Mid- -Year: Year: Project conservatively based on past trend Project conservatively based on past trend Effect of Memorial Hospital Privatization Effect of Memorial Hospital Privatization One One- -time revenues dedicated to one time revenues dedicated to one- -time expenses expenses time Tax Roll Growth (mid Tax Roll Growth (mid- -year) year) Hotel/Motel Opening Dates Hotel/Motel Opening Dates No reliance on revenues of great uncertainty No reliance on revenues of great uncertainty

FY18 Millage Rate Impact FY18 Millage Rate Impact Millage Rate Decrease - Estimated Impact Property Value Millage (per $1,000) City Property Tax 100,000 $ 100,000 $ 11.48 12.48 $ $ 459.20 499.20 -$40.00 $100,000 Home Value Estimated Property Tax Decrease 143,200 $ 143,200 $ 11.48 12.48 $ $ 657.57 714.85 -$57.28 Median Home Value, Occupied Units 2010-2014 American Community Survey Estimated Property Tax Decrease 250,000 $ 250,000 $ 11.48 12.48 1,148.00 $ 1,248.00 $ -$100.00 $250,000 Home Value Estimated Property Tax Decrease 500,000 $ 500,000 $ 11.48 12.48 2,296.00 $ 2,496.00 $ -$200.00 $500,000 Home Value Estimated Property Tax Decrease

Millage Rate Comparisons Millage Rate Comparisons Locally Municipality Savannah Thunderbolt Chatham SSD Port Wentworth Tybee Island Garden City Pooler Bloomingdale Vernonburg Millage 12.48 6.366 4.99 4.571 4.044 3.856 3.849 0.00 0.00 Locally City of Savannah / Office of the City Manager / FY18 Preliminary General Fund Budget Presentation 7

Revenue and Expense Summary Revenue and Expense Summary FY18 Preliminary (11/21/17) $187,215,647 $187,215,647 FY18 Proposed (12/07/17) $182,246,578 $182,246,578 Variance % Revenues Expenditures $4,969,069 $4,969,069 -2.65% -2.65% Establishment of Fire Rescue Fund Fire Administration and Operations expenses moved to Fire Fund Millage Rollback Pending County Reimbursement E911 Operations 2% Personnel Wage Adjustment Additional Spending Cuts Service Restorations Strategic Plan/Service Enhancements City of Savannah / Office of Management and Budget / FY18 Proposed Budget Presentation 8

2018 2018- -2022 Capital Improvement Plan 2022 Capital Improvement Plan General Fund CIP Contributions Including GF Funded Cemeteries and Preservation Fee Projects Why is the capital budget so important? It enables the city to continue building and maintaining a more efficient infrastructure system for the residents while meeting the demands of current and future growth. 10 $9.3M 9 8 7 Millions 6 5 4 3 2 $900k 1 0 2012 2013 2014 2015 2016 2017 ADOPTED 2018 PROPOSED Contribution to CIP City of Savannah / Office of Management and Budget/ FY18 Proposed Budget Presentation

2018 2018- -2022 Capital Improvement Plan 2022 Capital Improvement Plan Funding Source 2018 2019 2020 2021 2022 5-Year Total General Fund 40% Cemetery Fund Preservation Fee Civic Center Fund Bonds Fire Rescue Fund Parking Fund Sewer Fund Water Fund Total All Funding Source 6,348,840 $ 170,000 650,000 845,000 28,000,000 150,000 3,690,000 13,556,000 10,781,000 64,190,840 $ 6,189,000 $ 170,000 645,000 557,000 5,690,000 $ 150,000 665,000 1,350,000 6,050,800 $ 150,000 625,000 1,800,000 7,235,800 $ 160,000 500,000 1,400,000 31,514,440 $ 800,000 3,085,000 5,952,000 28,000,000 550,000 5,290,000 72,456,500 35,404,000 183,051,940 $ 0 0 0 0 0 0 150,000 350,000 16,681,000 8,093,000 33,129,000 $ 250,000 350,000 10,455,500 4,124,000 24,475,300 $ 550,000 17,056,000 7,061,000 32,228,000 $ 350,000 14,708,000 5,345,000 29,028,800 $ Improvement Category 2018 2019 2020 2021 2022 5-Year Total Cemetery Civic Center Community Development Drainage Park and Recreation Public Buildings Sewer Squares and Monuments Streets Traffic Water Other Total by Improvement Category 170,000 845,000 3,366,840 1,000,000 435,000 25,655,000 13,556,000 450,000 3,337,000 1,700,000 10,781,000 2,895,000 64,190,840 $ $ $ 170,000 557,000 150,000 1,350,000 500,000 1,150,000 200,000 850,000 16,681,000 645,000 1,565,000 1,250,000 8,093,000 695,000 33,129,000 $ $ $ 150,000 1,800,000 $ 160,000 1,400,000 800,000 5,952,000 3,866,840 4,125,000 1,061,000 31,855,000 72,456,500 2,795,000 8,112,000 8,100,600 35,404,000 8,524,000 183,051,940 $ $ 0 0 0 950,000 25,000 500,000 17,056,000 595,000 730,000 950,000 7,061,000 3,634,000 32,228,000 $ 500,000 326,000 300,000 14,708,000 605,000 1,150,000 3,544,800 5,345,000 600,000 29,028,800 $ 525,000 75,000 4,550,000 10,455,500 500,000 1,330,000 655,800 4,124,000 700,000 24,475,300 $ City of Savannah / Office of Management and Budget/ FY18 Proposed Budget Presentation