Money for public safety headlines first draft of Cincinnati’s budget

rewrite this content and keep HTML tags The first draft of the next Cincinnati budget includes increases to the police and fire departments and a decrease to the overall General Fund.City Manager Sheryl Long and Mayor Aftab Pureval released their recommendations for the fiscal year 2024 budget, which begins July 1. City Council has until the end of June to make changes and pass a final version.Long says over the past year, General Fund operating expenses have grown 6.9%, while revenue is projected to grow only 5.1%.”We must continue to deliver services that sustain, improve and grow the city of Cincinnati, but we will need to do it with fewer resources,” Long wrote. “To prepare for the city’s challenging financial future, we are planning and investing now.” The General Fund is estimated at $527 million, about 5.9% less than last year — that’s because of the city using much less federal stimulus. A roughly $28.2 million deficit is filled by the American Rescue Plan Act, meaning no budget cuts this year.Officials are predicting a $9.4 million deficit for fiscal year 2025, even after using the $25.2 million left from ARPA; it will be the last fiscal year with pandemic stimulus funds. Mayor Pureval had the chance to make changes to the manager’s proposal before transmitting the budget to council. Instead, Pureval is recommending a separate plan to spend $10.7 million. The money comes from tax credits from the Cincinnati Southern Railway Board (about $6 million) and re-allocations from fiscal year 2023 (about $5 million):Infrastructure improvements: $6.9 millionPilot programs: $2.1 millionCommunity empowerment funds: $1.5 millionLeveraged support (one-time): $190,000Read the mayor’s full budget message and proposal below: Pureval says his ordinance will include launch funding for three pilot programs to “promote financial freedom among Cincinnatians.””These include $1.5 million in medical debt relief for an estimated 30,000 residents, a guaranteed income study to explore how we can support financial stability for our most vulnerable residents, and a child savings account to support young Cincinnatians as they grow and pursue their dreams,” Pureval said. Council has ultimate authority to allocate funds, including the mayor’s spending ordinance separate from the budget.This story will be updated after the manager and mayor’s press conference, and continuously updated over the next few weeks.Click to jump to a specific topic:Budget passage timelineCity Council has until June 30 to pass the final version of the budget, although they’re likely to take a final vote the week of June 19.The administration will present the recommended budget to council at the Budget and Finance Committee meeting on Tuesday, May 30 at 1 p.m.The final public hearing (outside of regularly-scheduled council meetings) is Monday, June 5 at 5:30 p.m. in Council Chambers at City Hall. How to give feedbackThe public can also give budget feedback at committee and council meetings, all located in Council Chambers at City Hall:Tuesday, May 30 at 1 p.m.: Budget and Finance Committee meetingThursday, June 1 at 1:30 p.m.: Full Council meetingMonday, June 12 at 1 p.m.: Budget and Finance Committee meetingWednesday, June 14 at 1:30 p.m.: Full Council meetingMonday, June 19 at 1 p.m.: Budget and Finance Committee MeetingWednesday, June 21 at 1:30 p.m.: Full Council meetingIf you plan to give public comment in person, you can sign up just before the meeting begins by filling out a yellow speaker card, located on a table to the right of the dais (as you walk into the room).If you plan to give public comment virtually via Zoom, you must register online no later than 2 p.m. the day before the meeting. Online registration forms can be submitted up to one week prior to the meeting. The form is available on the city website at this link. Public SafetyThe police and fire departments, combined, make up about 66% of the General Fund each year.The proposed FY24 budget includes a 6.7% increase for CPD and a 2.5% increase for CFD.CPD alone makes up about 34% of the General Fund in the budget proposal.The police budget has increased 44% over the last 10 years, and the fire budget has increased 56%, compared to a General Fund increase of 46% during that time. The city manager recommends two police recruit classes in FY24 and one in FY25:60-person class beginning in June 202350-person class beginning in January 202450-person class beginning in fall 2024RELATED: Council approves pay increase, signing bonus for police recruitsFour recruit classes for CFD are recommended:50-person class beginning in June 202350-person class beginning in February 202450-person class beginning in summer 202450-person class beginning in winter 2025RELATED: Cincinnati Police District 5 will be absorbed into other districts by the end of the yearThe budget draft includes funding to continue the Alternative Response to Crisis program, which started last year as a pilot to provide a non-police emergency response to calls for service related to mental health. The funding increase would make the program permanent and double the resources.Human Services FundThe city’s Human Services Fund is administered by the United Way, which uses a competitive application process to issue grants to organizations based on council-established priorities.The budget draft includes about $8 million for the fund, about 1.5% of the General Fund.From 2004 to 2017, the city budget for the HSF did not exceed 0.8% of the General Fund. Council approved a plan in 2017 to incrementally increase the percentage for the Human Services Fund until it reached 1.5% in 2023.Learn more: Here’s how Cincinnati is changing the process for nonprofits to get city fundingLeveraged Support Affordable HousingRevenue from the short-term occupancy tax (like Airbnb and VRBO) goes into the Affordable Housing Trust Fund. The budget draft includes $1.5 million from that revenue, up from $611,000 last year.Separately, the budget includes: $500,000 for the Hazard Abatement/Demolition program$400,000 for the Strategic Housing Initiatives Program (SHIP) through the Department of Community and Economic Development; the funds are used to support the rehabilitation or new construction of housing units, including permanent supportive housing$550,000 for the Small Scale Rental Rehabilitation Loan Program (to help owners of smaller rental properties address code violations and make enhancements for tenants)$500,000 for the Home Enhancement Loan Program (HELP; a middle-income homeowner home repair program)RELATED: Just one project in Hamilton County will get a low-income housing tax credit this yearThe budget draft also includes $1 million for an “access to counsel” program for renters facing eviction. It will offer legal support and emergency short-term rental assistance.RELATED: Tenants without an attorney in local eviction court are 84% more likely to lose housing, study findsPension FundExperts say Cincinnati needs to immediately increase its annual contribution to the retirement system for city employees. The pension fund is about 69% funded, down from 77% in 2015.A federally mandated settlement agreement requires the city to put no less than 16.25% of active salaries into the fund each year.The budget draft includes 17% of active salaries, the first increase to this minimum contribution since 2016.Learn more: Cincinnati’s pension fund is still underfunded, still not on track to improveCitizen Complaint AuthorityThe city’s independent police oversight board has a proposed budget of $1,386,790 — a 7% increase from last year, and more than double the budget in FY 2017.Learn more: Cincinnati’s police oversight board on track to clear backlog within a year, even as complaints go upHow to understand the city budgetHere are some common questions about the budget process to help you understand the discussions.Where can I see budget information online?Documents are published on the city website under the Finance & Budget page: Cincinnati-oh.gov/finance/budgetThere are also links to prior years’ recommended and approved budgets.Why does a new budget start in July instead of January?The city budget is based on fiscal year rather than calendar year. A fiscal year is named for the calendar year in which it ends.Fiscal year 2024 (often abbreviated as FY24) begins July 1, 2023 and ends June 30, 2024.Where does city income come from?The majority of city revenue comes from income taxes, also called earnings or payroll taxes. Usually that makes up as much as 72% of overall revenue; this year (like the last two years) is unique because of federal stimulus. Here’s the breakdown of revenue for FY24:Earnings taxes: 65.3%American Rescue Plan Act: 5.3%Property taxes: 6.9%State shared revenue: 3%Casino tax: 1.9%Investments: 1%Parking meter: 0.3%Other revenues: 16.3% ** Includes: license and permit fees; admission taxes; short-term rental excise taxes; buildings and inspections fees and permits, etc.The current city income tax is 1.8% of gross earnings and the…