FISCAL 2020 - Bureau of the Budget and Management Research

FISCAL 2020

EXECUTIVE SUMMARY

BOARD OF ESTIMATES RECOMMENDATIONS

CITY OF BALTIMORE, MARYLAND

Board of Estimates: Sharon Green Middleton, President pro tempore Bernard C. "Jack" Young, Ex Officio Mayor Joan M. Pratt, Comptroller Andre M. Davis, City Solicitor Rudy S. Chow, Director of Public Works

City Council: President: Bernard C. "Jack" Young Vice President: Sharon Green Middleton

First District: Zeke Cohen

Second District: Brandon M. Scott

Third District: Ryan Dorsey

Fourth District: Bill Henry

Fifth District: Isaac "Yitzy" Schleifer

Sixth District: Sharon Green Middleton

Seventh District: Leon F. Pinkett, III

Eighth District: Kristerfer Burnett

Ninth District: John T. Bullock

Tenth District: Edward L. Reisinger

Eleventh District: Eric T. Costello

Twelfth District: Robert Stokes, Sr.

Thirteenth District: Shannon Sneed

Fourteenth District: Mary Pat Clarke

Department of Finance: Henry J. Raymond, Director

Photo Credit: Mark Dennis

Fiscal 2020

Table of Contents

The Mayor's Letter .......................................................................................................................................................... iii

Introduction

Municipal Organization Chart........................................................................................................................................... 3 Chart: Baltimore's Budget Process .................................................................................................................................. 4 Baltimore's Budget Process.............................................................................................................................................. 5 Fixed Costs...................................................................................................................................................................... 11 Ten-Year Financial Plan .................................................................................................................................................. 19

Summary of Recommendations

Recommended Budget Appropriation Levels ................................................................................................................ 25 Pie Charts: Operating Budget Recommendations ......................................................................................................... 26 Recommendations by Fund ........................................................................................................................................... 27 Operating and Capital Budget Fund Distribution .......................................................................................................... 28

Revenue

Economic Outlook ..................................................................................................................................................................31 Major Revenues Forecast .......................................................................................................................................................37 Summary of City Real Property Tax Credit Programs ...........................................................................................................51 Property Tax One-Cent Yield .................................................................................................................................................53 Selected Real Property Tax Expenditures ............................................................................................................................. 55 Map: Newly Constructed Tax Credits by Neighborhood Fiscal 2015 to Fiscal 2019 ............................................................58 Map: Newly Constructed Tax Credits by Neighborhood Fiscal 2019 Year to Date ..............................................................59

Revenue Detail by Fund

General Fund (Operating and Capital) ....................................................................................................................................63 Parking Management Fund (Operating and Capital) ..............................................................................................................68 Parking Enterprise Fund (Operating and Capital) ...................................................................................................................69 Convention Center Bond Fund (Operating and Capital) ........................................................................................................70 Water Utility Fund (Operating and Capital) ............................................................................................................................71 Waste Water Utility Fund (Operating and Capital) ................................................................................................................72 Stormwater Utility Fund (Operating and Capital) ..................................................................................................................73 Conduit Enterprise Fund (Operating and Capital) ..................................................................................................................74 Federal Fund (Operating) ........................................................................................................................................................75 State Fund (Operating).............................................................................................................................................................78 Special Fund (Operating) .........................................................................................................................................................80

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Summary of Operating Budget Recommendations

Overview ....................................................................................................................................................................... 85 Education & Youth Engagement ................................................................................................................................... 87

Special Exhibit: Funding for Education & Youth ...................................................................................................... 91 Public Safety .................................................................................................................................................................. 97 Quality of Life .............................................................................................................................................................. 109

Special Exhibit: Community Development Investments........................................................................................ 117 Economic Development & Jobs ................................................................................................................................... 127 Accountability & Transparency .................................................................................................................................... 135

Special Exhibit: Investments in Information & Technology ................................................................................... 138 Operating Budget by Agency, Service, and Fund ......................................................................................................... 145 Operating Budget Recommendation by Fund.............................................................................................................. 167 Changes to Permanent Full-Time Positions.................................................................................................................. 169

Summary of Capital Budget Recommendations

Pie Charts: Capital Budget Recommendations ............................................................................................................. 175 Capital Budget Recommendations ............................................................................................................................... 176 Capital Budget by Agency Detail .................................................................................................................................. 179

Appendix

Glossary ....................................................................................................................................................................... 185

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BERNARD C. "JACK" YOUNG

EX OFFICIO MAYOR

100 Holliday Street, Room 250 Baltimore, Maryland 21202

The Honorable Members of the City Council City Hall, Room 400 Baltimore, Maryland 20212

May 1, 2019

Re: Fiscal 2020 Proposed Ordinance of Estimates

The Fiscal 2020 Board of Estimates Budget recommendation represents another major step in our vision for moving Baltimore forward. Building the best budget for Baltimore is a delicate balancing act - between providing critical services that citizens deserve, while maintaining fiscal discipline and encouraging greater investment. The Fiscal 2020 budget delivers on all fronts.

The Fiscal 2020 recommended budget plan includes new funding for an ambitious Community Development Plan, as well as funding to begin delivery of the City's Information Technology (IT) modernization plan. Under Public Safety, the Police budget includes investments in technology and equipment, the professionalization of critical administrative functions, and savings from a more efficient Patrol schedule. These key changes are the first steps to modernizing the Police Department and ensuring compliance with the federal consent decree.

In addition to new investments, the recommended plan maintains core City services, concludes a three-year commitment to City Schools, and achieves a significant milestone in the City's property tax reduction efforts. This year the City will meet its 20 cents by 2020 goal. This reduces the effective property tax rate for owner-occupied properties by 8.9% versus 2012, saving the average taxpayer over $300 annually.

The Fiscal 2020 recommended budget totals $3.55 billion across all funding sources, including $2.9 billion for operating expenses and $627.5 million for capital investment. The General Fund budget totals $1.9 billion, a 3.2% increase from the Fiscal 2019 Adopted Budget.

Budget Context

The City's short-term fiscal outlook continues to improve. A number of indicators strengthen the City's fiscal outlook, including: a lengthy economic recovery, rising real and personal property assessments, growing income tax receipts, and successful cost containment strategies on health care and civilian pension costs.

With this context, in August 2018 the Department of Finance began development of its Current Level of Services (CLS) projection for Fiscal 2020. The forecast looked at projected General Fund revenues for the upcoming fiscal year and compared them to the projected cost to maintain current service levels. Revenues were projected to grow by 3.8% versus operating expenditure growth of 2.8%.

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