Finance Department FY 2020 Proposed Budget Presentation May

Finance Department FY 2020 Proposed Budget Presentation May 8, 2019 Tantri Emo Chief Business Officer/Director of Finance

Functional Org Chart General Fund 1000 $18, 880, 872 FTEs: 108. 7 Director’s Office Treasury & Capital Management Financial Planning & Analysis Financial Reporting & Operations Strategic Procurement Performance Improvement $2, 699, 102 FTEs: 11. 6 $2, 605, 307 FTEs: 10. 6 $2, 483, 927 FTEs: 16. 7 $5, 400, 012 FTEs: 25. 7 $5, 255, 003 FTEs: 41. 1 $437, 521 FTEs: 3. 0 • Council • Capital Budget Administration • Legislative Analysis • Departmental Admin Support • RCA Budget Impact Analysis Coordination • TPIA Coordination • Technical Support Planning, Management, Reporting, and Analysis • Debt Issuance & Derivative Monitoring • Economic Modeling and Projections • Manage City's Liquidity Alternatives • Tax & Revenue Management • Cash Management • Banking Services • Pension System Analysis • Annual Budget • Five-Year Forecast • General & Continuing Appropriations • Mo. FR / Budget Management • Mid-Year Review • Revenue & Expenditure Projections • Service Chargeback Fund Management • Ad Hoc Financial Reporting • Accounting / Disaster Recovery • Fixed Assets • Cost Accounting • Grants Management • Internal Controls / Audit • Trust Funds Management • Deferred Compensation • Accounts Receivable & Collections • Liens Management • Procurement Administration - Technology - Commodities - Professional Services • Material, Vendor and Contracts Management • Procurement Planning • PCard Administration • Training and Development of Procurement Processes • Office of Innovation • Citywide Operational Process Improvement • Citywide Data Analytics • Smart City Program Management • Open Data and Innovation Initiatives • Research and Development Programs 2

Functional Org Chart Revolving Fund 1002 $6, 600, 520 FTEs: 58. 1 Treasury & Capital Management Financial Planning & Analysis Financial Reporting & Operations Strategic Procurement $249, 210 FTEs: 2. 0 $1, 955, 603 FTEs: 13. 0 $3, 302, 157 FTEs: 33. 3 $1, 093, 550 FTEs: 9. 8 • Capital Planning Support • Cost Benefit Analysis • Spend Reduction Analysis • Operating Budget Impact Analysis • Annual Budget • Mo. FR / Budget Management • Revenue / Expenditure Projections • Service Chargeback Funds Management • Energy Management • Invoice Reconciliation and Payments • Dispute Resolution • Department Service Charge Back Processing • EMS Billing / Collections • Cash Management / Accounting for HFD • • Formal and informal Procurements including Rolling Stock Procurement Planning Equipment Acquisition Supplies and Services Acquisition 3

Finance Department Programming • Major Services The Finance Department’s mission is to safeguard the fiscal integrity of the City, its component units, and major services such as: – Budget & Forecasting, – Financial Reporting & Auditing, – Grants Management, – Disaster Recovery, – Treasury & Capital Management, – Procurement. • Any statutory requirements of service delivery – – To ensure compliance with Texas tax code and proposition 1 + H, To ensure continuance of Federal and State Grants, To present a balanced budget in accordance with state law and City financial policies, To ensure compliance on City procurements, which are governed by state and/ or Federal Law, City Ordinance/ Charter Administrative policies, including Executive Orders. 4

Finance Department Programming (Cont’d) • Financial or societal impact of City service delivery – Procurement failure to perform, may impact service level by shuttering essential services due to loss of City functions, – Ensure delivery is met via timely accounts payable and procurement, – We provide City leaders with comprehensive financial analysis so they can make informed decisions on the allocation of financial resources that will ultimately impact all city services, – Mismanagement of debt service fund could result in defaulting of City debt. • Anticipated growth or reduction in populations served – Growth in demand is in direct correlation to increased department initiatives. 5

Revenues By Funds ($ in thousands) Fund FY 18 Actual FY 19 Budget FY 19 Estimates FY 20 Proposed Variance FY 20 Prop/FY 19 Estimates % Change General Fund Property Taxes $ 1, 172, 543 $ 1, 200, 813 $ 1, 193, 375 674, 279 700 70 657, 700 17, 3 18, 011 8, 450 Interest 7, 530 6, 011 11 Others* 1, 904 1, 630 80 Sales Taxes Other Tax Total General Fund $ 1, 217, 066 684, 694, 567 1 24 9, 011 1, 5 1, 629 $ 23, 691 1. 99% 9, 867 1. 44% 574 3. 11% - 0. 00% 49 3. 10% 19, 0 $1, 873, 626 $1, 884, 165 $1, 907, 116 $1, 941, 297 $34, 181 1. 79% $4, 881 $6, 434 $5, 862 $6, 601 $739 12. 61% Revolving Fund Direct Interfund Services Total Revolving Fund *Note - Others include: Other Fines & Forfeits, Direct Interfund Services, and Charges for Services 6

FY 2020 - Revenues Highlights General Fund Revenue: • FY 2020 Budget for Property Taxes of $1, 217, 065, 894 reflects an increase of $23, 690, 894 over FY 2019 estimates of $1, 193, 375, 000 – Based on Proposition 1 + H • FY 2020 Budget for Sales Taxes of $694, 567, 000 reflects an increase of $9, 867, 000 over FY 2019 estimates of $684, 700, 000 7

Expenditures By Funds ($ in thousands) FY 18 Actual FY 19 Budget FY 19 Estimates FY 20 Proposed Variance FY 20 Prop/FY 19 Budget % Change General Fund $17, 542 $18, 970 $18, 075 $18, 881 ($89) (0. 47%) Revolving Fund $4, 881 $6, 434 $5, 862 $6, 601 $167 2. 6% $22, 423 $25, 404 $23, 937 $25, 482 $78 0. 3% Fund Total 8

FY 2020 Personnel vs Non Personnel Fund 1000 FY 2020 Proposed Budget $18, 881, 872 [CATEGORY NAME] [PERCENTAGE] $4, 918, 138 [CATEGORY NAME] [PERCENTAG E] $13, 962, 734 Non Personnel $4, 918, 138 [CATEGORY NAME] [PERCENTAGE] $1, 215, 350 [CATEGORY NAME] [PERCENTAGE] $938, 348 [CATEGORY NAME] [PERCENTAGE] $119, 141 [CATEGORY NAME] [PERCENTAGE] $1, 212, 179 [CATEGORY NAME] [PERCENTAGE] $1, 433, 120 9

FY 2020 Personnel vs Non Personnel Fund 1002 FY 2020 Proposed Budget $6, 600, 520 [CATEGORY NAME] [PERCENTAGE] $465, 822 Non Personnel $465, 822 [CATEGORY NAME] [PERCENTAGE] $128, 801 [CATEGORY NAME] [PERCENTA GE] $6, 134, 698 [CATEG ORY NAME] [PERCE NTAGE] $52, 777 [CATEGORY NAME] [PERCENTAGE] $284, 244 10

FY 2020 Expenditure Highlights & Budget Reductions – General Fund FY 2020 Expenditure Highlights • Provides funding for health benefits, pension contribution, and municipal employees contractual pay increases • Includes funding for health benefits and pension contributions and municipal employees contractual pay increases • Includes reductions of $443, 841 FY 2020 Budget Reductions - $443, 841 • $151, 409 – Eliminate two (2 FTEs) vacant, budgeted positions • 98, 333 – Reduction in supplies & services • $103, 694 – Downgrade vacant, budgeted positions • $90, 425 – Reduction in contract services 11

FY 2020 Expenditure Highlights - Revolving Fund FY 2020 Expenditure Highlights • Provides funding for health benefits, pension contribution, and municipal employees contractual pay increases • Provides funding for financial, procurement, and accounts payable and receivable support to client departments within the City. Client departments include the Houston Fire Department, Fleet Management, Houston Information Technology Services, Houston Public Works, and General Services Department - Energy 12

Questions? 13