Central Health Budget€¦ · 03-09-2015  · FY16 Proposed Budget Highlights 4 • Proposed...

Central Health Budget Fiscal Year 2016 Proposed Budget Property Tax Rate Vote for Public Notice Central Health Board of Managers September 3, 2015 Jeff Knodel, CFO

Agenda

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•  Consideration of the FY16 Central Health property tax rate – Roll Call Vote – Public Notice •  Tax rate •  Public hearings on FY16 budget and tax rate

Staff Recommendation

•  Central Health Board of Managers considerations – Affordability – Financial Stewardship

•  Staff recommends approval of property tax rate of 11.7781 cents/$100

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FY16 Proposed Budget Highlights

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•  Proposed property tax rate of 11.7781 cents/$100 •  4.5% over effective rate •  Decrease from FY15 rate of 12.64 cents/$100

•  Intergovernmental transfers budgeted at $134.7M that provides local share to draw estimated $160.6M in federal funds

•  Continued funding for the implementation of the Integrated Delivery System (IDS) in the Community Care Collaborative

•  Funding of $5M for Sendero reserves if needed to meet Texas Department of Insurance requirements

•  Additional $2.5M to Emergency Reserve Fund

•  Employee performance-based increase pool of 3%

Total Proposed Tax Rate: 11.7781 cents

www.CentralHealth.net 5

Property tax rate: •  Consists of both

maintenance and operations (M&O) and debt service (I&S) rate

•  Proposed rate is 4.5% above the effective M&O tax rate

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FY15 FY16 Difference amount % difference

Average taxable value $240,279 $262,520 $22,241 9.26%

Median taxable value $180,760 $199,300 $18,540 10.26%

Rate per $100 taxable value 0.1264 0.117781 -0.0086 -6.82%

Annual property taxes on average taxable homestead value $303.71 $309.20 $5.49 1.81%

Annual property taxes on median taxable homestead value $228.48 $234.74 $6.26 2.74%

Estimated impact of increased over age 65/disabled exemption from $70,000 to $75,000: $6 annual tax bill reduction

Estimated Annual Tax Impact to Homeowners

Summary of FY16 Sources/Uses Excludes Contingency

Sources

Uses

81.5%  

17.5%    

1.0%  

Property  Tax  Revenue   Seton  Lease  Revenue   Other  Revenue  

96.7%  

2.8%   0.5%  

Healthcare  Delivery   Administra=on   Tax  Collec=on  

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FY16 Sources of Funds

FY 2015

Proposed FY 2016

Property tax revenue $151,728,532 $160,705,076

Seton lease revenue $31,637,380 $34,371,988

Other revenue $1,900,000 $2,000,000

Total revenue $185,265,912 $197,066,144

Contributions from HMO risk-based capital $4,883,000 -

Contingency $78,800,000 $98,700,000

Total sources $268,948,912 $295,777,064

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FY16 Uses of Funds

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FY  2015   Proposed  FY  2016  

Intergovernmental  transfers    $117,400,000      $134,700,000    Member  payment  to  CCC    $15,200,000      $26,245,166    Charity  care  payment    $4,251,733      $4,251,733    ACA  ini=a=ve    $1,717,000      $1,745,000    Health  promo=on    $150,000      $353,713    Service  expansion    $2,000,000      $3,300,000    Personnel    $2,446,402      $2,976,926    Opera=ng  goods/services    $9,898,862      $3,515,231    Transfer  to  capital    $11,300,000      $3,000,000    Transfer  to  emergency  reserve    -­‐      $2,539,279    Sendero  risk-­‐based  capital    $16,883,000      $5,000,000    Debt  service    $1,371,207      $1,368,805    Con=ngency  reserve  appropria=on    $76,480,000      $97,092,539    

Subtotal  Healthcare  Delivery    $259,098,204      $286,088,392    Administra=on    $8,495,708      $8,262,466    Tax  collec=on    $1,355,000      $1,426,206    Subtotal    $9,850,708      $9,688,672    

Total  Uses    $268,948,912      $295,777,064    

FY16 Summary Sources over Uses

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Proposed

Sources FY15 FY16

Property tax revenue $151,728,532 $160,705,076

Seton lease revenue $31,637,380 $34,371,988

Other revenue $1,900,000 $2,000,000

Total revenue $185,265,912 $197,066,144

Contributions from HMO risk-based capital $4,883,000 -

Contingency $78,800,000 $98,700,000

Total sources $268,948,912 $295,777,064

Uses

Healthcare Delivery $259,098,204 $286,088,392

Administration $8,495,708 $8,262,466

Tax Collection $1,355,000 $1,426,206

Total Uses $268,948,912 $295,777,064

FY16 Intergovernmental Transfers (IGT)

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Proposed Budget

Intergovernmental transfer type FY16 UC—Public $28.7M UC—Private $27.9M DSH $23.3M DSRIP $54.8M Total $134.7M

Intergovernmental Transfers provide the local share to be used to match an estimated $160.6 million in federal funds

FY16 Contingency Reserve Appropriation

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Proposed Budget FY16 IGT Reserve* $68.4M Unallocated** $28.7M Total $97.1M

* Reserved for estimated intergovernmental transfers (IGT), as determined by HHSC **Can be used for ongoing expenditures when needed for cyclical or temporary structural deficits

Travis County Taxing Entities

FY14

Preliminary FY16

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22.09%  

16.76%  

52.28%  

4.23%   4.64%  

City   County  

School   Community  College  

Hospital  District  

20.65%  

16.29%  

53.86%  

4.70%   4.50%  

City   County  School   Community  College  Hospital  District  

Next Steps

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•  Tonight– Central Health Board of Managers vote on property tax rate for public notice

•  September 14 – First Public hearing

•  September 17 – Second Public Hearing

•  September 23 - Central Health Board of Managers final budget and tax rate approval

•  September 29 – Travis County Commissioners Court final budget and tax rate approval