Fiscal Year 2018 Proposed Budget Central Health Board of Managers - PowerPoint PPT Presentation

Fiscal Year 2018 Proposed Budget Central Health Board of Managers Budget and Finance Committee July 19, 2017 Lisa Owens, Interim Deputy CFO

Central Health Tax Rate per $100 of Taxable Valuation 14.00 12.9 12.64 13.00 11.78 12.00 11.05 10.74 11.00 10.00 Cents 9.00 FY 2018 Estimated 4.5% 7.89 7.79 7.79 over Effective Rate 8.00 7.34 7.19 6.93 7.89 6.79 6.74 7.00 6.00 5.00 4.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Fiscal Year 2

FY 2017 Year-End Estimate (in millions) Fiscal Year 2017 Sources of Funds Approved Estimate Variance Property Tax Revenue $169.8 $169.8 $0.0 Seton Lease Revenue 31.5 29.3 (2.2) Other Revenue 2.2 2.2 - Total Revenue 203.5 201.3 (2.2) Contingency 36.6 51.9 15.3 Total Sources 240.1 253.2 13.1 Uses of Funds Intergovernmental Transfers 141.6 130.5 11.1 Indigent Care Payment to CCC 26.2 26.2 - Charity Care 4.3 4.3 - ACA Education and Enrollment 2.7 2.0 0.7 Health Promotion 0.4 0.4 - UMCB Redevelopment 2.0 2.0 - Service Expansion Funds 2.0 1.0 1.0 Personnel & Operating 8.3 8.3 - Transfer to capital Reserve 1.5 1.5 - Sendero Risk-based capital 6.0 6.0 - Transfer to Emergency Reserve 1.4 1.4 - Contingency 32.0 - 32.0 Debt Service 1.4 1.4 - Administration 8.9 8.9 - Tax collection 1.5 1.5 - Total Uses 240.1 195.4 44.8 Ending Balance - Contingency Reserve $57.9 3

Recap of FY16 IGT Payments 
 Actuals Through September 30, 2016 Fiscal Year Fiscal Budget This Month Year-To-Date Over (Under) $ in millions Private UC 27.9 12.8 23.4 (4.5) 19.6 UMCB UC 28.7 11.1 (9.1) DSH 23.3 - 31.0 7.7 DSRIP - CCC 28.5 - 27.7 (0.8) (3.3) DSRIP - UMCB and Dell 25.7 - 22.4 DSRIP - St. David's 0.6 - 0.5 (0.1) Contingency Reserve: (1) UC (DY4) 52.9 - 46.2 (6.7) DSH (DY4) 15.5 - 15.1 (0.4) Total 203.1 23.9 185.9 (17.2) (1) Allocated por/on of the con/ngency reserve appropria/on, for IGT /ming differences. 4 www.CentralHealth.net

Central Health FY 2018 Proposed Budget Tax Revenue Scenarios Final taxable assessed value numbers have been received 
 Each 1% increment over effective tax rate is approximately $1.7M Three scenarios for demonstration, using proposed budgeted sources and uses: ❍ 4.5% over effective next year, 4.5% thereafter ❍ 3.5% over effective next year, 4.5% thereafter ❍ 2.5% over effective next year, 4.5% thereafter 5

Significant Proposed FY18 Budgeted Expenses CCC Member Payment $29.2 million Sendero Risk Based Capital $4 million Proposed Capital Projects • UMCB Infrastructure $2.6 million • East Side Collaboration $1.5 million ACA Subsidy Program $2.7million Consulting Fees $1.2 million Legal Fees $926K New Healthcare Initiatives $500K • Women’s Health, Cancer Care, Workforce Development Personnel 3% Performance Increase $150K 3.4 FTE New Positions $350K • RHP 7 Waiver, Policy, Records Management, PT Benefits 6

5-Year Forecast: 4.5% Over Effective Property Tax Rate (in millions) *Updated Sources and Uses 4.5% Over Effec8ve Property Tax Rate YOY $260 $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 FY18 FY19 FY20 FY21 FY22 Total Sources Total Uses Total Reserves Emergency Reserve FY18 FY19 FY20 FY21 FY22 194.0 205.2 216.4 228.1 240.1 Total Sources 222.7 216.3 222.6 228.9 234.7 Total Uses 61.0 49.9 44.2 44.7 51.0 Total Reserves 7

5-Year Forecast: 3.5% Over Effective Property Tax Rate FY18, 4.5% over effective thereafter *Updated Sources and Uses 3.5% Over Effec8ve Property Tax Rate FY18, 4.5% ThereaLer $260 $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 FY18 FY19 FY20 FY21 FY22 Total Sources Total Uses Total Reserves Emergency Reserve FY18 FY19 FY20 FY21 FY22 192.3 203.4 214.5 226.0 237.9 Total Sources 222.7 216.3 222.6 228.9 234.7 Total Uses 59.2 46.4 38.7 37.1 41.3 Total Reserves 8

5-Year Forecast: 2.5% Over Effective Property Tax Rate FY18, 4.5% over effective thereafter *Updated Sources and Uses 2.5% Over Effec8ve Property Tax Rate FY18, 4.5% ThereaLer $260 $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 FY18 FY19 FY20 FY21 FY22 Total Sources Total Uses Total Reserves Emergency Reserve FY18 FY19 FY20 FY21 FY22 190.5 201.6 212.6 224.0 235.8 Total Sources 222.7 216.3 222.6 228.9 234.7 Total Uses 57.5 42.8 33.2 29.6 31.5 Total Reserves 9

Next Steps ü May 24 — Central Health Board of Managers (5-year forecast) ü May 30 — Travis County Commissioners Court ( FY 2017 update and FY 2018 budget guidelines ) ü June 21 — Central Health Budget and Finance Committee ( budget update ) ü June 28 — Central Health Board of Managers ( proposed budget ) • July 19 — Central Health Budget and Finance Committee ( FY 2018 CCC proposed budget ) Central Health Board of Managers ( FY 2018 CCC proposed budget and Central Health • July 26 — budget update ) • Aug. 9 — Central Health Budget and Finance Committee ( FY 2018 Central Health proposed budget and property tax rate ) Aug. 16 — Central Health Board of Managers ( FY 2018 Central Health proposed budget and • property tax rate ) • Aug. 22 — Travis County Commissioners Court ( Central Health proposed budget and property tax rate ) • Aug. 30 — First public hearing • Sept. 6 — Second public hearing • Sept. 13 — Central Health Board of Managers ( FY 2018 budget adopted ) • Sept. 19 — Travis County Commissioners Court ( FY 2018 Central Health proposed budget and property tax rate ) 10

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