Financial Information Follow-up

1. Financial InformationFollow-up EMPLOYEE MEETING 01/21/2014

2. Net Property Digest GrowthFY 2003 – 2014

3. Local Option Sales Tax and Other Local Option Sales Tax FY 2009-2014 (in millions)

4. Sales Tax Downward Trend • Downward trend beginning in June 2012 and continuing through FY13 and FY14 • FY14 Sales Tax collection is down 6.60% YTD over FY13 • 17 of the last 19 months have reported less revenue than the proceeding year • Only 2 months (October 2012 and November 2012) reported higher sales tax than the same month the year before

5. REVENUES VS. Expenditures Since FY08 Expenditures Exceed Revenues

6. Undesignated Fund Balance Fund Balance as Days of Operating Expenditures GOAL Minimum

7. CONFUSION OVER FUNDS • Operating Funds • General Fund • OLOST Fund – Designated Separate from General Fund • Stormwater(Sewer) Fund • Paving Fund • Medical Center Fund • Integrated Waste Fund • Emergency Telephone (E911) Fund • Economic Development Fund • Debt Service Fund, etc. • Monies From Other Funds Cannot be Used to Supplement General Fund • Crime Prevention Grant Example (OLOST) • Green Island Roundabout Example (GDOT Funding)

8. FY15 Preliminary General Fund projections • Revenues $146.2 M • Expenditures $152.7 M • Deficit($6.5 M)* • Roughly 20 jobs per million • $1.5 – 2 million FY2015 additional anticipated healthcare cost increase (assuming Health and Wellness Center savings)

9. Steps Being Taken to Avoid Jobs or Service/Programs Impact • Move toward shared Health Care Costs of 25% employee funded and 75% City funded for HMO coverage and 30% employee funded and 70% City funded for PPO coverage ($1.6 M) • Eliminate supplemental double-time payments (aka “Gap Time”) not authorized by or known to City Council ($1.45 M) • Reform Workers Compensation Administration ($200,000+) • Cease Pension Calculations on non-base pay (Unspecified at this time) • Eliminate supplements to city affiliates such as Keep Columbus Beautiful, Uptown, Inc., Civil War Museum, etc. (approximately $300,000) • Work with Georgia State Legislature to get Sales Tax data remitted to counties

10. Steps Being Taken to Avoid Jobs or Service/Programs Impact (cont.) • No General Capital Expenditure in FY2014 or FY2015 • Investigate outsourcing city functions, such as Tax Assessor’s re-evaluation and assessment service • Adjustment of Medical Center Contract • Investigate charging citizens for street light utilities • Ask each department head to supply a list of city services that should/could be cut • Ask each department head to supply a list of fee structure adjustment opportunities

11. Pay Increases

12. FY14 Health Insurance FundYear to Date Actuals (thru DEC 31, 2013) • Budget YTD $11,500,000 • Expenditures YTD$13,126,495 • Fund Deficit ($ 1,626,495) • In addition to our negative balance Year To Date for FY2014, we have $3.8 millionnegative net position for our FY2013 Health Insurance Fund due to Incurred But Not Reported Health Cost

13. IMPACT OF PROPOSED HEALTHCARE CHANGESActive Employees

14. IMPACT OF PROPOSED HEALTHCARE CHANGESPRE-65 RETIREES

15. 2/3 of employees will see either a savings, no change, or less than $1.50 impact to their bi-weekly pay check for their premiums.

16. Impact of deficit • $6.5 M = 4.5% cut (all departments) • $6.5 M = 15.3% cut (if excluding Elected Officials and Public Safety)