John Fischer Bond Counsel (Peck, Shaffer & Williams LLP)
Hamilton County remains the hub of a strong, growing and economically diverse region.
The County has identified and will continue to identify solutions.
Budget and Revenue/Expense Management
Stadium Fund Management
The County is committed to strong financial management.
III. Economic & Demographic Conditions
Hamilton County remains the center of a strong and growing economic region.
Income levels in the County are among the strongest in the region, the state, and the nation.
Population trends show the County and region maintaining population stability with future growth projected.
Employment trends in the County reflect better performance than the state due to significant diversification and non-manufacturing jobs.
Hamilton County is the home of 5 of the top 25 employers in the state and remains the home of 6 Fortune 500 companies and 10 Fortune 1000 companies.
Accessibility: Midwest & East Coast Source: Board of County Commissioners – Request for Master Developer
More than half of the nation’s population, manufacturers and purchasing power are located within 600 miles of Greater Cincinnati.
The metropolitan area is a growing center for international business with over 1,000 firms engaged in international trade – ranking Greater Cincinnati 21 st in total exports.
Regionally Hamilton County is the hub of a growing tri-state area.
Per Capita Income in Hamilton County is above both the State of Ohio and the U.S. Income Levels Source: U.S. Census Bureau (2006 American Community Survey)
Per Capita Income Source: U.S. Census Bureau (2006 American Community Survey)
Income Levels Source: ******
Personal Income levels in Hamilton County remain among the strongest in the region and the state.
Income Levels Source: ******
Hamilton County has maintained strong growth in personal income levels (approximately 2X neighboring counties).
Population Urban County Comparison (2007) Source: U.S. Census Bureau
Population Consolidated Metropolitan Statistical Area (CMSA) Source: U.S. Census Bureau
Population Hamilton vs. Cincinnati (1970 – 2007) *2007 Jurisdiction estimate has not been released, 2006 estimate has been substituted Source: U.S. Census Bureau
Population Distribution ***Description Here***
Percent Population Change
Unemployment Hamilton County, State of Ohio & U.S. 2002 – 2007 Comparison
County employment trends reflect better performance than the state due to job diversification.
Source: U.S. Department of Labor (Bureau of Labor Statistics)
Employment Hamilton County: Source: U.S. Department of Labor (Bureau of Labor Statistics)
Employment trends for the County have stabilized.
Total Employment Cincinnati-Middletown, OH-KY-IN Counties (MSA) Source: Hamilton County Regional Planning Commission, BEA, Regional Economic Information System
Employment Source: Hamilton County Regional Planning Commission, BEA, Regional Economic Information System Hamilton County Earnings: Percent Share by Sector (2006)
The counties employment is reflective of strong job diversification.
Employment Nation vs. Cincinnati (1975 – 2006): Source: Ohio Department of Development (Office of Strategic Research) & Cincinnati USA Regional Chamber of Commerce (gccc.com)
Ohio’s Top Employers Source: Office of Strategic Research (Ohio Department of Development)
Hamilton County: Major Employers in Metropolitan Area Source: Greater Cincinnati Chamber of Commerce
Fortune 500 & 1000: Headquarters in Metropolitan Area
400 Fortune 500 Companies have presence in the Metropolitan Area
The County has a long history of prudent yet proactive management.
The County is aware of its near-term and strategic challenges and is acting on a multifaceted program of strategic and financial initiative designed to address systemic weaknesses and build on historic strengths.
Source: Office of the Budget and Strategic Initiatives Vision & Mission
To serve the residents of Hamilton County by providing the best and most responsive county government in America.
To reach out to Hamilton County residents to provide efficient service of the highest quality, encourage resident participation in service development and to deliver county services equitably.
County Organization Source: Office of the Budget and Strategic Initiatives
County Organization – Board of County Commissioners * Liaison Role to Elected Officials which are identified in green Source: Office of the Budget and Strategic Initiatives
Budget and Revenue/Expense Management :
Planned approach to rebuilding County General Fund Reserve
Developing consensus budget policies among elected officials
Requiring taxes and fees appropriate for the scope of services provided
Implementation of Performance-Based Budgeting
Spending caps on select commodities
Expedite collection of delinquent taxes
Review and sale of County assets
Enhanced periodic budget monitoring
Intergovernmental Initiatives :
Continue shared services efforts with the City of Cincinnati and other local governments
Pursuit of fiscal relief initiatives with the State of Ohio
2008-2012 Management Initiatives
Strategic Management :
Executive dash board tied to County Administrator performance
Infrastructure strategic analysis
Management work plan – monthly performance evaluation
In January 2008, the Commissioners empanelled the Cabinet of Economic Advisors (CEA) to develop strategies to grow revenues associated with the sales tax, property tax and investment earnings.
Early focus of efforts concern retail sales analysis in the county and developing a tax market basket for comparative jurisdictions.
Targeting poverty and unemployment
Convening a summit on poverty with the City of Cincinnati and other agencies
Implementing worker Readiness Programs and small business contracting
Stadium Fund Management:
Develop plan to address pending stadium fund deficit
Exploration of revenue enhancement for Stadium Fund (naming rights, etc)
2008-2012 Management Initiatives Cont.
JFS Report :
Completion of the Job and Family Services Audits
Complete reforms at Hamilton County Job and Family Services Dept.
Economic Development :
Integrated County & City near-term implementation of The Banks development project
Replicate unrestricted County Economic Development Fund
Restructuring of Cincinnati-Hamilton County Port Authority
Pressing for more cost efficient alternatives to the MSD Global Consent Decree
Reinstating linked deposit program for home and small business improvement
County, City, Local government is collaborating to develop land banks for conversion of distressed real estate to productive use.
County transportation improvement district- joint intergovernmental transportation initiatives
2008-2012 Management Initiatives Cont.
Management Qualifications & Experience
Board of County Commissioners
President of the Board in office since January 2001. Term expires January 2009.
8 years experience Cincinnati city council.
Commissioner DeWine in office since January 2005. Term expires January 2009.
5 years experience Cincinnati city council.
Commissioner Pepper in office since January 2007. Term expires January 2011.
4 years experience Cincinnati city council.
Patrick Thompson took office in January 2006
Twenty five years local government experience
18 years experience as a county administrator
Management Qualifications & Experience Cont.
Christian Sigman – Assistant County Administrator for Budget/Finance & Public Safety/Judicial since March 2006
Eric Stuckey – Assistant County Administrator for Economic Development/Administration since August 2000
Jeff Aluotto – Assistant County Administrator for Public Works and Environmental/Infrastructure
Moira Weir – Assistant County Administrator for Jobs and Family Services and Social Services
Karen McFarland – County Debt Manager since 1993
City & County Relationship
Regional Emergency Operations Center
CLEAR Wireless Data Service for law Enforcement
Regional GIS System
Shared Services Initiative
MSD (Metropolitan Sewer District) Global Consent Decree
SORTA (Southwest Ohio Regional Transit Authority)
Convention Center renovation and expansion
V. Financial Performance
The County continues to proactively manage its annual budgets and conduct multi-year budget projections.
The County has flexibility in an identified range of options to bring the General Fund Reserve to a 15% balance by 2010 and assure balanced near-term budgets in 2008 and 2009, and to address future budgetary performance.
Historic Revenue & Expense Trends General Fund Revenue vs. Inflation
County fiscal and strategic management initiatives are focused towards addressing recent revenue growth trends below inflation.
(1.96%) (2.81%) General Fund Revenue vs. Inflation. The chart above compares actual recurring revenue to the level anticipated if they had increased with inflation. Historic trends compared to inflation do not include non-recurring revenue.
Historic Revenue & Expense Trends General Fund Expenditures vs. Inflation
The County has been very proactive in controlling expenditure growth relative to both inflation and revenues.
(1.54%) (2.81%) General Fund Revenue vs. Inflation. The chart above compares actual recurring expenditures to the level anticipated if they had increased with inflation. Historic trends compared to inflation do not include non-recurring expenses.
Historic Fund Balance General Fund Balance: Revenue/Expenditure Breakdown
Revenues & Expenditures 2006-2012 County 5 Year Plan (Current Projection)
5 Year Plan: Revenue & Expense Forecast
a) Near-Term Budgets 2008-2009
Strategic Approach to Structurally Balanced Operations
In totality, general fund budgets will be structurally balanced and the general fund reserves will be at 15% by the end of 2010.
e) Stadium Deficit
Present & Projected Annual Stadium Fund
Aggregate Deficit (2008-2012): $0
1% sales tax growth
Final State grant payment
Action Taken to Date:
Restructuring of Cincinnati School District Pilot Payments – September 2006
Restructured to provide cash flow relief with no payments from 2007-2010; payments resume 2011
Sales Tax Revenue Bond Refunding – November 2006
$26.5 million present value savings – taken 2007-2012 to provide cash flow relief
Deficits Post 2012
Sales Tax Growth
1% - deficit begins 2013
2% - deficit begins 2013
3% - deficit begins 2014
Present & Projected Annual Stadium Fund Cont.
Potential Balancing Options
Add Cigarette/Liquor Tax*($5M annually)
Property Tax Rebate Reductions – No voter approval
Debt Restructuring – Facility Useful Life Limitations
Explore Naming rights and formation of entertainment district to optimize leveraging of stadium assets.
Sales Tax Fund Summary 2008-2012
f) Banks Capital Funding
Phase I Construction
$20 million (2008-2009)
Plan of Finance
Restructure Current Parking Revenue Bonds
Incremental Parking Revenue Bonds
g) JFS Report
JFS Report Status
VI. Economic Development
The County continues to prioritize and pursue broad based multi-jurisdictional and public/private economic development initiatives.
The County’s economic development successes are evidenced by numerous large and small commercial, retail, industrial and housing projects both in the city and local areas of the county.
Residential Building Permits Total Units: Number of Private Housing units Authorized by Building Permit Total Valuation (000): Value of Private Housing Units Authorized by Building Permit Source: Ohio Department of Development (Office of Strategic Research)
Housing Growth Source: U.S. Census Bureau
Source: Ohio Department of Development (Office of Strategic Research) Offices
Economic Development ***Description Here*** Source: 2006 County Report Card
The Banks Development
The City of Cincinnati and Hamilton County working with the lead developer team of Carter & Associates and The Dawson Company will construct The Banks, a mixed use development that extend downtown Cincinnati to the riverfront between Paul Brown Stadium and Great American Ball Park. The Banks development creates a destination where people will want to live, work and play.
The City of Cincinnati and Hamilton County are jointly leveraging $180 million in public infrastructure investment into more than $600 million and bringing more than 3,000 residents to the area while creating a new office, retail and entertainment center along the Cincinnati riverfront.
Once completed, The Banks will be Cincinnati's largest single, mixed-use development and be comprised of a dynamic blend of residential, office and retail components. The total project will be a 2.8 million square foot development on 18 acres along Cincinnati's downtown riverfront.
The Banks Development Cont.
The mixed-use development will include up to 1 million square feet of office, approximately 300,000 square feet of retail and the balance in a variety of residential products. The plan capitalizes on the new urbanism trend by providing a place for people to move back to the urban core to be near work, entertainment and cultural amenities.
The groundbreaking for the project took place on April 2, 2008 with Phase 1-A to be completed in early 2010.
The development will include a 40-acre $80 million riverfront park. This "front door" of the development will include playgrounds, walking/biking paths, gardens, green space, fountains/water activities, venues for community events (festivals, concert, etc.). Groundbreaking for the park is scheduled for September of 2008.
Queen City Square, Downtown Cincinnati
Total class A space: 825,000 SF
25,000 SF of retail and 1,400 parking spaces
Keystone Park, I-71 and Dana Avenue
Total Class A space: 460,000 SF
A four story parking structure with space for full service restaurant and other convenience retailers
Linden Pointe, S.R. 562 and Montgomery Road
Total Class A space: 600,000 SF
24,000 SF of retail establishments and walkable campus environment
Kenwood Towne Place, Galbraith Road in Scyamore Township with direct access to I-71
Total Class A space: 270,000 SF
Numerous Amenities (i.e. on-site restaurants, retail and covered parking, etc)
Redstone, Montgomery Road in Sycamore Township with direct access to I-71
Total Class A space: 160,647 SF
Free parking on site, including a covered parking garage
Housing Development Projects
Parker Flats & One River Plaza Projects
Cincinnati Center City Dev. Corp.
Purchased 100 vacant building and lots to be converted into homeownership opportunities
$151.8 million revitalization program, brought 1,022 newly constructed townhomes to Cincinnati’s West End
Park Place at Lytle
Great Traditions Vintage Club
Estate Homes $1.4 – 2.6 million average cost; Courtyard Homes $850,000 average cost; Clubhouse Homes $1 million average
Total new units 113
404 New single family homes, 500 condo units
Erickson Retirement Community
A $175 million retirement community with 1,200 living units planned
Vacancy factor declined to 5.86% in 2006
10.3 million square feet of gross absorption due to new speculative developments and expansion to larger facilities
New industrial construction for the year totaled 5.1 million square
Sharonville Convention Center
Commercial/Industrial Development Highlights
Ford Motor Company
$240 million investment in Sharonville plant
Procter and Gamble
Investing $51 million in it’s St. Bernard plant
Hamilton County Macy’s Inc.
Fourth largest general merchandise retailer
Construction of a new facility in Blue Ash, which will staff 1,000 employees
Air Force tanker project will potentially bring 200-300 new jobs in the county
Red Bank Village
35 acre project with 230,000 square feet of retail and 75,00 square feet of office space
Kenwood Towne Place
High-end retail, restaurants, and office space
The mall has had a number of façade improvements, which includes the opening of several new stores
Stone Creek Towne
65 acre development with 440,000 square feet of retail space (coupled with Kenwood, expected to generate more than $100 million in new investment)
106 acre site with 550,000 square feet of new retail space
A 1.3 million square foot regional mall will be redeveloped with an estimated total investment of $220 million
Anderson Towne Center
A proposed expansion to the Towne Center could see over $30 million of new investment, which will include a new theater by American Screen Works
VII. Debt Management & Capital Program
Outstanding General Obligation un-voted debt:
New issues anticipated:
Current Outstanding Debt (As of 4/1/08) VOTED GENERAL OBLIGATION BONDS UNVOTED GENERAL OBLIGATION BONDS
Current Outstanding Debt (As of 4/1/08) SEWER REVENUE BONDS 133.08
Current Outstanding Debt (As of 4/1/08) OTHER REVENUE BONDS SPECIAL ASSESSMENT BONDS
Current Outstanding Debt (As of 4/1/08) SALES TAX BONDS OHIO WATER DEVELOPMENT AUTHORITY *+
Current Outstanding Debt (As of 4/1/08) OHIO PUBLIC WORKS COMMISSION*
Current Outstanding Debt (As of 4/1/08) WATER POLLUTION CONTROL LOAN FUND – LOANS* +
$8.0M Coroner's judgment
$1.7M Voice tone alerting Fire and EMS
$0.8M Communication Center HVAC system
The County is the center of a strong economic region and continues to prioritize prudent proactive and strategic management.
The County recognizes the key factors and challenges facing it both strategically and financially.
The County has instituted a broad-based multi-phase program of near-term and mid to long-term initiatives to address its challenges and build on its strengths.
The County has instituted significant budget adjustments in 2008 and is monitoring and proactively addressing projected budget performance.
The County is proactively addressing its 2009 budget under prudent assumptions and with a range of expenditure and revenue options.
The County has flexibility in an identified range of options to bring the General Fund Reserve to a 15% balance by 2010 and address future budgetary performance.
The County is currently implementing and identifying a range of management, strategic, governmental and economic development initiatives and developing additional initiatives to fundamentally improve the systemic programmatic, operational and financial performance of the County going forward.