2008/09 recommended budget washtenaw county board of commissioners september 2007
TRANSCRIPT
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Where we have come from…
Tough recent history due to impact of State budget Projected budget shortfalls, especially in Health
programs, resulted in structural change by eliminating 132 FTE between 2002 through 2005
And yet, Doubled General Fund reserves Twice increased bond rating Focus on continuous improvement and Communities of
Interest to enhance customer service and reduced the cost of doing business
3
Where we have come from…
In 2006/07, had structural deficit but needed to stabilize organization and maintain programs
Partially due to BOC policy to provide additional General Fund support to Non General Fund departments for personnel cost increases as means to preserve services
Balanced budget through use of one time funding sources and Non General Fund reserves with plan to bring structural change in 2008/09 budget
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Themes for 2008/09
Continued Fiscal Constraints – State budget, State economy, housing market
Increased need of community impacting our own service delivery demands as well as needs of not for profit organizations
Focus on preserving programs and providing necessary response to community
Efforts on “Changing the way Government Works” through regionalism and collaborations
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2008/09 Budget Framework
Strategic investments where:
Outside funding is available
Recent trends precipitate an expected reality
Driven by customer need
Root causes are being addressed (reaping dividends over the long term)
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2008/09 Recommended Budget
Total proposed General Fund budget of:
2008 = $107,552,529
~1.6% Increase from 2007
2009 = $110,764,839
~3% Increase from 2008
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2008/09 Recommended BudgetGeneral Fund Revenues
REVENUE BY SOURCE
Licenses & Permits0.14%
State & Federal Rev.
5.06%
Investment Income0.78%
Fees & Services18.99%
Taxes & Penalties72.07%
Fines & Forfeitures
1.26%
Other Rev. & Reimb.1.73%
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2008/09 Recommended BudgetGeneral Fund Expenditures
EXPENDITURE BY FUNCTION
Cultural & Rec.0.58%
Judicial14.22%
Public Safety35.45%
Social Services1.51%
Other3.71%
Appropriations22.62% Legislative
0.50%
General Government
21.41%
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2008/09 Recommended Revenue Modifications
Property Taxes
State Revenue
District Court
Clerk Register of Deeds
Building Services
Environmental Health
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2008/09 Recommended Expenditure Modifications
Agency / Initiative Net Increase from 2007
CWB/HS Funding Increase $200K
CWB/HS Contract Administrator $0 (reduced FTE in CCF)
Child Abuse Prevention through DHS $38K
Success by Six Child Medicaid Eligibility Revenue Generating
Humane Society $100K in 2008
$200K in 2009
SPARK $50K
Eastern County Incubator $50K
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2008/09 Recommended Expenditure Modifications
Agency / Initiative Net Increase from 2007
Aerotropolis $50K (one time)
SafeHouse $45K
Shelter Association $50K
Community Housing Initiative $250K (2008-09 only)
North South Commuter Rail $150K (2008 and 2009; proposed to continue 2010)
Literacy Staff time; $ investment TBD
Other Miscellaneous $57,091 in 2008; additional $18,452 in 2009
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2008/09 Recommended Expenditure Modifications
Internal Initiative/Issue Communications Strategy Successful Communities PS&J Statutory Line Items District Court Jail Diversion Efforts Victim Witness Services Juvenile Placements
Drains Equipment Solid Waste Community Clean Up Medical Examiner
Net Impact on Budget
$100K
$70K
$167K
$0 - Revenue Increases to Offset
$60K
$320K Placement Costs; $40K for Probation FTE on Pilot Basis
$18K for FTE
$40K Annually
$150K One Time for Infrastructure; $16K for Annual Contract Increase
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2008/09 Recommended Expenditure Modifications
Labor Assumptions (executive session on 9/20) Salary Increases Medical Pension VEBA
Savings used to balance GF, increase contribution to VEBA for GASB 45 and increase appropriations to build NGF reserves
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2008/09 RecommendationsPolicy Considerations
Continue current support to infrastructure
No increases in appropriation other than: 1/8th mill allocation to facilities (grows with property tax)
One-time $150K allocation to tech plan for jury management
Prior actions of staff reorganizations, policy updates and focus on core technology have resulted in efficient operations and ability for enhancement initiatives with limited cost investment
Expand data integration in Health and Public Safety & Justice and develop long-term strategic plan
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2008/09 RecommendationsPolicy Considerations
Update Finance Policies Final step of updating all County policies
Update Fleet Policy Implementation of fleet review process done in
2006/2007 Focus on providing necessary and appropriate vehicles
with proper costs
Implementation of Space Plan - 2008 Planning Year for Resolving Public Safety & Justice Space Needs
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2008/09 RecommendationsPolicy Considerations
Planned Expenditure Reduction in 2009 Budget – Identify approximately $1.38 million in structural reductions to offset projected loss of property tax revenue; amount dependent on labor negotiations
Building Services – Department to bring policy recommendation for long-term sustainability during 1st quarter 2008; budget does not include any GF support to balance budget
Level of NGF reserves – Recommendation to gradually build NGF reserves up to 8% of total fund budget net of indirect costs and GF appropriations; need to take on case by case basis due to impact on outside funding
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2008/09 RecommendationsPolicy Considerations
State Revenue Sharing – Continue monitoring and lobbying with State; outline 10 year projections with both possibilities; direct Administrator to bring contingency plan back to BOC during 2008/2009
Commitment to NGF departments – Continue support in 2008/09 budget; direct administrator to bring impact to services if BOC decides to alter commitment in 2009 or future budgets
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Long Term Projections – With State Revenue Sharing
2008 2009 2010 2011 2012 2013 2014 2015
Projected Projected Projected Projected Projected Projected Projected Projected
Budget Budget Budget Budget Budget Budget Budget Budget
REVENUES:
Taxes & Penalties $72,344,441 $74,908,207 $77,529,994 $81,794,144 $86,292,822 $91,038,927 $96,046,068 $101,328,602
Licenses & Permits $136,200 $136,200 $140,286 $144,495 $148,829 $153,294 $157,893 $162,630
State & Local Revenues $5,082,562 $5,082,562 $5,082,562 $5,082,562 $5,082,562 $5,082,562 $5,082,562 $5,082,562
Fees & Services $19,059,975 $19,501,642 $20,262,206 $21,052,432 $21,873,477 $22,726,543 $23,612,878 $24,533,780
Fines & Forfeits $1,262,100 $1,262,100 $1,299,963 $1,338,962 $1,379,131 $1,420,505 $1,463,120 $1,507,013
Interest Income $754,400 $754,400 $777,032 $800,343 $824,353 $849,084 $874,556 $900,793
Other Revenue $1,740,811 $1,740,811 $1,573,035 $1,620,226 $1,668,833 $1,718,898 $1,770,465 $1,823,579
Transfers In $7,172,040 $7,378,917 $7,600,285 $7,828,293 $8,063,142 $8,305,036 $8,554,187 $8,810,813 --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
TOTAL $107,552,529 $110,764,839 $114,265,363 $119,661,457 $125,333,149 $131,294,849 $137,561,729 $144,149,772
EXPENDITURES:
Personal Services $61,569,798 $63,123,205 $66,197,554 $69,192,095 $72,323,721 $75,598,765 $79,023,853 $82,605,920
Supplies $1,639,936 $1,452,936 $1,689,134 $1,496,524 $1,739,808 $1,541,420 $1,792,002 $1,587,662
Other Svcs. & Charges $13,232,381 $13,279,082 $13,777,454 $14,055,778 $14,492,451 $14,942,225 $15,405,492 $15,882,656
Internal Service Charges $3,023,515 $3,198,940 $3,294,908 $3,393,755 $3,495,568 $3,600,435 $3,708,448 $3,819,702
Capital Outlay $14,275 $14,275 $14,275 $14,275 $14,275 $14,275 $14,275 $14,275
Contingencies $900,000 $900,000 $650,000 $650,000 $650,000 $650,000 $650,000 $650,000
Appropriations/Transfers Out $27,172,624 $28,796,401 $30,502,965 $32,282,229 $34,137,432 $36,071,962 $38,089,366 $40,193,352
--------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
TOTAL $107,552,529 $110,764,839 $116,126,291 $121,084,656 $126,853,256 $132,419,083 $138,683,437 $144,753,567
SURPLUS (DEFICIT) $0 $0 ($1,860,928) ($1,423,200) ($1,520,107) ($1,124,234) ($1,121,707) ($603,795)
Deficit as % of Total Revenue -1.63% -1.19% -1.21% -0.86% -0.82% -0.42%
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Long Term Projections – Without State Revenue Sharing
2008 2009 2010 2011 2012 2013 2014 2015
Projected Projected Projected Projected Projected Projected Projected Projected
Budget Budget Budget Budget Budget Budget Budget Budget
REVENUES:
Taxes & Penalties $72,344,441 $74,908,207 $77,529,994 $81,794,144 $86,292,822 $91,038,927 $96,046,068 $101,328,602
Licenses & Permits $136,200 $136,200 $140,286 $144,495 $148,829 $153,294 $157,893 $162,630
State & Local Revenues $5,082,562 $5,082,562 $5,082,562 $5,082,562 $5,082,562 $5,082,562 $5,082,562 $5,082,562
Fees & Services $19,059,975 $19,501,642 $20,262,206 $21,052,432 $21,873,477 $22,726,543 $23,612,878 $24,533,780
Fines & Forfeits $1,262,100 $1,262,100 $1,299,963 $1,338,962 $1,379,131 $1,420,505 $1,463,120 $1,507,013
Interest Income $754,400 $754,400 $777,032 $800,343 $824,353 $849,084 $874,556 $900,793
Other Revenue $1,740,811 $1,740,811 $1,573,035 $1,620,226 $1,668,833 $1,718,898 $1,770,465 $1,823,579
Transfers In $7,172,040 $7,378,917 $7,600,285 $7,828,293 $8,063,142 $7,955,131 $948,543 $976,999 --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
TOTAL $107,552,529 $110,764,839 $114,265,363 $119,661,457 $125,333,149 $130,944,944 $129,956,085 $136,315,959
EXPENDITURES:
Personal Services $61,569,798 $63,123,205 $66,197,554 $69,192,095 $72,323,721 $75,598,765 $79,023,853 $82,605,920
Supplies $1,639,936 $1,452,936 $1,689,134 $1,496,524 $1,739,808 $1,541,420 $1,792,002 $1,587,662
Other Svcs. & Charges $13,232,381 $13,279,082 $13,777,454 $14,055,778 $14,492,451 $14,942,225 $15,405,492 $15,882,656
Internal Service Charges $3,023,515 $3,198,940 $3,294,908 $3,393,755 $3,495,568 $3,600,435 $3,708,448 $3,819,702
Capital Outlay $14,275 $14,275 $14,275 $14,275 $14,275 $14,275 $14,275 $14,275
Contingencies $900,000 $900,000 $650,000 $650,000 $650,000 $650,000 $650,000 $650,000
Appropriations/Transfers Out $27,172,624 $28,796,401 $30,502,965 $32,282,229 $34,137,432 $36,071,962 $38,089,366 $40,193,352
--------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
TOTAL $107,552,529 $110,764,839 $116,126,291 $121,084,656 $126,853,256 $132,419,083 $138,683,437 $144,753,567
SURPLUS (DEFICIT) $0 $0 ($1,860,928) ($1,423,200) ($1,520,107) ($1,474,139) ($8,727,351) ($8,437,609)
Deficit as % of Total Revenue 0.00% 0.00% -1.63% -1.19% -1.21% -1.13% -6.72% -6.19%
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Plan for Review of Recommended Budget
September 19th Ways & Means Provide Budget Summary Publication Present these key messages publicly
September 20th Working Session Review of Budget Development Process and Budget
Summary Materials Executive Session on Labor
October Meetings Presentations of Community of Interest plans to reach goals
and alignment with budget BOC Questions/Answers
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Plan for Review of Recommended Budget
September 20th – November 7th
Budget Office Available for Review in Open Hour Sessions and as Needed
October 17th BOC Public Hearing on Budget
November 7th Ways & Means Adoption
November 21st BOC Adoption