Transcript Slide 1

Bulloch County Board of Commissioners
Statesboro, Georgia
FY 2014 TENTATIVE GENERAL
APPROPRIATIONS BUDGET PRESENTATION
THE BIG PICTURE
TOTAL ESTIMATED GAB: $66.0M
General Fund: $31.63M
 Special Revenue Funds: $7.9M
 Enterprise Funds: $2.3M
 Internal Service Funds: $5.1M
 SPLOST Funds: $19.0M
Final amount will be determined before
adoption, but these numbers are in the ball
park.
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“GAMING THE ECONOMY”
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At the beginning of FY 2012, the BOC agreed for an
allowance to use up to $1,000,000 in General Fund reserves
over 2 years as necessary for budget balancing, until a final
full and certain local economic recovery occurs.
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While there has been some recovery, it has been weak,
resulting in inconsistency and lag in revenue recovery. This
year’s focus is on constraining revenues. There is no room
for waste.
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Going into FY 2014, it may be possible to eliminate the use
of fund reserve – if certain assumptions materialize.
RECONCILIATION ISSUES PRIOR TO ADOPTION
Using current adjusted baseline assumptions, the projected GF budget should
balance with less than 1% budgeted for contingency.
The final General Fund budget balance is affected by two factors:
Final revenue estimates for real ad valorem taxes will show less than 1%
growth. The current baseline assumes a slight increase in auto tags and
mobile homes from last year. New Tax Ad Valorem Tax (TAVT) figure have not
been included, because frankly, nobody knows how to estimate them. It could
create an unknown windfall, wipeout, or zero growth result.
Increases to market rate for Parks and Recreation fees are recommended.
Gap analysis (making an allowance for final reconciliation prior to adoption –
current adjusted baseline considers structural full costs).
OTHER FACTORS

Remember, due to GASB 54 accounting changes in FY 2012,
the Emergency Management Agency Fund and the Solid Waste
Fund are now included and represented in the General Fund.
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While this has increased the aggregate figure for the General
Fund since FY 2012 by about $1.5M, it merely represents what
is already supported by former General Fund subsidies (taking
money out of one pocket and putting it in another, if you will).
FY 2012 GAB BUDGET ASSUMPTIONS
COUNTY REVENUES: THE GOOD
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Marginal economic improvement will improve some elastic revenues such
as: cable franchise fees, alcoholic beverage excise taxes, insurance
premium taxes, financial institution taxes, occupation taxes….., and sales
taxes.
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Certain licenses and permits such as those for alcohol, marriage and pistol
permits and finger printing fees will also improve some.
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Solid waste recycling and container rental revenues are trending upward.
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Real property ad valorem taxes will begin to show better growth in FY 2015.
COUNTY REVENUES: THE BAD
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Poor ambulance fee collection at EMS will be improved with no
additional cost burden if recommendation to contract out is
approved and promised results materialize.
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Lower investment income especially from the Hospital Authority
corpus, due to lower investment rates will negatively impact
revenues.
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The Sheriff’s Department must be vigilant in retaining Federal
prisoners and submitting reimbursements.
REVENUE STRATEGY
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A key issue is the need for timely and
aggressive revenue collection where it is weak
in some areas.
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Fee increases are recommended for certain
recreation programs; no other increases
planned, but they are being evaluated.
EXPENDITURES
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Internally we continue to manage most costs and spending
inputs reasonably well except, in some cases, overtime.
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Gasoline, electricity and water utility costs are increasing due to
utility rate increases rather than consumption. We are
incrementally introducing VOIP telephony services in the county
that are now beginning to show some results in lowering
telephone costs.

Risk management is on watch list (property/casualty/liability,
workman’s comp).
EXPENDITURE STRATEGY
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Allocate available funds in the 2020 CIP update to continuing
technology, energy and water conservation improvements to
help lower operating costs.
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Redesign purchasing strategies to identify increased bundling
of key commodities for competitive solicitation.
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Review risk management strategies and consider competitive
solicitations for property, casualty and workmans
compensation insurance.
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Recommend a one year reduction of ten percent (10%) in
mileage reimbursements from the current IRS rate.
SPECIAL REVENUE FUND ISSUES
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SPLOST: SPLOST 2013 will begin in late fall; the 2020 Capital
Improvement Plan (CIP) update is being prepared.
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Recreation: New facilities such as the Greenway, the Tennis Center
will result in an increase in maintenance inputs. Parks and
Recreation Department reports that the current budgetary level will
not be able to ensure the current level of maintenance for these new
facilities. Fee increases are recommended to reduce the subsidy
required from the General Fund.
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Keep Bulloch Beautiful (KBB): The City of Statesboro continues to cut
funding from its Solid Waste disposal fund. KBB is low on fund
reserve.
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All other Special Revenue funds are in good shape.
FY 2013 GAB BUDGET RECOMMENDATIONS
EMPLOYEE COMPENSATION
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No general pay increases, Christmas awards or annual leave
cash outs are recommended.
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While employee health insurance will increase at 5-6% (below
market rate, which indicates our plan is performing well),
present cash reserves will be used to avoid employee
increases, in lieu of no raises.
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We are still awaiting information from GEBCORP on redesigning
the current 401k retirement plan. Any changes will be
dependent on costs and available funding.
HEALTH INSURANCE
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0% increase for employee contribution.
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6% increase for county contribution.
PERSONNEL
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Maintain/increase one FTE for grant funded
position in the Mental Health Court.
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Reduction-In-Force for one FTE in Building
Inspections.
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Privatize EMS billing resulting in a reduction in
force of two FTE.
CAPITAL EXPENDITURES (SPLOST)
Significant investment in technology for:
 Overall Financial Accounting
 Payroll Accounting (Time and Attendance)
 Operating Expenses and Maintenaince:
Copiers, Functional Hardware and Software
 Fleet Diagnostics
CAPITAL EXPENDITURES (SPLOST)
New Facilities and Renovations:
 Begin construction on new tax administration
annex.
 Pre-design and infrastructure for Ag Arena.
 Energy and Water Efficiency Retrofits.
 Jail Safety and Security.
 CI Roof.
 Rural Fire Vehicles and Equipment.
CAPITAL EXPENDITURES (SPLOST)
Transportation:
 Fleet and Equipment Replenishment and
Existing leases
 Road Re-Striping
 Bridge Maintenance
 Consider up to two Dirt Road Paving Projects
 Resurfacing, Intersections, or both?
 Airport Lighting System
CAPITAL EXPENDITURES
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Recreation and Solid Waste have still not
submitted project specific lists or pools, but
they do have CIP allotments.
RECOMMENDATIONS ON BUDGET REQUESTS
Budget Unit
Request
Amount
Superior Court Judges
6% increase
$11,171
Indigent Defense
3% increase
$8,000
Aging Services
Maintain present level of
service due to
federal/state grant
reductions.
$11,000
Recreation
$70,000 (net subsidy from
General Fund)
Library
Restore (2) FT personnel for
unfilled positions during FY
2012; add (1) FTE
Provide 3% increase
Averitt Center
Provide additional funding.
$10,000
$15,525
Recommendation
Approve 6%; statutory
increase for circuit by
population.
Approve 2%
Not recommended (Defer
for mid-year amendment
consideration).
Approve unfilled, deny
additional.
Not recommended (Defer
for mid-year amendment
consideration).
Not recommended
(continue to receive 20% of
Lodging Tax collections.
FY 2013 GAB BUDGET: WATCH LIST
WATCH LIST
Overtime. Public Safety overtime, though better managed in FY
2013, still needs to be restrained. That partly justifies why an
automated time and attendance system is being proposed in
the capital budget so annual and sick leave can be better
monitored at the management level, and so errors can be
reduced. It is also more efficient to get away from a paper
system where there is much redundancy.
Recommendation: Mandate that departments review and
better monitor overtime; utilize SPLOST funds to purchase an
automated time and attendance system for better
accountability.
WATCH LIST
Energy/Water Conservation. Propose that available funds be allocated from
Capital Improvements Program and budget to audit and retrofit additional
buildings. We have seen some reduction in energy costs for nearly all the
buildings participating in the energy block grant. However, the City of
Statesboro’s water rate increases have negatively impacted water and
sewer costs to the County. A Phase II energy and water conservation audit is
recommended with investments made in facilities with the most favorable
cost-benefit ratio. The fact that this can be done with less oversight from the
state grant program can expedite the implementation of any retrofits.
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Recommendation: Utilize SPLOST funds to complete Phase II audit and
follow through with measures that will bring about the highest cost savings.
WATCH LIST
Animal Shelter Costs: These costs need to be further examined
as the escalation of animal medications and veterinary care
has risen exponentially since the new Animal Shelter has
opened. Also, a new scheduling pattern for Animal Control
Officers needs to be examined to reduce overtime.
Recommendation: Continue to work with selected veterinarian
to solicit competitive proposals for animal medications; to
reduce overtime, consider new staggered scheduling of
personnel among ACO’s throughout seven day work week to
handle peak loads.
WATCH LIST
Solid Waste: Last year, as part of the DCA Recycling Hub Grant
(which assisted in expanding the recycling Processing Center) a
voluntary Curbside Recycling Program began first in the City of
Statesboro. It has been marginally expanded elsewhere in the
County (Brooklet, Portal, etc.).
Recommendation: A cost analysis must be done to determine
if recycling and subscription revenues are properly offsetting
costs. The receipt of the hub grant several years ago was based
on assumptions that may have optimistically projected higher
recycling revenues for pledged programs. This will have to be
reviewed.
RISK MANAGEMENT
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Significant Workers Compensation increase in FY 12 and 13.
Most accidents and injuries are due to slip-trip-fall.
Lots of deer strikes at the Sheriff’s department (unavoidable?).
Need to figure out how to increase outreach effort beyond
safety.
Have not shopped for WC, PC insurance in years.
Recommendation: While losses do not seem to be off the
charts, we should consider bidding out WC and PC insurance.
FY 2013 GAB BUDGET: THINKING AHEAD
TOP RANKED UNMET NEEDS
1.
2.
3.
4.
Fire and EMS vehicle aging
Information Technology Staffing
Additional personnel for Sheriff, Solicitor, EMS,
Probation, Recreation
Employee Retirement Plan Re-design (can
probably be accomplished with no budget
impact)
ON THE HORIZON
When do we want to begin construction on Ag
Arena?
 I-16/US 301 project (water-sewer
improvements, zoning, DABC marketing effort,
bonding additional projects like roads).
 Fire Agreement with City of Statesboro.
 Greenway Protection Ordinance.
 Road improvement strategies.
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FY ‘13 BUDGET APPROACH AND STRATEGY
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Aggressive revenue collections.
Aggressive cost containment.
Develop a long-term strategy for risk management.
Gear capital expenditures to areas which reduce
operating costs and increase operational efficiency.
Shift slack resources into areas that are burdened.
DECISION POINTS
Fee increases for Parks and Recreation.
 CIP update and project funding (CIP update
draft probably won’t be ready until late
summer).

THANK YOU!