Transcript The State of the County

THE STATE OF THE COUNTY
Presented by
ALLEN COUNTY COMMISSIONERS
WHAT DOES THE COMMISSION DO?
• Preside over budget matters; allocate
funds to General Fund Offices and
Departments
• Capital Improvements; maintain County
owned buildings
• Ensure adequate public services for
residents
WHAT DOES THE COMMISSION DO?
(continued)
• Oversee wise use of taxpayer dollars
• Forecast future needs; makes plans
• Strive to improve quality of life for citizens of
the county
• Create opportunities for economic growth
and development
WHAT COMMISSION CANNOT DO
• CANNOT give raises or decrease pay of employees in
any Office or Department other than their own
• CANNOT lay off staff of any other Office or
Department
• CANNOT mandate day/hours of operations for any
other Office or Department
• CANNOT easily decrease hours or pay of classified
employees. Must abide by Civil Service laws for
government employees and have no authority over
other Elected Officials’ employees
HOW THE COUNTY SPENDS YOUR MONEY
• Elected Offices & Departmental Budgets (23)
– Such as Sheriff, Treasurer, Recorder, Auditor, Courts,
Prosecutor, Veterans Services, Museum, etc.
• Pay off debt for Jail Construction, Court of
Appeals, Civic Center expansion, and Eastown
Road Expansion
• Capital Improvements
– Building improvements, technology, sheriff’s cruisers,
etc.
HOW THE COUNTY SPENDS YOUR MONEY
(Continued)
• Economic Development
• 911 System and Operators
• Utilities, maintenance on County owned
buildings and grounds
• Social Services
− Department of Job and Family Services mandate
− Indigent Defense
ACCOMPLISHMENTS
• Paid off $5.285 million in General Fund debt for the Industrial
Park since 2003
• Fully funded a “Rainy Day Fund” called the “Reserve Fund” in
the amount of $1.267 million between 2003 and 2004
• Implemented “Energy Savings Project” in 2009 for five
County owned buildings to reduce energy costs – energy
savings will pay for cost of project
• Reorganized Commissioners Office staff – permanently
eliminated 2 full-time positions since 2002
2008 GENERAL FUND EXPENSES
Elected Offices and
Departmental Expenses
equaled
68%
of all County Expenditures
2008 GENERAL FUND EXPENSES
Criminal Justice and Courts
equaled
55%
of all County Expenditures
2008 GENERAL FUND EXPENSES
Employee wages and
benefits equaled
66%
of all County Expenditures
CURRENT FINANCIAL SITUATION
• 2008 Economic recession
– Banking Industry failures
– Stock Market decline
– Interest Rates plunged
– Unemployment rates soared
CURRENT FINANCIAL SITUATION
• Reductions in Income
– 2009 Sales Tax Receipts down $1
million since 2007
– Interest Income down $2.2 million since
2007
CURRENT FINANCIAL SITUATION
• Reductions in Income (cont’d)
– Expect a cut of at least $200,000 in 2010 in
Local Government Funding from the State
– Elimination of Personal Property Tax – lost
$324,000 since 2004
REVENUE HISTORY
Revenue History
General Fund
$28,000,000
$27,555,458
$26,989,858
$27,000,000
$26,000,000
$25,439,274
$25,403,387
$25,000,000
$23,957,959
$24,000,000
$23,936,468
$23,055,851
$23,000,000
$22,000,000
$21,000,000
2004
2005
2006
2007
2008
2009 Est
2010 Est
GENERAL FUND REVENUE BY SOURCE
2008 General Fund Revenue
by Source
Repayment of Loans (1.79%)
Rental Income (2.75%)
Other (2.52%)
Interest Income (8.41%)
Property Taxes (10.71%)
Charges for Services (13.48%)
Intergovernmental (10.88%)
Sales Tax (49.47%)
GROSS SALES TAX HISTORY
Gross Sales Tax History
$15,000,000
$ 14,741,287
$14,500,000
$ 14,446,159 $ 14,404,857
$ 14,062,496
$14,000,000
$ 13,946,841
$13,500,000
$ 13,035,943
$13,000,000
$12,500,000
$12,000,000
2004
2005
2006
2007
2008
2009 Est.
CURRENT FINANCIAL SITUATION
• Increases in Expenses
– Increase in Utility Costs for County
owned buildings
– Unfunded Federal/State Mandates –
Crippled Children’s Aid at $155,000;
Tuberculosis Care at $5,500; Defense
of Indigents at $1 million; Department of
Job and Family Services at $575,000
CURRENT FINANCIAL SITUATION
• Increases in Expenses (Cont’d)
– Maintenance on County Owned Buildings
– Liability Insurances
– Employee Health Insurance
− Increase of approximately $235,000 to
Sheriff’s employee wages in 2009 due to
union contract obligation.
GENERAL FUND EXPENSE
Expense History
$28,000,000
$27,878,835
$27,000,000
$26,886,321
$26,394,668
$26,186,945
$25,905,211
$26,000,000
$25,000,000
$24,000,000
$24,780,011
$23,903,306
$23,000,000
$22,000,000
2004
2006
2005
2008
2007
2010 Est. bef ore cuts
2009 Est.
A serious problem
arises when
expenditures
exceed actual
revenues.
Spending more than we take in
also has an immediate, negative,
and long lasting impact on our
Carryover Balance.
GENERAL FUND CASH BALANCE
Year-End Cash Balances
General Fund
$4,000,000
$3,855,309
$3,445,509
$3,032,390
$3,000,000
$2,557,387
$2,076,997
$2,066,801
$2,000,000
$1,000,000
$0
($1,000,000)
($2,000,000)
($2,824,853)
($3,000,000)
2004
2006
2005
2008
2007
2010 Es t. before cuts
2009 Es t.
CASH FLOW CHART
Cash + Revenue - Expens
$4,000,000
$3,855,298
$3,445,509
$3,033,257
$3,000,000
$2,556,531
$2,076,996
$2,055,563
$2,000,000
$1,000,000
$0
($883,052)
($1,000,000)
2004
2006
2005
2008
2007
2010 Est before cuts
2009 Est
NEGATIVE CASH FLOW
• Negative Cash Flow from previous slide
$ 883,052
• Plus $2 million carryover cash balance
needed
$2,000,000
• Equals amount needed for 2010 budget in
order to pass a balanced budget
$2,883,052
WHAT’S ALREADY BEEN DONE IN
2009?
General Fund Offices cut by 21% from 2008
appropriations
−
−
−
−
−
−
−
−
−
−
Auditor
Clerk of Courts
Commissioners
Board of Elections
Coroner
Recorder
Museum
Treasurer
Tax Map
Law Library
TOTAL
$ 164,543
$ 112,647
$ 98,516
$ 94,720
$ 39,266
$ 69,742
$ 62,923
$ 55,340
$ 34,609
$ 5,819
$738,125
WHAT’S ALREADY BEEN DONE IN
2009? (CONTINUED)
General Fund Offices cut 15% to 20% from
2008 appropriations
− Juvenile Court and
Detention Center
− Common Pleas Court
− Probate Court
− Domestic Court
TOTAL
$ 508,297
$ 71,273
$ 51,672
$ 41,410
$672,652
WHAT’S ALREADY BEEN DONE IN
2009? (CONTINUED)
General Fund Offices cut 0% to 15% from 2008
appropriations
−
−
−
−
−
−
Sheriff – Law Enforcement
Sheriff – Jail Operations
Building and Grounds
Miscellaneous
Prosecutor
Municipal Court
TOTAL
GRAND TOTAL
$ 492,064
$ 179,200
$ 137,733
$ 69,699
$ 41,803
$ 28,049
$ 948,548
$2,359,325
WHAT’S ALREADY BEEN DONE IN
2009? (CONTINUED)
Non-mandated agencies cut up to 100%:
−
–
–
–
–
–
–
–
–
OSU Extension
Civic Center
Soil and Water
Allen County Airport
Regional Transit
Crime Victims Svcs.
Alvis House
Allen County Fair
LACNIP
TOTAL
$Cut
%Cut
$ 267,374
$ 263,817
$ 86,000
$ 85,140
$ 75,000
$ 46,110
$ 41,350
$ 26,500
$
500
$ 891,791
100%
71%
68%
100%
100%
100%
100%
88%
100%
WHAT’S ALREADY BEEN DONE IN
2009? (CONTINUED)
Budgets that Increased in 2009:
•
•
•
•
•
•
•
•
Utilities
Retirements/Severances
Liability Insurance
Veterans Services
Employee Insurances
Sex Offender Court
Election Day Expenses
Miscellaneous
TOTAL
$ 239,435
$ 80,000
$ 51,684
$ 48,729
$ 18,477
$ 16,667
$ 10,750
$
317
$466,059
WHAT’S ALREADY BEEN DONE IN
2009? (CONTINUED)
• General Fund Elected Offices and Departments Cut
21%
$( 738,125)
• General Fund Elected Offices and Departments Cut
15 to 20%
$( 672,652)
• General Fund Elected Offices and Departments Cut
3% to 15%
$( 948,548)
• Non-Mandated Agencies cut up to 100%
$( 891,791)
• Budgets that Increased
TOTAL DECREASE IN 2009 BUDGET
$ 466,059
$(2,785,057)
WHERE’S ALL THE “EXTRA” MONEY?
• No employee raises except for the Sheriff’s union
contractual increases of approximately $234,000
in 2009.
• Depleted the “Rainy Day” fund
• Capital projects have been put on hold in order to
return that money to the General Fund
THERE IS NO EXTRA MONEY!
WHY ADDITIONAL CUTS?
• Updated revenue projections show lower sales tax collection
• State Budget cuts could cause a loss in Local Government Funding
of at least $200,000 - $400,000 for Allen County
• Depletion of reserves and one-time dollars in the amount of
$1,981,339
• Sheriff’s Union employees will receive contractual wage increase
again in 2010 unless they vote not to take it. This would amount to
approximately an additional $250,000 in 2010
OUR FINANCIAL GOALS
• Create a balanced budget as required by
law – Ohio Revised Code 5705.39
• Re-fund the “Rainy Day” Fund to meet
critical needs for future
• Restore funding to impacted Elected
Offices, Departments, and Initiatives
WHAT ARE OUR OPTIONS?
• Make further cuts
− Cut Elected Office and Department
Appropriations by an estimated additional
16% or approximately $2.9 million
− Health Insurance
• Raise Taxes
− 2009 cuts of $2,785,057 + 2010 estimated
cuts of $2,883,052 = $5,668,109 needed to
bring services back to levels before cuts
Where does all this lead?
ALLEN COUNTY SALES TAX
• February 4, 1970: .5% sales tax
enacted by Resolution
• February 10, 1987: .5% sales tax
enacted by Resolution
• Current – Potential of .5% sales tax
increase by Resolution
ALLEN COUNTY SALES TAX
• Currently at 6.5%
• Of the 6.5%, the State of Ohio keeps
5.5% and the County only gets 1.0%
MEDIAN HOUSEHOLD INCOME
Per U.S. Census Bureau for Allen County:
Median Household Income = $37,048
Per Ohio Department of Taxation:
31 – 35% of Income is Taxed
Cost of .5% sales tax increase:
$37,048 x 33% x .005 = $61.13 annually
$61.13 divided by 52 = $1.18 weekly
$61.13 divided by 365 = $.17 daily
MEDIAN FAMILY INCOME
Per U.S. Census Bureau for Allen County:
Median Family Income = $43,840
Per Ohio Department of Taxation:
31 – 35% of Income is Taxed
Cost of .5% sales tax increase:
$43,840 x 33% x .005 = $72.34 annually
$72.34 divided by 52 = $1.39 weekly
$72.34 divided by 365 = $.20 daily
PER CAPITA INCOME
Per U.S. Census Bureau for Allen County:
Per Capita Income = $17,511
Per Ohio Department of Taxation:
31 – 35% of Income is Taxed
Cost of .5% sales tax increase:
$17,511 x 33% x .005 = $28.89 annually
$28.89 divided by 52 = $.56 weekly
$28.89 divided by 365 = $.08 daily
RESIDENCY OF SPENDERS IN ALLEN
COUNTY
Studies show that 51 – 52% of retail
sales originate from shoppers who
live outside of Allen County
STATEWIDE SALES/USE TAX RATES
Total of 88 Counties in Ohio
7.0% tax rate or above – 58 Counties or
66%
6.5% tax rate - 24 Counties or 27%
6.25% tax rate – 5 Counties or 5.7%
6.0% tax rate – 1 County or 1%
AVERAGE ANNUAL COST OF NEW TAX
$72.34 annually per family
$1.39 weekly per family
$.20 daily per family
$61.13 annually per household
$1.18 weekly per household
$.17 daily per household
$28.89 annually per capita
$.56 weekly per capita
$.08 daily per capita
SALES TAX
Sales tax receipts for 2008 totaled
$13,351,086 and were projected to
be 15% less, or $11,350,000 in 2009.
Based on current economic
conditions, it is appropriate to
suggest no increase will occur in
2010.
SALES TAX
A one-half or .5% increase in the
sales/use tax for 2010 would
increase the General Fund by
approximately $5 million.
PLAN OF ACTION
5 specific priorities have been
addressed in order of importance .
This “Plan of Action” recognizes
essential services as the first order
of need, yet provides equitable
response to the other pressing
needs of the County.
PLAN OF ACTION – YEAR 1
YEAR 1
1ST Priority - $2 mil. to supplement revenue; protect
safety services, courts, prosecution from further
cuts
2nd Priority - $550,000 to replenish 50% of “Rainy Day”
fund to insure against future catastrophic events
3rd Priority - $1.2 mil. to restore 50% of 2009 cuts to
Elected Offices and Departments
4th Priority - $446,000 to restore 50% of 2009 cuts to
Non-Mandated Agencies or “Zero Funded Groups”
5th Priority - $804,000 to fund delayed capital projects
PLAN OF ACTION – YEAR 2
YEAR 2
1ST Priority - $2 mil. to supplement revenue; protect
safety services, courts, prosecution from further
cuts
2nd Priority - $550,000 to replenish 50% of “Rainy Day”
fund to insure against future catastrophic events
3rd Priority - $1,683,000 to restore 70% of 2009 cuts to
Elected Offices and Departments
4th Priority - $624,000 to restore 70% 2009 cuts to of
Non-Mandated Agencies or “Zero Funded Groups”
5th Priority - $143,000 to fund delayed capital projects
PLAN OF ACTION – YEAR 3
YEAR 3
1ST Priority - $2 mil. to supplement revenue;
protect safety services, courts, prosecution
from further cuts
2nd Priority – $2,160,000 to restore 90% of 2009
cuts to Elected Offices and Departments
3rd Priority - $803,000 to restore 90% 2009 cuts
to of Non-Mandated Agencies or “Zero Funded
Groups”
PUBLIC TESTIMONY
PUBLIC SUPPORTING TAX INCREASE
PUBLIC TESTIMONY
PUBLIC OPPOSING THE TAX INCREASE
PUBLIC TESTIMONY
OTHER PUBLIC COMMENTS
STATE OF THE COUNTY
ADJOURN
NEXT PUBLIC HEARING
7:00 P.M. JULY 20, 2009