Transcript 2008/09 Recommended Budget Washtenaw County Board of Commissioners September 2007 Where we have come from…  Tough recent history due to impact of State budget  Projected.

2008/09
Recommended
Budget
Washtenaw County
Board of Commissioners
September 2007
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
2
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
3
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
4
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)
5
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
6
2008/09 Recommended Budget
General Fund Revenues
REVENUE BY SOURCE
Fines &
Forfeitures
1.26%
Taxes & Penalties
72.07%
Fees & Services
18.99%
Other Rev. &
Reimb.
1.73%
Investment
Income
0.78%
State &
Federal Rev.
5.06%
Licenses &
Permits
0.14%
7
2008/09 Recommended Budget
General Fund Expenditures
EXPENDITURE BY FUNCTION
General
Government
21.41%
Social Services Other
1.51%
3.71%
Public Safety
35.45%
Cultural & Rec.
0.58%
Appropriations
22.62%
Legislative
0.50%
Judicial
14.22%
8
2008/09 Recommended
Revenue Modifications
 Property Taxes
 State Revenue
 District Court
 Clerk Register of Deeds
 Building Services
 Environmental Health
9
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
10
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
11
2008/09 Recommended
Expenditure Modifications
Internal Initiative/Issue
Net Impact on Budget
 Communications Strategy
$100K
 Successful Communities
$70K
 PS&J Statutory Line Items
$167K
 District Court Jail Diversion Efforts
$0 - Revenue Increases to Offset
 Victim Witness Services
$60K
 Juvenile Placements
$320K Placement Costs; $40K for
Probation FTE on Pilot Basis
 Drains Equipment
$18K for FTE
 Solid Waste Community Clean Up
$40K Annually
 Medical Examiner
$150K One Time for Infrastructure;
$16K for Annual Contract Increase
12
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
13
2008/09 Recommendations
Policy 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
14
2008/09 Recommendations
Policy 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
15
2008/09 Recommendations
Policy 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
16
2008/09 Recommendations
Policy 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
17
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
$136,200
$136,200
$140,286
$144,495
$148,829
$153,294
$157,893
$162,630
$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
---------------
Licenses & Permits
State & Local Revenues
TOTAL
$101,328,602
$107,552,529
$110,764,839
$114,265,363
$119,661,457
$125,333,149
$131,294,849
$137,561,729
$144,149,772
$61,569,798
$63,123,205
$66,197,554
$69,192,095
$72,323,721
$75,598,765
$79,023,853
$82,605,920
$1,639,936
$1,452,936
$1,689,134
$1,496,524
$1,739,808
$1,541,420
$1,792,002
$1,587,662
$13,232,381
$13,279,082
$13,777,454
$14,055,778
$14,492,451
$14,942,225
$15,405,492
$15,882,656
$3,819,702
EXPENDITURES:
Personal Services
Supplies
Other Svcs. & Charges
Internal Service Charges
$3,023,515
$3,198,940
$3,294,908
$3,393,755
$3,495,568
$3,600,435
$3,708,448
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
$27,172,624
$28,796,401
$30,502,965
$32,282,229
$34,137,432
$36,071,962
$38,089,366
$40,193,352
Appropriations/Transfers Out
--------------TOTAL
SURPLUS (DEFICIT)
Deficit as % of Total Revenue
---------------
$107,552,529
$110,764,839
$0
$0
--------------$116,126,291
--------------$121,084,656
--------------$126,853,256
--------------$132,419,083
--------------$138,683,437
--------------$144,753,567
($1,860,928)
($1,423,200)
($1,520,107)
($1,124,234)
($1,121,707)
($603,795)
-1.63%
-1.19%
-1.21%
-0.86%
-0.82%
-0.42%
18
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
Licenses & Permits
State & Local Revenues
$72,344,441
$74,908,207
$77,529,994
$81,794,144
$86,292,822
$91,038,927
$96,046,068
$101,328,602
$136,200
$136,200
$140,286
$144,495
$148,829
$153,294
$157,893
$162,630
$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
$61,569,798
$63,123,205
$66,197,554
$69,192,095
$72,323,721
$75,598,765
$79,023,853
$82,605,920
EXPENDITURES:
Personal Services
Supplies
Other Svcs. & Charges
Internal Service Charges
Capital Outlay
Contingencies
Appropriations/Transfers Out
$1,639,936
$1,452,936
$1,689,134
$1,496,524
$1,739,808
$1,541,420
$1,792,002
$1,587,662
$13,232,381
$13,279,082
$13,777,454
$14,055,778
$14,492,451
$14,942,225
$15,405,492
$15,882,656
$3,023,515
$3,198,940
$3,294,908
$3,393,755
$3,495,568
$3,600,435
$3,708,448
$3,819,702
$14,275
$14,275
$14,275
$14,275
$14,275
$14,275
$14,275
$14,275
$900,000
$900,000
$650,000
$650,000
$650,000
$650,000
$650,000
$650,000
$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
SURPLUS (DEFICIT)
Deficit as % of Total Revenue
---------------
$107,552,529
$110,764,839
$0
$0
0.00%
0.00%
--------------$116,126,291
--------------$121,084,656
--------------$126,853,256
--------------$132,419,083
--------------$138,683,437
--------------$144,753,567
($1,860,928)
($1,423,200)
($1,520,107)
($1,474,139)
($8,727,351)
($8,437,609)
-1.63%
-1.19%
-1.21%
-1.13%
-6.72%
-6.19%
19
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
20
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
21
2008/09
Recommended Budget
Questions?
22