BUDGET PRESENTATION Focusing on the General Fund Agenda 2012 - - PowerPoint PPT Presentation

KANE COUNTY 2012 BUDGET PRESENTATION

Focusing on the General Fund

Agenda

 2012 Budget Process To-Date  2012 Budget Challenges

– General Fund Revenue Projections – General Fund Expenditure Requests

 Special Fund Budgets  2012 Budget Process Moving Forward

2012 Budget Process To-Date

 Departments/Offices entered revenue

projections and expenditure requests

 Finance Director reviewed all budgets,

particularly revenue projections

 Most departments presented budget

requests at individual committee meetings

 Special Committee of the Whole meeting

held for departments/offices to present 2012 budget requests

2012 General Fund Reports

Please refer to General Fund revenue and expenditure reports for detailed information not presented in this power point presentation.

General Fund Revenue Summary by Department/Office

Department/Office 2009 Actual Amount 2010 Actual Amount 2011 Amended Budget 2011 Projected Actual Amount 2012 Estimated 2012 Estimated Less 2011 Amended Budget % Change from 2011 Amende d Budget General Government (excludes Cash on Hand) $52,273,572 $52,120,672 $51,771,324 $52,887,102 $53,815,824 $2,044,500 3.9% County Board $90,850 $102,675 $88,000 $89,750 $88,000 $0 0.0% Information Technologies $45,014 $44,640 $28,860 $29,000 $28,860 $0 0.0% Treasurer/Collector $87,850 $73,126 $84,000 $84,000 $74,000 ($10,000)

• 11.9%

Supervisor of Assessments $108,579 $117,726 $71,630 $80,000 $89,075 $17,445 24.4% County Clerk $1,145,766 $972,780 $763,500 $860,151 $826,500 $63,000 8.3% Recorder $2,182,928 $2,350,543 $2,130,000 $2,134,850 $2,133,200 $3,200 0.2% Circuit Clerk $7,663,646 $7,609,776 $7,563,000 $7,138,000 $7,373,000 ($190,000)

• 2.5%

State's Attorney $2,612,128 $2,062,653 $1,762,536 $1,638,277 $1,629,000 ($133,536)

• 7.6%

Public Defender $119,982 $169,556 $120,000 $90,000 $148,566 $28,566 23.8% Sheriff $3,355,307 $3,423,127 $3,150,529 $2,069,900 $2,368,500 ($782,029)

• 24.8%

Kane Comm $753,373 $755,325 $0 $0 $0 $0 0.0% Court Services $3,237,411 $3,249,466 $3,019,566 $2,931,846 $2,850,295 ($169,271)

• 5.6%

Coroner $20,324 $10,425 $0 $0 $0 $0 0.0% Emergency Management Services $109,646 $132,957 $87,500 $91,909 $80,000 ($7,500)

• 8.6%

Development $1,200,860 $1,270,280 $1,016,350 $927,450 $1,011,850 ($4,500)

• 0.4%

General Fund Total $75,007,236 $74,465,726 $71,656,795 $71,052,235 $72,516,670 $859,875 1.2% Transfer From Other Funds $1,174,521 $1,722,393 $913,738 $853,923 $1,036,004 $122,266 13.4% General Fund Total $76,181,757 $76,188,119 $72,570,533 $71,906,158 $73,552,674 $982,141 1.4%

Revenue Projections

 Finance Director prepares revenue

projections for General Government and Other revenue

 Departments/Offices prepare revenue

projections for their own areas of responsibility

– Reviewed by Finance Director

2012 Budget Challenges General Fund Revenue

 Varying opinions on future of the

economy

– Projections were done June and early July and economic conditions have become more uncertain since that time

 County needs to continue to monitor and, if

necessary, adjust revenue projections

– Possibility of double-dip recession???

2012 Budget Challenges General Fund Revenue

 Volatility of taxes and other revenue

makes projecting FY12 difficult

 State collection problems

– Many revenue sources are not receiving full year

• f State funding (income tax, other taxes,

probation salary reimbursement) which makes projecting FY12 difficult

2012 Budget Challenges Property Tax Revenue

 Property tax increase minor

– New property estimate = $50MM

 Down 54% from 2010 tax year ($109MM)  Down 71% from 2009 tax year ($170MM)  Down 82% from 2008 tax year ($285MM)  Down 89% from 2007 tax year ($438MM)

– CPIu = 1.5% (less than last year’s 2.7%) – Increase will needed to fund rise in pension costs (IMRF Fund) and remainder will be placed in General Fund

2012 Budget Challenges Property Tax Revenue

 Because of decline in EAV, County is approaching

General Fund maximum rate (0.25)

– Rate = (General Fund Levy Amount / Rate Setting EAV) – As EAV declines the rate increases, regardless of whether levy amount increases – Estimated 2012 (2011 tax year) General Fund rate = 0.238

 2012 Budget Estimate = $32,350,000  Estimated Allowable 2012 Amount = $33,940,700

– If EAV continues to drop County may be restricted from increasing General Fund levy amount OR General Fund levy amount may have to be reduced

 This will not affect ability to increase other fund levy amounts as

none are close to maximum rate

2012 Budget Challenges General Fund Revenue

 Fees and Reimbursements stagnant or

declining

– Total Fee revenue down $972K (-7%)

 Foreclosure Fees dropped $700K (-47%)  Circuit Clerk Office Fees dropped $177K (-2%)

– Total Reimbursement revenue down $195K (-6%)

 State’s Attorney and Court Service Reimbursements

declined  Investment income continues to be

extremely low

2011 General Fund Revenue

Total 2011 Amended Budget = $72,570,533 (excludes Cash on Hand)

General Government $51,771,324 71.3% County Board $88,000 0.1% Info Tech $28,860 0.0% Treasurer/ Collector $84,000 0.1% Supervisor of Assessment $71,630 0.1% County Clerk $763,500 1.1% Recorder $2,130,000 2.9% Circuit Clerk $7,563,000 10.4% State's Attorney $1,762,536 2.4% Public Defender $120,000 0.2% Sheriff $3,150,529 4.3% Court Services $3,019,566 4.2% Emergency Mgmt $87,500 0.1% Development $1,016,350 1.4% Transfer To Other Funds $913,738 1.3%

2011 General Fund Revenue by Classification

Property Taxes $31,730,000 43.7% Other Taxes $17,565,000 24.2% Licenses and Permits $423,800 0.6% Grants $219,389 0.3% Fees $14,429,946 19.9% Fines $3,607,001 5.0% Reimbursements $3,471,585 4.8% Interest Revenue $162,000 0.2% Other $48,074 0.1% Transfer From Other Funds $913,738 1.3%

General Fund Revenue

$72,000,000 $72,200,000 $72,400,000 $72,600,000 $72,800,000 $73,000,000 $73,200,000 $73,400,000 $73,600,000 2011 Amended Budget 2012 Estimated $72,570,533 $73,552,674

Total General Fund Revenue 2011 Amended Budget vs. 2012 Estimated

Excludes Cash on Hand

$50,500,000 $51,000,000 $51,500,000 $52,000,000 $52,500,000 $53,000,000 $53,500,000 $54,000,000 2011 Amended Budget 2012 Estimated $51,771,324 $53,815,824

General Government Revenue for General Fund 2011 Amended Budget vs. 2012 Estimated

General Fund Revenue by Department

Excludes General Government Revenue & Cash on Hand

County Board Info Tech Treasurer/ Collector Superviso r of Assessmt County Clerk Recorder Circuit Clerk State's Attorney Public Defender Sheriff Court Services Emergenc y Mgmt Developm t 2011 Amended Budget $88,000 $28,860 $84,000 $71,630 $763,500 $2,130,000 $7,563,000 $1,762,536 $120,000 $3,150,529 $3,019,566 $87,500 $1,016,350 2012 Estimated $88,000 $28,860 $74,000 $89,075 $826,500 $2,133,200 $7,373,000 $1,629,000 $148,566 $2,368,500 $2,850,295 $80,000 $1,011,850

$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000

2011 Amended Budget 2012 Estimated

Key Impacts on General Fund Revenue

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000

2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Amended Budget 2012 Estimated

Sales Tax Other Taxes Investment Income Recorder Sheriff (excludes Justice Mgmt & Assist Grants) Development (excludes ISWS/IGGS Grant)

Sales Tax by Quarter

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2007 $3,824,518 $3,389,285 $4,114,154 $3,857,044 2008 $3,608,642 $3,238,099 $3,829,745 $3,474,400 2009 $3,179,373 $2,684,335 $3,271,290 $3,006,296 2010 $3,028,110 $2,855,525 $3,375,884 $3,174,924 2011 $3,281,571 $3,014,805

$2,600,000 $2,800,000 $3,000,000 $3,200,000 $3,400,000 $3,600,000 $3,800,000 $4,000,000 $4,200,000

2007 2008 2009 2010 2011

Total

2007: $15,185,001 2008: $14,150,887 2009: $12,141,294 2010: $12,434,443 2011: $ 6,296,376

2012 Budget Challenges Expenditures

 Healthcare & dental increase = 6% & 5%

– Approx $373K increase in General Fund – Decrease in Special Funds b/c of Health Dept layoffs – Important to remember this rate is very atypical as the healthcare trend has been 10-12%

 IMRF and SLEP increase = 10% and 2.3%,

respectively

– IMRF rate 10.78%, SLEP rate 20.74% – Approx $334K in IMRF Fund if salaries remain flat – Approx $179K in Special Funds if salaries remain flat

 Any operating increase given in FY11 through the

contingency fund

– Mainly ongoing personnel costs – Negotiated/arbitrated union salary increases

2012 Budget Challenges General Fund Expenditures

 Additional funding needed for:

– Healthcare and dental costs – County Clerk- 2012 general election – Corrections- overtime costs per arbitrator ruling – Bond payment – Contingency – Other areas

2012 Budget Challenges General Fund Expenditures

 Additional funding needed for:

– Union step increases per current contracts – Union salary increases, if any, in future contracts – Salary increases for departments/offices, if any – Judiciary- outside legal, juror & interpreter costs – Corrections- medical & food contracts – Court Services- juvenile outplacement costs – Capital Funding – Other areas

2012 Budget Challenges General Fund Request Shortfall

2012 Revenue Estimate (1) $73,739,871 2012 Expenditure Request $79,103,263 2012 Shortfall ($5,363,392)

(1) Includes 2012 estimated Cash on Hand amount to be rolled from FY2011.

2011 General Fund Expenditures

Total 2011 Amended Budget = $72,893,927

Elected/Elected Controlled $51,957,921 71.3% County-wide Support $12,299,956 16.9% Other County-Wide $5,894,998 8.1% Debt Service $2,349,226 3.2% Contingency $391,826 0.5%

General Fund Expenditures by Department

$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2011 Amended Budget 2012 Requested

Amount Requested over 2011 Amended Budget

General Fund by Department

• $19,473

$14,145 $150,764

• $10,568$0 $10,715

$19,465

• $98,885

$619,036 $11,831 $54,862 $488,950 $1,045,805 $733,046 $157,112 $962,141 $0 $0 $1,132,079 $36,540

• $13,532
• $78,216

$72,353

• $187,008
• $200,000

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000

2011 General Fund Expenditures by Classification

Personnel Services $52,283,936 71.7% Contractual Services $10,048,073 13.8% Commodities $5,474,838 7.5% Capital $755,177 1.0% Debt Service $2,348,126 3.2% Contingency and Other $391,826 0.5% Transfer From Other Funds $1,591,951 2.2%

General Fund Expenditures by Classification

$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 2009 Actual Amount 2010 Actual Amount 2011 Amended Budget 2012 Requested Personnel Services- Salaries & Wages Personnel Services- Employee Benefits Contractual Services Commodities Capital Debt Service Contingency and Other Transfer From Other Funds

2012 Special Fund Reports

Please refer to Special Fund reports for information not presented in this power point presentation.

2010 Actual Amount 2011 Amended Budget 2012 Requested Budget % Change 2011-2012 010 County Board 120 Riverboat Revenue 6,512,255 6,042,000 5,695,659

• 5.7%

Interest Revenue 104,136 42,000 40,000

• 4.8%

Other 6,408,119 6,000,000 5,500,000

• 8.3%

Cash on Hand 155,659 N/A Expenses 5,965,635 6,042,000 5,695,659

• 5.7%

Personnel Services-Salaries & Wages 39,752 56,000 56,000 0.0% Personnel Services-Employee Benefits 83,166 168,366 169,426 0.6% Contractual Services 1,050,274 1,662,831 1,002,570

• 39.7%

Transfers Out 4,792,442 4,154,803 4,467,663 7.5% 430 Farmland Preservation Revenue 1,331,555 3,847,268 2,211,000

• 42.5%

Grants 798,173 1,800,000 1,800,000 0.0% Interest Revenue 33,382 5,000 5,000 0.0% Transfers In 500,000 N/A Cash on Hand 2,042,268 406,000

• 80.1%

Expenses 1,962,604 3,847,268 2,211,000

• 42.5%

Contractual Services 32,620 240,735 210,000

• 12.8%

Capital 1,929,984 3,606,533 2,001,000

• 44.5%

2012 Requested Budget - County Board

Special Fund Concerns



Court Security

– FY 12 fee estimate down 23% from FY08 – FY 12 Cash on Hand needed to pay operating expenses = $493K



Increased over FY11

– Cash balance @ 7/31/11 = $889K



Animal Control

– FY 12 Cash on Hand needed to pay operating expenses & loan = $166K



Increased over FY11

– Cash balance @ 7/31/11 = $319K



Enterprise Surcharge

– No current or future income stream (except interest income) – FY 12 Cash on Hand needed to pay operating expenses = $698K



Increased over FY11

– Cash balance @ 7/31/11 = $10.6 million



Circuit Clerk Funds

– Final budget not received – Based on information given, cash balances could decline substantially because expenses much greater than revenue

Countywide Special Fund Budget Discussion

 Public Safety Sales Tax Fund

– Committee of the Whole

 Capital Projects and Capital

Improvement Bond Funds

– Committee of the Whole

 Riverboat Fund

– Riverboat Sub-Committee

2012 Budget Process Moving Forward



Continue to revise major revenue and expenditure projections, if needed



Finance Committee to hold special committee meeting(s) to determine budget recommendation



Finance Committee recommendation forwarded to the Committee of the Whole for approval



Departments/Offices requested to revise budgets based on Finance Committee recommendation



Once budget revisions are received, Finance Department revises and publishes draft budget

– Draft budget to be published at least 15 days prior to budget passage, per Statute



Budget brought to the Board for final approval in October or November

Questions and 2012 Budget Recommendation Discussion