Calaveras County FY 14 15 Recommended Budget JUNE 10, 2014 BUDGET - - PowerPoint PPT Presentation

JUNE 10, 2014

Calaveras County FY 14‐15 Recommended Budget

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Hearing begins Tuesday, June 10, 2:30 p.m. and will be continued at the conclusion of each day until the Board closes the public hearing

• Tentative Schedule for subsequent days:

Wednesday, June 11, 1:30 Thursday, June 12, 9:00 Friday, June 13, 9:00 Monday, June 16, 9:00 Tuesday, June 17, 9:00

BUDGET HEARING AGENDA

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No significant change in context over the past year

• National economy continues slow recovery
• California is recovering faster than the rest of the

nation

• Housing prices rebounding in some areas of the

state, low inventory of homes and fewer underwater properties

Some niche markets like SF have returned to bidding wars and pre‐recession housing prices. This is not the norm statewide

• Local housing prices trending up slower than other

areas of the state

ECONOMIC CONTEXT

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UNEMPLOYMENT RATE IMPROVING

5.9 6.4 8.6 13.9 15.6 14.6 13.0 10.4 8.6 7.3 5.9 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 2006 2007 2008 2009 2010 2011 2012 2013 Apr‐14

CALAVERAS CO CALIFORNIA UNITED STATES

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July 2007 111.9% February 2009 25.3% May 2014 83.0%

0.0 20.0 40.0 60.0 80.0 100.0 120.0 6/06 2007 2008 2009 2010 2011 2012 2013

CONSUMER CONFIDENCE RISING

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$7.04 $5.41

$0 $1 $2 $3 $4 $5 $6 $7 $8 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

ASSESSED VALUE (BILLIONS)

7 ‐15% ‐10% ‐5% 0% 5% 10% 15% 20%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Calaveras Projection State

YEAR OVER YEAR CHANGE IN ASSESS VALUE

FY2013‐14 3RD QUARTER GENERAL FUND STATUS

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GENERAL FUND REVENUE AT 3RD QTR

Revenue Classification FY 2013‐14 Adopted Budget March 31, 2014 Revenue Actuals % Received Taxes $12,782,990 $7,499,007 58.7% Licenses, Permits, and Franchise $1,715,976 $1,601,258 93.3% Fines, Forfeitures, and Penalties $558,077 $499,827 89.6% Rev from Use of Money/Property $75,400 $83,135 110.3% Intergovernmental Revenue ‐ State $6,650,604 $3,874,667 58.3% Intergovernmental Revenue ‐ Federal $706,183 $301,619 42.7% Charges for Services $4,790,333 $3,150,970 65.8% Miscellaneous Revenue $700,128 $319,801 45.7% Other Financing Sources $44,600 $48,640 109.1% Operating transfers in $7,575,913 $3,636,513 48.0% Sale of assets $0 $12 0.0%

Total Revenues $35,600,204 $21,015,449 59.0%

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YEAR TO YEAR REVENUE COMPARISON ‐ 3RD QTR

Revenue Classification March 31, 2013 Actual March 31, 2014 Actual $ Change % Change Taxes $7,394,952 $7,499,007 $104,055 1.4% License, Permits & Franchise $989,495 $1,601,258 $611,763 61.8% Fines, Forfeitures & Penalty $413,474 $499,827 $86,353 20.9% Use of Money/Property $61,212 $83,135 $21,923 35.8% Intergovernmental ‐ State $3,747,641 $3,874,667 $127,026 3.4% Intergovernmental ‐ Federal $252,473 $301,619 $49,146 19.5% Charges for Services $4,246,614 $3,150,970 ($1,095,644) ‐25.8% Miscellaneous Revenue $323,306 $319,801 ($3,505) ‐1.1% Other Financing Sources $67,447 $48,640 ($18,807) ‐27.9% Operating transfers in $1,342,290 $3,636,513 $2,294,223 170.9% Sale of assets $10,442 $12 ($10,430) 0.0%

Total Revenues $18,849,346 $21,015,449 $2,166,103 11.5%

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EXPENDITURES BY CLASS – 3RD QTR

Expenditure Classification FY2013‐14 Adopted Budget June 30, 2013 Encumberances March 31, 2014 Actuals % Expend

Salaries & Benefits

$23,912,808 $0 $16,665,710 69.7%

Services and Supplies

$10,928,428 $588,920 $6,761,536 58.7%

Other Charges

$739,111 $0 $335,064 45.3%

Capital Assets

$797,801 $68,796 $397,641 45.9%

Other Financing Uses

($689,129) $0 ($453,618) 65.8%

Operating transfers out

$2,325,549 $0 $1,405,542 60.4%

Contingencies

$1,368,290 $0 $0 0.0%

Total Expenditures

$39,382,858 $657,717 $25,111,875 62.7%

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YEAR TO YEAR EXPENSE COMPARISON – 3RD QTR

Expenditure Classification March 31, 2013 Actuals March 31, 2014 Actuals $ Change % Change

Salaries and Employee Benefits 16,268,864 16,665,710 396,846 2.4% Services and Supplies 6,044,363 6,761,536 717,173 11.9% Other Charges 478,451 335,064 ‐143,387 ‐30.0% Capital Assets 54,293 397,641 343,348 632.4% Other Financing Uses ‐579,859 ‐453,618 126,241 ‐21.8% Operating transfers out 2,718,297 1,405,542 ‐1,312,755 ‐48.3% Appropriation for Contingencie 0% Expenditure Totals 24,984,409 25,111,875 127,466 0.5%

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• Revenues ‐ $21,015,449 or 59%

Property Taxes revenues post in April & June VLF revenues post in May Balance of Transfers from Designated Funds

• Expenditures ‐ $25,111,875 or 62.7%

Swept $947,719 in salary savings at mid‐year Instituted a more formal hiring freeze

• At 3rd Qtr Expenditures exceed Revenues by

$4,096,425

3RD QUARTER SUMMARY

BUDGET DEVELOPMENT

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• Governed by State Law; guided by Board’s Principles
• Milestones

December / January Kickoff CAO and departments identify key issues and develop first budget projections Budget Instructions distributed in March CAO and departments meet in April – May Mid‐Year Budget Report to the Board Recommended Budget Hearings in June; Final in September

• Process that involves all departments and staff

throughout the organization – collaborative to a point

BUDGET PROCESS AND TIMELINE

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• 1. Rational and conservative revenue estimates
• 2. Avoid one‐time solutions
• 3. Public safety identified as the highest spending priority
• 4. Maintain costs by controlling personnel expenditures
• 5. Don’t believe a promise from the state until the

promise actually occurs

• 6. Minimize the General Fund contribution to Non‐

General Fund programs above the required match

BOARD ADOPTED BUDGET PRINCIPLES

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• 7. Maintain operations in Solid Waste, Airport, and Fish

and Game Funds without General Fund contributions

• 8. In general, do not balance the budget by raising fees
• 9. Strive for healthy reserves and a 3% to 4% contingency
• 10. Utilize grants for funding that enhances and improves

County programs

• 11. The budget structure shall support a diverse,

prosperous, and sustainable economy

BUDGET PRINCIPLES

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• Maximize current year savings

move $947,719 in FY 2013‐14 projected savings to contingencies

• Minimize future layoffs

implement hard hiring freeze, establish process for approval prior to departments hiring, promoting, or otherwise increasing personnel costs

• Look for cost savings and revenue generating ideas

consider suggestions from SEIU, staff, the public, etc.

• Begin multi‐year process to align GF revenues &

expenditures

reduce GF contribution by $2.5 million in FY 2014‐15

BOARD DIRECTION FOR FY 2014‐15

RECOMMENDED BUDGET SUMMARY

20 Fund Revenues Appropriations Fund Equity General $34,765,917 $37,420,755 $2,654,838 Public Works $18,475,521 $21,438,639 $2,963,118 Integrated Waste Management $5,085,598 $7,528,283 $2,442,685 Health and Human Services $28,834,150 $34,294,279 $5,460,129 Capital Improvements $4,398,130 $2,248,623 ($2,149,507) Transit $1,588,962 $1,588,962 $0 Airport $1,333,408 $1,436,207 $102,799 Other $3,079,681 $3,314,788 $235,107 Total $97,561,367 $109,270,536 $11,709,169

FY 2014‐15 ALL FUNDS SUMMARY

ALL FUNDS STAFFING

Functional Area FY 2013‐14 Final Adopted FY 2014‐15 Recommended Difference General Government 76.00 68.00 (8.00) Public Safety 151.99 137.44 (14.55) Development Services 121.00 122.00 1.00 Health & Human Services 150.59 145.15 (5.44) Education & Recreation 8.23 8.43 .20 Other Departments 2.00 2.00 Total 509.81 483.02 (26.79)

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GENERAL FUND REVENUES

Revenue Classification FY 2013‐14 Final FY 2014‐15 Recommend $ Change % Change Taxes $12,782,990 $12,900,829 $117,839 0.9% Licenses, Permits, and Franchise $1,715,976 $1,873,554 $157,578 9.2% Fines, Forfeitures, and Penalty $558,077 $664,495 $106,418 19.1% Rev from Use of Money/Property $75,400 $58,300 ($17,100) ‐22.7% Intergovernmental‐ State $6,650,604 $6,765,355 $114,751 1.7% Intergovernmental Federal $706,183 $454,886 ($251,297) ‐35.6% Charges for Services $4,790,333 $4,194,912 ($595,421) ‐12.4% Miscellaneous Revenue $700,128 $815,338 $115,210 16.5% Other Financing Sources $44,600 $1,265,137 $1,220,537 2736.6% Operating transfers in $4,196,007 $3,958,673 ($237,334) ‐5.7% Sale of Assets $0 $0 $0 0.0% Total Revenues $32,220,298 $32,951,479 $731,181 2.3% Use of Teeter and Fund Balance $7,162,560 $4,469,276 ($2,693,284) ‐38.0% Total Revenues Teeter/Fund Balance $39,382,858 $37,420,755

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Taxes, $12.9, 35% Licenses/Permits/Fra nchises, $1.9, 5% Fines/Forfeitures/Pen alties, $0.7, 2% Use of Money, $0.0, 0% Intergovernmental, $7.2, 19% Charges for Services, $4.2, 11% Miscellaneous, $0.8, 2% Other Financing Sources, $1.3, 4% Operating Transfers In, $3.9, 10% Teeter/Fund Balance, $4.5, 12%

TOTAL GENERAL FUND REVENUES ‐ $37.4M

24 Functional Area FY 13‐14 Final Adopt FY 14‐15 Rec Budget $ Change $ Change General Government $8,993,480 $8,470,238 ‐$523,242 ‐5.8% Public Safety $18,866,923 $17,070,663 ‐$1,596,260 ‐8.6% Development Services $5,192,432 $6,094,778 $902,346 17.4% Health/Human Services $433,851 $393,844 ‐$40,007 ‐9.2% Education & Recreation $584,150 $601,283 $17,133 2.9% Miscellaneous $5,512,022 $4,789,949 ‐$722,073 ‐13.1% Total $39,382,858 $37,420,755 ‐$1,962,103 ‐5.0

TOTAL GF APPROPRIATION COMPARISON

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TOTAL GF APPROPRIATIONS BY FUNCTION ‐ $37.4M

General Government; $8,470,238 ; 23% Public Safety; $17,070,663 ; 46% Development Services; $6,094,778 ; 16% Health & Human; $393,844 ; 1% Miscellaneous; $4,789,949 ; 13% Education & Recreation; $601,283 ; 1%

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TOTAL GF APPROPRIATIONS BY CLASS ‐ $37.4 M

Salaries & Benefits; $22.7 ; 61%

Capital Assets; $0.1 ; 0% Other Charges; $0.7 ; 2% Services & Supplies; $10.0 ; 27% Other Financing Uses; $0.5 ; 1% Operating Transfers; $2.3 ; 6% Contingencies; 1.1 ; 3%

27 ‐$6 $5 $15 $25 $35 $45 2009/10 2010/11 2011/12 2012/13 2013/14 Budget 2014/15 Budget

OPERATING EXPENDITURES FUND BALANCE (USED)/SAVED TEETER REVENUES OPERATING REVENUES OPERATING EXPENDITURES

TOTAL GF REVENUES & EXPENSES

GENERAL FUND CONTRIBUTION & REDUCTION TARGETS

29 Functions FY 2014‐15 Total GF App % of Total GF Contribution % of Total General Govt. $8,470,238 23% $7,242,041 31% Public Safety $17,070,663 46% $11,923,554 52% Development Services $6,094,778 16% $2,223,570 10% Health/Human Services $393,844 1% $393,844 2% Education & Recreation $601,283 2% $386,061 2% Miscellaneous $4,789,949 13% $928,112 4% Total $37,420,755 $23,097,182

GENERAL FUND REVENUES / CONTRIBUTION

30 Public Safety FY 2014‐15 Total GF Appropriations % of Total FY 2014‐15 GF Contribution % of Total Sheriff $11,643,232 68% $8,667,354 73% Probation $2,974,860 17% $1,083,854 9% District Attorney $1,478,091 9% $1,225,676 10% Public Defender $537,653 3% $510,433 4% County Fire $246,380 1% $246,380 2% Coroner $190,447 1% $189,847 2% Total $ 17,070,663 $ 11,923,544

PUBLIC SAFETY GENERAL FUND

31 Sheriff, $11,643,232, 68% Coroner, $190,447, 1% Probation, $2,974,860, 17% District Attorney, $1,478,091, 9% Public Defender, $537,653, 3% County Fire, $246,380, 2%

PUBLIC SAFETY TOTAL APPROPRIATIONS‐ $17.1M

32 Sheriff, $8,667,354, 73% District Attorney, $1,225,676, 10% Public Defender, $510,433, 4% Probation, $1,083,854, 9% Coronor, $189,847, 2% County Fire, $246,380, 2%

PUBLIC SAFETY GF CONTRIBUTION ‐ $11.9M

GF FY 2012/13 GF FY 2013/14 Hybrid Reduction Target FY 14‐15 GFC Target % Chg Dept Req CAO Rec % Chg

Sheriff 8,111,961 9,526,562 (880,233) 8,646,330 ‐9.2% 9,257,599 8,667,354 ‐9.0% DA/Victim‐ Witness/DUI 1,229,840 1,317,367 (131,737) 1,185,630 ‐10.0% 1,225,676 1,225,676 ‐7.0% Public Defender 473,837 510,434 510,434 0.0% 510,433 510,433 0.0% Probation/DRC 1,084,561 1,308,144 (223,583) 1,084,561 ‐17.1% 1,083,854 1,083,854 ‐17.1% Coroner 206,431 210,942 (21,094) 189,848 ‐10.0% 189,847 189,847 ‐10.0%

GF REDUCTIONS – PUBLIC SAFETY

GF FY 2012/13 GF FY 2013/14 Hybrid Reduction FY 14‐15 GFC Target % Chg Dept Req CAO Rec % Chg

Administrative Office 533,214 597,801 (64,587) 533,214 ‐10.8% 447,962 474,842 ‐20.6% HR/Insurance 1,749,340 2,253,022 (428,682) 1,824,340 ‐19.0% 1,794,405 1,794,405 ‐20.4% TSD/GIS 717,950 794,192 (85,723) 708,469 ‐10.8% 1,146,196 1,146,196 44.3% Utilities 323,472 334,229 334,229 0.0% 392,073 392,073 17.3% Buildings/Grounds 311,866 320,564 (32,056) 288,508 ‐10.0% 737,861 737,861 130.2%

GF REDUCTION – GENERAL GOVT EXAMPLES

STAFFING

ALL FUNDS STAFFING

Functional Area FY 2013‐14 Final Adopted FY 2014‐15 Recommended Difference General Government 76.00 68.00 (8.00) Public Safety 151.99 137.44 (14.55) Development Services 121.00 122.00 1.00 Health & Human Services 150.59 145.15 (5.44) Education & Recreation 8.23 8.43 .20 Other Departments 2.00 2.00 Total 509.81 483.02 (26.79)

Department Position Title FTE Eliminate Vacant Filled Human Resources Business Administrator 1.0 x Auditor‐Controller Account Technician IV 1.0 x Assistant Auditor/Controller 1.0 x Assessor Chief Appraiser** 0.4 x Assistant Assessor 1.0 x Treasurer‐TC Tax Technician III 1.0 x County Clerk Board Clerk 0.5 x Recorder Clerk‐Recorder Office Technician 1.0 x Victim Witness Clerical Assistant III 0.55 x District Attorney Investigate/Trial Support Asst (LT) 1.0 x Administrative Assistant ** 0.4 x Deputy District Attorney** 0.4 x Assistant District Attorney 1.0 x Probation Deputy Probation Officer 2.0 x Sheriff Deputy Sheriff I/II 6.0 x Deputy Sheriff ‐ Limited Term 1.0 x Senior Deputy 1.0 x Budget Analyst 1.0 x Dispatch Sheriff Services Technician 1.0 x Jail Correctional Technician 1.0 x Planning Planner IV 1.0 x Program Supervisor 1.0 x Animal Services Animal Control Officer I 1.0 x Totals 26.25 19.5 6.75

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• County Counsel – Reclassify Legal Clerical to

Paralegal

• Planning – Reclassify Planner I to Admin Asst II
• Env Health – Transfer REHS from Onsite Wastewater
• Adult Tutoring – Increase Literacy Program

Coordinator from 0.8 FTE to 1.0 FTE

• CAO – Transfer Admin Analyst Public Works – B & G
• CAO – Reclassify Director of Human Resources &

Risk Management to Assistant CAO

STAFFING CHANGES – GENERAL FUND

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• Junior Engineer – New Position request
• PW Analyst – Reclassify from II to III
• Dep. Director PW – Transfer from Admin to Eng
• PW Analyst – Transfer from Roads/Bridges to

Admin

• Admin Services Officer – Transfer from

Roads/Bridges to Admin

STAFFING CHANGES – PUBLIC WORKS

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• Eligibility Supervisor – Eliminate 1.0 FTE
• Eligibility Worker I/II – Eliminate 6.0 FTEs
• Clerical Assistant III – Eliminate 1.0 FTE
• Office Technician – downgrade to Clerical Asst. I/II
• Clerical Asst I/II – Transfer frm PH to Social Services
• Clinician I/II – New position request 0.5 FTE
• Case Manager I/II – New position request 1.0 FTE
• Community Serv. Liaison (3) – increase from 0.48

FTEs to 0.5 FTEs

STAFFING CHANGES – HEALTH & HUMAN

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• Admin. Building – ADA improvements

$250,500 ADA Restrooms ADA Rear stairs

• Admin. Building – County Counsel relocate

$ 79,000

• Land Use Building – Electrical Feeder issues

$100,000

• MDT‐Phase II – Re‐budget remainder of project

$362,263

• Jail/Sheriff’s Office – Remaining expenses

$825,000

• Cosgrove Creek – Feasibility study

$215,627

• IWM – Structural Improvements

$356,233

CAPITAL PROJECTS

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• Assessor

Workstations/carpeting $83,100

• Re‐budgeted from FY 2013/14
• Funded from Designated Fund 5579
• Environmental Health

4X4 Sports Utility Vehicle $32,000

• Funded with CUPA Forum Board Grant

CAPITAL ASSETS‐GENERAL FUND DEPTS.

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• Roads & Bridges

Striping Trailer (1) $50,000 Surveyor Printer/Plotter (1) $18,000

• Transit

Bus Shelters (4)/Benches (2) $275,376 Passenger Vans (2) $165,000

• Integrated Waste Management

Water Truck (1) $100,000

• Re‐budgeted from FY 2013/14

CAPITAL ASSETS – PUBLIC WORKS

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• CalWorks

Vehicles (2) $70,000 Copier/Printer/Scanner $16,000

• BHS‐Mental Health

Vehicles (2) $64,000 Copier/Printer/Scanner $16,000

CAPITAL ASSETS – HEALTH & HUMAN SERVICES

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• Murphys Lighting District

Street Lights (2) $55,000

CAPITAL ASSETS ‐ OTHER

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• Wildlife Trapper Services Contract

$65,070

Included in budget

• Central Sierra Economic Dev. Dist.

$ 6,920

Membership contribution 2014 Economic Dev. Partnership Planning Grant Not included in budget

• Mtn. Counties Water Resource Assn.

$ 1,250

Membership Dues Not included in budget

• Calaveras Senior Center

$ 5,190

Amount of FY 2014/15 contribution Not included in budget

OTHER ISSUES

LOOKING AHEAD

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• Expenditures continue to increase – Salary and

Benefit increase of greatest concern

4% increase effective January 2015; next fiscal year a full 12 months with increase and associated increases in benefit costs PERS increases beginning in FY 2015‐16; anticipated to increase GF cost from $3.7 M in FY2014‐15 to $5.2 M by 2020

• Jail/Sheriff’s Office Operation Costs

$350k increased maintenance; $100k increased janitorial budgeted in Buildings and Grounds for FY 2014‐15 Staffing and utility baseline will be established this fiscal year

• Significant Deferred Maintenance Costs

Buildings, vehicles, hardware and software

GENERAL FUND RISKS

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GENERAL FUND FIVE YEAR PROJECTION

$40 $37 $34 $34 $33 $32 $33 $33 $34 $34 $34 $42 $37 $33 $30 $34 $39 $37 $38 $39 $39 $40

$25 $27 $29 $31 $33 $35 $37 $39 $41 $43 $45 FY 06‐07 FY 07‐08 FY 08‐09 FY 09‐10 FY 10‐11 FY 11‐12 FY 12‐13 FY 13‐14 FY 14‐15 FY 15‐16 FY 16‐17 FY 17‐18 FY 18‐19

Revenues Expenditures

• EX. Projections

ACTUALS BUDGETED PROJECTED

$5.0 $5.0 $5.2 $6.0

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• Expenditures continue to increase

Salary and benefit increases PERS Actuarial Changes

• Slow Revenue Growth

Consumer revenues increasing slowly but overshadowed by the loss of property taxes and VLF revenues

• Expenses outpacing revenue growth for the next 5

years…. and likely beyond

FIVE YEAR GENERAL FUND PROJECTION

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Actual Balance at 6/30/13 $8,145,148 Projected Balance at 6/30/14 $4,990,680 Projected Uses in Fiscal Year 2014‐15 ($1,814,438)

Court Audit Repayment ($ 106,500) Property Tax Audit Repayment ($ 200,000) General Fund Contribution ($ 250,000) General Fund Deficit Funding ($1,257,938)

Estimated Fiscal Year 2014‐15 Revenue $ 850,000 Estimated Balance at 6/30/15 $4,026,242

TEETER FUNDS BALANCE UPDATE

52 $1.2 $0.1 $0.9 $0.9 $0.9 $3.3 $1.8 $2.0 $7.8 $8.1 $5.0 $4.0 $‐ $1 $2 $3 $4 $5 $6 $7 $8 $9 FY 12‐13 FY 13‐14 FY 14‐15 FY 15‐16 Revenue Expense Balance

TEETER FUND PROJECTION

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• The FY 2014‐15 Recommended Budget is balanced

utilizing $1.8 million of one‐time Teeter funds and a Projected $2.7 in Fund Balance cash carry

$4.5 M total ‐ reduction in reliance on one‐time funds to balance significantly improves long‐term sustainability

• Recommended General Fund Contribution to

General Fund Departments is reduced by $2.3M

$200k less than the goal of achieving a $2.5M reduction

• Contingencies are budgeted at $1.1M equal to 3% of

General Fund appropriations

CONCLUSIONS

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• Absent a significant and unanticipated increase in

revenues reductions similar to those taken this year will be required again next year

• Known labor cost increases without an offsetting

increase in revenues will result in continuous downsizing and service reductions

• Discipline will be required throughout the year to

resist adding costs

CONCLUSIONS

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• To the Board for demonstrated leadership in

establishing sustainable budget principles and policies

• To all county department
• To Rebecca Callen, Auditor‐Controller, and Francine

Osborn, our budget team partners who help us work with departments to craft the budget document

• To all CAO staff – Shirley Ryan as Budget Lead,

Zachariah, Karen, Diane, and Mary Rose who next year will take a far more active role

ACKNOWLEDGEMENT

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• Conduct Public Hearing
• At conclusion of the Public Hearing

Adopt the Recommended Budget Resolution to include Appropriations of $109,270,536 for all funds; $37,420,755 for the General Fund Adopt Position Change Resolution to include additions, deletions, reclassifications Adopt capital assets resolution

RECOMMENDATION