FY 2014 Operating Budget Preview Presentation Overview History and - - PowerPoint PPT Presentation

FY 2014 Operating Budget Preview

Presentation Overview

• History and Trends
• Improved Revenue Picture
• Expenditure Changes
• Competing Needs
• Budget Calendar

FY 2014 Operating Budget Preview 2

FY 2014 Operating Budget Preview 3

FISCAL AND ECONOMIC HISTORY AND TRENDS

FY 2014 Operating Budget Preview 4

Budget Changes Since FY 2009

$984.4 $971.2 $953.6 $947.1 $951.2 $952.1 $938.5 FY 2009 Adopted: July 2008 FY 2009 Amended: Feb. 2009 FY 2010 Adopted: July 2009 FY 2010 Amended: April 2010 FY 2011 Adopted: July 2010 FY 2012 Adopted: July 2011 FY 2013 Adopted: July 2012 FY 2014 Target: December 2012

(in millions)

FY 2014 Operating Budget Preview 5

Unemployment Statistics

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 December 2012 Wake 4.0% 5.6% 5.3% 4.4% 4.1% 3.6% 3.5% 4.6% 8.4% 8.7% 8.3% 7.3% North Carolina 5.6% 6.6% 6.5% 5.5% 5.3% 4.8% 4.7% 6.2% 10.8% 10.6% 10.5% 9.5% US 4.7% 5.8% 6.0% 5.5% 5.1% 4.6% 4.6% 5.8% 9.3% 9.6% 9.0% 7.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

Year‐to‐Year % Change in Revenue

‐25.0% ‐20.0% ‐15.0% ‐10.0% ‐5.0% 0.0% 5.0% 10.0% 15.0% FY05 to FY06 FY06 to FY07 FY07 to FY08 FY08 to FY09 FY09 to FY10 FY10 to FY11 FY11 to FY12 Percent Change Year to Year

Wake County General Fund Revenue

ALL GF REVENUES PROPERTY TAXES SALES TAXES

Economic Growth Recession Recent Trends

Building Permits

11,222 10,384 5,187 3,493 3,744 3,703 4,822 2,000 4,000 6,000 8,000 10,000 12,000 2006 2007 2008 2009 2010 2011 2012

New Residential Building Permits January ‐ December for FY 2006 to FY 2012

Property Value (in millions)

FY 2010 FY 2011 FY 2012 FY13 Budget FY13 Projection FY14 Estimate Total Value 118,801.4 119,535.6 120,555.4 121,893.2 122,486.7 125,145.0 % Change 9.0% 0.6% 0.9% 1.1% 1.6% 2.6% Real Property 102,441.3 103,067.2 104,028.4 105,185.0 105,311.0 107,325.0 % Change 2.9% 0.6% 0.9% 1.1% 1.2% 2.0% Personal Property (non- vehicle) 6,243.6 6,530.2 6,044.8 5,850.0 6,173.3 6,220.0 % Change

• 2.5%

4.6%

• 7.4%
• 3.2%

2.1% 5.9% Public Service 3,010.7 2,837.9 2,828.1 2,842.2 2,827.4 2,800.0 % Change 0.9%

• 5.7%
• 0.3%

0.5% 0.0%

• 1.5%

Vehicle 7,105.8 7,100.2 7,654.1 8,016.0 8,175.0 8,800.0 % Change

• 7.2%
• 0.1%

7.8% 4.7% 6.4% 8.9%

Property Tax Revenue

$430.6 $451.3 $496.6 $559.4 $618.5 $629.0 $635.3 $645.7 $651.8 $666.3 FY 2005 (actual) FY 2006 (actual) FY 2007 (actual) FY 2008 (actual) FY 2009 (actual) FY 2010 (actual) FY 2011 (actual) FY 2012 (actual) FY 2013 (projected) FY 2014 (estimate)

(in millions)

Tax Rate Change Property Reevaluation and Tax Rate Change Tax Rate Change

Sales Tax History

‐ 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 Data for Sales Tax Chart

FY 2014 Preliminary Revenue Estimate

11 FY 2012 Actual FY 2013 Adopted FY 2013 Amended FY 2013 Estimated FY 2014 Budget (base) FY14 Base vs. FY13 Amended

Taxes Property taxes - ad valorem 645,725,048 648,962,083 648,962,083 655,433,421 668,238,329 19,276,246 Sales Tax 120,834,877 121,137,839 121,137,839 124,646,595 128,526,000 7,388,161 Real Property Excise Tax 6,120,634 5,850,000 5,850,000 6,500,000 6,150,000 300,000 All Other Taxes 3,759,656 3,780,421 3,780,421 3,781,000 3,780,421

• Taxes Subtotal

776,440,215 779,730,343 779,730,343 790,361,016 806,694,750 26,964,407 Federal 11,972,348 10,794,838 11,130,842 10,864,062 11,510,909 380,067 State 98,551,468 75,935,735 76,778,890 75,783,913 74,701,343 (2,077,547) Local 8,722,087 4,088,350 4,156,350 4,157,856 4,090,100 (66,250) Licenses & Permits 3,413,381 3,319,455 3,320,455 3,320,382 3,484,964 164,509 Charges for Services 65,471,200 61,687,528 61,831,077 59,323,431 62,081,395 250,318 Other 407,233 543,149 565,426 525,845 1,366,298 800,872 Transfers 3,030,070 2,389,000 2,389,000 2,289,000 2,451,320 62,320 Subtotal before Fund Balance 968,008,002 938,488,398 939,902,383 946,625,505 966,381,079 26,478,696 Appropriated Fund Balance

• 31,602

1,154,621

• (1,154,621)

TOTAL REVENUES 968,008,002 $ 938,520,000 $ 941,057,004 $ 946,625,505 $ 966,381,079 $ 25,324,075

FY14 Base Expenditure Changes over FY 2013 Adopted

1 Less Prior Year One-Time Costs (2,780,014) Salary and Benefit Changes: 2 Reduction of Vacancy Rates 768,000 3 Annualization of FY13 Pay Increase 1,000,000 4 Increase in Longevity 33,000 Total Salary and Benefit Changes 1,801,000 5 Recurring Board Revisions (Human Services with Corresponding revenues) 972,300 6 Hammond Road items coming off warranty 386,066 Annualization of Justice Center (Non-Salary, Non-Fleet) 7 GSA 817,105 8 IS 49,549 9 Sheriff 21,270 887,924 10 Total Fleet Changes 258,570 11 Utility Increases (includes Justice Center and Hammond Road increases) 980,153 12 Building Lease Charges (153,217) 13 Risk Management Charges 516,488 14 Increase in Sales Tax Transfer 1,694,000 Total of Above Items 4,563,270

FY 2014 Preliminary Budget Look

FY13 Adopted FY14 Base Change Revenues Property Taxes 648,962,083 668,238,329 19,276,246 Sales Taxes 121,137,839 128,526,000 7,388,161 All Other Revenues 168,420,078 169,616,750 1,196,672 Revenues Subtotal 938,520,000 966,381,079 27,861,079 Base Expenditures County Departments 389,025,325 391,246,964 2,221,639 WCPSS 318,341,737 318,341,737

• Wake Tech

16,190,938 16,190,938

• Transfers

214,962,000 216,656,000 1,694,000 Base Expenditures in System 938,520,000 942,435,639 3,915,639 Increase in Property Tax Transfer 5,595,165 5,595,165 Projected Base Expenditures 938,520,000 948,030,804 9,510,804 Revenues in Excess of Expenditures

• 18,350,275

18,350,275 Items to Consider WCPSS ????? Wake Tech ????? Employee Pay ????? Health Insurance ????? Additional $$$$ to Debt and Capital ????? State Unemployment Liability ????? Mental Health ????? Department Expansions ?????

FY 2014 Operating Budget Preview 14

COMPETING NEEDS

14

But don’t get too excited……

• Still many unknowns
• Hiring freeze to continue due to vacancies

needed for placement of Behavioral Health employees

• New Governor and Long General Assembly

Session

• Possibility of WCPSS school bond in 2013
• Health care reform costs
• State Unemployment Liability

Continued Focus for FY14

• Focus on core services and priorities

– Establishment of priorities through strategic or business plans

• Realign existing resources to meet priority

needs

• Maintain our long‐term planning focus

– Prioritization of any expansions and identification

• f how these support long‐range plans
• Strong business cases for budget requests

Education

WCPSS Operating WCPSS Capital Wake Tech COMPETING NEEDS

? ? ?

REQUEST EXPECTED Superintendent – March BOE – April Spring 2013 for Decision on Referendum by June March

17

County Departments Initial Expansion Requests

FY 2014 Operating Budget Preview 18

Department On-Going Expenditures One-Time Expenditures Total Expenditures Revenues FTEs Board Of Elections 176,688 2,030,221 1,550,866 656,043 4.0 City-County Bureau of Identification 214,776 214,776 1.0 Community Services 393,408 393,408 14.5 County Attorney 155,742 5,050 160,792 2.0 Emergency Medical Services 2,715,374 2,347,478 5,062,852 46.0 Environmental Services 712,946 394,421 1,107,367 9.5 General Services Administration 581,241 581,241 3.0 Human Resources 2,000 2,000 Human Services 3,009,879 2,758,603 4,915,073 1,353,739 10.6 Non-departmental (Cooperative Extension, Risk Mgmt, Soil & Water) 175,380 19,388 194,768 Register Of Deeds 194,446 194,446 3.0 Revenue Department 291,084 291,084 4.0 Sheriff 2,386,152 316,478 2,702,630 27.0 TOTAL 11,009,116 7,871,639 17,371,303 2,009,782 124.6 Expenditures net of revenues 15,361,521

County Requests Highlights

FY 2014 Operating Budget Preview 19

Department Prior Funding Cuts New Initiatives Meet Workload Demands Commitments

• Additional full‐time staff
• Early voting for Municipal

and Board of Education Fall 2013 Elections and May 2014 Primary

• Funding for election

software support and repair and maintenance of voting equipment Investigations Investigations Crime Lab Crime Lab

• Overtime funding to

address adequate crime scene coverage

• Fund training for forensic

certified employees

• Increased staffing to

ensure timely print examinations necessary for maintain accreditation

• Funding for maintaining

toxicology equipment as well as purchase of certified standards and supplies

• Increase in County

contribution for Expanded

• County share of annual

merit increases

• Replace conference room

chairs County Attorney

• Attorney, Paralegal and
• n‐going operating costs

Board of Elections Cooperative Extension CCBI

County Requests Highlights (cont’d)

FY 2014 Operating Budget Preview 20

Department Prior Funding Cuts New Initiatives Meet Workload Demands Commitments

Libraries Parks

• Librarian positions and

facility hours have been reduced from pre‐ recession levels

• Annualization of FTEs

added during FY13 to address 1000 hours rule for retirement benefit eligibility.

• Additional drivers could

include demand for longer weekend and weeknight hours Planning, Development and Inspections

• Add additional General

Inspector to accommodate growth in inspections Community Services

County Requests Highlights (cont’d)

FY 2014 Operating Budget Preview 21

Department Prior Funding Cuts New Initiatives Meet Workload Demands Commitments

Staffing Staffing Staffing

• Advanced Practice

Paramedic (APP) Program Buildout

• Conversion of 24 hour

staffing EMS Supervisor to two 12‐hour shift supervisors.

• Annualization of FTEs

added during FY13 to address 1000 hours rule for retirement benefit eligibility. Equipment & Facilities

• Additional Training Officer
• Purchase of special power

stretchers for Eastern Wake EMS

• Cary ‐‐ Addition of Deputy

Chief

• Cary ‐ Repair of

ambulance bays

• Apex ‐‐ 2 additional full‐

time FTEs Community Outreach Ambulances

• Addition of Community

Outreach and Special Operations Supervisor

• Addition of 2 12‐hour

peak load units to address 11% increase in call volume

• Conversion of 24‐hour

ambulances to 2 x 12 hour shifts

• Increase ambulance fleets

spares by one EMS

County Requests Highlights (cont’d)

FY 2014 Operating Budget Preview 22

Department Prior Funding Cuts New Initiatives Meet Workload Demands Commitments

Water Quality Environmental Health Inspections Water Quality

• Additional staff to address

Contaminated Groundwater & Wells Program and Public Awareness and action.

• Two FTEs to increase

number of restaurant inspections and in support

• f child lead poisoning

program.

• Continued membership in

UNRBA

• Funding of overtime to

address inspection of Temporary Food Establishments

• Replace software and

increasing operating costs Animal Shelter Animal Shelter

• Funding for public /

private partnerships for additional veterinary medicine

• Medical Director to

manage Vet Team

• Additional FTEs in animal

intake, Rescue Program, customer service Environmental Services

County Requests Highlights (cont’d)

FY 2014 Operating Budget Preview 23

Department Prior Funding Cuts New Initiatives Meet Workload Demands Commitments

Fleet Utilities

• Additional FTEs to address

growth in the fleet (no net new dollars)

• Rate increases for

electricity and solid waste; costs associated with

• pening Bay Leaf Fire

Station #1 Department‐wide Public Health NCFAST Implementation Public Health

• Reduce vacancy rate

based on reduced staff turnover.

• Purchase of new highly

effective Long Active Reversible Contraceptive Methods

• One‐time costs required

for implementation of new State system

• First year of full license

and maintenance cost for new Public Health Practice Management and Electronic Records System Child Welfare Health Promotion Child Support Enforcement

• Fund existing FTEs that

will no longer funded due to Federal cuts in the IV‐E program.

• Additional staff to provide

Health Promotion / Health Education at Regional Centers

• Additional staff to meet

14.3% increase in total number of cases since 2008. Adult Guardianship

• Additional staff to lower

caseloads General Services Human Services

County Requests Highlights (cont’d)

FY 2014 Operating Budget Preview 24

Department Prior Funding Cuts New Initiatives Meet Workload Demands Commitments

Human Resources

• Increased funding for

Triangle Transit Go‐Pass

• Additional full‐time staff

within scanning unit

• Increased operating costs

(postage, document recordings)

• Appraisal Manager, 2 Real

Estate Appraisers

• Business Auditor

Risk Management

• Increased costs of

property insurance for new facilities (Justice Center, Detention Detention Telecommunications

• Salary parity for 8‐hour

and 12‐hour detention shifts

• Additional staffing at

WCDC ‐ detention officers and control room monitors

• Increased line charges for

Raleigh 911 center

• Consolidate

transportation services

• Increases in food services

contract Schools

• School resource officer

for Rolesville Middle School Soil and Water

• Part‐time staff for data

and record management;

• n‐going operating costs

Sheriff Register of Deeds Revenue

FY 2014 Operating Budget Preview 25

Key Dates to Adopted

Date Milestone Mid‐March Department budget meetings with the County Manager's Office begin; aim to complete by April 20 March 2013 WCPSS ‐ Superintendent’s Recommended Budget Wake Tech’s Budget Request April 2013 Board of Education Request to the Board of Commissioners May 20, 2013 Presentation of the County Manager’s Recommended Budget June 3, 2013 Public Hearings on the Recommended Budget June 10, 2013 Budget work session for the Board of Commissioners June 17, 2013 Adoption of the Operating and Capital Budgets and related

• rdinances