Maricopa County Budget Process Association of Government Accountants - - PowerPoint PPT Presentation

Association of Government Accountants Phoenix Chapter November 20, 2019

Maricopa County Budget Process

Maricopa County Board of Supervisors

Jack Sellers District 1 Bill Gates District 3 Chairman Steve Chucri District 2 Clint Hickman District 4 Steve Gallardo District 5 2

• 4th Largest County in the Nation
• Fastest Growing County in the Nation
• Budget for over 14,000 positions

About Maricopa County

3

• Structural Balance

▫ Operating ▫ Non Recurring

• Lump Sum

▫ Appropriated Level ▫ Detail Budget

• Budget Guidelines
• Fully Funded Position

▫ Full Year ▫ Personnel Savings

• Baselines/ZBB
• Non Departmental
• Reserves/Contingencies
• Fund Balances
• Major Maintenance
• Capital Improvement
• Budget Adjustments
• On-going Monitoring/Review
• Forecasts

Budget and Accountability Policy

4

• Budget Development
• Budget Management
• Budget Monitoring

Maricopa County Budget Process

5

• Forecasts

▫ 5-year Forecast ▫ Economic Forecast and Revenue Update ▫ Current Year Forecast

• Budget System/Submissions

▫ Internal Service Budgets ▫ ZBB’s ▫ Departments ▫ Capital Projects

• Calendar Development

▫ Timeline ▫ Submission Due Dates ▫ Presentations

• Presentations

▫ Elected/Judicial Officials ▫ Staff Presentations (ZBB and

• ther requests)

Budget Development Process

• Budget Guidelines

▫ Strategic Priorities ▫ Economy

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• 5-year Forecast for Major Funds

▫ Final Step in Budget Development

 Revenue Assumptions  Growth Assumptions

• Initial Current Year

▫ Economic Update ▫ Major Revenue Forecast

 Quarterly  State Shared Sales/State Shared VLT/Jail Excise  No County General Sales Tax

Forecasts

7

• Start drafting in late August/early

September

• System Preparation and Rollout
• Guideline Adoption
• Department Due Dates
• Presentations
• Review Timeframe
• Non Recurring/Capital Review

Dates

• Consolidation
• Tentative Adoption
• Final Adoption
• Tax Levy/Rate Setting

Budget Calendar

8

• Personnel budget is by

position

▫ Salary - incumbent rate/vacant at midpoint ▫ Taxes ▫ Retirement - by plan ▫ Other (Life Insurance) ▫ Health/Dental – weighted average rates based

• n plans/tiers

▫ Personnel Savings

• Supplies
• Services
• Capital

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Department/Unit/Fund/Activity/Appropriation Unit/Object/Program

Budget System

• Budget system allows for comments
• Separate budgets for on-going vs. one-time expenditures
• System opens for department budget development in October/November

Personnel Forms

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Supplies/Services/Capital Forms

11

Grant Detail Form

12

ZBB Form

13

• Elected/Judicial Officials Presentations to the Board of Supervisors

▫ December/early January ▫ Ideally prior to adoption of budget guidelines ▫ Identify pressing issues/needs for the next year

Presentations

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• Structural Balance
• Property Taxes
• Revenue Assumptions
• Compensation Assumptions
• Retirement Funding
• Baseline Adjustments

▫ Items required by state law ▫ Annualization of current year changes

Budget Guidelines

15

• Initiatives/Reductions
• ZBB
• Contingency and Reserve Requirements
• Non Recurring/Capital Project Direction
• Expenditure Limitation
• Requests that do not meet guidelines must have prior approval of

Board to allow for review

Budget Guidelines (continued)

16

• Internal Service Budgets
• ZBB Budgets
• Operational Departments
• Capital Improvement Program
• Separate Budgets for On-Going vs. One-Time

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Budget Submissions

• Internal service charges are centrally loaded into department budget

requests

• Central Service Cost Allocation charges are centrally loaded into

department budget requests

• Interdepartmental allocations are centrally loaded into department

budget requests

Department Budgets

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• Personnel budget is by position
• Supplies
• Services
• Capital
• Non Recurring Requests

▫ Carryforward ▫ New

• Business case to support change to resources

Department Budget Submission

19

• Staff Level Presentations to Board Chiefs of Staff

▫ ZBB’s/Elected and Judicial/New Requests ▫ Discuss submission ▫ Present business case/additional information for requests

• Budget Office Analysis

▫ Review historical trends ▫ Economic considerations ▫ Business case review

Presentations and Analysis

20

• Quarterly Major Revenue Forecast from Economist
• Departmental and Budget Office Forecasts

▫ In Budget System and same forms/format as budget

• Monthly (Budget and Forecasts are calendarized)
• Forecast determines funding for non recurring items, capital

improvements, technology projects and reserves for future projects

▫ Based on forecast after January close (7+5)

Current Year Forecast

21

Previous Philosophy

• Pessimistic Revenues
• Large Contingencies
• Conservative Current Year

Forecasts

Modified Pay-As-You-Go Capital

Current Philosophy

• Most Likely Revenues
• Contingencies based on Historical

Utilization and Risk Exposure

• Tighter Forecasts

Modified Pay-As-You-Go Capital AND Capital Project Financing (within current operating budget)

Change to Budgeting Philosophy

22

Sources of Non Recurring Funding

• Current year revenues in excess of

budget

• Current year expenditures below

budget

• Prior year fund balance in excess of

estimate

Utilization of Non Recurring Funding

• Departmental Non Recurring

items

• Capital Improvements
• Technology Improvements
• Reserves for Future Projects

Non Recurring/CIP Budgets

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• Resources Identified
• Presentation of Prioritized Projects from CIP Departments to Leadership
• Determine Projects Able to Fund With Non Recurring Resources

▫ One-time Purchases ▫ Full Funding for CIP Project – CIP is a 5-year plan

• CIP Departments Presentation to Chiefs of Staff
• Staff Recommendation of Utilization of Non Recurring Funding

CIP Process

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• Consolidation
• Presentation to Board
• Tentative Adoption
• Notice Publication
• Public Hearing/TNT Hearing if needed
• Final Adoption
• Tax Rate Setting
• Document Publication
• Citizens’ Budget Brief
• Complete Budget Document

Final Steps

25

FY 2020 Adopted Budget Sources of Funds: $2,573,762,798

State Shared Sales Tax 23.75% Property Taxes, Penalties and Interest 23.59% Fund Balance 12.76% Permits, Patient Revenue, Fees Fines & Charges 10.44% Other Intergovernmental & Grants 9.48% State Shared Vehicle License Taxes 7.48% Sales Taxes 6.93% Highway User Revenues 4.73% Miscellaneous & Interest 0.84%

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FY 2020 Adopted Budget Uses of Funds: $2,573,762,798

Culture and Recreation 0.86% Education 0.83% Other* 14.82% Health, Welfare and Sanitation 22.56% Public Safety 52.77% Highways & Streets 8.16%

*Other = Assessor, Recorder, Elections, Treasurer, Internal Audit, County Manager, Assistant and Deputy County Managers, Clerk of the Board, Board of Supervisors, Finance, Budget, Procurement, Human Resources, Risk Management, Real Estate, Equipment Services, Facilities Management, Enterprise Technology, Non Departmental

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$464 $492 $518 $538 $558 $581 $606 $628 $656 $684 $713 $746 $463 $492 $492 $478 $425 $410 $443 $471 $506 $536 $566 $605

$100 $175 $250 $325 $400 $475 $550 $625 $700 $775 $850 Millions

Maximum Levy Actual Levy

28

Constitutional Tax Levy Limit

• For fiscal

year 2020 Maricopa County is $140.5 million below the maximum levy allowed by state statute.

$1.25 $1.30 $1.35 $1.40 $1.45 $1.50 $1.55 $1.60 $1.65 FY 2017 FY 2018 FY 2019 FY 2020 $1.4009 $1.4009 $1.4009 $1.4009 $0.1792 $0.1792 $0.1792 $0.1792 $0.0556 $0.0556 $0.0556 $0.0556 Library Flood Control County Primary

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Maricopa County Combined Property Tax Rate

County Primary Property Taxes make up 11.43% of Total Property Taxes

Flood Control and Library Districts included in Other Special Districts

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• Calendarize Budget
• Board Approved Adjustments

▫ Contingency

• Updated Monthly and Submitted to Finance

Budget Management

31

• Monthly Variance Commentary
• Department of Finance
• Focus on General and Detention Funds (Largest and tax based funds)
• Budget Office
• All funds
• Monthly Forecast
• Departmental and Budget Office Forecasts
• Calendarized
• In Budget System and same forms/format as budget
• Quarterly Major Revenue Forecast from Economist
• Forecast determines funding for non recurring items, capital improvements,

technology projects and reserves for future projects

Budget Monitoring

32

Thank you!

Questions ??

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