2008/09 Recommended Budget

2008/09 Recommended Budget

Washtenaw County

Board of Commissioners

September 2007

2

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

3

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

4

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

5

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)

6

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

7

2008/09 Recommended BudgetGeneral Fund Revenues

REVENUE BY SOURCE

Licenses & Permits0.14%

State & Federal Rev.

5.06%

Investment Income0.78%

Fees & Services18.99%

Taxes & Penalties72.07%

Fines & Forfeitures

1.26%

Other Rev. & Reimb.1.73%

8

2008/09 Recommended BudgetGeneral Fund Expenditures

EXPENDITURE BY FUNCTION

Cultural & Rec.0.58%

Judicial14.22%

Public Safety35.45%

Social Services1.51%

Other3.71%

Appropriations22.62% Legislative

0.50%

General Government

21.41%

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2008/09 Recommended Revenue Modifications

Property Taxes

State Revenue

District Court

Clerk Register of Deeds

Building Services

Environmental Health

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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

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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

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Internal Initiative/Issue Communications Strategy Successful Communities PS&J Statutory Line Items District Court Jail Diversion Efforts Victim Witness Services Juvenile Placements

Drains Equipment Solid Waste Community Clean Up Medical Examiner

Net Impact on Budget

$100K

$70K

$167K

$0 - Revenue Increases to Offset

$60K

$320K Placement Costs; $40K for Probation FTE on Pilot Basis

$18K for FTE

$40K Annually

$150K One Time for Infrastructure; $16K for Annual Contract Increase

13


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

14

2008/09 RecommendationsPolicy 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

15


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

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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

17


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

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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 $101,328,602

Licenses & Permits $136,200 $136,200 $140,286 $144,495 $148,829 $153,294 $157,893 $162,630

State & Local Revenues $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 --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------

TOTAL $107,552,529 $110,764,839 $114,265,363 $119,661,457 $125,333,149 $131,294,849 $137,561,729 $144,149,772

EXPENDITURES:

Personal Services $61,569,798 $63,123,205 $66,197,554 $69,192,095 $72,323,721 $75,598,765 $79,023,853 $82,605,920

Supplies $1,639,936 $1,452,936 $1,689,134 $1,496,524 $1,739,808 $1,541,420 $1,792,002 $1,587,662

Other Svcs. & Charges $13,232,381 $13,279,082 $13,777,454 $14,055,778 $14,492,451 $14,942,225 $15,405,492 $15,882,656

Internal Service Charges $3,023,515 $3,198,940 $3,294,908 $3,393,755 $3,495,568 $3,600,435 $3,708,448 $3,819,702

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

Appropriations/Transfers Out $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 $107,552,529 $110,764,839 $116,126,291 $121,084,656 $126,853,256 $132,419,083 $138,683,437 $144,753,567

SURPLUS (DEFICIT) $0 $0 ($1,860,928) ($1,423,200) ($1,520,107) ($1,124,234) ($1,121,707) ($603,795)

Deficit as % of Total Revenue -1.63% -1.19% -1.21% -0.86% -0.82% -0.42%

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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 $72,344,441 $74,908,207 $77,529,994 $81,794,144 $86,292,822 $91,038,927 $96,046,068 $101,328,602

Licenses & Permits $136,200 $136,200 $140,286 $144,495 $148,829 $153,294 $157,893 $162,630

State & Local Revenues $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

EXPENDITURES:

Personal Services $61,569,798 $63,123,205 $66,197,554 $69,192,095 $72,323,721 $75,598,765 $79,023,853 $82,605,920

Supplies $1,639,936 $1,452,936 $1,689,134 $1,496,524 $1,739,808 $1,541,420 $1,792,002 $1,587,662

Other Svcs. & Charges $13,232,381 $13,279,082 $13,777,454 $14,055,778 $14,492,451 $14,942,225 $15,405,492 $15,882,656

Internal Service Charges $3,023,515 $3,198,940 $3,294,908 $3,393,755 $3,495,568 $3,600,435 $3,708,448 $3,819,702

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

Appropriations/Transfers Out $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 $107,552,529 $110,764,839 $116,126,291 $121,084,656 $126,853,256 $132,419,083 $138,683,437 $144,753,567

SURPLUS (DEFICIT) $0 $0 ($1,860,928) ($1,423,200) ($1,520,107) ($1,474,139) ($8,727,351) ($8,437,609)

Deficit as % of Total Revenue 0.00% 0.00% -1.63% -1.19% -1.21% -1.13% -6.72% -6.19%

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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

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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

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2008/09Recommended Budget

Questions?

Documents

2008/09 Recommended Budget