1 2011 budget strategy directors / elected officials - meeting 9-15-10

1

2011 Budget Strategy

Directors / Elected Officials - Meeting 9-15-10

Today’s Agenda

2010 Budget Status

2011 Budget Strategy

2011 General Fund Budget Projections

Budget Subcommittees Role

Discussion

2010 General Fund Budget Status

Prepared 9/15//2010

GENERAL FUND 2010 2010Budget Projected

Beginning Cash and Investments 2,415,665 2,381,014

Revenues 14,879,052 14,850,000

New Revenues (From Rd levy shift) 216,000 216,000Additional Revenues 195,000TOTAL REVENUES 15,095,052 15,261,000

Expenditures (15,636,626) (15,636,626)

Extraordinary costs (93,000)

Sales Tax Prop 1 reductions

One time or temporary expenditure reduction

Labor Negot. Or Across the Board Dept Cuts

Projected Expenditures (15,636,626) (15,729,626)

Fund Equity Transfer In

Interfund Loans 100,000

Estimated carryover 156,366 157,296

Ending Cash & Investments 2,030,457 2,169,684Reserves - Required 10% of Expend. 1,563,663 1,572,963

Unreserved Cash & Investments 466,794 596,722

Difference in Revenues and Expenditures: (541,574) (468,626)

2011 General Fund Strategies

Revenue Sources – Sales Tax increase is on November ballot. Review all fees and grants and regional service agreements to to maximize revenue receipts.

Budget Reductions in 2011: Phasing in Prop. 1 cuts of $637,000 estimated to be about $492,000 in 2011. An additional $290,000 in 1-yr labor freeze savings is under negotiation.

Reduction of Fund Balance: One of the adopted 2011 budget goals is to use no more than 50% of the unreserved fund balance (50% estimated at $300,000). Current proposal is to use up to $150,000 of fund balance and use only on one-time costs.

Plan for future years: Develop a three to five year plan to bring the General Fund revenues and expenditures into balance. 4

Budget Strategies (cont.)

Revenue Stabilization- Look at ways to limit expenditures to match reliable and sustainable revenues and use windfall revenue streams to balance downswings and fund capital expenses. Sales Tax DNR Revenue Timber Tax

Budget Strategies (cont.)

2011 Budget Goals and Objectives:

Look for cost savings opportunities - Continue to evaluate and implement where appropriate opportunities to:

Consolidate programs or services to gain efficiencies or improve customer service, where appropriate.

Seek additional funding sources to support services through programs and grants and other funding sources.

Continue to partner with other local agencies to improve service delivery and/or reduce costs.

Privatize and/or outsource services, programs, and functions where appropriate (such as animal services, etc.).

General Fund 5 year projection:

Budget Projections 2010-2015Prepared 08/02/2010

2011 2011 2012 2012 2013 2013 2014 2014 2014 2015GENERAL FUND 2010 Proj projected Proj projected Proj projected Proj projected Proj projected

Projected Incr Budget Incr Budget Incr Budget Incr Budget Incr BudgetBeginning Cash and Investments 1,962,676 2,209,883 1,463,485 268,596 (1,033,203) (2,428,105)

Revenues 14,888,199 1.0% 15,037,081 2.3% 15,379,926 3.3% 15,881,312 3.4% 16,419,689 3.3% 16,959,896

New Revenues (From Rd levy shift) 216,000 1.5% 219,240 0 0Additional Revenues 195,000 1.5% 3.8% 0 3.8% 0 3.8% 0TOTAL REVENUES 15,299,199 15,256,321 15,379,926 15,881,312 16,419,689 16,959,896

Expenditures (15,636,626) 3.4% (16,164,362) 3.6% (16,742,238) 3.7% (17,356,678) 3.7% (17,994,536) 3.7% (18,655,835)

Extraordinary costs (93,000)Transfers, Program Reductions

Across the Board Dept Cuts

Projected Expenditures (15,729,626) (16,164,362) (16,742,238) (17,356,678) (17,994,536) (18,655,835)



Estimated carryover 157,296 161,644 167,422 173,567 179,945 186,558

Ending Cash & Investments 2,209,883 1,463,485 268,596 (1,033,203) (2,428,105) (3,937,486)

Reserves - Required 10% of Expend. 1,572,963 1,616,436 1,674,224 1,735,668 1,799,454 1,865,584

Unreserved Cash & Investments 636,920 (152,951) (1,405,628) (2,768,871) (4,227,559) (5,803,070)

Difference in Revenues and Expenditures:(430,427) (908,041) (1,362,312) (1,475,366) (1,574,848) (1,695,939)

General Fund Costs:

2011 Percent Inc.General Fund 2007 2008 2009 Budget 2010 Anne's Est. over 2010Salaries & Benefits 7,489,229 7,929,264 8,034,798 8,575,675 9,048,018 5.5%Other Costs 2,076,777 2,192,442 2,368,303 2,320,658 2,376,000 2.4%Non-Departmental 1,588,187 2,051,821 2,109,920 2,713,008 2,713,008 0.0%Operating Transfers 2,427,070 2,954,032 2,626,235 1,937,734 1,937,734 0.0%

capital 257,920 152,141 31,723 89,551 89,551 0.0%

13,839,183 15,279,700 15,170,979 15,636,626 16,164,311 3.4%Percent Increase from prior year 10.4% -0.7% 3.1% 3.4%

Non-Departmental – 17% of General Fund

NON DEPARTMENTAL - Major Expenses

BARS Obj Func ACCT_TITLE 2007. 2008. 2009. 2010 Budget2011 Proj.51281 41 2 PUBLIC DEFENDER - 403,686 394,471 405,193 405,193 51281 46 5 RISK POOL 177,291 181,890 185,873 197,843 203,778 51281 46 10 INSURANCE FOR COUNTY 45,602 75,200 60,745 85,000 85,000 51281 46 20 MISCELLANEOUS CLAIMS 90,260 28,655 21,028 75,000 75,000 51510 41 10 LEGAL-SPECIAL ATTORNEY FEES 50,622 38,630 69,231 35,000 35,000 51620 31 10 OFFICE SUPPLIES 964 1,016 494 1,010 1,010 51620 41 61 HEARING EXAMINER 44,315 31,343 28,525 45,000 45,000 51620 95 10 INFORMATION SERVICES 495,348 516,505 605,937 666,013 690,140 51620 95 20 FACILITIES MANAGEMENT 553,910 579,534 616,552 690,747 761,235 51620 95 30 911 DISPATCH - - - 305,765 321,000

Grand Total 1,458,312 1,856,459 1,982,856 2,506,571 2,622,356

Other Non Departmental Costs 129,875 195,362 126,434 206,437 151,622

TOTAL Non Departmental 1,588,187 2,051,821 2,109,290 2,713,008 2,773,979

Internal Fund Costs

DEPARTMENT2009 Facility

Costs2009 I.S.

CostsASSESSOR 25,226 62,022 AUDITOR 13,957 25,311 ELECTIONS 6,628 11,737 2009 allocation estimates from the JeffersonCLERK 17,359 38,917 County Cost Allocation Plan and the I.S. andCOUNTY ADMINISTRATOR 5,000 11,500 facilities Cost Allocations. COMMISSIONERS 18,059 23,044 SAFETY AND SECURITY 17,061 13,606 DISTRICT COURT 29,741 53,993 JUVENILE SERVICES 23,350 43,513 PROSECUTING ATTORNEY 27,928 57,242 SHERIFF 272,557 294,604 SUPERIOR COURT 39,321 14,586 TREASURER 21,000 31,500 TOTAL GENERAL FUND 517,187 681,575

ANIMAL SERVICES 18,367 8,258 HEALTH DEPT. 94,785 171,702 WATER QUALITY 7,027 PUBLIC WORKS 55,878 220,900 CENTRAL SERVICES 13,382 25,225 WSU Extension - 8,258 JEFFCOM 24,368 6,967 COMMUNITY DEVELOPMENT 55,191 169,814 TOTAL OTHER FUNDS; 261,971 618,151

GRAND TOTAL 779,158 1,299,726

General Fund Base Budget

2011 General Fund Preliminary Estimate

2011 Base No new Sales

Tax

General Fund Revenues 15,256,321

General Fund Expenditures (16,164,362) Shortfall between Revenues & Expenditures (908,041)

Proposed Strategy to meet ShortfallLabor Negotiation reductions or Across the Board Dept. Cuts 290,000 Program Reductions 492,500

Total Reductions 782,500

Use of Fund balance for one time exp. 125,541 Reductions needed to balance Budget: 908,041

Sales Tax Proposition Reduction Phase-In (Drafted 9-13-10)

Dept WhatTotal

Amount2011

Expense2011

SavingsSheriff 1 deputy, 1 animal control officer, 1/2 training $175,000 $0 $175,000Prosecutor 1/2 deputy prosecutor $37,500 $0 $37,500Juvenile Services 1 juvenile probation officer, 5 hrs support staff, $3,700 Proctor Home &

drug/alcohol services $75,000 $25,000 $50,000Misc. Public Safety reductions in costs in other criminal justice departments $19,000 $0 $19,000subttl public safety $306,500 $25,000 $281,500

Community Services: OlyCAP 3 Community Centers & Senior Services $126,000 $63,000 $63,000Community Services: PT Sr Association PT Community Center $12,500 $6,250 $6,250Community Services: Gardiner Comm Ctr. Gardiner Community Center $2,800 $1,400 $1,400Community Services: Jefferson County Fair County Fair $4,500 $2,250 $2,250WSU Cooperative Extension afterschool programs for youth and reduction in facility space $20,000 $0 $20,000Transfer to Public Health Maternal Health Nurse (actually 56,000) $50,000 $0 $50,000Transfer to Substance Abuse Programs including "Project Alert" that serves youth in PT, Chimacum and

Quilcene $46,600 $46,600 $0Transfer to Jefferson County Conservation District

programs in agriculture, water quaity, forestry, fish & wildlife habitat and eductation $45,600 $0 $45,600

Misc. Community Services $0 $0 $0subttl community services $308,000 $119,500 $188,500

Misc. Core Services Staffing in administrative departments $22,500 $0 $22,500subttl core services $22,500 $0 $22,500

TOTAL $637,000 $144,500 $492,500

Projections with reductions:

Budget Projections 2010-2015Prepared 9/15//2010


Projected Incr Budget Incr Budget Incr Budget Incr Budget Incr BudgetBeginning Cash and Investments 2,381,014 2,169,684 2,197,962 2,146,002 2,128,078 2,163,233

Revenues 14,850,000 1.0% 15,037,081 2.3% 15,379,926 3.3% 15,881,312 3.4% 16,419,689 3.3% 16,959,896

New Revenues (From Rd levy shift) 216,000 1.5% 219,240 0 0Additional Revenues 195,000 1.5% 3.8% 0 3.8% 0 3.8% 0TOTAL REVENUES 15,261,000 15,256,321 15,379,926 15,881,312 16,419,689 16,959,896

Expenditures (15,636,626) 3.4% (16,164,362) 3.6% (15,931,764) 3.7% (16,159,835) 3.7% (16,650,034) 3.7% (17,158,247)


Sales Tax Prop 1 reductions 492,500 144,000

Efficiencies and Program reductions 140,000 100,000 100,000 100,000

One time reductions

Labor Negot. Or Across the Board Dept Cuts 290,000 60,000





Ending Cash & Investments 2,169,684 2,197,962 2,146,002 2,128,078 2,163,233 2,235,465Reserves - Required 10% of Expend. 1,572,963 1,538,186 1,558,776 1,605,983 1,655,003 1,705,825

Unreserved Cash & Investments 596,722 659,776 587,226 522,094 508,230 529,640

Difference in Revenues and Expenditures: (468,626) (125,541) (207,837) (178,523) (130,345) (98,351)

Revised General Fund Budget If Prop. 1 passes

2011 General Fund Preliminary Estimate 2011

with sales tax

General Fund Revenues 15,256,321 Prop 1 - Sales Tax June - December 380,000 General Fund Expenditures (16,164,362) Shortfall between Revenues & Expenditures (528,041)

Proposed Strategy to meet ShortfallLabor Negotiation reductions or Across the Board Dept. Cuts 290,000

Temporary or one-time reductions 100,000 Total Reductions 390,000

Use of Fund balance for one time exp. 138,041 Reductions needed to balance Budget: 528,041

Projections if Prop. 1 passes

Budget Projections 2010-2015Prepared 9/15//2010


Projected Incr Budget Incr Budget Incr Budget Incr Budget Incr BudgetBeginning Cash and Investments 2,381,014 2,169,684 2,189,387 2,198,801 2,245,342 2,348,170

Revenues 14,850,000 1.0% 15,037,081 2.3% 15,379,926 3.3% 15,881,312 3.4% 16,419,689 3.3% 16,959,896

New Revenues (From Rd levy shift) 216,000 1.5% 219,240 0 0Additional Revenues 195,000 380,000 1.5% 646,000 3.8% 670,548 3.8% 696,029 3.8% 722,478TOTAL REVENUES 15,261,000 15,636,321 16,025,926 16,551,860 17,115,717 17,682,374

Expenditures (15,636,626) 3.4% (16,164,362) 3.6% (16,338,296) 3.7% (16,772,039) 3.7% (17,284,736) 3.7% (17,816,276)


Sales Tax Prop 1 reductions

Efficiencies and Program reductions 100,000 100,000 100,000 100,000

One time reductions 100,000

Labor Negot. Or Across the Board Dept Cuts 290,000 60,000





Ending Cash & Investments 2,169,684 2,189,387 2,198,801 2,245,342 2,348,170 2,491,432Reserves - Required 10% of Expend. 1,572,963 1,577,436 1,617,830 1,667,204 1,718,474 1,771,628

Unreserved Cash & Investments 596,722 611,951 580,971 578,138 629,697 719,804

Difference in Revenues and Expenditures: (468,626) (138,041) (152,369) (120,179) (69,019) (33,901)

Other Budget Strategies Revenue Stabilization Reserve

Create Revenue Stabilization reserve in the general fund in addition to 10% operating reserve.

Sales Tax revenue received over budgeted amount to be distributed as follows: 60% to Revenue Stabilization reserve for use in future

downturns 20% to Capital Improvement or approved one-time

expenses 20% to programs

When reserve reaches an amount greater than 5% of operating expenditures in the general fund, these funds will be used for property tax reductions Issue: lost flexibility for capital and supporting programs

Other Budget Strategies Use of Subcommittees:

Interdepartmental subcommittees to provide input to County Administrator & Commissioners on budget issues. Administrative Community Services Law & Justice

Running start on 2012 $140,000 efficiency/cut target Are there ways the County can save dollars by

finding interdepartmental efficiencies? Collaborate on across the board department cuts

Assist with implementation of 2010 Strategic Plan

The good news….

Most departments spending levels are below budgeted amounts, few budget appropriations

3.2 million dollar Broadband project approved for Jefferson County Economic Development planning is underway ILA with City adopted this week for Memorial Field and Rec Center &

longterm parks & rec planning New IS Manager on board to help harness technology for improved

efficiency, quality and easier citizen access to Co. services 2010 Jefferson County Strategic Plan adopted for navigating into the

future Permit revenues up 21% from 2009 thru 8-31-10

DCD employees back to 40 hrs 8-1-10. In addition to 10% operating reserve, able to encumber some

permit funds in 2010 to cover DCD’s review obligations that carry over to future years

Interdepartmental cooperation through budget committee and subcommittees, brown bag lunches …

Budget Calendar2011 BUDGET STRATEGY DATES (updated 9-15-10)

2010 Date DescriptionSept 7 2011 Preliminary Budget submitted Sept 15 Strategy meeting with Directors and Elected

In lieu of regular budget committee meeting-Meeting notice will be sent

Sept 15 - Nov 9 Subcommittee MeetingsSept. 24 Budget to County Administrator and BOCCOct 12 - 15 Meetings with individual departments on budget issues

-Meeting notice will be sent-Agenda will be provided

Oct 18 Target budget numbers to departments and subcommitteesOct 20 Budget Committee Meeting (regular meeting)Nov 2 Election DayNov 3 or 4 Budget Strategy Meeting with Directors/ ElectedNov 5 Subcommittees submit group ideasNov 10 Submit budget changes to Budget Manager Nov 4 - 12 Resolve additional budget issuesNov 17 Preliminary Budget AvailableDec. 6 Budget HearingsDec 13 or 20 Budget Adoption

•Questions and discussion

1 2011 budget strategy directors / elected officials - meeting 9-15-10

Documents