county budget analysis pa730: managing budget in the public sector
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County Budget Analysis PA730: Managing Budget in the Public Sector. Calaveras County Robin Havens. Where’s that?. Founded in 1850 Population of 45,578 (United States Census Bureau, 2012 ) Angels Camp the only incorporated city in the County. Is that the Jumping Frog Place?. - PowerPoint PPT PresentationTRANSCRIPT
Calaveras CountyRobin Havens
County Budget Analysis PA730: Managing Budget in the Public Sector
Where’s that?
•Founded in 1850 •Population of 45,578 (United States Census Bureau, 2012)•Angels Camp the only incorporated city in the County
Yes. Calaveras County was made popular by Mark Twain’s 1865 story, The Celebrated Jumping Frog of Calaveras County
Now, the Mission of Calaveras County is to: “…provide service, infrastructure, leadership, and vision necessary to advance a safe community, maintain a high quality of life, while preserving local history and culture, and to protect the personal liberties of all its citizens (County of Calaveras, California, 2011).”
Is that the Jumping Frog Place?
Goals of the Auditor Controller:
• Seek transparency in everything we do at the local level
• Pursue adoption of policies that prevent fraud or the perception of conflict/fraud
• Maintain accurate financial data and make available to the public
• Follow all laws- even if they are in conflict with “how we have always done things”
Calaveras County: Auditor Controller
Introduction to FY2011 BudgetLine item format, July to June FYNo budget message or narrativeSome Priorities, Goals, Objects of note;
Avoid one-time budget solutions Balance budget Maintain costs by controlling personnel expenditures Minimize general fund contributions to non-general fund programs Avoids raising fees Strive for a “healthy” reserve fund Developing a high quality workforce that provides excellent
customer service Building public-private partnerships Use technology to streamline processes and improve transparency, Plan for capital improvements Developing interdepartmental collaboration
“The priorities of the Calaveras County depend on localized issues that the Board of Supervisors may face.”
“Currently the priorities of the Board are Public Safety and completing the General Plan.”
“The largest reform was stripping the Board’s ability to make last minute changes in the budget.
Line item Budget format a fit for their limited resources
Budget Process: Rebecca says…
Last Five Years: Expenditure fluctuations due to Recession
Expenditure
FY2011 FY2010 FY2009 FY2008 FY200760,000,000
62,000,000
64,000,000
66,000,000
68,000,000
70,000,000
72,000,000
74,000,000
76,000,000
Total General County Expenditures and Transfers Out
Total General County Expenditures and Transfers OutPolynomial (Total General County Expen-ditures and Transfers Out)
Last Five Years: Expenditure fluctuations due to Recession
Expenditure
Expenditures
General Department Totals FY2011 FY2010 FY2009 FY2008 FY2007
Total General 16,054,365 12,648,326 14,530,848 17,007,099 11,947,754
Total Public Protection 18,148,577 20,469,381 22,107,142 23,096,595 20,535,656Total Public Ways and Facilities 8,138,187 6,225,855 8,638,594 8,996,443 9,271,644Total Health 8,677,067 9,084,919 9,734,883 9,044,472 7,747,177
Total Public Assistance 14,023,939 14,027,543 14,802,817 13,869,296 13,183,408Total Education 601,033 704,311 822,456 848,255 832,170Total Recreation and Cultural 827,566 363,346 150,073 109,146 682,007Total Debt Service 2,286,302 3,061,603 1,250,255 959,256 833,402Transfers Out 0 0 0 0 0
Total General County Expenditures and Transfers Out 68,757,036 66,585,284 72,037,068 73,930,562 65,033,218
County Total Bonds and Other Long-Term Debt 35,027,541 34,986,151 35,532,743 5,131,122 5,645,514
Last Five Years: Expenditure fluctuations due to Recession
Expenditure
FY2011 FY2010 FY2009 FY2008 FY20070
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Total GeneralTotal Public Pro-tectionPolynomial (Total Public Protection)Total Public Ways and FacilitiesTotal HealthTotal Public As-sistanceLinear (Total Public Assistance)Total EducationTotal Recreation and CulturalTotal Debt Service
Total General County Expenditures and Transfers Out by Major Categories
Expenditure
FY2011 FY2010 FY2009 FY2008 FY20070
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Total FinancePolynomial (Total Finance)Total JudicialPolynomial (Total Judicial)Total Police ProtectionPolynomial (Total Police Protection)Total Protective InspectionPolynomial (Total Protec-tive Inspec-tion)Total Other Protection
Selected Large Budgets with Declines
Expenditure: General Department Totals FY2011
Total General23%
Total Public Protection
26%
Total Public Ways and Facilities12%
Total Health13%
Total Public As-sistance
20%
Total Education1%
Total Recreation and Cultural1%
Total Debt Service3%
Last 5 years: Also fluctuating with the Recession
Revenue
FY2011 FY2010 FY2009 FY2008 FY20070
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000Total Financing Sources and Transfers In
Total Fi-nancing Sources and Transfers InPolynomial (Total Fi-nancing Sources and Trans-fers In)
RevenueRevenues
FY2011 FY2010 FY2009 FY2008 FY2007
Property Taxes 16,355,353 19,072,274 20,742,667 18,838,405 17,685,084Other Taxes 2,747,671 2,663,778 3,051,829 3,927,626 4,254,145
Licences, Permits and Franchises 2,108,541 2,094,863 2,455,098 3,066,210 4,280,248Fines, Forfeitures and Penalties 1,498,192 1,296,456 1,556,118 2,195,312 2,317,820
From Use of, Money and Property 1,015,528 994,378 1,398,797 1,389,226 1,328,506
State 25,949,281 23,011,472 27,896,310 19,964,341 21,446,531Federal 9,527,800 9,516,056 6,975,956 8,582,415 7,815,237Governmental: Other 512,110 85,704 142,819 68,697 86,610Charges for Current Services 6,446,581 6,485,158 6,193,112 5,675,277 5,682,426Miscellaneous Revenue 1,445,187 1,390,539 1,723,304 1,929,464 1,639,713Other Financing Sources 32,667 26,462 30,900,843 7,762,579 7,560Transfers In 652,245 0 0 1,581,438 0Total Financing Sources and Transfers In 68,291,156 66,637,140 103,036,853 74,980,990 66,543,880
Property Taxes24%
Other Taxes4%
Licences, Permits and Franchises
3%
Fines, Forfei-tures and Penalties
2%
From Use of, Money and Property
1%
State38%
Federal14%
Governmental: Other
1%
Charges for Current Ser-
vices9%
Miscellaneous Revenue2%
Other Financing Sources0%
Transfers In1%
FY2011 Revenues
Revenue
FY2011 FY2010 FY2009 FY2008 FY20070
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
FederalLinear (Federal)Charges for Current ServicesLinear (Charges for Current Services)
Steadily Increasing Revenues
Revenue
FY2011 FY2010 FY2009 FY2008 FY20070
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
Other Taxes
Linear (Other Taxes)
Licences, Permits and Franchises
Steadily Decreasing Revenues
Revenue
FY2011 FY2010 FY2009 FY2008 FY20070
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000Property Taxes
Property TaxesPolynomial (Property Taxes)
Revenue
General; $58,428,272
Special Revenue Funds;
$62,261,054
Capital Projects Fund; $25,506,005
Debt Service Fund; $2,351,951
Enterprise Funds; $2,298,840 Special Districts and other
Agencies; $2,756,242 All Fund Summary
Budget Principle #9 of the Calaveras County FY2011 budget call for the County to, “Strive for "healthy" reserves and a 3 to 4% contingency fund”
Callen (2012) noted that the updated target is 5 – 10% or three months of operating funds.
Actual: $725,797.00 = 1%Year-end general fund balance approach A formal stabilization fund allocation would
be a better fit for long term planning.
Reserve Fund
“Not Proficient” in all categories except Financial Summaries
Weaknesses:No Budget Message No time periods for goals in the Goals, Principal and
ObjectivesFunds not explained/connected to expendituresNo long-range financial planningNo performance measures or outcomes linked to budget
Strengths:Details of fund appropriation, revenues and expendituresSeparate Capital Budget
Evaluation Using GFOA Rating System
Weakness of FY2011 budget outweigh strengths
Budget provide the bare minimum required by the small county of Calaveras to function fiscally
No long-term planning or performance measures
Little interpretationEspecially difficult to track relationships
between the revenue funds and their full or partial expenditure
Formal, rigid and uninvitingWhy not provide level of detail in year-end
financial report?
Discussion
Smoother Board process with limitsMid-year forecast of decline in property tax =
cuts to FY2012 budgetMeager new local construction trendsDoubt about the stability of federal and
state funding = continuing Board contention
Proposition 30 pass avoids trigger cuts to education and the courts
Discussion: Forecasting the Future
Description: Add a clear narrative that describes:
1) The economic context of the county2) Lay out the interconnectedness and
relationships between the budget structure elements
3) Depict year to year and long-term processes and changes with supporting graphics
Recommendations
Performance: Show how expenditures support Mission“…giving the public a clearer view of what the
results of government expenditure are and providing some assurance that government agencies are focused on performance and are being held accountable… (Mikesell, 2011, p. 258)”
Citizens could be further empowered to understand and support their county government by the addition of transparent performance budgeting measures.
Recommendations
That’s’ it…!
So long from "Jim Smiley and His Jumping Frog"