FY 2013 TENTATIVE GENERAL APPROPRIATIONS BUDGET PRESENTATION

Bulloch County Board of CommissionersStatesboro, Georgia

THE BIG PICTURE

TOTAL ESTIMATED GAB: $61.4M General Fund: $31.9M Special Revenue Funds: $8,5M Enterprise Funds: $2.4M Internal Service Funds: $10.5M SPLOST Funds: $11.6M

Final amount will be determined before adoption, but these numbers are in the ball park.

“GAMING THE ECONOMY” At the beginning of FY 2012, the BOC agreed for

an allowance to use up to $1,000,000 in General Fund reserves over 2 years as necessary for budget balancing, until final a full and certain local economic recovery occurs.

In Fiscal Year 2012 a planned deficit of $500,000, using reserve funds was projected, and appears on target.

Going into FY 2013, it may be possible to minimize or eliminate the use of fund reserve – if certain assumptions materialize.

RECONCILIATION ISSUES PRIOR TO ADOPTION

Using current adjusted baseline assumptions, the projected GF budget deficit is $195K.

The final General Fund budget balance is affected by three factors: Awaiting final revenue estimates for real & personal ad valorem taxes. The current baseline assumes a slight decline in auto tags and mobile homes from last year. Figures yet to be received from the tax administration will influence budget balancing.Decisions on employee compensation and other recommendations.Gap analysis (making an allowance for final reconciliation prior to adoption – current adjusted baseline considers structural full costs).

OTHER FACTORS Due to GASB 54 accounting changes, the Emergency

Management Agency Fund and the Solid Waste Fund will now be included and represented in the General Fund.

While this will increases the aggregate figure for the

General Fund by about $800,000, it merely represents what is already supported by former General Fund subsidies (taking money out of one pocket and putting it in another, if you will).

FY 2012 GAB BUDGET ASSUMPTIONS

COUNTY REVENUES: THE GOOD Marginal economic improvement and previous fee

adjustments will improve or recover some elastic revenues such as: cable franchise fees, alcoholic beverage excise taxes, insurance premium taxes, financial institution taxes, occupation taxes….., and sales taxes.

Certain licenses and permits such as those for alcohol marriage and pistol permits and finger printing fees.

State Court fines will increase with criminal justice reform (but cost burden will over time, too).

COUNTY REVENUES: THE BAD Poor ambulance fees collection at EMS will be

improved with no additional cost burden if recommendation to contract out is approved and promised results materialize.

There will be a reduction in state rent from DFACS due to building payoff (which is offset by no debt service expenditures as a result of paying off Wells Fargo’s lease-purchase).

Lower investment income especially from the Hospital Authority corpus, due to lower investment rates will negatively impact revenues, too.

COUNTY REVENUES: UNCERTAIN Property taxes (real, as opposed to personal)

are likely to remain the same or have limited growth.

Uncertain about the financial impact that the new vehicle tax law will have.

REVENUE STRATEGY A key issue is the need timely and

aggressive revenue collection where shifting in personnel is recommended.  

Form a licensing and revenue collections effort that would provide proper accounting, monitoring and more aggressive collections from those who owe the County money.

EXPENDITURES Internally we continue to manage most costs and

spend inputs very well except, in some cases, overtime.

Gasoline, electricity and water costs are increasing due to utility rate increases rather than consumption.

Risk management is on watch list (property/casualty/liability, workman’s comp).

Maintenance costs are increasing due to additional facilities and deferred capital equipment outlays.

SPECIAL REVENUE FUND ISSUES Rural Fire: Debt and deficit; will slow spending by deferring hiring of FC

(instead maybe a training officer), increase fees, or both; recommend increasing fees from $50 to $53 for residential structures, and $70 to $75 for commercial structures, (or, consider a fee for vacant properties).

E-911: Contract enforcement regarding revenues with Evans and Candler counties.

SPLOST: Take advantage of low inflation for construction on projects with low or neutral operating costs; comfortable with revenue projections in current CIP.

Recreation: New facilities such as the Greenway, the Tennis Center will result in an increase in maintenance inputs. PRD reports that the current budgetary level will not be able to ensure the current level of maintenance for these new facilities. Concerned about decline in program revenues which may mean increased reliance on GF if costs aren’t reduced.

KBB: The City of Statesboro continues to cut funding from its SW disposal fund . KBB is low on fund reserve.

All other SR funds are in good shape.

FY 2013 GAB BUDGET RECOMMENDATIONS

EMPLOYEE COMPENSATION Pay increase proposed up to the 3% for full-time employees only

whose hiring date is no later than April 30, 2012. (each 1% equals approximately $120K effort to GF).

To be based largely on pay for performance (meaning tied to performance evaluations which have been ignored the last few years).  Target date for any increase would again be November 1, 2012 meaning that all evaluations would have to be in by October 31st.   

A decision will also have to made whether the performance award would be a wage/salary increase or a lump sum.  

Given our present evaluation system, the level of additional compensation up to the 3% level would be calibrated with getting a minimum 3.25 score, using present system.

Consider that a portion of the 3% ;(1%); go to general COLA on pay plan schedule to keep pay plan from eroding below labor market rates for purposes of employee attraction and retention.  That would means that the performance increase could not exceed 2%.   

EMPLOYEE COMPENSATION Annual Leave Conversions remain

intact.

However, no Christmas awards (Chamber Check gifts) proposed.

HEALTH INSURANCE 7.75% increase for employee

contribution.

6.5% for county contribution.

PERSONNEL SHIFTS Transfer existing four existing part-time civilian Court

Security personnel from Clerk of Courts Budget to Court Security.

Transfer one unfilled FTE accounting position from Clerk of Courts to Finance.

Transfer one FTE accounting position from Planning and Zoning to Finance (recommend transferring Zoning Technician to Revenue Specialist).

Transfer one FTE position from Building Department to Roads Department (recommend Chief Building Inspector to fill position as Transportation Director).

PERSONNEL REDUCTIONS Recommend a reduction in force for

one FTE Building Inspector; or, a reduction from 40 to 32 hours per week with staggered schedules for three Building Inspectors ($25-40K savings not yet reflected in budget).

Privatize EMS billing resulting in a reduction in force of two FTE.

INTERNAL REORGANIZATIONPending approval of proposed personnel shift of CBO to TD, reorganize Road Department into three distinct units with re-titling from area superintendents to Operations Manager: Roadway Maintenance (Grading,

Pothole Repair) Roadside Maintenance: (Signs,

Drainage, Spraying and Mowing) Capital Maintenance (formerly Special

Projects)

CAPITAL EXPENDITURES (SPLOST)Significant investment in technology for: Overall Financial Accounting Payroll Accounting (Time and

Attendance) OEM: Copiers, Functional Hardware and

Software Fleet Diagnostics

CAPITAL EXPENDITURES (SPLOST)New Facilities and Renovations: Begin new tax administration annex. Pre-design and infrastructure for Ag

Arena Energy and Water Efficiency Retrofits Jail Safety and Security. CI Enclosure and Renovations.

CAPITAL EXPENDITURES (SPLOST)Transportation: Fleet and Equipment Replenishment

and Existing leases Road Re-Striping Bridge Maintenance Finish Brannen Pond Road Resurfacing, Intersections, or both? Airport Taxilane

CAPITAL EXPENDITURES Recreation and Solid Waste have still

not submitted project specific lists or pools, but they do have CIP allotments.

RECOMMENDATIONS ON BUDGET REQUESTSBudget Unit Request Amount Recommendation

Superior Court Judges 2% increase $3,569 Approve 2%.

District Attorney 3% increase $8,640 Approve 2%

State Court Solicitor Add (1) FT Assistant Solicitor and resource costs.

$89,931 Defer for mid-year amendment consideration.

Correctional Institute Add (1) FT Sergeant and resource costs.

$54,519 Deny.

Probation Add (1) PT clerical person and resource costs.

$12,984 Deny.

EMS Add (12) EMT and Paramedics for new substation

$2,000,000 Deny. Develop plan to use existing personnel.

Animal Shelter Salary/Grade Adjustment for Animal Control Manager

$4,930 Defer for further review.

Recreation Restore (2) FT personnel for unfilled positions during FY 2012; add (1) FTE

$70,000 (net subsidy from General Fund)

Approve unfilled, deny additional.

Library* Provide 3% increase $15,525 Approve 2%.

FY 2013 GAB BUDGET: WATCH LIST

WATCH LISTOvertime. Public Safety overtime needs to be restrained. That partly justifies why an automated time and attendance system is being proposed in the capital budget so annual and sick leave can be better monitored at the management level, and so errors can be reduced. It is also more efficient to get away from a paper system where there is much redundancy.

 Recommendation: Mandate that departments review and better monitor overtime; utilize SPLOST funds to purchase an automated time and attendance system for better accountability.

WATCH LISTEnergy/Water Conservation. Propose that $500,000 be allocated from Capital Improvements Program and budget to audit and retrofit additional buildings. We have seen some reduction in energy costs for nearly all the buildings participating in the energy block grant. However, the City of Statesboro’s water rate increases have negatively impacted water and sewer costs to the County. A Phase II energy and water conservation audit is recommended with investments made in facilities with the most favorable cost-benefit ratio. The fact that this can be done with less oversight from the state grant program can expedite the implementation of any retrofits.

Recommendation: utilize SPLOST funds to complete Phase II audit and follow through with measures that will bring about the highest cost savings.

WATCH LISTEMS: While, the County is not yet positioned to man a second station, an opportunity exists to explore real estate acquisition on the south side of the county, using SPLOST 07 funds.

Recommendation: Have the Public Safety Director and EMS Director file a report on how a shift can be created with existing personnel for a south county; EMS/fire station.

WATCH LISTAnimal Shelter Costs: These costs need to be further examined as the escalation of animal medications and veterinary care has risen exponentially since the new Animal Shelter has opened. Also, a new scheduling pattern for Animal Control Officers needs to be examined to reduce overtime.

Recommendation: Bid out veterinary services and work with selected veterinarian to solicit competitive proposals for animal medications; to reduce overtime, consider new staggered scheduling of personnel among ACO’s throughout seven day work week to handle peak loads.

WATCH LISTSolid Waste: Last year, as a part of the DCA Recycling Hub Grant (which assisted in expanding the recycling Processing Center) a voluntary Curbside Recycling Program began first in the City of Statesboro. It is been marginally expanded elsewhere in the County (Brooklet, Portal, etc.).

Recommendation: A cost analysis must be done to determine if recycling and subscription revenues are properly offsetting costs. The receipt of the hub grant several years ago was based on assumptions may have over optimistically projected higher recycling revenues for pledged programs. This will have to be reviewed.

RISK MANAGEMENT Significant WC increase in FY 11 and 12. Most accidents and injuries are due to slip-trip-fall. Lots of deer strikes at the Sheriff’s department

(unavoidable?). Need to figure out how to increase outreach effort

beyond safety. Have not shopped for WC, PC insurance in years.

Recommendation: While losses do not seem to be off the charts, we should consider bidding out WC and PC insurance.

FY 2013 GAB BUDGET: THINKING AHEAD

TOP RANKED UNMET NEEDS

1. South County EMS Station2. Fire and EMS vehicle aging3. Information Technology Staffing4. Additional personnel for Sheriff,

Solicitor, EMS, Probation, Recreation5. Employee Retirement Plan Re-design

(can probably be accomplished with no budget impact)

ON THE HORIZON When do we want to begin construction

on Ag Arena? I-16/US 301 project (water-sewer,

zoning, DABC marketing effort, bonding additional projects).

Fire Agreement with City of Statesboro. Greenway Protection Ordinance. T-SPLOST and road improvement

strategies.

FY ‘13 BUDGET APPROACH AND STRATEGY

Instill fiscal discipline. Aggressive revenue collections. Aggressive cost containment. Develop a long-term strategy for risk

management. Gear capital expenditures to areas which

reduce operating costs and increase operational efficiency.

Shift slack resources into areas that are burdened.

DECISION POINTS Employee Compensation Personnel Shifts and Reductions Budget Requests

THANK YOU!