Tippecanoe County CouncilSpecial Meeting

Budget Review

and Youth Center

2009 Budget

Deadline Extended to December 1 Budget Hearings August 25, 26 Final Approval November 12 Budget Committees

– Personnel (compensation & benefits)– Review (continue review of revenues/budget for

adding back DOC $)

Health Insurance

Proposals received end of September Great-West to remain carrier Plan change

– Melding of current Plan A and current Plan B– Resulting in lower than expected claims liability

for 2009– Potential higher out-of-pocket expenses on some

items– Lower premiums for some coverage levels

Premiums

Coverage Level

2008 Plan AEmployee

Contribution

2009 Employee

Contribution

EmployeeMonthlySavings

AnnualSavings

Employee $88 $53 $35 $420Employee/Spouse $183 $111 $72 $864Employee/Children $166 $101 $65 $780Employee/Family $278 $154 $124 $1,488

Coverage Level

2008 Plan BEmployee

Contribution

2009 Employee

Contribution

EmployeeMonthlySavings

AnnualSavings

Employee $38 $53 -$15 -$180Employee/Spouse $120 $111 $9 $108Employee/Children $104 $101 $3 $36Employee/Family $201 $154 $47 $564

Annual Revenue from Premiums

Coverage LevelCurrent

Enrollment Renewal RateEmployee Portion

At 10%RevenueAt 10%

Employee 282 $530.23 $53 $14,952.49Employee/Spouse 104 $1,113.49 $111 $11,580.30Employee/Children 54 $1,007.45 $101 $5,440.23Employee/Family 112 $1,537.69 $154 $17,222.13

Total Monthly Revenue: $49,195.14

Total Annual Revenue: $590,341.68

Expected Claims Liability

Total = $5,900,000

Sources of Coverage:% of total

General Fund* $4,438,910 73%All Other Funds** $1,060,041 17%Employee Share $590,342 10%

$6,089,293

*17% over 2008

**20% over 2008

Compensation

Options (within $450,000)– 2% across-the-board COLA, current pay grids– % of WIS recommendation, new pay grids

Changes longevity Changes market

Recommendation

New Pay Grids– Elected Officials and Chief Deputies 0%– EXEC, SO approximately 1.5% increase– POLE (law enforcement) 1.78% increase, with specialty pay – COMOT, PAT, LTC, POLE N/M 88-92% of the

recommended charts– Probation 3% increase (per state pay schedule)– Prosecuting Attorneys approximately 1.5% increase, current

pay structure

Salary Comparison

"Frozen Wage" ScenarioCurrent Plan A Employee

2008 2009Wage $38,169 $38,169Emp/Fam Annual Premium $3,336 $1,848 Insurance Savings = $1,488Adjusted Wage $34,833 $36,321 Increased Compensation = $1,488

COMOT V (11 - 15 years)

Impact on Net Pay

COMOT V (Employee with 11 - 15 Years)Frozen at $38,169Has Plan A coverage for Emp/FamilyTaxes - Married with zero exemptions

2008 2009Gross Amount $1,590.38 $1,590.38Emp/Fam $139.00 $77.00Parking $5.00 $5.00125 FLEX $0.00 $20.00Federal Tax $135.92 $142.22Medicare $20.97 $21.58SS $89.68 $92.28State Tax $49.18 $50.60Tipp Co Tax $15.91 $16.37Emp PERF $47.71 $47.71

Net Pay $1,087.01 $1,117.62

Flat % COLA

Pros– Easier to plan for annual budgeting– Gives all employees a wage increase

Cons– Too many reclassification requests because current grids

don’t match area market pay ranges– 7 year lag to market would not be corrected– Percentage amounts on some grids are off and vary from

class and levels; flat percentage would add to problem

WIS Recommendation

Pros– Market is attainable at 5 years– Updated wages would help with retention and recruitment– Longevity steps reduced

Administrative and budgetary savings(fewer steps to administer and max would be 3% above market)

Cons– Tricky transition of grids when done in stages– Possibly discourages those with long-term service– Salary freezes in short-term for some employees

Questions?

Juvenile Center Site PlanJuvenile Center Site Plan

Overall Building LayoutOverall Building Layout

TCYC Current Project Cost Estimates

SITE DEVELOPMENT COST $ 1,696,105.00(includes drives, parking areas, sidewalks, utilities, etc.)

BUILDING COSTSIntake Area (4,105 sf) $ 743,211.00Admissions/Security Housing (48,240 sf)$10,182,195.00Alternative Services (9,338 sf) $ 1,607,723.00Total Hard Construction $14,229,234.00

SOFT COSTS $ 3,117,087.00(furnishings, contingencies, professional fees, surveys, permits, environmental reviews, etc.)

Total Probable Project Cost $17,346,321.00Site Purchase Price $ 1,227,003.00

Updated 10/14/2008

NEW PERSONNEL POSITIONS Number

DETENTION ASST DIRECTOR 1.0

RECEPT/SEC - PT 0.5

ADMIN ASST 1.0

SHIFT SUPV 4.0

DETENTION OFF - FT 22.5

DET OFF - PT 6.0

FAC MAINT/CUSD 0.0

NEW - FT 28.5

NEW - PT 7.0

EST ANNUAL SALARY & BENEFITS $1,554,025

PROBATION PROB OFF 4.0

INTAKE SPEC 4.0

NEW - FT 8.0

EST ANNUAL SALARY & BENEFITS $389,606

CLINICAL &AFTERCARE COORD 1.0

ALTERNATIVE PHYSICAL ED COORD 0.5

SERVICES CASE MGR 1.0

NURSE 0.5

THERAPIST 1.0

TEACHERS (3) N/A

NEW - FT 3.0

NEW - PT 2.0

EST ANNUAL SALARY & BENEFITS $193,517

PERSONNEL DETENTION SERVICES $1,554,025

SUMMARY PROBATION INTAKE AND ASSESSMENT $389,606

ALTERNATIVE & CLINICAL SERVICES $193,517

TOTAL NEW STAFF FOR ALL PROGRAMS $2,137,148

ESTIMATED ANNUAL OPERATING BUDGET

EST. EXPENSES TOTAL $390,000

TOTAL ESTIMATED EXPENSES - 2010 $2,527,148

TOTAL ESTIMATED ANNUAL RECOVERABLE EXPENSE $1,860,059

DIFFERENCE ($667,089)

Questions?

Review Committee

Action item: Find $ to add back to Superior 3 budget for DOC institutional care costs as if it remains the county’s financial responsibility, in order to offset “Youth Center Operations”

This line item needs to be included every year going forward

Review Committee

DOC Line Item - where did the money go?– Health Insurance

Costs have risen 20% in past two years

– Loss of Expected 2008 Revenue Recording fees Building permits Interest income

Review Committee

Suggestions for 2009

Health Insurance - from 22.5% to 17% $208,667Commissioners - sheriff liability $30,000Commissioners - inmate medical liab. $10,000Election - part time $13,500Election - social security $1,033Cary Home - part time $20,000Cary Home - social security $1,530Superior Ct 3 - institutional care $40,000 Subtotal $324,730

Reductions of Budget

Review Committee

2009 projection based on per diem increase from $149.35 to $169.35 and anticipated increase in census

Institutional Care - Non-DOC

$700,000 $690,000$650,000

$460,000$437,701$426,073

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

2006

Actu

al

2007

Actu

al

2008

Pro

jected

2009

Req

uest

2009

Rev

ised

2009

Exp

ecte

d

Review Committee

2008 projection lower than expected due to improved utilization of risk assessments and length of stay shorter due to re-entry program

Institutional Care - DOC

$673,300

$803,782 $840,000

$1,039,040

$855,000

$700,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2003

Actu

al

2004

Actu

al

2005

Actu

al

2006

Actu

al

2007

Actu

al

2008

Pro

jected

2009

Pro

jected

Review Committee

Operating Shortfall ($667,089)

Add: Community Corrections $50,000

Add: Reductions of Budget $324,730

Add: DOC Budget $250,000

Shortfall -$42,359

Review Committee

Shortfall reduced to under $50,000– COIT?

Other Suggestions/Future Possibilities– Building maintenance from GF to CCD– Cumulative bridge interest– Set cost-recovering per diem rate for TCYC

Questions?