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1989-12282-Minutes for Meeting May 03,1989 Recorded 5/25/198911 0095 1488 89-122'2 Y1 Y`2 i, MINUTES DESCHUTES COUNTY EXTENSION AND 4-H SERVICE DISTRICT BUDGET COMMITTEE May 3, 1989, Hearings Room Deschutes County Administration Building Commissioner Prante called the meeting to order at 10:05 a.m. Budget Committee Members in attendance were: Lois Bristow Prante, Dick Maudlin, Tom Throop, Mia Schraeder and Sharon Hoobler. Marvin Young, Budget Office, Deschutes County Extension & 4-H Service District gave his 1989-90 budget report which is attached. He said there was a public hearing scheduled for June 7 regarding the adoption of the budget, and that on June 21 the committee will make the appropriations. MAUDLIN: I would move approval of the Deschutes County Extension and 4-H Service District Budget. THROOP: I'll second the motion. VOTE: LOIS PRANTE: YES TOM THROOP: YES DICK MAUDLIN: YES SHARON HOOBLER: YES MIA SCHRAEDER: YES DESCHUTES COUNTY EXTENSION AND 4-H SERVICE DISTRICT BUDGET COMMITTEE Ztd Lo' B istow Prante Mi chraeder Tdm roo aro er ck Maudlin tD MAY r1989 0095 1489 DESCHUTES CO. EXTENSION AND 4-H SERVICE DISTRICT BUDGET OFFICER MESSAGE TO BUDGET COMMITTEE FOR 1989-90 This Budget Message will differ from those of previous years when district re- sources were steadily increasing more than the annual 6% of the tax base as allowed by law. The increases over and above the 6% were a result of increasing prior years tax collection and increasing interest, reflecting larger cash reserves in- vested. The annual receipt of prior year's taxes has leveled off at about $15,000. Interest has been reduced because cash reserves were reduced by half with the pur- chase of the Extension office building in Redmond. Steady increases in operational costs have risen faster than additional revenues. This has resulted in a finan- cial squeeze between available revenues and expenditures. The situation has re- quired close examination of programs and services offered in order to remain within anticipated revenues. Another factor, although of a much smaller magnitude, which impacts the fi- nancial status of the Extension Service District is the cost of audit that for some reason fluctuates drastically. The initial estimate to audit a total budget of approximately $97,000 in 1982 was $800. The audit costs have escalated each year consuming whatever amount was budgeted plus $100-$200. In an experiment two years ago we reduced the audit bud- get $400 from the previous year. To our surprise, the audit cost matched our bud- geted cost of $1,300. The same figure of $1,300 was used this year 88-89. The bill we received from the auditor was for $2,100. First, $2,100 seems to this budget officer a rather high price for a relatively simple audit. Secondly, there appears to be no pattern of audit charges to allow for accurate budget projections in this area. Extension Advisory Council members have questioned the lack of itemization of these charges by the auditor. Since the district audit is performed as a part of the overall county budget audit, perhaps you could shed some light on this problem. Now that I've outlined these initial concerns, I propose the following budget for the fiscal year 1989-1990. We expect to finish the 1988-89 budget year with no outstanding debts and ap- proximately $46,600 cash on hand to cover anticipated expenditures from July 1, 1989 to December when tax returns are expected. After calculating expenditures it was apparent some adjustments will be nec- essary to stay within anticipated revenues. Several alternatives were explored and discussed by the agent staff. The al- ternative selected calls for the elimination of the part-time clerical position in the Redmond office. These clerical duties will be shared by the remaining three clerical posi- tions, two in the Redmond office and one in the Bend office. The .3 of a clerical position funded by OSU forestry will be credited toward the salary and benefits of the lead clerical position in Redmond. 0095 1490 Deschutes Co. Extension and 4-H Service District Budget Officer Message to Budget Committee for 1989-90 Page 2 May 2, 1989 This should create no significant problems since two agent positions are presently vacant and will likely remain unfilled for at least a part of the coming fiscal year. To offset these vacancies and to provide program relief in the 4-H pro- gram for Wayne Shull to allow him time to function in the chairman's admin- istrative roll, we will extend the appointment of the educational aide at full time at the cost of $21,450. This adjustment will result in total revenues available of $175,794. $88,443 from current year tax levy, $15,000 prior year tax collection, $3,000 interest, $20}751 OSU contribution, and $2,000 publication charges. Personnel Service costs will amount to $75,998.63, down $150 from this year. Material and Services costs are estimated at $40,950, down $50 from this year. Educational Aide expense equals $21,450, up $13,450 from the 1988-89 budged figure for part-time. Capital Outlay in the form of office equipment replacement is set at $1,395.60. $5,000 is set aside for Operational Contingency and $31,000 in Unappro- priated Ending Fund Balance. Total anticipated revenue $175,794.00 Expenditures Personnel $ 75,998.63 Materials & Services 40,950.00 Educational Aide 21,450.00 Capital Outlay 1,395.37 Operating Contingency 5,000.00 Unappropriated Ending 31,000.00 Balance $175,794.00 As Budget Officer, I respectfully submit the attached Budget Proposal for your consideration. 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