2019-28-Minutes for Meeting December 13,2018 Recorded 1/15/2019GwT ES ,COG
BOARD OF
COMMISSIONERS
1300 NW Wall Street, Bend, Oregon
(541) 388-6570
Recorded in Deschutes County CJ2019-28
Nancy Blankenship, County Clerk
Commissioners' Journal 01/15/2019 12:09:57 PM
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2019-28
FOR RECORDING STAMP ONLY
Present were Commissioners Tammy Baney, Phil Henderson and Anthony DeBone; Budget Committee
Members Bruce Barrett, Bill Anderson, and Mike Maier. Also present were Tom Anderson, County
Administrator; Erik Kropp, Deputy County Administrator; Finance Director Wayne Lowry; Budget Analyst
Andrea Perkins; Commissioner -Elect Patti Adair; and Sharon Keith, Board Executive Assistant. Several
citizens were in attendance.
This meeting was audio recorded.
CALL TO ORDER:
Chair Bruce Barrett called the meeting to order at 9:00 a.m. Introductions were
made. County Administrator Tom Anderson gave the opening comments and
reported on the agenda outline.
BOCC Comments - Budgetary Direction: Commissioner DeBone commented on
the budget process throughout his terms in office.
Mike Maier commented on the recent loss of Darrell Davidson, long-time Sheriff
and friend last week.
BOCC BUDGET MEETING DECEMBER 13, 2018 PAGE 1 OF 3
County Financial Update and Budget Assumptions for 2019/2020: Wayne Lowry
presented financial highlights and budget assumptions. Handout materials are
attached for the record.
RECESS. A recess was taken at 10:01 a.m. and the meeting was reconvened at 10:09 a.m.
Status of Budget Issues by Department: County Administrator Anderson stated
this portion of the meeting is department budget anticipations. The Health
Services department has been scheduled to present at additional budget meetings
that have been scheduled for April 18, 2019 and May 14, 2019.
Health Services presentation: Deputy Director Dave Inbody gave a 2018 review on
the Health department's budget. In 2019, the department received the CCBHC
Expansion Grant, achieved reconciliation and a contract with PacificSource, and
found accrued savings from hiring freeze. Health Services Deputy Directors Janice
Garceau and Hillary Saraceno presented grant highlights for behavioral health and
public health. Dr. George Conway and Commissioner Baney spoke on Coordinated
Care Organizations. Commissioner Henderson feels there should be budget
meetings prior to April.
RECESS. A recess was taken at 11:38 a.m. and the meeting was reconvened at 11:54 a.m.
County Administrator Anderson reported on the department budget issues. The
Medical Examiner's Office has additional requests. Mr. Anderson has begun a
process of looking at combining services with the tri -county area. The Solid Waste
strategic planning for the Knott Landfill has gone well and a presentation was made
to the Board yesterday. Sheriff's Office will present a long term financial plan. The
Sheriff's Office labor contract will be expiring and in the process of negotiations.
Mr. Anderson commented on the Road Department Capital Improvement Project.
The District Attorney's office will be requesting additional attorneys due to
increased caseloads. 911 Radio appears to be stable and proceeding with
improvements for radio coverage and a computer aided dispatch system. The Fair
and Expo Director recruitment is in process as Dan Despotopulos is retiring in the
spring. Bids were opened this week for the OSU Extension building. Plans for the
public safety campus design involve the Sheriff's Office, Health Services and
BOCC BUDGET MEETING DECEMBER 13, 2018 PAGE 2 OF 3
Community Justice. Discussions on the goals and needs of the Crisis Stabilization
Center and Sobering Station continue.
Commissioner Henderson shared a handout with calculations he prepared with
costs of Deschutes County personnel between the years 2006/2007 and 2018/2019.
Commissioner Henderson noted he is still in favor of decreasing property tax.
Mike Maier feels there is no need for multiple sessions with the Health Services
department. The May 14th meeting may not be needed. Additional meetings might
include conversations for the public safety campus plan. Mr. Maier requested
salary costs of the District Attorney's Office. This year's budget hearing week is May
28 - May 31. Mr. Lowry will send the Budget Committee members a monthly
budget report.
Being no further items to come before the Board, the meeting was adjourned at 1:14 p.m.
DATED this Day of- - eklk2019 for the Deschutes County Board of
Commissioners.
TAMMY BA EYB MISSIONER
BOCC BUDGET MEETING DECEMBER 13, 2018 PAGE 3 OF 3
Deschutes County Budget Committee Meeting
December 13, 2018
9:00 a.m. — 1:00 p.m.
1) Opening Comments — Tom Anderson
2) BOCC Comments — Budgetary Direction
3) County Financial Update — Wayne Lowry
a. AN & Property Taxes
b. Development Activity
c. Room Tax
d. Forest/PILT
e. Health Benefits Fund
4) Budget Assumptions for 2019/20 — Wayne Lowry
a. General Fund Support
b. Cost of Living
c. Health Insurance Rates and Copay
d. Assessed Value — Countywide
e. PERS Rates, 6% and PERS Reserve Strategy
f. Internal Services
5) Health Services Review Schedule
a. April 18, 2019 1:00 to 4:OOpm Allen Room
b. May 14, 2019 1:00 to 4:OOpm Allen Room
6) Status of Budget Issues by Department — Tom Anderson, Erik Kropp
7) Departmental Presentation Format
8) Budget Calendar
9) Other
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FY 2018-19 BUDGET COMMITTEE MID -YEAR REPORT
Department Budget Issues
• Medical Examiner
• Health Services
o CCBHC Continued — Certified Community Behavioral Health Clinic Grant Extension
o Stabilization Center Status
o Pacific Source Contract
o General Fund Subsidy
o Hiring Freeze
• Solid Waste
o Strategic Planning— SWAC
• Sheriff's Office
o Long Term Financial Plan
o Labor Contract Expiring
• Road Department
o CIP Projects
• District Attorney
o Staffing Request
o Grand Jury Recordation Costs
• 911 Radio Project Status
• Fair & Expo Center
o Land Deal status
o Recruitment for Director
o Potential improvements
• Community Development
o Staffing Levels
• Other
o OSU Extension Expansion
o Public Safety Campus Master Plan
No Significant Issues
➢ County Assessor's Office
➢ BOCC/Administrative Services
➢ Human Resources
➢ Community Justice
➢ Facilities
➢ Finance
➢ Justice Court
➢ Information Technology
➢ Legal
➢ Veterans
12/12/2018
Deschutes County Tax Levies
Fy 2018/19
Levy
Authorized
Rate
Levy
Rate
Revenue
Estimate
FY2019
Countywide Levies
County Permanent Rate
1.28
1.21
28,184,573
County Library
.55
.55
11,976,925
Countywide Law Enforcement
1 1.25
1 1.08
24,780,245
County Extension/4H
.022
.022j
516,077
9-1-1
.425
.3618
8,311,833
Total Countywide Levies
3.527
3.17
73,769,653
Additional Levies
Rural Law Enforcement—Sheriff
1.55
1.34
10,027,098
Sunriver Service District - Police and Fire
3.45
3.31
,4,689,223
Black Butte Ranch Service District - Police
1.05
1.05
657,427
Black Butte Ranch Service District Local Option - Police
.55
.55
' 344,400
Total Additional Levies
15,718,148
12/12/2018
2
12/12/2018
3
12/12/2018
4
12/12/2018
Internal
12/12/2018
0
PERS Rates - % of Payroll
Charged to Departments
16.60% 19.91% 21.23%
23.44% 23.78% 25.10%
14.52% 14.53% 15.85%
17.25% 18.64% 19.96%
Includes Employer rate, 6% Pickup, and Debt Service rate and
reserves.
Drawdown of PERS Reserve Fund
2017/18
14,528,538
2,000,000
1,043,000
14,505,833
2018/19
15,719,070
2,000,000
475,000
16,265,062
2019/20
20,033,327
1,500,000
3,250,000
14,877,707
2020/21
21,029,289
1,000,000
2,500,000
13,865,659
2021/22
25,552,254
500,000
5,100,000
9,786,379
2022/23
26,819,977
0
4,300,000
5,971,677
2023/24
28,150,414
0
3,300,000
2,880,686
Total
7,000,000
19,968,000
12/12/2018
7
12/12/2018
8
PERS
Costs
30,000,000 i
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
p
2011-12
2012-13 2013-14 2014-15 2015-16 2016-17
2017-18 2018-19 2019-20
2020-21 2021-22 2022-23 2023-24
—A—M PERS Cost
—PERS Cost with Reserve
12/12/2018
8
12/13/2018
Projected Deficit in FY 2019 balanced by:
o Reduction of Staff
c) Increase in County G. -neral Fund
Reproductive Health
l-Inknowns - CCBHC, PaCifiCSOUrce Contract
1
in, TI.M:
• Productivity Improvements
• Increase in CCBHC Payment Rate
• [Airing Freeze & Delay in Refilling Positions
• Limiting Discretionary Spending
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Awarded CCBHC Expansion Grant
11"aC-ill"Ic'Source 'RleconciliatiOn
PacificSource Contract
Reproductive Health
Accrued Savings frons Hiring Freeze
Successful Pursuit of New Grant Opportunities
ES
12/13/2018
2
12/13/2018
QUEEIRIMPIM M7
0 Behavioral Health Grants
0 Public Health Grants
ES
3
12/13/2018
Deschutes County Health Services
__ 4
PERSONNEL AND PERSONNEL COST INCREASES
DESCHUTES COUNTY
BETWEEN FY 2006/07 AND FY 2018/19
Source Official Budgets of 2006/07 and 2018/19
Increase in # of Personnel
2019 960.21 FTE
2007 785.24
Diff. 174.97 / 786.24 = 22.3%
Increase in Salaries
2019 $ 73,916,964
2007 $ 42,163,106
Diff. 31,752,858 / 42,163,106 = 75%
Increase in Health and Dental
2019 $ 19,278,600
2007 $ 10,173.062
Diff. 9,105,538 / 10,173.062 = 89.5%
Increase in PERS
2019 $ 15,440,432
2007 $ 8,142,068
Diff. 7,298,364 / 8,142,068 = 89.7%
Increase in Total Personnel Costs
2019 $ 116,010,624
2007 $ 64,976,851
Diff. 51,033,773 / 64,976,851 = 78.6%
Prepared by Commissioner Phil Henderson 12/12/2018
PERS Analysis - Impact of Rate Increases since 2013 on 2020
25
Z 20
15
10
5
„ 25
z 20
15
10
5
PERS $ Impact of Changing Rates (before reserve offset)
2014 2015 201.6 2017 2018 2019 2020
PERS $ Impact of Changing Rates (after reserve offset)
2014 2015 2.016 2017 2018 2019 2020
Additional Cost of PERS Due to Rate Increases by Year (In Relation to 2013 Rates)
I
I
Cost of "Increase" in FTE
Actuals
Actuals
Actuals
Actuals
Actuals
Budgeted
Projected j
FTE
Position
2014
2015
2016
2017
2018
2019
2020
Fund
Fund Description
I
001
General Fund
42,531
10,350
71,154
136,196
275,131
336,491
364,691 I
2.80
Deputy District Attorney
30
Community Justice Juvenile
22,380
5,740
40,128
73,723
139,940
165,156
178,997 j
2.00
Community Justice Officer
120
Law Library
276
-
-
-
-
-
- j
135
PERS Reserve
-
-
160
Transient Room Tax
170
Transient Room Tax
-
165
Video Lottery
-
-
-
-
-
- I
212
Victims' Assistance
1,607
357
3,022
6,332
13,728
16,954
18,375
0.30
Victim's Advocate
220
Justice Court
1,812
475
3,438
6,524
11,512
13,448
14,575
0.30
Court Services Assistant
255
Sheriffs Office
153,931
40,212
256,539
479,130
995,044
1,086,368
1,177,413 !
11.70
Deputy Sheriff
274
Health Services
81,726
21,672
155,726
305,102
644,404
848,434
919,538 i
10.90
BHS 1
295
Community Development
15,237
3,949
28,603
58,251
122,695
172,198
186,629 j
2.50
Permit Technician
305
GIS Dedicated
1,806
203
1,568
3,741
5,138
6,515
7,061
0.10
GIS Analyst
325
Road
24,333
6,332
43,429
81,214
148,039
176,700
191,508 !
2.10
Equipment Mechanic
326
Natural Resource Protection
582
143
1,119
2,170
4,977
4,850
5,256 !
0.04
Forester
350
Dog Control
428
-
-
-
-
-
-
355
Adult Parole & Probation
19,163
5,392
35,560
67,569
132,903
149,814
162,369
1.80
P&P Officer
610
Solid Waste Operations
7,941
2,050
14,635
28,357
55,174
68,46b
74,207
1.20
Site Attendant
615
Fair & Expo Center
4,373
1,222
8,394
15,664
33,457
39,443
42,748 !
0.60
Maintenance Worker
616
Annual County Fair
681
177
1,315
2,418
5,003
5,504
5,965
620
ISF - Facilities
8,616
2,089
15,577
28,526
50,349
64,535
69,943 j
1.00
Maintenance Worker
625
ISF-Administration
4,421
1,253
8,208
16,078
31,837
36,205
39,239 j
0.50
Admin Assistant
628
ISF - Bd of Co. Commissionei
1,766
435
2,756
4,467
10,425
11,370
12,323
0.10
Commissioner
630
ISF - Finance
4,371
1,475
11,644
23,000
41,343
44,016
47,705 !
0.70
Accounting Technician
640
ISF - Legal
3,621
945
5,790
9,496
22,256
26,454
28,671 !
0.30
Paralegal
650
ISF - Human Resources
2,583
673
4,422
9,008
19,447
25,607
27,754 I
0.40
Admin Assistant
660
ISF - Information Technology
9,738
2,344
17,033
29,287
54,228
64,691
70,113
0.80
System Admin
670
Risk Management
1,411
324
2,225
4,250
9,429
10,916
11,831
0.20
Claims Coordinator
675
Health Benefits
550
139
779
-
-
-
-
705
Deschutes County 9-1-1
20,556
5,311
36,301
75,567
169,429
199,906
216,659 !
2.80
Call Taker
707
DC 9-1-1 Communications
262
-
2,265
4,101
10,413
14,640
15,867 j
0.30
Call Taker
720
Extension 4-H
580
132
-
-
-
-
- j
Total
437,282
113,392
771,629
1,470,168
3,006,300
3,588,681
3,889,436
I
25
Z 20
15
10
5
„ 25
z 20
15
10
5
PERS $ Impact of Changing Rates (before reserve offset)
2014 2015 201.6 2017 2018 2019 2020
PERS $ Impact of Changing Rates (after reserve offset)
2014 2015 2.016 2017 2018 2019 2020
History of PERS Rates & Impact of Reserve Usage
Actuals Actuals Actuals Actuals Actuals Actuals Budgeted Projected
2013 2014 2015 2016 2017 2018 2019 2020
PERS Rates Includinq IAP & Debt Service
PERS Gen
15.95%
16.50%
16.60%
19.91%
19.91%
24.00%
24.00%
27.99%
PERS P&F
23.55%
23.34%
23.44%
23.78%
23.78%
29.48%
29.48%
34.59%
OPSRP Gen
14.19%
14.42%
14.52%
14.53%
14.53%
17.54%
17.54%
22.12%
OPSRP P & F
16.90%
17.15%
17.25%
18.64%
18.64%
22.31%
22.31%
26.75%
Reserve Rates
(negative is benefit to rate)
PERS Gen
-3.45%
0.20%
0.00%
0.00%
1.32%
-1.43%
-0.65%
-4.00%
PERS P&F
-4.95%
-0.17%
0.00%
0.00%
1.32%
-1.43%
-0.65%
-4.00%
OPSRP Gen
-1.69%
1.24%
0.00%
0.00%
1.32%
-1.43%
-0.65%
-4.00%
OPSRP P & F
-2.40%
0.88%
0.00%
0.00%
1.32%
-1.43%
-0.65%
-4.00%
Effective Rates
(after reserve impact)
PERS Gen
12.50%
16.70%
16.60%
19.91%
21.23%
22.57%
23.35%
23.99%
PERS P&F
18.60%
23.17%
23.44%
23.78%
25.10%
28.05%
28.83%
30.59%
OPSRP Gen
12.50%
15.66%
14.52%
14.53%
15.85%
16.11%
16.89%
18.12%
OPSRP P & F
14.50%
18.03%
17.25%
18.64%
19.96%
20.88%
21.66%
22.75%
PERS Rates (incl. IAP & Debt) before Reserve Offset
40%
30%