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2021-251-Minutes for Meeting June 04, 2021 Recorded 6/24/2021BOARD OF COMMISSIONERS 1300 N\AI Wall Street, Bend, Oregon (541) 388-6570 CC Recorded in Deschutes County CJ2021-251 Nancy Blankenship, County Clerk Commissioners' Journal 06/24/2021 3:46:53 PM co 11111111IIIIIIIIIIIIIIIIIII I III FOR RECORDING STAMP ONLY D E EET G IN TES 8:30 AM Friday, June 4, 20 BARNES & SAWYER ROOMS Present were Budget Committee Members Bill Anderson, Mike Maier and Bruce Barrett. Commissioners Phil Chang, Patti Adair, and Anthony DeBone. Also present were Tom Anderson, County Administrator; Greg Munn, Chief Financial Officer; Dan Emerson, Budget Manager; and Samantha Pepper, Board Administrative Assistant (via Zoom Conference Call). Various County staff and interested public parties were watching the live stream. Attendance was limited due to the Governor's pandemic order. This meeting iwas audio and video recorded and can be accessed on the Public Meeting Portal at www. deschutes. org. CALL TO ORDER: Chair Bruce Barrett called the meeting to order at 8:29 a.m. Greg Munn notes revisions to the agenda. SUPPORT SERVICES/ OTHER FUNDS: Veterans' Services Keith MacNamara states that this year's budget is about the same as last years with the addition of a FTE Administrative Support Technician. He believes that Measure 96 funding should be able to cover the costs. Veterans Services has been doing a BOCC BUDGET [MEETING JUNE 4, 2021 PAGE 1 OF 11 substantial amount of advertising their services including radio ads and billboards. Mike Maier comments that this department in the past has used work study folks and wonders if that is still an option. Mr. MacNamara states that they have not used those people in a while. Commissioner Adair asked how many veterans have been helped to date. There are over 7,200 files total along with 180 new clients this year. Since January of this year, 964 people have communicated with Veteran's Services staff. Mr. Maier asked if the state provides assistance. Bruce Barrett asked what the trend is for the department. Mr. MacNamara states that demand for Veterans assistance has been increasing. He adds why there is a need for a full time office staff position. Current staff members are working overtime to keep up with demand. One current office support staff person has been temporary for 4 years. Legal Counsel Dave Doyle explains Legal Counsels budget. The Health Department acquits for most of the departments work load. Legal Counsels overall work load and civil commitment hearings have grown. Mr. Maier how much the county employees are now working from home. Tom Anderson says most are back comparably to the start of the pandemic. Mr. Doyle adds that litigation meeting/ hearing are happening virtually through Zoom. It is noted that people or entity's suing the county, are suing through federal court. Commissioner Adair asks about the 13% increase in services fees for the department. Mr. Doyle comments that's these fees are mainly have to do with PERS and wage increases. Human Resources Kathleen Hinman explains the Human Resource budget and well as department accomplishments. The department is requesting one FTE for an Administrative Assistant. Mr. Maier asked how the pay equity exercise request from last year went. Ms. Hinman states that it has gone well and is something that will always have to be worked on. The county's turnover rate is currently 8.9%. In year 1 to 5 of an employee's tenure is where the county sees the most turnover. They are looking at ways to address stay interviews and exit interviews to better judge why someone is leaving the county. Commissioner Chang asks how many tier 1 PERS members are retiring. There are quite a few. Mr. Maier asked how the HR office will work with the D.A.'s office since that office is not hiring the recommended HR person. The special request HR Administrative Assistant is to take workloads of the HR analysts. Ms. Hinman mentions that the Sheriff's Office would like to begin looking at their bargaining agreement which end in summer 2022 soon. There was also a request BOCC BUDGET MEETING JUNE4,2021 PAGE 2OF11 for benchmarking on the health benefit fund. Commissioner Debone asked if some of the health reserve funds could be used for something else. There are statute limitations on how to use these funds. Ms. Hinman adds that there have been an uptick in pay re -classifications around the county lately. RECESS: A recess was taken at 10:19 a.m. and the meeting was reconvened at 10:33 a.m. ADMINISTRATION/ BOCC Tom Anderson states that the BOCC budget remains unchanged. There will be a new solicitations for lobbying services. This process occurs approximately every 3-4 years. The lobbying services line item has increases to reflect this process. Mr. Anderson explains the Administration budget. There are two FTE requests. The first request is a Public Information Officer who would back fill jobs that the current communications director does. This positions would be paid through internal service charges and the general fund. Mr. Maier suggests funding such position but letting the new County Administrator decide the necessary positions needed in the department. Commissioner Chang asked if there are enough funds from general fund which there is. Mr. Anderson goes on to say that the current Communications Director would be promoted to Deputy Administrator and oversee the PIO. The second FTE request is for one additional internal auditor. David Givans requests the additional internal auditor to accomplish more work than he is able to get done. There are a large amount of audit requests from departments and often time he is unable to accomplish them all in a year. He refers to a handout that lists Oregon counties and how many Auditors each one has. Mr. Barrett suggests hiring a consultant when needed. The wage for this position is a good starting point but could be higher depending on experience. Mr. Maier asks how many audits are on the books. Mr. Givans states that there are about 7 audits. He can accomplish about 7 a year. He adds that operational audits are more of his priority. The additional person would do more of the fiscal audits. BOCC BUDGET MEETING JUNE 4, 2021 PAGE 3 OF 11 FINANCE Greg Munn gives an overview of the Finance department. He then shows the PERS rate forecast. The department is budgeting for new lodging tax software for more efficacy. Interest rates on county investments are going down as well as cost of financing. The ongoing hiring of the Business Systems Administrator will hopefully able to do work to fix the work flow of the Munis System. A goal for the new fiscal year is to do more automatic payments instead of printing payable checks. Already implemented e-statements for taxing districts. Another goal in the upcoming year is to add budget book software for time saving. Mr. Munn adds that Finance reserves paid for the Munis System which departments continue paying back. The department is requesting to convert the limited duration position approved by the Board to administer ARPA funds to regular and fund it out of ISF after ARPA sunsets. They are also requesting a reclassification of Dan Emerson to oversee the Budget and ARPA funds. DEBT Greg Munn explains that debt service funds are 7.6M. Refunding series 2012 which will save the county 1.4M over the next several years. It is mentioned that 911 district is paying debt services on their building space. They will save money once debt is paid off. AMERICAN RESCUE PLAN: Mr. Munn briefly explains what funds are coming to the county and that Mr. Emerson will be in charge of the ARPA funds. RECESS: A recess was taken at 12:16 p.m. and the meeting was reconvened at 12:30 p.m. DISCUSSION ITEMS: COVA BOCC BUDGET MEETING JUNE 4, 2021 PAGE 4 OF 11 CEO Julia Theisen states that the COVA budget does see a 900K carry over from last fiscal year. There are a large amount of TRT funds because of the increase in the use of resort vacation rentals. She refers to her budget memo and notes that the airline industry was very impacted by the COVID19 pandemic. She then explains the priority's for the 912K. COVA is planning to add a FTE for business development. Ms. Theisen adds that they do not have membership's fees currently due to the pandemic but are reconsidering those fees soon. A good portion of COVA's budget comes from the county as well as Travel Oregon. Ms. Theisen is happy to provide the Travel Oregon budget when it becomes available. FINAL DECISION SPECIAL REQUESTS: *Refer to the Proposed Requests for FY 2022 Memo* County Clerk's Office- 1 Administrative Support Technician FTE Budget Committee members support this request. Veterans Services- 1 Administrative Support Technician FTE Budget Committee members support this position for a limited duration of 2 years. District Attorney Ashley Beatty clarifies the needs for an additional victim's advocate. Trail Assistants are currently helping the victim's advocates in some cases because the work loads are heavy. Mr. Maier believes that that another advocate might not be needed if the Karpel systems is being used effectively. Budget Committee members support 2 Deputy District Attorney FTE's, 2.5 Trial Assistant FTE's, .75 Management Analyst FTE, Reclassification of Deputy District Attorney to DDA Supervisor and associated on -boarding costs. RECESS: A recess was taken at 1:40 p.m. and the meeting was reconvened at 1:49 p.m. BOCC BUDGET MEETING jUNE4,2021 P/AGE5OF11 CONTINUED- FINAL DECISION SPECIAL REQUESTS: Health Services It is noted that CBCHC PBS positions are currently limited duration so the request is to convert them to regular positions and pay through PPS. Commissioner DeBone states the State and Federal Legislature intends to support CBCHC on into the future. Budget Committee members support 6.6 Crisis Response FTE (Behavioral Health Specialists, Peer Support, PH RN, BH Supervisor), 2 Improved Access FTE and 3 Key Behavioral Health Infrastructure Staffing FTE (Management Analyst, Quality Improvement Analyst and BH Specialist I). Nahad Sadr- Azodi explains the Substance Abuse Prevention Specialist. Commissioner Adair adds that this position is very important. Mr. Sadr- Azodi also explains the Youth Success Partnership FTE's. Commissioner DeBone states that the project is vague. Commissioner Adair is aware of the problem but is unsure how to execute solving the problem. Mr. Maier would like to see hard statistical data on this program or of a similar program. Commissioner DeBone suggests having families and teachers work together. Several committee members ask for clarity of who supervises the program and employees- the County or the School District. Mr. Sadr- Azodi admits that there are details to be worked out. They will need a person to help implement the program if supported. There was enough support from Budget Committee members to support moving forward. RECESS: A recess was taken at 3:01 p.m. and the meeting was reconvened at 3:16 p.m. CONTINUED- FINAL DECISION SPECIAL REQUESTS: Budget Committee members support Environmental Health conversion of 1 regular FTE and an additional regular 1 FTE. B0CC BUDGE f MEETING JUNE 4, 2021 PAGE 6 OF 11 It is mentioned that restaurants are back to being open as much as they were pre - pandemic. The CPI and EH fees will be discussed at a later date at the Board level. Budget Committee members do not support a Perinatal Care Coordinator at this time. Administrative Services division of Health Services has had an Admin Assistant since 2017 which has been funded through grants and now COVID funds. Budget Committee members support 1 regular Admin Services Admin Assistant FTE. The current Public Health Administrative Assistant is approved through 2024 which is funded by COVID funds. Budget Committee members do not support a Public Health Administrative Assistant at this time. Budget Committee members support a .5 FTE Reproductive Health Admin Support Technician. Budget Committee members support 1 FTE Application System Analyst I. Budget Committee members support the addition of a 0.5 regular FTE Health Officer. Dr. George Conway mentions that the .5 Health Officer recruitment has not been successful. Commissioner Adair adds the importance of filling a psychiatrist position as well as a health officer. Currently, the Public Information Officer is approved through 2022. Budget Committee members do not support converting the Public Information Officer to regular at this time. Community Development Budget Committee members support 1 Administrative Supervisor FTE, 2 Permit Technician FTE and 1 Administrative Support Technician FTE as well as 2 General Fund requests. BOCC BUDGET MEETING DUNE 4, 2021 PAGE 7 OF 11 Road Budget Committee members support 1 Public Works Equipment Operator FTE. Solid Waste Budget Committee members support 1 Public Works Accounting Clerk FTE. Facilities Budget Committee members support 1 Project Coordinator FTE. Administrative Services Budget Committee members support 1 limited duration Performance Auditor (Management Analyst). Mr. Maier suggests that the New County Administrator decide what position he needs filled within the Admin office but allocate the funding for a position. Budget Committee members support funding a Public Information Officer position but allow the incoming County Administrator to hire what is appropriate and expand the Admin reclassification to accomplish this. Finance Budget Committee members support converting Budget Analyst to regular duration FTE. Budget Committee members support Budget Manager reclassification. Budget Committee members support purchasing Budget software. Human Resources Budget Committee members support 1 Administrative Assistant FTE. Sheriff's Office BOCC BUDGET MEETING JUNE 4, 2021 PAGE 8 OF 11 Budget Committee members support 1 Digital Forensics Detective FTE. Budget Committee members support 4 Deputy Sheriff FTE. These positions will be paid through the Law Enforcement districts with remainder of funds coming from TRT. Budget Committee members agree to not support a 3 cent tax rate increase to District 2. Budget Committee members support a 3 cent tax rate decrease to District 1. Budget Committee members and the Sheriff agree to transfer 100K each from Marijuana tax to help fund Deputy Positions. Mr. Munn asks whether to subsidize the Fair and Expo funds through general fund. Budget Committee members agree to leave the fund alone for now. The remote courtrooms and the Mass Vaccination Clinic helped with revenues to the Fair and Expo. If anything qualifies through ARPA funds then the Board can decide if funds need to be transferred in the future. Budget Committee members support the increase to EDCO from 264K to 270K. Mr. Maier comments on the proposed construction of Worrell Park. He suggests offsite parking about for county vehicles. He adds spending 2.6M for demolition and recreation of the park would be worst decision ever. He believes that this problem will create more problems. Commissioner Chang clarifies that the county is simply in the design phase now and there is no construction. Budget Committee members support TRT funds to fund the Justice Court. Budget Committee members support transferring 66K in General Funds to IT for website development. There was discussion regarding a General Fund property tax levy. Budget Committee members do not support a tax levy. BOCC BUDGET MEETING JUNE 4,, 2021 p/,GE 9 C)F 11 BUDGET APPROVAL: Deschutes County Commissioner Anthony DeBone motions to approve Deschutes County budget of $634,746,104.00 adjusted for approved changes and set a tax rate at $1.2183 per $1,000.00 of assessed valuation. Commissioner Adair seconds. 5 in favor, 1 oppoesed. Motion passes. Deschutes County Budget meeting closed. Countywide Law Enforcement District #1 Reconvene the budget meeting of the Countywide Law Enforcement District #1. Commissioner Chang motions to approve Countywide Law Enforcement District #1 budget of $42,918,547.00 adjusted for approved changes and set the tax rate at $1.05 per $1,000.00 of assessed valuation. Mike Maier seconds. All in favor. Motion passes. Countywide Law Enforcement District #1 meeting closed. Rural Law Enforcement District #2 Reconvene the budget meeting of the Rural Law Enforcement District #2. Commissioner Adair motions to approve Rural Law Enforcement District #2 budget of $16,729,754.00 adjusted for approved changes and set the tax rate at $1.34 per $1,000.00 of assessed valuation. Mike Maier seconds. All in favor. Motion passes. Rural Law Enforcement District #2 meeting closed. BOCC BUDGET MEETING JUNE 4, 2021 PAGE 10 OF 11 ADJOURN: Being no further items to come before the Budget Committee, the meeting was adjourned at 5:42 p.m. DATED this 3 Day of Commissioners. F ECORDNG S . 2021 for the Deschutes County Board of ANTHONY DE NE, CHAR IL CH NG,VICECHAM PATH :,, COW [ ER BOCC BUDGET MEETING JUNIE 4, 2021 PAGE 11 OF 11 FY22 Budget Committee Agenda revised 06.04.21.docx Friday, 4, 2021 Barnes & Sawyer Room and on Zoom This meeting will be Live Streamed on the Public Meeting Portal at J Agee do 8:30a Reconvene Deschutes lute„ s C'.ount $t€ ° ''i Mee e Review agenda changes and follow up items 8:30 - 11:O0a 10:00 - 10:15a 11:00a - 12:OOp 12:OOp 12:00pm - 5:OOp 8:30a - Veterans' Services, page 393 8:55a - Legal Counsel, page 530 9:20a - Human Resources, page 502 9:45a - Administration/BOCC, pages 372/349 10:10a - Finance, page 447 10:35a - Debt, page 490 z BSI *_D Chair Keith MacNamara Dave Doyle Kathleen Hinman Tom Anderson Greg Munn Greg Munn Budget Committee Department Heads 1. COVA discussion, budget detail, carry forward, future strategies 2. Review Special Requests 3. Continue to subsidize F&E with General Fund? 4. How to fund F&E long term capital reserve? 5. Increase EDCO from 264K to 270K? 6. How to fund long-term capital? 7. Use TRT to fund gap in Justice Court budget? $205K in the FY22 budget. 8. Make permanent structural increase in GF support of Victims? $200K. 9. Sheriff's Office District 2 TRT support/future levy change. 10. Marijuana revenue/funds status. 11. Eliminate $66K GF subsidy to IT. Commissioner Chang appointed to IAC with Bill Anderson appointed as an advisory member. 2. Change 2K in ME rent line to 6K to reimburse Dr. Van Amburg for personal office space rent for a year or so until County space is available in Redmond. 3. Convert Veterans' Assistance temporary help budget line to 1.0 FTE at a slight (2-3K) increase to proposed budget. 1. FY22 Budget Committee Agenda revised 06.04.21.docx Chair Deschutes County Motion to approve Deschutes County budget of $634,746,104 adjusted for approved changes and set the tax rate at $ per $1,000 of assessed valuation. Motion seconded. Budget Committee votes. Close County budget meeting, Countywide Law Enforcement District #1 - Fund 701 Reconvene the budget meeting of the Countywide Law Enforcement county service district. Motion to approve Countywide Law Enforcement County Service District budget of $42,918,547 adjusted for approved changes and set the tax rate at $1.05 per $1,000 of assessed valuation. Motion seconded. Budget Committee votes. Close Countywide Law Enforcement District budget meeting. Rural Law Enforcement District #2 - I-und /U2 Reconvene the budget meeting of the Rural Law Enforcement county service district. Motion to approve Rural Law Enforcement County Service District budget of $16,721,754 adjusted for approved changes and set the tax rate at $1.34 per $1,000 of assessed valuation. Motions seconded. Budget Committee votes. Close Rural Law Enforcement District budget meeting. From: Joanne <joanne@imirj.org> Sent: Friday, June 4, 2021 11:55 AM To: citizeninput Subject: Testimony on Budget hearings 2021 [EXTERNAL EMAIL] Good morning County Commissioners. I write to submit public comment on the 2022Budget. I appreciate the county staff starting this week acknowledging that renters have been the hardest hit by the pandemic in Deschutes county, people of color and the working poor in Deschutes county need the support and investment of our county. Housing instability is one of the biggest challenges for our community alongside racism and armed militias. I -hope you see that the trust on law enforcement to address the social issues impacting Deschutes county has been eroded by poor choices. I ask that you do not support continue funding of the sheriff office but rather relocate those funds to community base organizations working with those directly impacted by housing instability, homelessness and many other issues in our area. Respectfully, Joanne Mina Community member and resident of Bend. Sent from Mail for Windows 10 Citizen Input Received via Voice Message for Budget Hearings From: 1-541-248-4731 Date: Friday, June 4, 2021 at 8:17 a.m. Joanne Mena 675 NE Bellevue Drive, Bend Transcribed from voice message. To provide input on the budget hearings. She has lived in Bend for over 10 years and have seen in the community the problem of housing instability and seems to be the biggest threat for our community at the moment. That compiled with racism and stress in the community is being exacerbated to the point we must tackle and address the problem of housing instability and stress in Deschutes County: I am calling specifically to highlight the important of having community relationships working directly with our unhoused populations and working directly with community members at risk of losing their homes. I think that it is important that we have knowledge that the trust between the Sheriff Department and the community around helplessness has been breached and I think that we look for other solutions. So I request that you do not support funding the Sheriff Department any further but rather look for community based organizations and community members themselves to be a part of the answer of the problems we face today. These issues do not require law enforcement to be involved and it is important that we look at the future and we look for how our community is going to grow rather than how we have been doing things how we can innovate and incorporate the ingenuity the passion of our own community members. Thank you. I also want to make sure that you know I am calling as a community member, as a mother, and as a worker in Oregon. These hearings started with County staff sharing that these folks that are renting are the ones that are really struggling during the pandemic to keep their homes and this touches me personally because I have experienced all these issues with my family. I want to make sure that you understand how important it is that communities and people are invested and engaged in finding and working toward the solutions that we need. Thank you for your service and thank you to all the County staff that is learning and doing better every day. Have a good day. FY 2022 Special Request Veterans Services Department Veteran's Services Position Type: Regular Fund 001-2300 Project or Position Title Admin Support Tech Description and Itemized Costs request an additional admin support tech to allow the office to provide for faster customer service, maintain data base up to date, enter all communications, update current service connected conditions, payments to veterans, and ensure file accuracy. The total cost for this position at step 1 is $73,369. The revenue offset available is $50,000 and could be up to $70,000. I have requested $71,000 in the current budget for temp employee, however the money is better spent on a regular employee associated cost. Describe Specific Personnel Needs Require the added staff of an admin support tech to assist county staff in the daily operations of the veterans service office. This will allow for also conducting special projects as needed and required to maintain the data base, payments to veterans, up to date disability ratings, and all communications. Date 4/19/2021 Priority: 1 # FTE 1.00 Salary / Wages 42,236 Benefits 31,133 Position Total 73,369 Materials/Svcs Capital Outlay Total Cost 73,369 Revenue Offset 50,000 Net Cost 23,369 Justification I have been using the same temp employee doing the duties of the admin support tech for almost 4 years and it is financially more feasible to pay the costs of a regular employee instead of paying a temp agency. Funding Source measure 96 state funding and general funds Administrator Comments: In Proposed: No COUNTY COUNSEL Budget Presentation June 4, 2021 1. Who are we? What do we do? two paralegals: Pauline Word and Gwen Potter - two Sr. Assistant Legal Counsels: Christopher Bell and John Laherty - two Assistant Legal Counsels: Adam Smith and Amy Heverly - one Legal Counsel: Dave Doyle - we provide full service legal advice and representation to all county departments; handle ALL transactional and litigation work (excepting bond work due to ORS requirements, and workers compensation); public meetings, public records, contracts, labor negotiations, civil commitments, dog board hearings, property tax appeals, real property transactions, etc. - we also provide General Counsel to DC 911, SRSD, and BBR PD 2. Workload & Staffing Challenges - annual workload volume increases of at least 5% continuing Primary Areas: Health Department COVID-related matters, Civil Commitment Hearings; Contract support for Finance & Health Department; BOCC meeting staffing and support - workplace: adjustment from in -office to remote to hybrid model Observations re: Remote: work getting done very well and on time; isolating and independent; morale and collaboration impacts 3. Budget Numbers - status quo budget request 4. Future Needs - technology upgrades: Zoom -based litigation applications (depositions, remote hearings/trials, witness management), litigation management program (complexity of discovery, trend of venue in federal court) There are three types of accountants: Those who can count andthose ho cant 6/3/2021 We champion a culture of inclusion, innovation, and engagement to realize the full aotentiai of the people who support our community. Current Staffing - 8,0 FTE Kathleen Hinman - Director Robin Edwards - Administrative Assistant Teri Lorenz - HR Analyst, Systems and Compensation Jason Bavuso - HR Analyst, Employment and Labor Relations Jennifer Clemens - HR Specialist, Recruiting Natalie Jones - HR Specialist, Employment Trygve Bolken - HR Analyst, Benefits Sue Henderson - HR Specialist, Leave Administration and Benefits Total Budget $1,563,892 Budget Change = 40 6% Special Request for 1 FTE 1 6/3/2021 191 Compilance/Reporting Investigations Employee Relations Policy and Procedures Contract Negotiations Training HR Information Systems Status Changes Records Management Classification & Compensation Leave Administration Employee Recognition Performance Management Discipline Volunteer Coordination Benefits Administration Unemployment Claims ISEEMIMNSIERIISSNSSSSISBEEBBEEISSEMISSSEEEMIEISSSSSISESfillat Department support for COVID-19 employment impacts. Transitioned County training program to a virtual platform to support training needs while remote. Constructed an integrated Family Medical Leave tracking module within the electronic time and attendance system. To be launched in FY22. Increased support for department recruitment and selection processes. ONSIMIIIIINMBIEBISIUSIIIISOIWIInrng§MstOBSBSIOESESSIEWIEISEISB16ioaiSOVU 2 6/3/2021 Deschutes County Turn Over Reporting (FY20 & FY21 FYTD) FY20 Turnover FY21 Turnover of Staff Percent of Staff KOW LaneIs v 9_1_1 r...,. 6 ....... 1 _._..- .--- 7 11.3% 1.9% Assessor 2 2 0.0% 5.9% BOCC 2 2 14.3% 0.0% CDD 6 5 11 11.5% 9.6% Clerk 1 1 0.0% 11.1% Comm Justice 8 11 19 9.3% 12.8% DA 4 9 13 6.0% 13.4% Fair & Expo 2 1 3 18.2% 9.1% Finance/Tax 1 2 3 7.1% 14.3% Health Svcs 36 40 76 11.8% 13.2% Justice Court 1 1 14.3% 0.0% Road 5 5 10 9.3% 9.3% SO 17 17 34 7.5% 7.5% Solid Waste 2 2 4 8.7% 8.7% eoi Grand Total 90 96 8.9% Deschutes County Turn Over Reporting (FY20 & FY21 FYTD) FY20 Turnover Percent of Staff FY21 Turnover Percent of Staff KowLa0e15 w 9-1-1 r . w 2 .......- ---- 2 20.0% 0.0% BOCC 1 1 20.0% 0.0% Comm Justice 4 4 0.0% 21.1% Fair & Expo 1 1 33.3% 0.0% Finance/Tax 1 1 0.0% 25.0% Health Svcs 1 8 9 2.1% 16.7% Road 1 1 0.0% 11.1% SO 2 2 4 4.4% 4.4% Solid Waste 1 1 0.0% - -., 33.3% n .0/ Grand Total 6/3/2021 Roll out the integrated Family Medical Leave tracking module. Evaluate Learning Management Systems for County- wide use. Continue work on pay analysis plan. Support finding 3 new Directors, increase support for hiring managers in finding and 50 selecting candidates, IISIIRMIBSfaaPSNOMSISIESBSOSVSIOMIISSIIUSINSSISSISUIMIIIIIItentibbINBIE Continue increased client consultation for employment concerns, including investigations and ADA processes. Complete AFSCME bargaining for new contract terms. Begin DCSEA (Sheriff's Office) bargaining. Support return to the office plan. ugtgtntunatISSEMSNNIONBSIESWOINSIBISSMSIOMIIUenssg„qonsgynagoh,„,„,„gnaas 6/3/2021 0% increase in rate is proposed, projected to use a 4% per FTE subsidy from reserves. ($900,000 total) Using this subsidy will project an ending fund balance of $15M for FY22. fr� 5 FY22 Change from FY21 5 Yr Avg 2016-20 10 Yr Avg 2011-20 Revenue -2.3% 4.8% 2.1% 5.8% Expenditures -3.5% 8.0% 4.5% 5.4% Cost per FTE -3.0% 3.0% 3.5% 4.3% Ending Fund Balance -1.0% -5.6% 2.6% -0.10% Subsidy as % of Premium per FTE -1.0% -4.0% 2.0% -1.4% Claims Paid 8.3% 3.7% 4.1% 3.3% 5 6/3/2021 Must use the reserves in accordance with ORS 731; costs associated with the Health Program. Options to use the reserve to subsidize the health plan rates. Maintain proposed rate for FY22 and use reserve in the upcoming years to minimize cost increases. Additional 2.5% rate subsidy in FY22 ($469,198); ending fund balance of $8.9M in FY27. Additional 5% rate subsidy in FY22 ($938,395); ending fund balance of $5.3M in FY27. 2020 Deschutes County Health Plan Benchmark - Milliman Deschutes County Health Benefits Plans offer a richer level of benefits for it's members; medical, Rx, vision, and dental. Tiered plan rates run a little higher to public sector comparable groups, however the composite rate is closer. Deschutes County Health Plan Average Enrollment Census (for reference) % of Total EE EE+,51kouse, Ektch(fst!)) E+Family, 19% 21% 11% 48% Total 100% IIRM111tBflnafatfafnanatltllafitgdliktl,1ntalnllnntnlagnlfanIIIIIIIEVfinbioigntffgl 6 6/3/2021 2020 Deschutes County Health Plan Benchmark ® PlanIT Annual cost per Employee is generally Tess than the comparable group. 3,437;' $2 688 $2,869 $3,894 Deschutes County $3016 $2 638,: $4,286 $4,489 O Pharmacy" Admin/Stop-Loss 0Dependent ■ Spouse. ■ Employee 2020 Deschutes County Health Plan Benchmark - Pia IT Utilization Information Utilization Category Frequency :Inpatient Hospital 0_55 Outpatient Hospital ital 0.41 Emergency Room 0.56 Inpatient Swgery 0.54 Outpatient Surgery 1.21 1.18 Office Visits 0.96 1,11 tMental Health Visits 2,42 1.06 Ph srcal Medicine Visits 2.34 1.01 1.Vellnes s/Routine Visits 0.62 1.21 'Radiology Services 1.25 0.93 Laboratory Services 0.54 1..01 Average Network Repoited I Average t Plan Charge Penetration . Discount Paid Expense 1 0 8 10C 0/ j li/ ..,. 1 0 ` 0.57 0.54 98 1% 0.93 39.9%u S 00 100.0% n/a 1.00.00/0 1 Ma 98.2 Ma 9 .9O/ a/a 87.4% 949% 9.2% n/a 7.9% 0.87 1.21 1.33 1.33 1.67 1.73 1.44 1.28 1.24 0.36 0.68 0.72 1.61 1.61 4.19 3.38 0.80 7 6/3/2021 Completed online Open Enrollment process during the pandemic with a mix of remote work and on -site employees. Issued DOC and DOC Pharmacy RFP; vendor selection and contract negotiations begin next week. Established employee and dependent COVID-19 vaccination clinics at the DOC Pharmacy. Amended Benefit plans to allow for Cares Act changes (FSA and COBRA) Implement new vendor contract(s) resulting from RFP. Review cost savings opportunity for pharmacy benefit manager contract. Work with plan partners to address claims utilization and identify cost savings opportunities. Increase Employee Assistance Program awareness. Review Oregon Savings and Growth Plan option for deferred compensation carrier. 8 6/3/2021 Request for 1 additional FTE: Administrative Assistant Total cost of request is $92,767. The position would focus on supporting the Recruitment and Employment Management functions. Shifting administrative work from the HR Specialists and Analysts to allow time to establish HR tools and resources, engage with hiring managers on recruitment logistics, conduct more thorough qualification review for candidates, facilitate hiring team trainings, improve turnaround time for compensation and classification reviews. ::::1'.1,,,.-,.3'''.:,.;'-':..5:',.','ZI,',..;2-:-.,-;-.'.,',<:',..,:-:,.,...,.,,i„,,_::',:-,i-,-',.:,-11';',::;:,-,r-';'-t,'-',-':',.-4-!,;':-:,,i'l"',-;..11-,:-.:-...)-.,-'::-...,.:.-:',_.,,?::".:',i•-,'J:,.:.;-',,,,n',.t.;--,',-,.,-,1,:.,,,,:f„,,,.!-,,,„„,_:..:,7,,,,,:[,-,...„::l..,, 9 6/3/2021 The Human Resources Team. 11112111111111111111111111111111111111111111111111111111111111111NINgsgespianti„,„dingl Interoffice memorandum Date: June 4, 2021 To: Deschutes County Budget Committee CC: Employee Benefits Advisory Committee From: Kathleen Hinman, HR Director Re: Health Benefits Fund Review Delivered via in person and email. 2020 Deschutes County Health Plan Benchmark - Milliman Enclosed is the most recent Health Plan Benchmark completed for Deschutes County's Health Benefit Plan. This survey was completed by the County's benefit consultants, Davidson Benefit Planning group (DBP) using Milliman benefit plan research and data. In this benchmark, the County's Health Plan is generally paralleled against four different comparable groups; defined on page 1 of the report. Some highlights from the benchmark: Medical Coverage • Plan's deductible, out of pocket maximum, and specialist copays are lower than comparable groups, the plan also offers a no cost barrier when accessing the DOC on -site clinic. • County's tiered medical costs are higher than most comparable groups. (County's composite rate is closer to comparable groups.) • Employee contribution rates for medical coverage are much lower for most of the tiers, with the exception of individually covered employees. • Employee out of pocket costs for prescription drugs are generally lower than comparable and substantially lower when using the DOC onsite Pharmacy. Dental Coverage • County's dental coverage provides a richer level of coverage than comparable groups. • County's tiered and composite dental rates are higher than most comparable groups. • Employee contribution rates for medical coverage are much lower for most of the tiers, with the exception of individually covered employees. Deschutes County Health Plan Average Enrollment Census (for reference) % of Total EE EE+Spouse EE+Ch(ren) EE+Family Total 19% 21% 11% 48% 100% 1300 NW VVall Street,Suite201 Bend, Oregon 97703 (541) 388-6553 hr@deschutes.org www.deschu es,org Health Benefit Fund The health plan rate in the Proposed Budget is a 0% increase over prior year and includes a 4% subsidy from the Health Benefit Fund Reserve, which we anticipate will draw down the fund by $892,408. Using this subsidy would result in an ending fund balance of $12.5M in FY27. The budget includes expenses based on our average increases, with the exception of additional expenses budgeted for the outcome of the RFP for the on -site Health Clinic and Pharmacy. frame $ ; Q v f FY22 Change from FY21 5 Yr Avg 2016-20 10 Yr Avg 2011-20 Revenue -2.3% 4.8% 2.1% 5.8% Expenditures -3.5% 8.0% 4.5% 5.4% Cost per FTE -3.0% 3.0% 3.5% 4.3% Ending Fund Balance -1.0% -5.6% 2.6% -0.10% Subsidy as % of Premium per FTE -1.0% -4.0% 2.0% -1.4% Claims Paid 8.3% 3.7% 4.1% 3.3% National self -funded cost trends average 5 — 7% annually. Additional use of the reserve to subsidize the health plan rates for departments. It is important for the County to use the HBF reserve in accordance with ORS 731. Violation of ORS 731 could impact our self -funded status and could result in the Toss of our exemption from the insurance code. Per consultation with Davidson Benefit Planning and their legal counsel, the HBF reserves cannot be used as 3 loan or source of payment for expenses that are otherwise outside of the exclusive benefit of the Deschutes County Employee Health Benefit Program. • Maintain proposed rate for FY22 and use reserve in the upcoming years to minimize cost increases. • An additional 2.5% rate subsidy for department charges would cost the reserve an additional $469,198 creating an ending fund balance of $8.9M in FY27 (See Using 2.5% Subsidy from Reserve sheet.) • An additional 5% rate subsidy for department charges would cost the reserve an additional $938,395 creating an ending fund balance of $5.3M in FY27 (See Using 5% Subsidy from Reserve sheet.) Significant Accomplishments and Upcoming Challenges. • Completed the County's online Open Enrollment process during the pandemic with a mix of remote work and on -site employees. • Issued DOC and DOC Pharmacy Request for Proposals; vendor selection and contract negotiations begin next week. • Established employee and dependent COVID-19 vaccination clinics at the DOC Pharmacy for. • Amended Benefit plans to allow for Cares Act changes (FSA and COBRA) • Review cost savings opportunity for pharmacy benefit manager contract renegotiation or RFP for services. • Work with plan partners (PacificSource, DOC Clinic, etc...) on mental health and physical medicine programs to address claims utilization. 1300 NW Wall Street, Suite 201 Bend, Oregon 97703 (541) 388-6553 hr@deschutes.org www.deschutes,org 03 N 03 0) co 0 L. co 0_ cn a) c0 03 F O U 03 03 O a) 0) a) n O CZ cn O O 4 O c) E co CD O n N co O o - N L O) co 0_ O a_ 0) C.) CG n E O U O O cn c) 0_ .") 0) O O T _O n E LL LOoar Q 03 v N ( O O L_ O • 78,1) E Q - c\r'zip N 0_ m N 6 <G Q O L. CO 03 a) 0 E O U 03 O O cn co Q a) (2 U) O O T 0 Q W Q - .▪ v O O 0 O L N O O co O a) N AN ALERA GROUP COMPANY C.C.) Sn) 0 7-- LC LO CO 0 o o 0_ '. n 0 P --) 0 ..- a) > (-\,1 ,--, >, 'Se- CNJ >Th 0 co _O ,...1- ri '' < co ,I ) 0 a) 0 _ u L.) u u u ca ,._ ) u }----- C Q 0 Lc) c,,,j (f) (Th‘j u-) -a,.a-, .,-t- (f) -.&,,,) E -be-, -E.-P, ,---• -&9- >Th >Th n U - - (-.) , ' 00 CO 0CD C; — — Co', LO Ci) — , , 0 E.- — ' (,..1 -c —— L o m o (1-,, 03 -'--, c co co ,v3L 7_. = -) c) ,-,- a, — 0_ (,= 0 0 ,...L. (7) Ui ' E C>'‘5j -P c— X E 0 CO Oz Oz uE0z o E a) Preferred Brand o V) z E AN ALERA GROUP COMPANY co 0) 00 a) 0 a. w % of Total Rate 0) LID 00 LC) 00 a) (f) 0 uJ LiJ % of Total Rate 00 0) 00 CO 00 00 LC) 00 % of Total Rate 00 c 00 CNJ 00 00 E u_ % of Total Rate 7 BENEFITS PLANNING AN ALERA GROUP COMPANY 00 00 ; c , ,-) 0, N L) C 00 00 L^ O L� n 00 00 O� N W CV t- \J CC N C 00 00 00 L 0 A U c E + + LL- w w w w w I. ENE Mu■ EMI BENEFITS PLANNING AN ALERA GROUP COMPANY" 03 C.) / 0 03 0 A ƒ • G w w / 50%; $1,500 0 c y 2 9 % �, ƒ 0 _ a)/ / / 2 e c c c 8 © E G / 5 e = ® _ T= a> /. / / 2 / 0 5 0 5 / Annual Maximum 50%; $1, 500 9 m d twammi MINIM ■ MINIM AN ALERA GROUP COMPANY criQ) O. N E 8 a 1:P 0 z 0') cr, (-0 C LC) Lr) _ C) r.) LC) LC) % of Total Rate % of Total Rate EE + Ch(ren) % of Total Rate LC) E 0) LL % of Total Rate E z 0 BENEFITS PLANNING AN ALERA GROUP COMPANY Self -Funded ASO _J O) 0) CT) 0) 0) S]]2\01d1A1] AO aaiwnN 0) 0) z 0 27, AN ALERA GROUP COMPANY Deschutes County Health Benefits Fund Projections of Reserve Balances Revised 06.01.2021 FY 2011 FY 2012 " FY 2013 Actual FY2014 1 FY2015 FY2016; FY 2017 FY 2018 MP MM. FY 2019 FY 2020 Estimate i FY 2021 Budget FY 2022 FY 2023 Forecast FY 2024 FY 2025 FY 2026 FY 2027 5YrAve 10YrAve ' 2016-20 2011-20 DRIVERS/ASSUMPTIONS Revenue Annual Premium per FTE Monthly Premium per FTE Change from prior year Monthly Employee cost share Change from prior year Total Annual Premium per FTE Change from prior year Expenses Cost per FTE 16,223 10.9% 13,366 14,034 1,113.83 8.3% 50 1,169.50 5.0% 65 42.9% 30.0% 13,966 14,814 9.4% 6.1% Change in cost per FTE from prior year I i 15,086 16,746 I 17,750 18,461 I 19,384 1,257.17 1,395.50 j 1,479.20 1,538.42 I 1,615.34 7.5% 11.0%1 6.0% 4.0%1 5.0% 90 85 901 90 65 0.0% 15,866 7.1%- 38.5%1 -5.6% 5.9%0.0% 17,826 ( 18,770 19,541 20,464 12.4% 5.3% 4.1% 4.7% 17,376 7.1 19,834 18,528 18,557 14.1% REVENUES Total Revenues 14,390,361 15,147,288 16,140, 540 Change from prior year EXPENDITURES Total Expenditures Change from prior year 11.9% 5.3% 6.6% 15, 548,612 16,426,148 12.9% 5.6% ENDING FUND BALANCE Operating Surplus/(Deficit) Annual Reserve Subsidy per FTE (1,208) (1,353) (2,736) Subsidy as % of Annual Premium per FTE -6.6%1 0.2% 18,197,872 20,324,670 12.7%' 11.7% 20,927 12.8%1 21,081 0.7% 19,384 i 19,384 18,415 1,615.34 I 1,615.34 1,534.57 0.0%1 0.0% -5.0% 90 0.0% 20,464 0.0% 90 90 0.0% 0.0% 20,464 19,495 0.0% -4.7% 22,416! 20,817 6.3°/01 -7.1 % 20,404,390 21,553,322 0.4%'. 5.6% 21,766 4.6% 18,415 1,534.57 0.0% 90 r 0.0%I 19,495 0.0%j 18,415 1,534.57 0.0% 901 0.0% 2,5% 19,495 J 19,982 0.0% 2.5% 18,875 19,630 20,514 21,539 22,616 21,107 21,733 -3.0%', 3.0% 1,572.93 2.5% 92 1,635.85 1,709.46 1,794.94 1,884.69 4 0°/o 4,5% 5.0% i 5.0% 96 100 105 111 4.0% 4.5°/o 5.0% 5.0% 20,781 21717 22,803 23,943 4.0% 4.5°/o 5.0% 5.0% 22,386 3.0% 23,032 2.9% 23,743 3.1% 0.8% 4.2% 1.2% 11.2% 0.8% 4.4% 24,437 25,115 2.9% 2.8% 21,401 3.5% 19,752 4.3% ° 22,699,676 °a 1 23,863,725 28,326,369 30,216,796 22,015,956 ° � 22,490,9830o 21978�87° 23,028,9004.8/0l 3.6/0 5.4%251555.8%26,605', 6.5% 6.7% 2.1 %> 3.1 1 18,723,746 17,704,610 ; 18,578,227 20,109,291 ; 20,673,366 22,323,222 21,211 086 22,953,058 14.0% -5.4%! 4.9% 8.2/02.8/°0 8.0/u ° 8.2% 5.0/o (1,158,251) (1,278,860)1 (2,583,206)1 493,262 1,746,443 295,099 '. 516 1,744 307 -9% -10% -18% 3%, 10% 2% 879,955 (307,266)j 1,488,590 (462,075) 897H (309)1 1,461 (438) 5% -2%1 8% -2% 22,143,834 23,921,308 3.5% 8.0% 24,992 382 26,114,664 4.5%1 __. 4.5% i (165,347) (892,408) (1,128,657) (158)1 (811) (1,011) -1 % -4% -5% (958,916) (846) -4 % 2.1% 27,290,815I 28,523,649 29,816,139 4.5%1 4.5% 4.5% (685,630) (197,279) (596) (169) -3%! -1% 400,657 337 1% 4.5% 5.8% 5.4% 2.0% -1.4% Ending Fund Balance Change from prior year 15,829,888 14,551,028 11,967,822 12,461,084 14,207,527 14,502,626 15,382,582 15,075,316 16,563,906 -6.8% 16,101,831 15,936,484 15,044,076 13,915,419 12,956,503 12,270,873 12,073,593 12,474,250 -8.1 % -17.8% 4.1% 14.0% 2.1%! 6.1% -2 0°/ 1 9.9%[ -2.8%J -1.0% -5.6% + -7.5% -6.9% -5.3%' -1.6% 3.3% 2.6% -0.1 Ni 1 N 0 Cr) N O O O O co N CO 0 N N 0) 'Cr -0 0 to 4 , `- N t� 0 i' st N N c LL H is 4- CU c CO i T0) c 0 u N 0) s u H GJ a N w E 0 .N OO bA c w co (Mqq ^W w i w 4-. 0 0 u Ai Q. Revised 06.01.2021 0 O0\0o pp\` M 00.0 o),q Cow; ci',ONP T CO _0 co Lu LL N Q E E 0 N. 0 c) M 0 0 O O a O CD0 0) O a) t U O 0 0) O 0 Cr) 0) O O 0 O O <0 O 0 0 N W N co O O• _ N 0 N M N CO M 0 O 6) 0 N O N O to to d' 0 0 0 '[t N O 1.6 O M M CO N N- c' M .. 0 00 10 CO 0 0) N 0 0 T M 0 co 03 0 0 M T T 0 N- 0 O T O o 0 co_ Oi T ' w LL- . L N cu L E L O § O E Q Ed O O a) a) O) E O) c Q c .c s U o U I — C O O c a Q O Eo coco u. G. N !13 O Oi c. aTo c 0 H a N d c a) Q w 0 O M N N N ICj N N O T N W 0) Q O 0 O M CO d a) c CO N w z w� W EXPENDITURES c' 0 d) N O O 0 0 N CO 0 ' O) 0 O) M O) N N CO 03 OD O 03 0 M O) 0 O i CV d'I 00 O 10 1 0 N 0 O Oo Oi� 0 0 N o. O N 9 (0 N (0 10 N N (0 - 0, 0 co C) L) IN s to far. 0 (0 10 N p O M 0 0) Lf) co 0 0 L() 0 (0 N O 0 O) 0 r-. 0 N (0 O) 0 co (0 O co N (0 O (0 (0 co Oo N- d tq O t .tfa 00 4 ch: ct n N' . O N N o LC) o M d N L() N to v- 4 N 0 O L 0 00 M 0 Lc; 1` CO M (0 0 N W ti co 0 so 0 co 4 to M co u) N: N N CO N M O rn LO O) 0 0 ? O) C) ti M 0 0' o Cr)- OOa^�: O) 13) ! d7 I' 0) ' ? Off' o t() 0 c) O M 0 LLC) 0 O O) O 0 o L()'o 0 O) 0 O r O (0 0 O O O) 0) LO O � O L() O 0 O O O Cr) 0 0 o N o �' d) M Ln 0 ✓ N M In N N O 4 (0 N N O o ll) o cr o f� O 0 N 0 L) Cr) 0)) 0) ti N N N o O) 0 •- O 8177., N 0) 0 M 0 '- d N O) co N N O co N O N ✓ O) e- 0 N (0 L() 0 O 0 O 0 06 N N 0 0 0 0 M co N O) Cr; N a. co co ' l6 0 c co 0 O 0. U 0 Q t0 L. co L O Q E 0 u. d Q V) w O ♦— t) LL.__ a) p O) c C ay K U U w REVENUES EXPENDITURES 0 c Q w O H E O ra- rn c U 0) O_ T wo --0 ♦ ♦ ! N Z 3 Wm m S CI Q. 6 cp u. 0 Z Z w w a w L 0) Q E w � E (0 c co co 0 c co R CO 0 C) c w FY 2022 Special Request Human Resources Department Personnel Position Type: Regular Fund 650 Project or Position Title Administrative Assistant Description and Itemized Costs Addition of one HR Administrative Assistant to focus on Recruitment and Personnel Actions. Cost is budgeted at step 2 with additional M&S budget for computer and materials. Describe Specific Personnel Needs Increase HR presence and support for data entry and system maintenance for recrutiments and employee actions. Date 3/5/2021 Priority: # FTE 1.00 Salary / Wages 53,017 Benefits 36,250 Position Total 89,267 Materials/Svcs 3,500 Capital Outlay 0 Total Cost 92,767 Revenue Offset Net Cost 92,767 Justification Moving this work from the HR Specialists and Analysts will allow additional time to meet the reqeusts for additional support from the departments on recruitments. HR has taken on an increased role in Munis system management. With the addition of this position, HR can work to engage with hiring managers regarding recruitment logistics; drafting HR tools and resources; plan/implement advertising plans; conduct more thorough qualification reviews for initial referrals; and facilitate standard hiring team trainings (Bias; Vets' Preference, etc...). Funding Source Internal service charges. Administrator Comments: In Proposed: No FY 2021 Special Request by Fund Department Administrative Services Position Type: Regular Fund 625 Project or Position Title Admin Capacity Expansion Description and Itemized Costs Administration requests the reclassification of the Communications Director position to a Deputy County Administrator position. Describe Specific Personnel Needs Date 4/20/2021 Priority: # FTE 1.00 Salary / Wages 27,693 Benefits 10,592 Position Total 38,285 Materials/Svcs Capital Outlay Total Cost 38,285 Revenue Offset Net Cost 38,285 Justification Currently, staff in Administrative Services are working beyond capacity. Staff are routinely triaging to manage day-to-day work, tackle special projects and provide policy support to the Board. The County Administrator routinely works six days a week. The Deputy County Administrator also serves as the County's Risk Manager, which is rare (most counties have a separate Risk Manager). In addition to providing direct communication support for 19 County departments, the Communications Director is managing a variety of additional areas of responsibility, including legislative affairs, grant management, performance management, economic development and transportation funding. Administrative Services' staffing model was last updated 13 years ago. Since then, the County has grown considerably, and the complexity of issues facing County Administration continues to expand. Administration proposes reclassifying the Communications Director into a second Deputy County Administrator position (Special Request #1) and hiring a Public Information Officer (Special Request #2) to give Administrative Services much needed additional capacity. This will create a sustainable structure for the new County Administrator, will enable staff to provide additional support to the Board Commissioners and will allow for more direct support of departments through a redistribution of department oversight. The creation of a second Deputy County Administrator position will also allow Administration to better support existing special projects (such as Harper Bridge and the County's Medical Examiner structure) as well as new programs and projects, including: • Homeless/Housing Issues • Diversity, Equity and Inclusion • Language Access • Water Issues • Recreation Projects • Parks / Recreation Issues Funding Source Internal service fund charges. Administrator Comments: In Proposed: No FY 2021 Special Request by Fund Department Administrative Services Position Type: Regular Fund 625 Project or Position Title Admin Capacity Expansion Description and Itemized Costs Administration requests the addition of a Public Information Officer to support County communication needs. Describe Specific Personnel Needs Requires considerable knowledge of the principles and practices of public relations, communication and marketing. Considerable knowledge of government functions and the role of local government in the community. Considerable knowledge of journalism practices, social media strategies, and news media operations. Must be proficient in verbal and written communication skills to make formal presentations, market ideas and concepts. Requires sufficient writing skill to prepare messages for public use, advertising, complex reports and correspondence. Requires special skills in desktop publishing and document processing. Knowledge of Oregon public meeting and public records law. Date 5/3/2021 Priority: # FTE 1.00 Salary / Wages 71,240 Benefits 42,278 Position Total 113,518 Materials/Svcs 4,500 Capital Outlay 2,000 Total Cost 120,018 Revenue Offset 70,000 Net Cost 50,018 Justification If the Communications Director position is reclassified, the County will need to hire a Public Information Officer to continue the management of external and internal communications. The Public Information Officer would provide direct communications support to 18 County departments, including the Board of Commissioners. This work includes: • Media relations (interviews with media, issuing press releases, organizing press conferences and media availabilities) • Social media (managing the County's social media channels) • Developing and maintaining website content • Assisting departments with development of marketing materials and purchasing advertising • Developing public -facing presentations • Developing employee communications (including the County's employee newsletter) • Supporting a range of other responsibilities designed to increase transparency of county government. Over the past five years, the communications workload for the County has grown immensely. The County has developed a new electronic newsletter, which reaches 56,000 residents. The organization's social media footprint has grown significantly: In the past two years, the County has gained more than 8,744 new social media followers and had a 315% increase in social media engagement. This growth represents a fantastic opportunity to connect with County residents, but also demands a significant amount of staff time and attention to develop content and monitor and respond to comments and questions from the public. In the past year throughout the COVID pandemic, Administrative Services has worked closely with Health Services to develop and implement Spanish language communications. The County has started a new Spanish Language Facebook page and has implemented simultaneous interpretation during COVID-19 updates at Board of Commissioners meetings and during other virtual community outreach events. The Public Information Officer would continue this work and expand the development of culturally relevant materials and strategies. Hiring a Public Information Officer will give Administrative Services much needed additional capacity. This will create a sustainable structure for Administrative Services and will enable staff to provide more direct support to all County departments. Funding Source Proposal to fund the PIO position 1/2 from General Fund and 1/2 from Internal Service Fund Changes. If this request is approved, the Public Information budget of $40,000 will reduce to $20,000. Administrator Comments: In Proposed: No FY 2022 Special Request Administrative Services Department Administrative Services Position Type: Regular Fund 625 Protect or Position Title Performance Auditor Description and Itemized Costs Performance auditor to be overseen by County Internal Auditor to work on adopted audit work plan strategies. Itemized costs include computer with MS Office suite programs and added user licenses to audit software for workpapers and data mining. Professional license support and professional training to qualify for government auditing standards and certifications. Office space and furnishings to be determined. Describe Specific Personnel Needs Performance auditor with commensurate professional background, skills, and certification(s) including ability: • To carryout specialized performance audits of County operations within governmental audit standards and as directed by the County Internal Auditor. • To work to add value to County operations. • To work independently with minimal supervision. • To exercise judgment based on seasoned background. • To develop findings and recommendations. • To communicate in an effective manner results of work orally and in writing. • To maintain effective working relationships with County leadership and employees. • To provide consulting and business advice as needed. Anticipate a qualified individual will be a CPA, CIA, CISA, CGAP or similar with exposure to local government operations. Expect skills with data mining and computerized business systems. Expect complex problem solving skills. Justification Date 3/2/2021 Priority: # FTE 1.00 Salary / Wages 71,118 Benefits 42,944 Position Total 114,062 Materials/Svcs 12,175 Capital Outlay 2,100 Total Cost 128,337 Revenue Offset 18,800 Net Cost 109,537 The County Audit Committee supports this request for an additional auditor. The County has had only 1 auditor for 19 years. The County Internal Auditor performed some benchmarking of regional audit organizations that showed that we were among the lower staffed internal audit organizations based on budget and could add an auditor and still be within the averages of these peers. (See detailed benchmarking page attached) In addition, the County Internal Auditor is nearing retirement age and in order to successfully transition this position, thinks having a staff auditor who can start absorbing some of the culture and practices could yield a future County Internal Auditor or as support for the County Internal Auditor. In addition, provides opportunity to build experience with County systems, the electronic workpaper system, audit procedures, and data mining techniques. Transitioning a single person audit organization is difficult and it will be difficult finding a single auditor to replace the current auditor. Any incoming auditor will need time to learn the internal audit procedures, software, and many County systems. There is no formal succession plan to transition the knowledge from 19 years of internal audit at the County. Lane County is currently without a County Auditor after going through two individual auditors. Internal audit has invested in being a quality internal audit organization. This is shown by successful peer reviews, as well as adoption of electronic workpapers and data mining techniques to leverage the resources we have. The customer survey benchmark rating is around 96% showing strong support of the audit reports being issued. There is a consistent and extensive number of audits and projects that exceed the capacity of the County Internal Auditor. Management periodically asks for assistance of the County Internal Auditor for support on a number of system and operational reviews. Internal audit has demonstrated an ability to make positive audits that don't take the "gotcha" attitude. Departments are periodically going outside of Internal Audit for consultation. Some of these could be done internally. The County Internal Auditor is now responsible for the County's whistleblower hotline and, though no significant work has resulted yet, there is the need to develop capacity to address and be proactive with any potential work. All work towards the audit plan ceases when the County Internal Auditor takes vacation or is ill. Another auditor can contribute to continuity; additional audits and consulting opportunities; and bringing in additional background and skills. Not having any staff creates a lack of brainstorming that may make the audits less effective. The recent use of an oncall auditor has been problematic in terms of scheduling and in terms of using on audits with the necessary training hours (40 hours per year) required by professional standards. The oncall auditor has been used mostly for following up on prior audit reports. In order to obtain a quality candidate for this transitional position and that can work on audits, a full time position is desired. Internal audit work has a history of showing savings; identifying and improving fiscal and operation controls; identifying fraud; and supporting operational improvements. Having additional staffing will contribute to getting more audit and consulting work done and setting the stage for a smoother transition. Funding Source Additional internal service fund charges, however the general fund could possibly provide some support for some of the incremental increase. This would reduce some of the impacts of the change. Administrator Comments: In Proposed: No CL ® (� e • W c r4 w ▪ }y • BIM 41) y_ • S" O 14- ✓ aj e • Ci• t N a▪ J ▪ ® � 13 IRO ro CO 0 In ro 4J CO bO 0 0 .471 0 N r t r M Ln N L O Li"! M l0 N l0 M O t co r d r O 0 0 0 r r p o 0 0 0 0 O CD00 N lO lfl O d" r O O O O O O ® CS O O O O O O OeS anizationa o Cr) N N 00 r V) M r O r LO r r O O O O O O O N r 0 m m r d' wLI) N 00 DESCHUTES - w +1 FTE DESCHUTES - w oncall CU 6i ▪ CU N f5 0 REGIONAL PEERS c C v) p o p U E b�0 O d Li 2 c p v (p ®J 0 CC O National ALGA 2018 Benchmark 1-2 oo O C N O RS w RI 4 O w L 39 as 4.0 RS It 4-, W u 0 O c�1 t.0 N CO O L co O O O O O r r 0 0 o O O Cri CD O O N DESCHUTES - w +1 FTE DESCHUTES - w oncall anizationa 0 0 0 0 0 0 0 ‘zzl' 00 N l4 lD r O O O O O O 0 o O o 0 0 0 O O O O O 00 00 m 141 00 r— N a.n M r O l0 7 7 0 o O o 0 0 0 Q, NI ® m N o c a) u 12 N ra O REGIONAL PEERS Q tnj E O Q • u o Q V c13 cO oC3 CD -0 co 0 CL 4— Q u o CO 0 d®1 W w 14.1 National ALGA 2018 Benchmark 1-2 0 ir+ FY 2021 Special Request by Fund Department Finance Position Type: Regular Fund 630 Project or Position Title Budget Manager reclass Description and Itemized Costs Prior to hiring the current incumbent last summer, the County's Budget Analyst position was retitled to Budget Manager and the position description was changed from coordination of and assisting with the budget process to management of the budget process. Additionally, decision and analytical support to the BOCC and County Administrator through collaboration with department leadership was added to the job. To expedite the hiring process these changes were made to the job description without a reevaluation of the pay grade; it was planned that this would be undertaken at a later time. Currently, the Budget Manager is a grade 418 which is unchanged from the former Budget Analyst position. This item requests a reclassification of the Budget Manager position from a grade 418 to a grade 421. This request will complete the reclassification that began earlier this year and will align the pay rate with other positions of similar responsibility in the region including County department business managers and the City of Bend's Budget Manager. There is no cost increase in the FY22 budget as a result of this request. Approval of this request will extend the top of the pay range by three steps or approximately fifteen percent. Describe Specific Personnel Needs Justification Date 3/3/2021 Priority: # FTE Salary / Wages Benefits 0.00 Position Total 0 Materials/Svcs Capital Outlay Total Cost Revenue Offset Net Cost 0 Funding Source Administrator Comments: In Proposed: No FY 2021 Special Request by Fund Department Finance Position Type: Regular Fund 630 Project or Position Title Add Budget Analyst position Description and Itemized Costs Historically, the County's budget function has largely been an administrative one focused on assisting with the budget process, compilation of the annual budget document and facilitating budget adjustments throughout the year. Other municipalities of similar size employ a "budget office" to manage these functions and, in addition, provide decision and analytical support to the governing body, long range fiscal planning, work collaboratively with departments to provide analysis, forecasting, budget planning, consulting and other services to promote the accomplishment of department specific and organization wide goals and objectives. The County has one budget FTE and a $427 million budget. In contrast, the City of Bend's has 4 FTEs (a manager and three sr. analysts) that manage the development of an $887 million biennial budget and, in addition, provide support and analysis to the Council, leadership team and to the departments. The four FTE are assigned to departments across the City. Marion County, with a budget slightly larger than Deschutes has approximately 2.5 FTEs committed to the budget process but performs no decision support or long term planning. Jackson County, with a budget size similar to Deschutes County has approximately 1.5 in FTE resources committed to the budget process and reported that they "feel stretched very thin." Approval of this request would add a 1.0 FTE analyst position that will expand the County's ability to provide longer range financial planning (beyond one year) and analytical and decision support to the Board of County Commissioners, County Administrator, CFO and County departments in addition to support to the budget manager during budget development. Specifically, the request adds a 1.0 Budget Analyst at a 416 range which is consistent with the County's management analyst Date 3/15/2021 Priority: 1 # FTE 1.00 Salary / Wages 65,000 Benefits 37,000 Position Total 102,000 Materials/Svcs 10,000 Capital Outlay Total Cost 112,000 Revenue Offset Net Cost 112,000 classification and has a pay range consistent with the City's Sr. Budget Analyst position. The position would be able to be progressed to a Sr. Analyst at a 417 pay range, which has a pay range 8% less than the City's Principal Budget Analyst position. Projected cost for FY22 is $112,000 assuming a September 1, 2022 start. Describe Specific Personnel Needs Justification Funding Source Administrator Comments: In Proposed: No FY 2021 Special Request by Fund Department Finance Position Type: Regular Fund 630 Protect or Position Title Budgeting Software Description and Itemized Costs Workiva Budget Software Implementation $31,400 Workiva Budget Reporting Solution $32,500 Year 1 total - $63,900 Year 2 total - $34,125 Year 3 total - $35,831 Describe Specific Personnel Needs Date 3/5/2021 Priority: # FTE Salary / Wages Benefits 0.00 Position Total 0 Materials/Svcs 63,900 Capital Outlay Total Cost 63,900 Revenue Offset Net Cost 63,900 Justification Deschutes County continues to be one of the fastest growing Counties in the nation. As such, we have increased infrastructure leading to a larger and more complex budget as funding sources expand and programs meet the demand for additional services. Every year we publish a Deschutes County Budget Book with the objective to provide an accessible and understandable format for citizens to understand the Counties financial structure, major developments, and how their money is being utilized year over year. Unfortunately our current manual process for creating this vital book has become outdated, inefficient, and untenable in a County of our population and budget size. The present budget book undertaking is a 300 page manual affair where data is pulled from disparate systems, aggregated individually into a hundreds of financial and departmental reports and then painstakingly copied and pasted into Microsoft Word. Page by page formatting and checking of numbers then commences followed by days of changes and edits to narrative and pictures. Unsurprisingly, the entire process of creating a book from the ground up every year takes several months. Due to the size of our budget, complexities, inefficiencies, and sheer outdated methodology for creating the budget book; finance and IT staff members started looking for a new solution and reviewed all of the major financial reporting and publishing software companies to determine which would be best for our needs. After three months of extensive demoes we believe that the best product is Workiva Financial Reporting Software. Workiva stood out to us for the below reasons: - The Workiva back end data architecture was superior to competitors and allowed our Tyler Munis financial data to be securely stored and queried from within their platform. This allows for reporting flexibility, reduced time querying data, and long term sustainability with budget & data growth. - Workiva creates easy to understand fiscal reports and matrices from your data that can then be automatically formatted, paginated and loaded into the budget book. - The narrative templates on the Workiva platform are vast, visually appealing, easy to use, and link narrative text to data. Meaning that when your data refreshes, and your personnel expenditure estimate changes these changes will be automatically updated not only in the fiscal reports and tables, but also anywhere the number occurs in the text. - Workiva template formatting is automated, reducing days of formatting issues within Microsoft Word and Adobe PDF - Workiva has a dashboard component that allows for more granular reporting with drill downs and customized viewing options. - We asked for references of four different industry leading companies, Workiva's references were unequivocally the best, customers were very satisfied and reported increased budgetary efficiency, greater reporting abilities, and an overall higher quality budget book. With bringing Workiva on board we believe we will be prepared to meet the future complexities of financial reporting for a growing County and budget. Workiva will enable us to have more financial transparency so that citizens can understand where and how their money is being utilized. We expect to have increased staff efficiency, which will cut down on the several months it currently takes to create the budget book, and will allow staff more time to work on other high value activities. Lastly we expect long term direct and indirect cost savings from utilizing Workiva. Funding Source Some time savings, ROI, etc. small ISF increase. 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Y 0 0u - 0) u Its N Oo N o _ E O ea E C Ts fl c ca a i u O o tm 3 u ,,, co to Y <L C Q 'O ri a Y tc0 '� 0 a C N 00 u 0 O1 W (cu O v O a N lU O e-1 m C O C N N a) N o a N 13 =p Y a+ a) o� L o c a '3 ° au, a; CO al o a, ,n ( to c C N •E aui 03 3 O c rn e� cc ui' E Q 0 N z Q c oo O v) - ate) 1n 0 N O M O o a) 0)) CO 0 `:- O O 0 O ,n a) 0- v1 Q vYi L1 N C 0 an C O a 0 •C C N D O ` co W t\O Q. N O Y @ tNn J Y N a U U C 0 73 N Q. T o2S O\° Llx.! tUl t tl U 0- f0 U JY... d N u c N d E 3 •- �- Y LA — c W W �,,. c o LL•1 Y c O N Ltl a) t0 a) a) O O m 0 d' 'tp O> 0 0 O C oiS > O m 0 0L c o cc> z D_ O to LL 1- C U tY LL LL. F- c Y LL K ♦- C N :4= to tF tt:. tf V1 a) LO Ln Lf1 u1 Ln LO LO Ln in 0 in M to al (.0 00 Vl Ln O O LO 00 a) 00 00 01 cif t\ w m M M m m m M M M e-i ci Ls-) m ei e-L e-i tY e-1 <-1 e-i tY m M M N trl N V1 Ln Ln Vl V1 V1 V1 V1 Vl LO L0 M in Let L$ LD LO LO tD O l0 l0 01 Lo in LO N 0 N 0 0 0 G l ateN G) N a1 to H t/Of to to tN 911 Project O V1 01 O LO N 0 O M O 0 0 tri NU) V1 0 0 O Vl Vl LO n OVERVIEW FOR AMERICA'S COUNTIES: U.S. TREASURY INTERIM FINAL RULE & GUIDANCE FOR STATE AND LOCAL FISCAL RECOVERY FUNDS NATIONAL ASSOCIATION 1'COUNTI ES co -44464. I I 11 I • • On May 10, the U.S. Department of Treasury (Treasury) released an Interim Final Rule, FAQs and a fact sheet for a significant portion of the $362 billion Coronavirus State and Local Fiscal Recovery Fund, established under the American Rescue Plan Act (ARP) signed into law on March 11 by President Biden. This specific Interim Rule and related guidance covers the $61.5 billion in direct federal aid to America's counties. Later this year, Treasury will release separate guidance for the $1.5 billion in additional federal aid for public lands counties under Sec. 605 of ARP. THIS ANALYSIS PROVIDES AN IN-DEPTH OVERVIEW OF THE KEY PROVISIONS WITHIN THE INTERIM FINAL RULE, WITH A SPECIFIC FOCUS ON HOW EACH OF THESE ITEMS MAY IMPACT COUNTY GOVERNMENTS. This analysis provides an in-depth overview of the key provisions within the Interim Final Rule, with a specific focus on how each of these items may impact county governments. The analysis covers eligibility criteria for the use of funds, compliance and financial reporting, and key dates for county actions. This report also highlights several key differences between the ARP county aid and the previous county aid under the CARES Act's Coronavirus Relief Fund (CRF), especially related to payroll support for public health, public safety and otter related staff. KEY DATES • NOW: Treasury portal is now open for counties to register and request Recovery Funds JULY 16, 2021: Deadline to submit comments on U.S. Treasury's Interim Final Rule AUGUST 31, 2021: Deadline for counties to submit first Interim Report to U.S. Treasury OCTOBER 31, 2021: Deadline for counties to submit first Quarterly Project and Expenditure Report • DECEMBER 31, 2024: Funds must be incurred and obligated • DECEMBER 31, 2026: Funds must be expended to cover obligations and all work must be completed THIS SPECIFIC INTERIM RULE AND RELATED GUIDANCE COVERS THE $61.5 BILLION IN DIRECT FEDERAL AID TO AMERICA'S COUNTIES. LATER THIS YEAR, TREASURY WILL RELEASE SEPARATE GUIDANCE FOR THE $1.5 BILLION IN ADDITIONAL FEDERAL AID FOR PUBLIC LANDS COUNTIES UNDER SEC. 605 OF ARP. NATIONAL ASSOCIATION OF COUNTIES 1 VERSION UPATED: MAY 24, 2021 11 EXECUTIVE SUMMARY: QUICK GUIDE FOR COUNTY OFFICIALS 1„ THE FISCAL RECOVERY FUND WAS ESTBALISHED TO HELP TURN THE TIDE ON THE PANDEMIC, ADDRESS ITS ECONOMIC FALLOUT AND LAY THE FOUNDATION FOR A STRONG AND EQUITABLE RECOVERY. There are five primary ways — outside of the "lost revenue allowance" — that counties may invest Funds: LI Support public health response: Fund COVID-19 mitigation efforts, medical expenses, behavioral health care and certain county public health, public safety, human services and other related staff Li Address negative economic impacts: Respond to economic harms to workers, families, small businesses. impacted industries and rehiring of public sector workers (including county staff) iLI Replace public sector revenue Toss: Use funds to provide government services to the extent of the reduction in revenue experienced during the pandemic - this provision allows a much broader use of Funds L� Premium pay for essential workers: Offer additional compensation, up to $13 per hour in additional wages, to those — both county employees and other essential workers in the community — who have faced and continue to face the greatest health risks due to their service. Counties should prioritize low- and moderate -income persons, with additional written justification needed for workers above 150 percent of the residing state's average annual wage for all occupations or their residing county's average annual wage, whichever is higher. Funds can be used retroactively back to January 27, 2020 L I Water, sewer and broadband infrastructure: Make necessary investments to improve access to clean drinking water, invest in wastewater and stormwater infrastructure and provide unserved or underserved locations with new or expanded broadband access COUNTIES HAVE BROAD FLEXIBILITY SO LONG AS THEY CAN DEMONSTRATE THAT THESE ACTIVITIES SUPPORT THE PUBLIC HEALTH RESPONSE OR THAT RECIPIENTS OF THE RECOVERY FUNDS HAVE EXPERIENCED ECONOMIC HARM FROM THE PANDEMIC 2, FUNDS MAY COVER COSTS FROM MARCH 3, 2021 THROUGH DECEMBER 24, 2024 The covered period begins March 3, 2021 and ends on December 31, 2024, with a few important distinctions and exceptions to the covered period: lJ Funds must be INCURRED (i.e. obligated) by December 31, 2024 Li Funds must be EXPENDED with all WORK PERFORMED and COMPLETED by December 31, 2026 Ll Counties may provide premium pay retroactively, dating back to the start of the public health emergency on January 27, 2020 NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 12 3. BROAD FLEXIBILITY TO HELP THOSE DISPROPORTIONATELY IMPACTED BY THE COVID-19 PANDEMIC The Interim Rule states under its first eligible use category — responding to public health needs and negative economic impacts from the pandemic — that funds must respond to "the disease itself or the harmful consequences of the economic disruptions resulting from or exacerbated by the COVID-19 public health emergency." LJ Whether it be public health expenses or economic investments, counties have broad flexibility if the county can demonstrate that these activities support the public health response or that recipients of the Recovery Funds have experienced economic harm from the pandemic LI Additionally, the Interim Rule provides even greater flexibility for Qualified Census Tracts (QCTs) and other communities, households and businesses disproportionately impacted by the pandemic 4. UNDERSTAND THE IMPORTANT DIFFERENCES BETWEEN CARES ACT CORONAVIRUS RELIEF FUND (CRF) AND ARP FISCAL RECOVERY FUND, ESPECIALLY FOR COUNTY EMPLOYEE PAYROLL SUPPORT Eligible expenses under the CRF are also eligible under the Recovery Fund, with two major exceptions: LJ New, more restrictive allowance with county payroll support for public health and public safety employees (See page 13 of this analysis for more information). The CARES Act CRF allows a much broader allowance for county employee payroll support. More narrowly defined, ARP Recovery Funds may be used for "payroll and covered benefits expenses for public safety, public health, health care, human services, and similar employees, to the extend that their services are devoted to mitigating or responding to COVID-19." Counties may consider public health and public safety employees to be entirely devoted to mitigating/responding to COVID-19, and are fully recovered, if the employee, or his/her operating unit or division, is primarily dedicated to responding to the COVID- 19 public health emergency LI Expenses related to issuing tax -anticipation notes are not an eligible expense RECOVERY FUNDS ARE MORE RESTRICTIVE THAN THE CARES ACT'S CRF DOLLARS FOR COUNTY PAYROLL SUPPORT. THE INTERIM RULE PLACES NEW, MORE RESTRICTIVE LANGUAGE RELATED TO COUNTY PAYROLL SUPPORT FOR PUBLIC HEALTH AND PUBLIC SAFETY EMPLOYEES So USE OF RECOUPED "LOST REVENUE" IS MORE FLEXIBLE THAN OTHER RECOVERY FUND ELIGIBILITY Counties may use Recovery Funds for the provision of "government services" to the extent of the reduction in revenue experienced due to the COVID-19 public health emergency. The term "government services" outlines very broad and flexible uses of revenue recoupment funds outside the standard eligibility requirements outlined in other categories (Public Health Response, Negative Economic Impacts, Premium Pay and Water, Sewer and Broadband Infrastructure) of the Interim Rule. For example, while general infrastructure and economic development investments are not generally eligible under the Fund, NATIONAL ASSOCIATION OF COUNTIES ( VERSION UPATED: MAY 24, 2021 13 counties may use an amount up to their "lost revenue" amount for these activities. However, lost revenue recoupment shall not be used for rainy day or reserve funds, or debt service payments 6. RECOVERY FUNDS MAY NOT BE USED AS NON-FEDERAL MATCH, UNLESS SPECIFICALLY AUTHORIZED Recovery Funds shall not be used as the local match for other federal programs (i.e. Medicaid, EDA, EPA Drinking Water and Clear Water State Revolving Funds), unless specifically allowed by the underlying/source federal program. It is important to note that counties may use their Funds to match other state and local government allocations of Treasury ARP Recovery Funds, if used within the county .;,i Under a February 3, 2021 presidential directive, FEMA is authorized to provide 100 percent federal funding for the cost of COVID-related activities previously determined as eligible, from the beginning of the pandemic (January 27, 2020) to September 30, 2021. In addition, the directive allows FEMA to expand activities eligible for reimbursement from January 21, 2021 until September 30, 2021. Specifically, costs to support the safe opening and operation of eligible schools, child care facilities, health care facilities, non -congregate shelters, domestic violence shelters, and transit systems are now eligible 7. COUNTIES MAY USE RECOVERY FUNDS FOR ROUTINE PENSION COSTS OF EMPLOYEES Recovery Funds cannot be used for deposits into defined benefit pension funds. HOWEVER, Treasury defines a "deposit" as an extraordinary contribution to a defined benefit pension fund for the purpose of reducing an accrued, unfunded liability. Counties may use funds for routine payroll contributions to pensions of employees whose wages and salaries are an eligible use 8, REHIRING LOCAL GOVERNMENT STAFF TO PRE -PANDEMIC LEVELS The Interim Final Rule permits the rehiring of public sector staff, including county employees, up to the pre -pandemic staffing level, which is measured based on employment as of January 27, 2020. Furthermore, counties may use Recovery Funds toward payroll, covered benefits, and other costs associated with rehiring public sector staff 9. COUNTIES MAY USE RECOVERY FUNDS TO INVEST IN CERTAIN CRITICAL INFRASTRUCTURE PROJECTS The Interim Rule specifically states that Recovery Funds may support necessary investments in drinking water, waste and stormwater, and high -quality broadband services LI For water, stormwater and sewer investments, the Interim Rule aligns eligible projects with the listing of activities allowed under the Environment Protection Agency's (EPA) Clean Water State Revolving Fund and Drinking Water State Revolving Fund LI For broadband investments, eligible projects are intended to provide services that meet at least 100 megabits per second upload and download, wherever practicable Li General economic development and infrastructure projects, such as road construction or bridge repair, unrelated to COVID-19 are not an eligible expense, unless funded through a county's 'lost revenue" replacement allowance NATIONAL ASSOCIATION OF COUNTIES 1 VERSION UPATED: MAY 24, 2021 14 ELIGIBLE EXPENSES 1. SUPPORT PUBLIC HEALTH RESPONSE INTERIM FINAL RULE: REFERENCES P. 12-23 1 RULE DEFINITIONS P. 138-140 The Interim Final Rule outlines that the Recovery Fund provides resources to "meet and address these emergent public health needs, including through measures to counter the spread of COVID- 19, through the provision of care for those impacted by the virus, and through programs or services that address disparities in public health that have been exacerbated by the pandemic." Among the potential uses of funds, the Interim Final Rule outlines: PREVENT AND MITIGATE COVID-19 Funding a broad range of services and programming for prevention and response to COVID-19, such as: Li Vaccination programs, including staffing, equipment, supplies, facilities and administrative expenses Li Testing, monitoring and contact tracing Supporting isolation and quarantine Li Paid sick and paid family and medical leave to public employees related to COVID-19 compliance LJ Public health surveillance and data system enhancement Case monitoring Vaccination uptake tracking LI Enforcing public health orders LJ Emergency medical response expenses, including emergency medical transportation related to COVID-19 L I Communication efforts related to COVID-19 vaccination programs and public health orders C J Purchase PPE and disinfection of public areas and other facilities LJ Prevention and mitigation in congregate living facilities, such as: Nursing homes and skilled nursing facilities Jails and incarceration settings Group living facilities including residential foster care and behavioral Other key settings like homeless shelters and schools LI Ventilation improvements in congregate settings, public health facilities or other public facilities LJ Capital investments or adaptations to public facilities such as hospitals or health clinics Under the sections related to responding to the public health emergency or its negative economic impacts, it is important to: Identify a need or a negative impact of the COVID-19 public health emergency Identify how the county investment would address the identified need or impact Explain how the investment would help the county respond to the disease itself or the harmful economic consequences of the economic disruptions health treatment facilities NATIONAL ASSOCIATION OF COUNTIES 1 VERSION UPATED: MAY 24, 2021 15 COVID-19 TREATMENT AND MEDICAL SERVICES Funding to enhance health care capacity to treat and provide care and services for near and long-term medical needs for COVID-19 patients as well as genomic surveillance for COVID-19 variants. This also includes treatment expenses of the Tong -term symptoms or effects of COVID-19, including post -intensive care syndrome ENHANCE BEHAVIORAL AND MENTAL HEALTH SERVICES Funding new or enhanced services that meet behavioral health needs exacerbated by the pandemic, as well as related public health needs, such as: Li Mental health treatment Lei Substance misuse treatment Li Hotlines and/or warmlines Li Crisis intervention services �..� Overdose prevention L:J Infectious disease prevention Li Behavioral/physical health primary care services SUPPORT LOCAL HEALTH AND SAFETY WORKFORCE Funding payroll and covered benefit expenses for the following segments of county workers who, primarily or partially work regularly to mitigate or respond to the COVID-19 emergency: LJ Public safety U Public health LJ Health care U Human services Li Other similar employees IMPROVING THE DESIGN AND EXECUTION OF HEALTH AND PUBLIC HEALTH PROGRAMS Funding efforts to improve programs addressing the COVID-19 public health emergency through planning and analysis, which includes, but is not limited to: Li Targeted consumer outreach Li Improvements to data or technology infrastructure Li Impact evaluation L. I Data analysis While the CARES Act's Coronavirus Relief Fund (CRF) had much broader allowances for county employee payroll support, ARP Recovery Funds may be used for "payroll and covered benefits expenses for public safety, public health, health care, human services, and similar employees, to the extent that their services are devoted to mitigating or responding to the COVID-19 public health emergency." For administrative convenience, counties may consider public health and public safety employees to be entirely devoted to mitigating or responding to the COVID- 19 public health emergency, and therefore fully covered, if the employee and their operating unit or division, "is primarily dedicated to responding to the COVID-19 public health emergency." NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 16 ADDRESS DISPARITIES IN PUBLIC HEALTH OUTCOMES In recognition of the disproportionate impacts of the COVID-19 pandemic on health outcomes in low- income and Native American communities and the importance of mitigating these effects, the Interim Final Rule identifies a broader range of services and programs that will be presumed to be responding to the public health emergency when provided in these communities. Specifically, Treasury will presume that certain types of services are eligible uses when provided in a Qualified Census Tract (QCT), to families and populations living in a QCT, or other households, businesses or populations disproportionately impacted by the COVID-19 public health emergency II These services include: Community health workers who will help residents access health services and resources that address the social determinants of health Public benefits navigators that help residents navigate and apply for federal, state and local public benefits or services Housing services that support healthy living environments and neighborhoods that are conducive to mental and physical wellness Lead Paint remediation or remediation of other lead hazards to reduce elevated blood lead levels in children Evidence -based community violence intervention programs that will prevent violence and mitigate the increase of violence during the pandemic This section also covers program and service activities that address: Housing insecurity, lack of affordable housing or homelessness Impacts of COVID-19 on education, including new or expanded learning services, assistance to high -poverty school districts, needs of students Childhood health or welfare, including childcare, home visits by health professionals, parent educators and social service professionals, and services for child welfare -involved families and youth SPECIFICALLY, TREASURY WILL PRESUME THAT CERTAIN TYPES OF SERVICES ARE ELIGIBLE USES WHEN PROVIDED IN A QUALIFIED CENSUS TRACT (QCT), TO FAMILIES AND POPULATIONS LIVING IN A QCT OR OTHER HOUSEHOLDS, BUSINESSES OR POPULATIONS DISPROPORTIONATELY IMPACTED BY THE COVID-19 PUBLIC HEALTH EMERGENCY NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 17 2. ADDRESS NEGATIVE ECONOMIC IMPACTS INTERIM FINAL RULE: REFERENCES P. 23-44 I RULE DEFINITIONS P. 140-143 ARP provides that funds rnay be used to respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality. ASSISTANCE TO HOUSEHOLDS Funds may be used to assist households or populations, preferably those most disproportionately impacted, by the negative economic impacts of the COVID-19 public health emergency, such as: LJ Food assistance Li Rent, mortgage or utility assistance LLJ Counseling and legal aid to prevent eviction or homelessness LI Cash assistance LJ Emergency assistance for burials El Home repairs, weatherization or other needs LA Internet access or digital literacy assistance I� Job training related to a worker's occupation or level of training impacted by COVID vn11UCnr this section, the general focus of investments must be to address an economic harm resulting from or exacerbated by the COVID-19 public health emergency. SMALL BUSINESS AND NON-PROFIT SUPPORT State, local and Tribal governments may provide assistance to small businesses to adopt safer operating procedures, weather periods of closure or mitigate financial hardship resulting from the COVID-19 public health emergency, including: L7 Loans or grants to mitigate financial hardship, such as declines in revenues or impacts of periods of business closure, for example by supporting payroll and benefits costs, costs to retain employees, mortgage, rent, or utilities costs, and other operating costs LJ Loans, grants, or in -kind assistance to implement COVID-19 prevention or mitigation tactics, such as physical plant changes to enable social distancing, enhanced cleaning efforts, barriers or partitions, or COVID-19 vaccination, testing, or contact tracing programs LA Technical assistance, counseling, or other services to assist with business planning needs FUNDS MAY BE USED TO ASSIST HOUSEHOLDS OR POPULATIONS, PREFERABLY THOSE MOST DISPROPORTIONATELY IMPACTED, BY THE NEGATIVE ECONOMIC IMPACTS OF THE COVID-19 PUBLIC HEALTH EMERGENCY NATIONAL ASSOCIATION OF COUNTIES 1 VERSION UPATED: MAY 24, 2021 18 AID TO IMPACTED INDUSTRIES Funds may be used to aid tourism, travel, hospitality, and other impacted industries that responds to the negative economic impacts of the COVID-19 public health emergency, such as: LI Implement COVID-19 mitigation and infection prevention measures to enable safe resumption LI Improvement to ventilation, physical barriers or partition LA Signage to facilitate social distancing LA Provision of masks or PPE LI Consultation with infection prevention professionals to develop safe reopening plans LI Activities that support safe reopening of businesses in the tourism, travel and hospitality industries and business districts that were closed during the COVID-19 public health emergency LI Planned expansion or upgrade of tourism, travel and hospitality facilities delayed due to the pandemic Li Aid may be considered responsive to the negative economic impacts of the pandemic if it supports businesses, attractions, business districts and tribal development districts operating prior to the pandemic and affected by required closure and other efforts to contain the pandemic REHIRING STATE AND LOCAL GOVERNMENT STAFF, INCLUDING COUNTY EMPLOYEES The Interim Final Rule permits coverage of payroll and benefits costs of public health and safety staff primarily dedicated to COVID-19 response, as well as rehiring of public sector staff up to pre -pandemic levels as of January 27, 2020 ® ASSISTANCE TO UNEMPLOYED WORKERS This includes services like: COUNTIES MAY USE RECOVERY FUNDS TO INCREASE THE NUMBER OF ITS EMPLOYEES UP TO THE NUMBER OF EMPLOYEES, AS OF JANUARY 27, 2020, INCLUDING PAYROLL, COVERED BENEFITS AND OTHER RELATED COSTS Li Job training to accelerate rehiring of unemployed workers LI Workers unemployed due to the pandemic or the resulting recession Li Workers who were already unemployed when the pandemic began and remain so due to the negative economic impacts of the pandemic Li Individuals who want and are available for work, including those who have looked for work sometime in the past 12 months or who are employed part time but who want and are available for full-time work FUNDS MAY BE USED TO AID TOURISM, TRAVEL, HOSPITALITY AND OTHER IMPACTED INDUSTRIES THAT RESPONDS TO THE NEGATIVE ECONOMIC IMPACTS OF THE COVID-19 PUBLIC HEALTH EMERGENCY NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 19 EXPENSES TO IMPROVE EFFICACY OF ECONOMIC RELIEF PROGRAMS Counties may also use Fiscal Recovery Funds to improve efficacy of programs addressing negative economic impacts, including through: Li Use of data analysis Li Targeted consumer outreach Li Improvements to data or technology infrastructure LI Impact evaluations SERVICES FOR QUALIFIED CENSUS TRACT AND OTHER DISPROPORTIONATELY IMPACTED COMMUNITIES In addition to specific services to address health disparities in a QCT (pg. 7 of this analysis), the Interim Rule outlines additional ways Recovery Funds may be used. Funds may be used for certain services when provided in a Qualified Census Tract (QCT), to families and individuals living in QCTs, by a Tribal government, or to other households, businesses or populations disproportionately impacted by the COVID-19 public health emergency. These services include, but are not Limited to, the following: LA Investments in Housing and Neighborhoods: Funds may be used to assist households or populations facing negative economic impacts due to COVID-19, such as: Services to address homelessness such as supportive housing, and to improve access to stable, affordable housing among unhoused individuals Affordable housing development to increase supply of affordable and high -quality living units Housing vouchers, residential counseling, or housing navigation assistance to facilitate household moves to neighborhoods with high levels of economic opportunity and mobility for low-income residents, to help residents increase their economic opportunity and reduce concentrated areas of low economic opportunity TREASURY HAS IDENTIFIED A BROAD RANGE OF SERVICES THAT ARE ELIGIBLE USES WHEN PROVIDED IN A QUALIFIED CENSUS TRACT (QCT), TO FAMILIES AND POPULATIONS LIVING IN A QCT OR OTHER HOUSEHOLDS, BUSINESSES OR POPULATIONS DISPROPORTIONATELY IMPACTED BY THE COVID-19 PUBLIC HEALTH EMERGENCY NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 110 Li Addressing Educational Disparities: Funds may also enhance educational supports to help mitigate impacts on students, such as: New, expanded, or enhanced early learning services, including pre -kindergarten programs and Head Start Assistance to high -poverty school districts to advance equitable funding across districts Evidence -based educational services and practices that address the academic needs of students and/or their social, emotional and mental health Services that support students' social, emotional and mental health Li Promoting Healthy Childhood Environments: Funds may be used to mitigate increases in economic hardship, material insecurity, and parental stress and behavioral health challenges in families with children, such as: New or expanded high -quality childcare Home visiting programs to provide structured visits from health, parent educators, and social service professionals to pregnant women or families with young children to offer education and assistance navigating resources for economic support, health needs, or child development Enhanced services for child welfare -involved families and foster youth to provide support and training on child development, positive parenting, coping skills or recovery for mental health and substance use challenges FUNDS MAY BE USED TO MITIGATE INCREASES IN ECONOMIC HARDSHIP, MATERIAL INSECURITY, AND PARENTAL STRESS AND BEHAVIORAL HEALTH CHALLENGES IN FAMILIES WITH CHILDREN State and Local Coronavirus Fiscal Recovery Funds (naco.org) NACo RESOURCES & MEMBER SUPPORT State & Local Fiscal Recovery Funds American Rescue Plan Act Funding Breakdown COVID 19,Vaccirie Distribution NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 111 3. PREMIUM PAY FOR ESSENTIAL WORKERS INTERIM FINAL RULE: REFERENCES P. 40-46, 106 ( RULE DEFINITIONS P. 119, 127 Funds may be used by counties to provide premium pay to eligible workers performing essential work during the COVID-19 public health emergency or to provide grants to third -party employers within the county to compensate eligible workers for performing essential work. Recovery Funds may be used by recipients, including counties, to provide premium pay to eligible county workers performing essential work during the COVID-19 public health emergency or to provide grants to third - party employers within the county to compensate those eligible workers who perform essential work. DEFINING THE CONCEPT OF PREMIUM PAY AND ESSENTIAL WORKERS: To ensure that premium pay is targeted to workers that faced or face heightened risks due to the character of their work, the Interim Final Rule defines eSSclnlal'viivin as work involving regular in -person interactions vrregular physical handling of items that were also handled by others. An individual who teleworked from a residence may not receive premium pay PREMIUM PAY MAY BE PROVIDED RETROACTIVELY FOR WORK PERFORMED AT ANY TIME SINCE THE START OF THE COVID-19 public health emergency (January 27, 2020), where those workers have yet to be compensated adequately for work previously performed WORKERS THAT ARE ELIGIBLE FOR PREMIUM PAY include: L. Any work performed by an employee of the state, local or tribal government LI Staff at nursing homes, hospitals, and home care settings LI Workers at farms, food production facilities, grocery stores, and restaurants LI Janitors and sanitation workers LI Truck drivers, transit staff and warehouse workers Li Public health and safety staff PREMIUM PAY MAY BE LI Childcare workers, educators and other school staff PROVIDED RETROSPECTIVELY FOR Li Social service and human services staff WORK PERFORMED AT ANY TIME SINCE THE START OF THE COVID- PREMIUM PAY DEFINITION: Premium pay means an amount up 19 PUBLIC HEALTH EMERGENCY — to $13 per hour in addition to wages or remuneration the JANUARY 27, 2020 worker otherwise receives and in an aggregate amount not to exceed $25,000 per eligible worker 6 TREASURY URGES COUNTIES TO PRIORITIZE PREMIUM PAY FOR LOW- AND MODERATE -INCOME PERSONS: Counties should prioritize low- and moderate -income persons, with additional written justification needed for essential workers above 150 percent of the residing state's average annual wage for all occupations or their residing county's average annual wage, whichever is higher NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 112 4. PAYROLL EXPENSES FOR PUBLIC HEALTH & PUBLIC SAFETY EMPLOYEES INTERIM FINAL RULE: REFERENCES P. 20-21 RULE DEFINITIONS P. 140 Covering payroll and benefits for public safety and public health employees is more restrictive than what was allowed under the CARES Act's Coronavirus Relief Fund. As stated in the Interim Rule, Recovery Funds may be used for payroll and covered benefits as follows: PAYROLL AND COVERED BENEFITS EXPENSES for county public safety, public health, health care, human services and similar employees to the extent that their services are devoted to mitigating or responding to the COVID-19 public health emergency ® Support the payroll and covered benefits for the portion of the EMPLOYEE'S TIME THAT IS DEDICATED TO RESPONDING TO THE COVID-19 PUBLIC HEALTH EMERGENCY FOR ADMINISTRATIVE CONVENIENCE, counties may consider public health and safety employees to be entirely devoted to mitigating or responding to the COVID-19 public health emergency, and therefore fully covered, if the employee, or his/her operating unit or division, is primarily dedicated to responding to the COVID-19 public health emergency Recipients may reconsider and assess the EXTENT AN EMPLOYEE, DIVISION OR OPERATING UNIT IS ENGAGED IN ACTIVITIES THAT RESPOND TO COVID-19. A recipient can provide payroll records, attestations from supervisors/staff or regular work product or correspondence demonstrating work on COVID-19 response. Counties DO NOT need to routinely track staff hours at the employee level The table below highlights the key differences between ARP and CARES Act guidance as it relates to payroll and covered benefits for public health and public safety employees: � �'T i. �n,..,.sn ® Funds may be used for payroll/benefits for public, safety, public health, health care, human services and similar employees Funds can be used to support the payroll/benefits for the portion of the employee's time that is dedicated to responding to COVID-19 ® As a matter of administrative convenience in Tight of the emergency nature of this program, a state, territorial, local or tribal government may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief 0 Counties may consider public health/safety employees to be entirely devoted to mitigating/responding to COVID-19, and are fully recovered, if the employee, or his/her executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise operating unit or division, is primarily dedicated to responding to the COVID-19 public health emergency. 0 All costs of such employee may be covered using payments from the Fund NATIONAL ASSOCIATION OF COUNTIES ( VERSION UPATED: MAY 24, 2021 113 5. REPLACE PUBLIC SECTOR REVENUE LOSS INTERIM FINAL RULE: REFERENCES P. 51-60, 118-119 I RULE DEFINITIONS P. 135, 143-144 Counties may use Fiscal Recovery Funds for the provision of "government services" to the extent of the reduction in revenue experienced due to the COVID-19 public health emergency. Counties may use Recovery Funds for the provision of "government services" to the extent of the reduction in revenue experienced due to the COVID-19 public health emergency. This means that the amount determined as "lost revenue" may be used for most regular government purposes, except for activities such as rainy day or reserve funds and for debt service payments. The Interim Final Rule implements these provisions by establishing a definition of "general revenue" for purposes of calculating a Toss in revenue and by providing a methodology for calculating revenue lost due to the COVID-19 public health emergency. DEFINITION OF GENERAL REVENUE Based on Census Bureau's definition and includes revenue from taxes, current charges, miscellaneous general revenue, and intergovernmental transfers between state and local governments (Note: definition excludes federal intergovernmental transfers to counties including CARES Act funding) J Excludes other correction transactions proceeds from issuance of debt or the sale of investments, agency or private trust transactions and revenue generated by utilities, intergovernmental transfers from the federal government (federal transfers made to a state/locality) DEFINITION OF GOVERNMENT SERVICES Government Services included, but are not limited to: i Maintenance or pay -go pay -go funded building of infrastructure, including roads U Modernization of cybersecurity, including hardware, software, and protection of critical infrastructure L] Health services LU Environmental remediation Li School or educational services LI Provision of police, fire, and other public safety services RECOVERY FUNDS USED TO REPLACE "REVENUE LOSS" ARE FLEXIBLE AND MAY BE USED FOR A BROAD RANGE OF GOVERNMENT SERVICES, PROGRAMS AND PROJECTS OUTSIDE OF TYPICAL ELIGIBLE USES OF RECOVERY FUNDS UNDER THE INTERIM RULE. HOWEVER, REVENUE RECOUPMENT CANNOT BE USED FOR RAINY DAY FUNDS OR DEBT SERVICE PAYMENTS NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 114 REQUIREMENTS WHEN CALCULATING REVENUE LOSS When calculating revenue loss, a county must adhere to the following guidelines: Li Recipients should calculate revenue on an entity -wide basis (i.e. county government -wide basis) Li Recipients cannot use pre -pandemic projections as a basis to estimate the reduction in revenue Li Recipients should (i.e. may) calculate the extent of the reduction in revenue as of four points in time: December 31, 2020 December 31, 2021 December 31, 2022, and December 31, 2023 STEPS FOR CALCULATING LOST REVENUE Identify revenues collected in the most recent full fiscal year prior to the public health emergency (i.e. January 27, 2020), called the base year revenue. In calculating revenue, recipients should sum across all revenue streams covered as general revenue 2. Estimated counterfactual revenue, which is equal to base year revenue: [(1 + growth adjustment)^(n/12)], where n is the number of months elapsed since the end of the base year to the calculation date, and growth adjustment is the greater of 4.1 percent and the recipient's average annual revenue growth in the three full fiscal years prior to the COVID-19 public health emergency Identify actual revenue, which equals revenues collected over the past 12 months of the calculation date 4. The extent of the reduction in revenue is equal to counterfactual revenue less than actual revenue. If actual revenue exceeds counterfactual revenue, the extent of the reduction in revenue is set to zero for that calculation date THE OVERALL METHODOLOGY FOR CALCULATING THE REDUCTION IN REVENUE IS ILLUSTRATED IN THE FIGURE, AT RIGHT: 140 130 120 110 100 90 Base year revenue memo Extent of reduction in revenue Actual revenue (last twelve months) — +— Counterfactual revenue NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 115 6. WATER& SEWER INFRASTRUCTURE INTERIM FINAL RULE: REFERENCES P. 62-68 RULE DEFINITIONS P. 144 To assist in meeting the critical need for investments and improvements to existing infrastructure in water and sewer, counties can invest Recovery Funds in these sectors. The Interim Final Rule outlines eligible uses within each category, allowing for a broad range of necessary investments in projects that improve access to clean drinking water, improve wastewater and stormwater infrastructure systems. To assist in meeting the critical need for investments and improvements to existing infrastructure in water and sewer, counties can invest Recovery Funds in these sectors. The Interim Final Rule outlines eligible uses within each category, allowing for a broad range of necessary investments in projects that improve access to clean drinking water, improve wastewater and _t_ _.__w_t_._ infrastructure ywrrnwa�er systems. The Interim Final Rule does this by aligning eligible uses of the Recovery Funds with the wide range of types or categories of projects that would be eligible to receive financial assistance through the Environment Protection Agency's (EPA) Clean Water State Revolving Fund and Drinking Water State Revolving Fund. CLEAN WATER (SRF) PROJECTS The CWSRF provides financial assistance for a wide range of water infrastructure projects to improve water quality and address water pollution in a way that enables each state (or county) to address and prioritize the needs of their populations LJ The types of projects eligible for Clean Water SRF assistance include: THE. INTERIM RULE ALIGNS ELIGIBLE USES OF RECOVERY FUNDS FOR WATER & SEWNER INFRASTRUCTURE WITH PROJECTS THAT ARE ELIGIBLE TO RECEIVE. FINANCIAL ASSISTANCE NORMALLY THROUGH EPA'S CLEAN Projects to construct, improve and WATER SRF & DRINKING WATER SRF repair wastewater treatment plants Control non -point sources of pollution Improve resilience of infrastructure to severe weather events Create green infrastructure Protect waterbodies from pollution EA Under the Clean Water SRF, each of the 51 State programs normally have the flexibility to direct funding to their particular environmental needs, and each state may also have its own statutes, rules and regulations that guide project eligibility. With the Recovery Fund, the intent of the Interim Final Rule is outline the list of eligible projects that a county may consider for investment NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 116 DRINKING WATER (SRF) PROJECTS The primary use of DWSRF funds is to assist communities in making water infrastructure capital improvements, including the installation and replacement of failing treatment and distribution systems. In administering these programs, counties must give priority to projects that: C] Ensure compliance with applicable health and environmental safety requirements L7 Address the most serious risks to human health LA Assist systems most in need on a per household basis according to State affordability criteria e OTHER ELIGIBLE USES OF RECOVERY FUNDS include projects related to: LI LJ Stormwater runoff Water pollution Flood control Green infrastructure that support stormwater resiliency, including rain gardens and green streets As stated in Treasury's Recovery Fund FAQ document, the National Environmental Policy Act (NEPA) does not apply to Treasury's administration of funds. However, projects supported with payments from the Fund may still be subject to NEPA review if they are also funded by other federal financial assistance programs The Interim Rule "encourages" counties to ensure that water, sewer, and broadband projects use strong labor standards, including project labor agreements and community benefits agreements that offer wages at or above the prevailing rate and include local hire provisions HOW COUNTIES INVEST IN AMERICA'S INFRASTRUCTURE SYSTEM 4 in sewage and waste management in infrastructure, including maintaining and operating public works NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 117 6. BROADBAND INFRASTRUCTURE INTERIM FINAL RULE: REFERENCES P. 69-77 I RULE DEFINITIONS P. 145 Recognizing the need for such connectivity, Recovery Funds may be used by state, territorial, local and tribal governments to make necessary investments in broadband infrastructure. The COVID-19 public health emergency has underscored the importance of universally available, high-speed, reliable and affordable broadband coverage as millions of Americans rely on the Internet to participate in, among critical activities, remote school, healthcare and work. Recognizing the need for such connectivity, the ARPA provides funds to state, territorial, local and tribal governments to make necessary investments in broadband infrastructure. Additional guidance and requirements around use of Recovery Funds for broadband infrastructure are as follows: LJ Unserved and underserved households: Funds may be used to make necessary investments in broadband infrastructure aimed at "unserved or underserved" communities. Treasury defines unserved and underserved at speeds below 25 Mbps download and 3 Mbps upload Eligible projects are expected to meet or exceed symmetrical upload and download speeds of 100 Mbps. However, in instances where required speeds cannot be achieved (due of the geography, topography, or excessive costs), the affected project would be expected to meet or exceed 100 Mbps download with a minimum of 20 Mbps upload with scalability to a symmetrical minimum of 100 Mbps I U.S. Treasury used the Federal Communication Commission's (FCC) Broadband Speed Guide to determine appropriate speed requirements for all eligible projects THE INTERIM FINAL RULE PROVIDES THAT ELIGIBLE INVESTMENTS IN BROADBAND ARE THOSE THAT ARE DESIGNED TO PROVIDE SERVICES MEETING ADEQUATE SPEEDS AND ARE PROVIDED TO UNSERVED AND UNDERSERVED HOUSEHOLDS AND BUSINESSES NATIONAL ASSOCIATION OF COUNTIES 1 VERSION UPATED: MAY 24, 2021 118 7. INELIGIBLE EXPENSES INTERIM FINAL RULE: REFERENCES P. 78-97 I RULE DEFINITIONS P.134-135, 145-147 Treasury defines a "deposit" as an extraordinary contribution to a defined benefit pension fund for the purpose of reducing an accrued, unfunded liability. Recipients may use funds for routine payroll contributions to pensions of employees whose wages and salaries are otherwise an eligible use. The Interim Final Rule outlines identifies several ineligible uses of Recovery Funds, including: O PENSION FUNDS Funds shall not be used for "extraordinary"deposits into a defined pension fund LI HOWEVER, Treasury defines a "deposit" as an extraordinary contribution to a pension fund for the purpose of reducing an accrued, unfunded liability. Recipients may use funds for routine payroll contributions to pensions of employees whose wages and salaries are otherwise an eligible use ® NET REDUCTION IN TAX REVENUE (LIMITED TO STATES AND TERRITORIES) If a state or territory has a reduction in net tax revenue, they must demonstrate how they paid for the tax cuts from a source(s) other than the Recovery Fund (Note: This provision does not apply to counties) OTHER RESTRICTIONS include: FJ Using funds for non-federal match when barred by another federal regulation or statute, including EPA's Clean Water SRF, Drinking Water SRF, Economic Development Administration or Medicaid - See note on page 4 related to presidential order on FEMA's state and local cost -share waiver LJ Funding debt service, including costs associated with tax anticipation notes (TANs) or issuing short- term revenue (Note: This is different than the CARES Act CRF, which allowed use of funds for TANs) CJ Legal settlement or judgements Li Deposits to rainy day funds or financial reserves LJ General infrastructure spending outside of water, sewer and broadband investments or above the amount allocated under "revenue loss" recoupment provision LI General economic development or workforce development activities, unless they directly address negative economic impacts of the public health emergency or related to the "revenue Toss" provision OUTSIDE OF WATER, SEWER, BROADBAND AND FACILITY UPGRADES RELATED TO COVID-19 RESPONSE AND MITIGATION, GENERAL INFRASTRUCTURE AND ECONOMIC DEVELOPMENT PROJECTS, SUCH AS NEW JAILS, ROADS AND BRIDGES AND BUSINESS PARKS, ARE PROHIBITED. HOWEVER, COUNTIES MAY USE THE PORTION OF THEIR "REVENUE LOSS" RECOUPMENT FOR THESE TYPES OF INVESTMENTS NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 119 8. REPORTING REQUIREMENTS INTERIM FINAL RULE: REFERENCES P. 110-112 1 RULE DEFINITIONS P. 137 Counties are required to submit an Interim Report, Quarterly Project and Expenditure Reports, and Annual Recovery Plan Performance Reports as specified below, regarding their utilization of Coronavirus State and Local Fiscal Recovery Funds. INTERIM REPORTS Counties are required to submit one Interim Report, which will include the county's expenditures by category at the summary level L.1 The Interim Report will cover spending from the date the county receives Funds to July 31, 2021 Li The Interim Report is due by August 31, 2021 Li This report will be similar to that of the CARES Act Coronavirus Relief Fund LI Treasury will release additional guidance on this report in the coming weeks QUARTERLY PROJECT AND EXPENDITURE REPORTS Counties are required to submit quarterly project and expenditure reports, including financial data, information on contracts and subawards over $50,000 and other information regarding utilization of funds Li First report will cover spending from the date the county receives Funds to September 30, 2021 Li First report is due by October 31, 2021 LI These reports will be similar to CARES Act Coronavirus Relief Fund RECOVERY PLAN PERFORMANCE REPORTS Counties above 250,000 population are required to submit an Annual Recovery Plan Performance Report, including descriptions of projects funded and information on performance indicators and objectives of each award LJ Initial recovery plan will cover activity from the date the county receives Recovery Funds to July 31, 2021 IJJ Local governments (including counties) with less than 250,000 residents are not required to develop a Recovery Plan Performance Report Li Recovery performance plan is due by August 31, 2021 for counties above 250,000 population COUNTIES BELOW 250,000 POPULATION ARE NOT REQUIRED TO SUBMIT AN ANNUAL RECOVERY PLAN PERFORMANCE REPORT NATIONAL ASSOCIATION OF COUNTIES 1 VERSION UPATED: MAY 24, 2021 120 9. KEY DEFINITIONS INTERIM FINAL RULE: RULE DEFINITIONS P. 130-151 Treasury provides a list of definitions in the Interim Final Rule, which are essential to understand and comply with the eligible uses and requirements of Recovery Funds. 1. COUNTY: County, parish or other equivalent county division (i.e. Borough in Alaska) 2. COVERED BENEFITS: The costs of all types of leave (vacation, family -related, sick, military, bereavement, sabbatical, jury duty), employee insurance (health, life, dental, vision), retirement (pensions, 401(k)), unemployment benefit plans (federal and state), workers' compensation insurance, and Federal Insurance Contributions Act taxes (which includes Social Security and Medicare taxes). (NOTE: This is an important definition linked to the exemption for pensions related to county payroll support for their employees) 3. COVERED PERIOD: Begins on March 3, 2021 and ends on December 31, 2024. Counties must adhere to the parameters of the covered period just as States and territorial governments. However, there are exceptions to the covered period: La Funds must be INCURRED (i.e. obligated) by December 31, 2024 Funds must be EXPENDED with all WORK PERFORMED and COMPLETED by December 31,2026 LJ Counties may provide premium pay retroactively, dating back to the start of the public health emergency on January 27, 2020 4. DEPOSIT: Extraordinary payment of an accrued, unfunded liability. The term deposit does not refer to routine contributions made by an employer to pension funds as part of the employer's obligations related to payroll, such as either a pension contribution consisting of a normal cost component related to current employees or a component addressing the amortization of unfunded liabilities calculated by reference to the employer's payroll costs 5. ELIGIBLE EMPLOYER: An employer of an eligible worker who performs essential work 6. ELIGIBLE WORKER: Workers needed to maintain continuity of operations of essential critical infrastructure sectors, including health care; emergency response; sanitation, disinfection, and cleaning work; maintenance work; grocery stores, restaurants, food production, and food delivery; pharmacy; biomedical research; behavioral health work; medical testing and diagnostics; home- and community - based health care or assistance with activities of daily living; family or child care; social services work; public health work; vital services to Tribes; any work performed by an employee of a State, local, or Tribal government; educational work, school nutrition work, and other work required to operate a school facility; laundry work; elections work; solid waste or hazardous materials management, response, and cleanup NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 121 work; work requiring physical interaction with patients; dental care work; transportation and warehousing; work at hotel and commercial lodging facilities that are used for COVID-19 mitigation and containment; work in a mortuary; work in critical clinical research, development, and testing necessary for COVID-19 response ,I With respect to a county recipient, workers in any additional sectors as each chief executive officer of such recipient (i.e. county government) may designate as critical to protect the health and well-being of the residents of their county 7. ESSENTIAL WORK: Work that is not performed while teleworking from a residence and involves regular in - person interactions with patients, the public or coworkers of the individual that is performing the work OR regular physical handling of items that were handled by, or are to be handled by patients, the public, or coworkers of the individual that is performing the work 8. GENERAL REVENUE: Money that is received from tax revenue, current charges, and miscellaneous general revenue, excluding refunds and other correcting transactions, proceeds from issuance of debt or the sale of investments, agency or private trust transactions, and intergovernmental transfers from the federal government, including transfers made pursuant to section 9901 of the American Rescue Plan Act. General revenue does not include revenues from utilities. Revenue from Tribal business enterprises must be included in general revenue 9., NON-PROFIT: Non-profit organization that is exempt from Federal income taxation and that is described in section 501(c)(3) of the Internal Revenue Code 1_0, PREMIUM PAY: An amount of up to $13 per hour that is paid to an eligible worker, in addition to wages or remuneration the eligible worker otherwise receives, for all work performed by the eligible worker during the COVID-19 public health emergency (i.e. since January 27, 2020). Such amount may not exceed $25,000 with respect to any single eligible worker. Premium pay will be considered to be in addition to wages or remuneration the eligible worker otherwise receives if, as measured on an hourly rate, the premium pay is: 1.. With regard to work that the eligible worker previously performed, pay and remuneration equal to the sum of all wages and remuneration previously received plus up to $13 per hour with no reduction, substitution, offset or other diminishment of the eligible worker's previous, current or prospective wages or remuneration, or 2. With regard to work that the eligible worker continues to perform, pay of up to $13 that is in addition to the eligible worker's regular rate of wages or remuneration, with no reduction, substitution, offset or other diminishment of the workers' current and prospective wages or remuneration 11. SMALL BUSINESS: A business concern or other organization that: (1) Has no more than 500 employees, or if applicable, the size standard in number of employees established by the Administrator of the Small NATIONAL ASSOCIATION OF COUNTIES 1_VERSION UPATED: MAY 24, 2021 122 Business Administration for the industry in which the business concern or organization operates, and (2) Is a small business concern as defined in section 3 of the Small Business Act (15 U.S.C. 632) 12. PENSION FUND: Defined benefit plan and does not include a defined contribution plan 13. RECIPIENT: A state, territory, tribal government, metropolitan city, nonentitlement unit of local government, county, or unite of general local government that receives a payment made under section 602(b) of the Social Security Act or transfer pursuant to section 603(c)(4) of the Social Security Act 14. REPORTING YEAR: The Interim Final Rule defines "reporting year" as a single year within the covered period, aligned to the current fiscal year of the recipient government during the covered period, for which a recipient government reports the value of covered changes and any sources of offsetting revenue increases ("in -year" value), regardless of when those changes were enacted. For the fiscal years ending in 2021 or 2025 (partial years), the term "reporting year" refers to the portion of the year falling within the covered period. For example, the reporting year for a fiscal year beginning July 2020 and ending June 2021 would be from March 3, 2021 to July 2021 15. UNSERVED AND UNDERSERVED HOUSEHOLD OR BUSINESS: One or more households or businesses that are not currently served by a wireline connection that reliably delivers at least 25 Mbps download speed and 3 Mbps of upload speed CLICK HERE TO SUBMIT QUESTIONS TO THE NACO STAFF CLICK HERE TO SUBMIT YOUR COUNTY INVESTMENT EXAMPLES How Can We Help?', NACo 4inikfriqL,',"_ Your CoyntY,ARP.i o euon NACU ARIAAA'AV" ASK A QUESTION NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 123 10. APPENDIX: EXAMPLES OF ELIGIBLE USES OF RECOVERY FUNDS COVID-19 response • Vaccination programs • Medical care • Testing • Contact tracing • Isolation and quarantine • Medical or public health access for vulnerable populations • Public health surveillance • Public health order enforcement • Public communication • Health care capacity enhancement • Capital investments in mitigation tactics in public facilities PUBLIC HEALTH • Personal protective equipment (PPE) purchases • Prevention and mitigation in congregate living facilities and schools • Ventilation improvements in congregate and health . care settings • Public health data system enhancements Behavioral health • Mental health treatment • Substance misuse treatment • Crisis intervention • Outreach to promote access to health and social services Payroll • Public health, health care, human services, public safety, and others who work on COVID-19 response • Payroll and benefit costs for employees or units/divisions primarily dedicated to COVID-19 response Households • Food assistance, rent, mortgage, utilities • Counseling and legal aid to prevent eviction or homelessness • Cash assistance • Burial assistance • Survivor's benefits • Home repairs and weatherization • Internet access or digital literary assistance • Job training to address negative economic or public health impacts Public Sector • Rehiring public sector staff up to pre -pandemic levels • Replenishing unemployment insurance (UI) trust funds up to pre -pandemic levels • Building internal capacity to implement economic relief programs, with investments in data analysis, targeted outreach, ECONOMIC IMPACTS Hardest -hit Communities • Limited to spending within a Qualified Census Tract, families living in Qualified Census Tracts, other populations, households, or geographic areas disproportionately impacted by the pandemic • Community health workers, public benefits navigators, remediation of lead hazards, and community violence intervention programs • Services to address individuals experiencing homelessness, affordable housing development, housing vouchers, and residential counseling and housing navigation assistance to facilitate moves to neighborhoods with high economic opportunity • New or expanded early learning services, additional resources for high -poverty school districts, educational services like tutoring or afterschool programs and services to address social, emotional, and mental health needs • New or expanded high quality child care, home visiting programs for families with young children, and enhanced services for child welfare -involved families and foster youth NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 124 technology infrastructure, and impact evaluations Small Businesses & Nonprofits • Loans or grants to mitigate revenue declines, closures (e.g., payroll and benefits support, employee retention, mortgage, rent, utilities, other operating costs) • Loans, grants, or in -kind assistance to implement prevention or mitigation tactics (e.g., social distancing, enhanced cleaning, barriers or partitions, vaccination, testing, contact tracing) • Technical assistance, counseling, or other services to assist business planning • Support for tourism, travel, and hospitality sectors REVENUE LOSS • Broad latitude to support government services, up to the amount of the lost revenue • Includes revenue from taxes, current charges, and miscellaneous general revenue • Calculated at four points in time: December 31, 2020; December 31, 2021; December 31, 2022; and December 31, 2023 • Upon receiving payments, recipients may immediately calculate revenue loss for the period ending December 31, 2020 • Excludes refunds and other correcting transactions, proceeds from issuance of debt or the sale of investments, agency or private trust transactions, and revenue generated by utilities and insurance trusts • Includes intergovernmental transfers between state and local governments, but excludes transfers from the federal government • Recipients must calculate revenue on an entity -wide basis rather than a source -by -source basis • Includes current charges that would be included in the Census Bureau's definition of state or local government general revenue from own sources, such as revenue of facilities operated by a government (swimming pools, recreational marinas and piers, golf courses, skating rinks, museums, zoos, etc.); auxiliary facilities in public recreation areas (camping areas, refreshment stands, gift shops, etc.); lease or use fees from stadiums, auditoriums, and community and convention centers; and rentals from concessions at such facilities PREMIUM PAY FOR ESSENTIAL WORKERS • Any work performed by an employee of the state, local or tribal governmen • Staff at nursing homes, hospitals, and home -care settings • Workers at farms, food production facilities, grocery stores, and restaurants • Janitors and sanitation workers • Public health and safety staff • Truck drivers, transit staff, and warehouse workers • Child care workers, educators, and school staff • Social service and human services staff • Retrospective and prospective premium pay permissible • Staff working for third -party contractors in eligible sectors NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 125 WATER & SEWER INFRASTRUCTURE • Drinking water infrastructure projects, such as building or upgrading facilities and transmission, distribution, and storage systems, including the replacement of lead service lines • Wastewater infrastructure projects, including constructing publicly -owned treatment infrastructure, managing and treating stormwater or subsurface drainage water, facilitating water reuse, and securing publicly -owned treatment works • Projects that address the impacts of climate change • Aligns eligible projects with the Clean Water State Revolving Fund and Drinking Water State Revolving Fund • Encourages projects to use strong labor standards, including project labor agreements and community benefits agreements that offer wages at or above the prevailing rate and include local hire provisions BROADBAND INFRASTRUCTURE • Investments in areas that are currently unserved or underserved (i.e., lacking a wireline connection that reliably delivers minimum speeds of 25 Mbps download and 3 Mbps upload) • Prioritize projects that achieve last -mile connections to households and businesses • Projects that deliver services offering reliable 100 Mbps download and 100 Mbps upload speeds, unless impracticable due to topography, geography, or cost • Fiber optic investments National Association of Counties 660 North Capitol Street, N.W. I Suite 400 Washington, D.C. 20001 202.393.6226 • vAvw. NACto.org fb.corn/NACoDC @NACoTweets youtube. com/NACoV ideo lin kedin.com/compa ny1NACoDC STRONGER COUNTIES. STRONGER AMERICA. NATIONAL ASSOCIATION OF COUNTIES I VERSION UPATED: MAY 24, 2021 126 VISIT CENTRAL OREGON TO: Deschutes County Commissioners FROM: Julia Theisen President and CEO, Central Oregon Visitors Association DATE: Thursday June 3, 2021 REF: Draft Budget for FY 20-21 Carryover and FY 21-22 Please find attached a memo outlining COVA's key initiatives for the Deschutes County and Travel Oregon budget and plan. Attachments Budget Memo COVA Financials YTD through April Draft budget for FY20-21 Carryover of $912K Draft Deschutes County TRT Budget for FY 21-22 and Travel Oregon Regional Cooperative Tourism Plan (RCTP) I'll plan to present this information in further detail Friday at 12:00 and happy to answer any questions you might have. Thank you. Julia Theisen 57100 Beaver Drive. Building 6. Suite 130. Sunriver OFF 97707 541-389-8799 VisitCentralOregon.c:om VISIT CENTRAL OREGON FY 20-21 Carryover Despite a global pandemic, visitor demand to Central Oregon remained strong though FY 20-21. Visitors continued to seek the outdoor recreation and open spaces that the region provides. Vacation rentals saw strong demand and higher than normal rates. While resorts performed under normal business volumes, they fared better than projected. Demand for leisure travelers has resulted in a 35% increase over projected budget in TRT revenue year to date (through March revenue) for a current carryover amount of $912K. The carryover will be allocated to focus on the long-term economic recovery for tourism in the region and will be invested in four key strategies as outlined below. Air Service Development The airline industry has been one of the hardest hit industries during the pandemic and flight capacity to Redmond Airport has declined with some flights either cancelling or decreasing service. Flights from our major markets including San Francisco, Denver and Los Angeles have decreased seat capacity and other flights including Chicago and Las Vegas have been paused indefinitely. COVA has worked with Central Oregon Air Service Team (COAST) to maintain relationships with the airlines throughout the pandemic. COVA serves as the marketing arm for air service and will provide marketing support as flights rebound post pandemic. Opportunities include marketing existing and new service with dedicated campaigns for new flight markets i.e. Dallas and San Jose. COVA is also working with RDM to implement and manage a regional welcome desk for inbound air passengers. The desk will provide maps and brochures from around the region and will be staffed at peak arrival times. This is an important new initiative to provide incoming guests with a great first impression and warm welcome as their first point of contact upon arrival. Group Business Development While regional tourism is faring better than expected, the demand is driven from leisure travelers vs. business travel. Leisure travel is not sustainable for our tourism economy in the long term. It may provide a robust summer season, but it doesn't fill hotels and tourism businesses mid -week and in the non -summer seasons. Promoting and selling the region as a premier meeting, wedding and events destination is vital to the long- term success for our industry partners. As we know the corporate group industry may be slower to recover, key tactics for this strategy will include reengaging the meetings & events industry by promoting our centrally located destination as a valuable and intimate meetings and events destination, rich in outdoor recreation with diverse opportunities for escape and inspiration. A Central Oregon wedding guide is currently in production and a similar digital guide for meeting planners is in development. These assets will be complementary to improvements being made in 57100 Beaver Drive. Building 6. Suite 130. Sunriver OR 97707 541-389-8799 VisitCentralOregon.com VISIT CENTRAL OREGON the next phase of the rebranding and relaunch of VisitCentralOregon.com and providing a central resource for event and meeting planners. Central Oregon will be represented at industry trade shows that have been postponed due to the pandemic for business development and lead generation. Visit Central Oregon and Visit Bend will partner to host qualified meeting and event planners in the region, showcasing the region during off-seasons. We look forward to these collaborative opportunities, supporting recovery of our regional destination resort and hospitality industry partners to share that Central Oregon is open for business and looking forward to welcoming everyone back. Strategic Partnerships We understand that not everyone has fared well in the region and we want to support our tourism industry and partners with marketing support and resources. We are already partnering with the U.S. Forest Service, Deschutes Trail Coalition, Discover Your Forest, Smith Rock, local tour operators and other partners to amplify messaging around responsible recreation. We would continue to seek collaborative opportunities for supporting regional tourism development and partner with organizations to get messages across our marketing channels. We also support industry associations including ORLA, EDCO, SLED, DMA West and other partners for industry membership, networking and industry data. Additionally, we would look to make strategic investments in issues impacting the tourism industry including the workforce crisis, natural disasters and immediate opportunities that may arise. Program Innovations The tourism industry and technology are rapidly changing. Visitors are seeking new and innovative ways to book and experience travel. Virtual tourism utilizing virtual reality to explore destinations and attractions has evolved and is being used by a larger audience. Google culture has over 2,000 museums and attractions on their platform for visitors to explore. COVA is working with Xplorit to provide virtual tours of our key attractions including Mt Bachelor, resorts and golf courses. This will be a new and innovative way to show the region to potential visitors. We will also be enhancing our website with new features and better targeting visitors with content they are searching based on research we conducted last year. 57100 Beaver Drive. Building 6. Suite 130. Sunriver OR 97707 541-389-8799 VisitCentrelOregon.c:om VISIT CENTRAL OREGON TRAVEL OREGON — REGIONAL COOPERATIVE TOURISM PROGRAM (RCTP) As the contracted Regional Destination Management Organization (RDMO) designated by the Oregon Tourism Commission, dba Travel Oregon, Visit Central Oregon manages the funds generated through state TRT. Central Oregon's share of the TRT fund is down 10% from previous year. See attached document from Travel Oregon on how our region fared compared to the other 6 regions, with Portland region seeing the most negative impact. Travel Oregon approved additional funds through a regional recovery and stability initiative. These funds work in tandem with the Deschutes County budget to provide tourism support to the entire region. Key tactics with these funds include the following: Destination Development Visit Central Oregon collaborates with regional non -profits, recreation partners and other tourism partners to support projects in the region. Examples include Developing agritourism projects with support for the High Desert Food Farm Alliance for a regional "High Desert Food Trail" Development of Mountain biking trails partnering with Central Oregon Trail Alliance, Oregon Timber Trail Alliance and Ochoco Trails Collaborative. Diversity, Equity and Inclusion Based on the 2020 Oregon Tourism Industry Stakeholder Survey conducted by Travel Oregon (October 2020), 59% of Central Oregon respondents believe the tourism industry should play a role in advancing social and racial justice and more than half of all respondents (54%) would be interested in participating in training. As a result, Visit Central Oregon is excited to partner with DEI consultants, Allyship in Action (AIA). We have worked to provide valuable training for our partners who may not have the resources for this training. We have worked with AIA to develop DEI training with a tourism industry and outdoor recreation lens. There will be multiple sessions of foundational DEI training followed by the development of a regional tourism DEI Advisory Committee to perpetuate this practice of inclusion, with the goal of making all visitors feel welcome in Central Oregon. Partnerships Visit Central Oregon supports other partners with the RCTP fund including support for the Central Oregon Film Office (COFO), filling a vital role to build awareness for Bend and Central Oregon as a stunning backdrop for film and commercial production. This provides a valuable role for local DMO's to represent our destination. COFO has shown a great return on investment with productions including Netflix teen - series: "Everything Sucks" and the 2020 season of "American Idol". In the 2017-2019 biennium, the Oregon Film Office tracked $280M of in -state spending that was directly associated with projects coming through their various film projects. Those projects have impacted more than 8,000 jobs on more than 100 57100 Beaver Drive. Building 6. Suite 130. Sunriver OR 97707 541-389-8799 VisitCentralOregon.com VISIT CENTRAL OREGON different projects taking production into many areas of the state. COFO continues to strive to make sure that Central Oregon is on the industry's radar for this important revenue stream for the region. Grants / Strategic Investments Funds are allocated to strategic investments with a priority to projects and developments that may result in regional recovery in the short term with a focus on supporting rural communities. Projects that have been funded in the past include Airshow of the Cascades, The Sunriver Music Festival, In a Landscape performances and trail projects. Due to the pandemic and programs being paused or cancelled, the fund balance for strategic investments will be carried over to next fiscal year with eligibility and timing of fund allocation to be determined. Global Sales & Marketing Travel Oregon provides cooperative opportunities for us to represent Central Oregon in global sales and marketing initiatives that leverage our marketing messages and resources with their wider audience. This complements the work that we do with the Deschutes County budget and allows us to promote the wider region, including rural areas, through these opportunities. 57100 Beaver Drive. Building 6. Suite 130. Sunriver OR 97707 541- 389-8799 VisitCentralOregon.com TRAVEL OREGON REGIONAL RECOVERY AND STABILITY FUNDS Background: At its February 2021 meeting, the Oregon Tourism Commission approved a budget modification that directs $1.5 million to the seven Regional Destination Management Organizations (RDMOs) via Regional Recovery and Stability Funds (RRSF). The resource is broken down the following way: • Half a million of this resource will be equally split amongst the seven regions. • The remaining million will be divided by weighting the impact of the decreased funding from FY21 to FY22 from each region. Region Recovery & FY21 RCTP FY22 RCTP Stability Funds (RSF) Total FY22 Change $ Change Total RCTP + RSF Over FY21 FY21 vs. FY22 Oregon Coast 1,781,300 1,344,700 207,429 1,552,129 (229,171) -13% Willamette Valley 931,900 568,980 184,429 753,409 (178,491) -19% Portland Region 3,143,500 1,385,360 618,429 2,003,789 (1,139,711) -36% Southern Oregon 660,400 456,870 134,429 591,299 (69,101) -10% Central Oregon 854,500 627,790 142,429 770,219 (84,281) -10% Mt. Hood & The Gorge 309,100 194,210 107,429 301,639 (7,461) -2% Eastern Oregon* 300,000 189,510 105,429 294,939 (5,061) -2% 7,980,700 4,767,420 1,500,000 6,267,420 (1,713,280) * Eastern Region supplernented $44.9K to $300K for FY21 (CY2019) Intent: The intent of this resource is to help RDMOs actualize programming, investments, and product development that was put on hold or delayed due to the events of 2020 and the ongoing COVID-19 pandemic. Key Considerations and Programming Parameters of the RRSF: • Regions may choose to invest RRSF resources into regional grants/strategic investment funds to allow for investments in projects within their region that are in high demand and responsive to critical issues and needs. • In -state marketing is permitted with RRSF (Please note Oregon statutes do not allow for regions to use RCTP funds (20% of state TLT revenue as defined in statute) to market in state.) Regions may use the RRSF to develop in -state marketing efforts and programs that will drive recovery in the short term. TRAVEL OREGON • The RRSF cannot be used on administration or staffing costs. Administrative funds were increased to 40% under emergency RCTP guidelines, and the RCTP is still under emergency management guidelines. • RRSF can be programmed across an RDMO's defined objectives and programming, and the RRSF can be leveraged with Travel Oregon via the Menu of Investment Opportunities or other catalytic programming. RCTP funding ratios still apply to RCTP funds. • RRSF funds can be rolled over from year one to year two of the 21-23 biennium, but RRSF cannot be transferred to the 23-25 biennium. • The RCTP team at Travel Oregon will monitor the budget/actual for the RRSF funds at quarterly RCTP consultations and may ask for additional details regarding the spend. • RRSF will be categorized and featured in the RCTP dashboard for public viewing and transparency purposes. *** Although RRSF funds can be used for marketing, under current state public health guidance, and at the request of Governor Brown, resources should not be directed to travel/tourism/promotional marketing at this time. The Travel Oregon RCTP, public affairs, and marketing team will keep the RDMOs apprised of this situation and will inform RDMOs when traditional marketing investments can occur using RRSF resources. *** CENTRAL OREGON VISITORS ASSOCIATION FINANCIAL STATEMENTS For the Month and Ten Months Ended April 30, 2021 and 2020 CENTRAL OREGON VISITORS ASSOCIATION FINANCIAL STATEMENTS April 30, 2021 TABLE OF CONTENTS Financial Statements: Page No. Statements of Financial Position — Tax Basis As of April 30, 2021 and 2020 1 Statements of Activities — Tax Basis For the Month and Ten Months Ended April 30, 2021 Supplementary Information: Schedule I — Air Service Marketing & Development Funds Fiscal Year Activity and Carryovers — Tax Basis As of April 30, 2021 Schedule II — Regional Cooperative Tourism Program Budget Expenditures and Carryovers — Tax Basis As of April 30, 2021 2-3 4 5 CENTRAL OREGON VISITORS ASSOCIATION STATEMENTS OF FINANCIAL POSITION - TAX BASIS APRIL 30, 2021 AND 2020 ASSETS 2021 2020 Current Assets Cash First Interstate Bank - Checking Account $ 1,962,466 $ 499,647 First Interstate Bank - Money Market 210,810 163,833 First Interstate Bank CDARS 263,089 262,771 Total Cash 2,436,365 926,251 Other Current Assets Deschutes County TRT Receivable 224,075 271,502 Prepaid Expenses 6,529 6,157 Total Other Current Assets 230,604 277,659 Total Current Assets 2,666,969 1,203,910 Fixed Assets Equipment 27,480 27,480 Furniture and Fixtures 2,018 2,018 Leasehold Improvements 62,225 62,225 Accumulated Depreciation (33,838) (30,562) Net Fixed Assets 57,885 61,161 Other Assets Security Deposit 4,000 4,000 TOTAL ASSETS $ 2,728,854 $ 1,269,071 LIABILITIES AND NET ASSETS LIABILITIES Current Liabilities Accounts Payable $ 62,069 $ 90,227 Payroll Liabilities Accrued Vacation 26,043 5,543 Retirement Plan Payable 7,949 3,043 Total Payroll Liabilities 33,992 8,586 Total Current Liabilities 96,061 98,813 Total Liabilities 96,061 98,813 NET ASSETS Designated Funds- Air Service Marketing & Development Co -Op Invested Funds 6,908 6,908 RCTP Invested Funds 90,472 90,472 Total Designated Funds- Air Service Marketing & Development 97,380 97,380 Unrestricted Net Assets- Reserve 872,446 476,991 Net Revenue 1,662,967 595,887 Total Net Assets 2,632,793 1,170,258 TOTAL LIABILITIES AND NET ASSETS $ 2,728,854 $ 1,269,071 No assurance is provided and substantially all disclosures have been omitted from these financial statements. 1 % of Annual N O N O O VI J <0 co O< V) O Z II, 0 Lu CO j tttt��JJQ z .. z C07 O F cc z O z 00 F H Z < O wrn� u F 0: 0 u Ol m Annual Budget Budget to -date .73 rQ LJ� April Budget % of Budget \ \ \ \ \ \ \ \ \ \ o \ 0 \ \ \ \ 0 0 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 n ONO M ONI cp � Nt on CDN MM Tr vD CO CD on Cn M o�10 r-L .--1 .--1 O O O O O 0 0 0 0 0 0 0. 0 0 0 O O OOO OLin 0000 V'OOO O. 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N N n N y M m 5 m O 7 N N a .0 C Q .d. .y m o. o 0 3 o m 1 a 3 d m m a 3D n m a a m m 5 i d 3 m m y m x 0 ' o• S W m 3 x c o_ co a ci N 3 m O O5 7 5 a 0 m c m N. m N Continuing education / leadership training / conferences 4o1ew %5 VAOO - o 5o > > �• Do a' o a M N f0 fD `G 3 D1 71l' uogoe(ad I4uno0 33NVI IVA AOA ZZ•LZA I Z 0 m to 1 le;ol d1Od o - �_ o a d O 0 0 0 0 3 3 A N 0 Regional Strategic Investments sdRisJauped al6a;e4;s Iego10 6ui;e peyy legol° sales Iegois ;uawdolanaa uol;eul;sea 40 40 40 CO to aNAO- b 40 m 01 -< co CO O OD -► 91 C O CO EA t1.3 J 40 O N O O /V 0 0 0 VI O O 0) O O EA EA to 40 03 ER CA 0) 40 00 O �► CO 1.3 00 W O O CA 1.3 W W CO CA i0 Of CT 40 CO Ca N 0 -+ VI 0 CO 0 0 V CO 0 W 0 0 EA EH EA EA CO 01 co W .p 00 -3. 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N O. - oa o(D o ('D = 0 CO f 0 = 0 a 007 0 (0 < < m 0 0 0 O 3 y 7 ii'e 7 O N N $ a tn o 0 0 m O� N 0 (0 3 (0 N = N N o N 0 CO CD N N O 0 0 0 0 0 0 o ((0 O y 11 v 3 G) O N N 0 n, 0) 0 0 ]3NVItIVA AOA ZZ-LZAd 0 c 0 ITC o f� m 0 c N 73 2. c 0 N N c2 C 0 121 N 0 (D 0 O (0 CD 0 c (0 0) n 0 N 7 0 O O 0) N FY 2022 HEALTH SERVICES SPECIAL REQUESTS Updated 6.2.21 Priority 1 2 3 4 5 6 7 BH Crisis Response (New FTE) Convert Substance Abuse Prevention Specialist from Limited Duration to PH Regular (Existing FTE) Environmental Health Capacity * Fee increase (1.4%) & $38,074 PH * No fee increase & $78,000 * 1.0 EHS II regular (Existing FTE) * 1.0 EHS II & add vehicle (New FTE) PH PH BH Admin Perinatal Care Coordinator (New FTE) Youth Success Partnership with Bend -La Pine Schools (New FTE) Improved Access (Referral Coordinator, Language Access Coordinator, Health Navigator) (2 new FTE and 1 Existing FTE (Language Access Coordinator)) Admin Services Administrative Assistant from Limited Duration to Regular (Existing FTE) Total Cost FTE (FY22) County Funds Requested (FY22) Impact of Not Approving 6.6 1.0 2.0 1.0 2.6 3.0 1.0 675,094 157,887 284,016 109,021 323,202 201,849 88,162 241,970 32,887 174,995 89,521 161,601 • Decrease ED utilization and criminal justice involvement for population served. • Stabilize high risk population in community. • Address state hospital capacity shortage. • Decrease substance abuse by 25% among youth in La Pine and Sisters. • Overall community cost savings through early interventions. • Improve inspection ratio. • Expand services and support to emerging areas (air quality, ventilation). • Support business -friendly efforts. • Increase access to existing matenal and child services. • Improve maternal and child development outcomes. • Increase access to and meeting the youth in their environment. • Overall community cost savings through early interventions. businesses to be successful and community members to have safe and healthy experiences. • Significant risk of negative outcomes for population served (suicide, self injury, harm to others). • Increase burden and cost to Emergency Department and First Responders. • Poor long-term health outcomes and early morbidity for service population. • Stagnant or increasing rate of substance use among youth in La Pine and Sisters. • lnreasing likelihood of continuing risky behaviors into adulthood. • Increasing treatment, healthcare and societal costs. County General Funds (CGF), IMPACTS Grant & CCBHC PPS FTE paid for through Behavioral Health Fund 270. • Convert EHS II Limited to Regular. Paid for in FY22 by COVID • Deteriorating inspection ratio and quality of support for funds (PE01-09), then increase (+) to TRT. • EHS II: FY22 request +TRT [Vehicle Purchase included] • Additional 500 pregnant women from DC would not CGF benefit from the full range of maternal and child services. • Increase rate of engaging in risky behaviors, such as substance use, unsafe sex, etc. among youth. • Increasing likelihood of continuing risky behaviors into • Influence and improve protective and healthy behaviors adulthood. among youth. • Curb increasing substance use, such as vaping, tobacco, etc among youth. • Increased engagement of high risk and vulnerable populations in Behavioral Health services. • Improved access to culturally and linguistically appropriate services. • Ability to meet contract requirements for access to care. • Maintain productivity across department through current service levels to Behavioral and Public Health. • Streamline communication to other internal departments by having central point of contact for the management non -IT Enterprise related processes (Fleet Management, SharePoint, etc.) • Increasing treatment, healthcare and societal costs. • Decreased access to and engagement in needed Behavioral Health care. • Difficulty meeting contract requirements for timely access. • Poor client outcomes related to decreased access to and utilization of services. • Minimal maintenance of automated processes poses a risk to lose some of efficiencies gained in last 4 years. • Inefficient use of higher -paid staff time to coordinate and address routine operational requests. CGF FY22: $161,601 FY23: $259,967 FY24 (full model): $385,430 CCBHC PPS Bend -La Pine School District: FY22: $161,601 (committed) FY23: $259,967 (committed) FY24 (full model): $385,430 FY22 & FY23 - OHA COVID Funds (PE01-09), then indirect to departmental programs. 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Hit`170 L Zb6'Oi Z9 L'88 ZOZ'EbE (ZZAd) pa;senbea (ZZAd) spund a(kunop ! ;so) ieio1 0'L S'0 0'L S'0 0'L (31d 2ulls!x3) ae!n8ab of 31d uoll.eano pal!wll laanuoJ - uo!lewao;ul ylleaH (31d 2ullsix3 0l aseaiDul) Did 0' L o131d S'0 woa;aaa!}}O ylleaH aseaaaul (Did MaN) i lslleuy swelsAs uollea!Iddy (31d MaN) ueplugJal laoddns u!wpy ylieaH an!nnpoadaa (31d 2uRsix3) aein8azi of uolleana pallwl-I woa; luels!ssy an!leals!u!wpy ylleaH DIignd (31d MaN) s,aopaa I a s,aolpaa I o u!uapy Hd Hd 0•E (Aa2eueiN asej luawAoldw3 pauoddns H8 luawaBeueW luea9'8 slaealuoJ 'aaueildwoJ) aanlanalsea;ul /Cali EL ZL LL OL 6 8 FY 2022 Health Services Budget Scenarios ASSUMPTIONS * Personnel increase factors include merit (5%) and COLA (2%) until max step reached. * Government Payments increased by 5% annually (historical trend) * Grant funding and associated FTE (limited duration) removed at end of grant period. • Revenue generated by positions offsets County General Funds or TRT in future years. * En�iirnnmental I-IP Ith fPPc rPrPivP inflatinnar�i inrrPacP (�O% l- I I V 1 1 ..J 1 1 1 1 1 ... 1 1 �, .A 1 1 I V .A 1 �. 1 1 1 ...... �J 1 ... V ... I V ... 1 1 1 1 1 .A �. 1 .., 1 1 .A 1 7 1 1 1% 1 .....A J ... `` / V' . * Youth Success Partnership as a 3-year program. * County General Fund or TRT Funds adjust to cover approved special requests after FY22. NOTE: "Break-even" on following slides may be interpreted as the percent of savings or unanticipated revenue needed on average annually to cover shortfall in 2026. sBsuadx3 AADN @nu n@J leuON ippV slu a ed 1,AO s suBdx3— DAM @Lillvi jTt DM N JI9JJ JD ZOZ SZ OZ t7ZOZ EOZ ZZOZ Z Z OZOZ 610Z 8TOZ w os.6S saeaA aalno aye Jo pea ui oz 017 09 Jo uanaleaa8 08 EO spua Sdd 3H933 uwels UJJnJ — aupse8 Baseline & Special Requests vi 80 60 40 20 % in each of the outer years $17.16 M Break-even o W01 2018 2019 2020 2021 2022 2023 2024 2025 2026 GF & TRT CCEPIC New GF & TRT Other Gov't Payments Capitation IIIIUBWC iiiitiiAdditional Revenue —Expenses •••• New Expenses sasu dx3 N N anU n3>J IeuonApp + Uo! e id ej sesu dx]� �8 s L D J ,Aog J@Lpo ZOZ S OZ V OZ E OZ Z 0 T?OZ OZOZ 6 OZ SIOZ saeaAaalno ally) pea ui �� jo uanaleaa8 EO suoilisod 3-3H933 'sIsanbaH lepads `aupse8 oz 017 09 44(.4444 441,000 0 QgLfl Baseline, Special Requests, & CCBHC PPS continues indefinitely 80 Break-even o a 60 40 20 in each of the outer years $15.21 M 2018 2019 2020 2021 2022 2023 2024 2025 2026 GF &TRT CCBHC New GF & TRT Other ier Gov't Payments Capitation °r: N BWC : Additional Revenue —Expenses • • • • New Expenses Proposed Requests for FY 2022 Department Priority Project or Position Title Requested FTE Total Cost Net Cost (Requested County Funds) In Proposed Budget Net Cost Source County Fund County Clerk's Office (001-0500) 1 Administrative Support Tech 1.00 18,732.00 - NO Recording Revenues Veterans Services 1 Administrative Support Tech 1.00 73,369.00 23,369 NO Measure 96 State Funding and GF District Attorney Deputy District Attorney 2.00 322,000.00 322,000 NO General Fund District Attorney Trial Assistant II 2.50 223,433.00 223,433 NO General Fund District Attorney Management Analyst 0.75 96,997.00 96,997 NO General Fund District Attorney Victim's Advocate 1.00 92,900.00 92,900 NO General Fund District Attorney Reclassification of Deputy District Attorney (DDA) to DDA Supervisor 16,568.00 16,568 NO General Fund District Attorney District Attorney Associated On -Boarding Costs 50,420.00 50,420 NO General Fund/On boarding costs could be lower depending on the numbers of special requests approved. District Attorney Total 6.25 802,318.00 802,318.00 Health Services (274) 1 Crisis Response (Behavioral Health Specialists, Peer Support, PH RN, BH Supervisor) 6.60 675,094.00 241,970 NO General Fund Health Services (274) 2 Substance Abuse Prevention Specialist (CHS II) convert limited duration FTE to regular duration) *if this is not approved, position ends 6/30/21, and HS requests a 1 year extension to 6/30/22 covered by BH reserves. 1.00 157,887.00 32,887 Appropriation included, FTE is not approved. Behavioral Health Reserves Health Services (274) 3 Environmental Health (convert 1.0 FTE to regular, and add 1.0 FTE) 1.00 284,016.00 174,995 NO COVID Funds/TRT Health Services (274) 4 Perinatal Care Coordination (Public Health Educator II) 1.00 109,021.00 89,521 NO General Fund Health Services (274) 5 Youth Success Partnership (2 Public Health Educator II & 1 Supervisor) 2.60 323,202.00 161,601 NO General Fund Health Services (274) 6 Improved Access (convert 1.0 limited duration, Language Access Coordinator to regular as part of CCBHC-E positions OR extend to September 2023, and add 2.0 FTE) 2.00 201,849.00 - NO CCBHC Revenue for as long as CCBHC is continued Health Services (274) 7 Admin Services Administrative Assistant (convert to regular duration) - 88,162.00 - NO COVID Funds/Indirect charge to departments, possible GF usage in the future. Health Services (274) 8 Key Behavioral Health Infrastructure Staffing (Management Analyst, Quality Improvement Analyst, Behavioral Health Specialist I) 3.00 343,202.00 - NO CCBHC Revenue for as long as CCBHC is continued Health Services (274) 9 Public Health Administrative Assistant (conversion to regular duration) - 88,162.00 NO Internal Service Charges to Public Health after FY24 Health Services (274) 10 Reproductive Health Admin Support Tech 0.50 40,942.00 NO COHC Funds and then General Fund in FY23 Health Services (274) 11 Application System Analyst I 1.00 104,444.00 NO Contingency/Indirect charge to departments Health Services (274) 12 Health Officer 0.50 168,906.00 NO FEMA/COVID funds and then Indirect charge to departments in FY23 Health Services (274) 13 Public Information Officer (convert limited to regular duration) 123,986.00 NO COVID Funds and then Indirect charge to departments in FY23 Health Services Total (274) 19.20 2,708,873.00 700,974.00 Community Development (295) 1 Administrative Supervisor 1.00 107,444.00 107,444 NO Administrative allocation to divisions Community Development (295) 2 Permit Technician 1.00 81,179.00 81,179 NO Administrative allocation to divisions Community Development (295) 3 Admin Support Technician 1.00 75,523.00 75,523 NO Administrative allocation to divisions Community Development (295) 4 Permit Technician 1.00 81,179.00 81,179 NO Administrative allocation to divisions Community Development (295) General Fund Request 150,000.00 150,000 NO General Fund Community Development (295) General Fund Request (40,000.00) (40,000) NO General Fund Community Development (295) 4.00 455,325.00 455,325.00 Road Department (325) 1 PW Equipment Operator 1.00 84,255.00 40,000 NO Road Funds/General Fund Solid Waste 1 PW Accounting Clerk 1.00 69,952.00 69,952 NO Facilities (620) 1 Project Coordinator 1.00 96,485.00 96,485 NO Internal Service Charge Administrative Services (625) Performance Auditor (Management Analyst) 1.00 128,337.00 109,537 NO Internal Service Charge/General Fund Administrative Services (625) Admin Capacity Expansion (reclassification of Communications Director to Deputy County Administrator) 38,285.00 38,285 NO Internal Service Charge Administrative Services (625) Public Information Officer 1.00 113,518.00 50,018 NO Internal Service Charge Administrative Services (625) Total 2.00 280,140.00 197,840.00 Finance (630) 1 Convert Budget Analyst Position to Regular Duration - 112,000.00 112,000 NO Covered by American Rescue Plan funding until FY 24, then Internal Service Charges Finance Services (630) Budget Manager Reclassification - - NO Would not have a fiscal impact until FY25, increase would be covered by Internal Service Charges Finance Services (630) County Budget Software - 63,900.00 63,900 NO Internal Service Charges Finance Services (630) Total - 175,900.00 175,900.00 Personnel (650) 1 Administrative Assistant 1.00 92,767.00 92,767 NO Internal Service Charge Sheriff's Office (255) 1 Digital Forensics Detective 1.00 141,672.00 141,672 NO Rural Law Enforcement District #2 Sheriffs Office (255) 2 Deputy Sheriff 2.00 216,131.00 216,131 NO Rural Law Enforcement District #2 Sheriff's Office (255) 3 Deputy Sheriff 2.00 216,131.00 216,131 NO Rural Law Enforcement District #2 Sheriff's Office (255) Total 5.00 573,934.00 573,934.00 Total County Special Requests 42.45 5,512,050.00 3,228,864.00