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2025-71-Minutes for Meeting January 27,2025 Recorded 4/2/2025i ES 0 0 G2-� BOARD OF COMMISSIONERS 1300 NW Wall Street, Bend, Oregon (541) 388-6570 Recorded in Deschutes County Steve Dennison, County Clerk Commissioners' Journal 2025-71 CJ2025-71 04/01 /2025 4113:34 PNI 2025 RETREAT MEETING MINUTES 9:00 AM MONDAY, JANUARY 27, 2025 Road Department and via Zoom Present were Commissioners Anthony DeBone, Patti Adair and Phil Chang. Also present were County Administrator Nick Lelack; Deputy County Administrator Erik Kropp; Deputy County Administrator Whitney Hale; Sheriff Kent van der Kamp; Health Services Director Janice Garceau; Behavioral Health Director Holly Harris; Public Health Director Heather Kaisner; Health Services Business Manager Cheryl Smallman; Chief Financial Officer Robert Tintle; Budget & Financial Planning Manager Cam Sparks; District Attorney Stephen Gunnels; District Attorney Business Manager Jessica Chandler; Community Justice Director Deevy Holcomb; Community Justice Business Manager Trevor Stephens; , 9-1-1 Technical Systems Manager Emily van Siereveld; Public Safety Systems Specialist Nick Bittler; and Executive Assistant Brenda Fritsvold. This meeting was audio and video recorded and can be accessed at the Deschutes County Meeting Portal website www.deschutes.org/meetinZs. Commissioner DeBone called the meeting to order at 9:01 am. Retreat Overview County Administrator Nick Lelack welcomed everyone and reviewed the agenda, which will begin with each Commissioner sharing their priorities for the next year. Commissioner Priorities Commissioner Adair: Internal Audit Function: Although the County has added 217 staff since 2019, the BOCC RETREAT JANUARY 27, 2025 PAGE 1 OF 10 decision was made to reduce the full-time position of the Performance Auditor to half-time instead of reducing one of the other 216 newer positions. • Courthouse Expansion Project: After the initial cost estimate of $27 million rose to $40 million and then to $43.9 million, the project proceeded with a contingency of just 3% when a contingency of 5-10% should have been budgeted. Two months ago, at a meeting of the Facilities Review Committee, it was reported that this project was $1.2 million over budget, but now it has been determined to be $2.9 million over budget with a total expected cost of $46.8 million. The County should take more care with taxpayer funds. • Mental Health Crisis: Many people are suffering from mental health issues, and the number of opioid overdose deaths grew in 2024. More information is needed on how successful harm reduction programs are, and more funding assistance is needed from the State. • Business Regulations: Some businesses such as Dutch Bros. are leaving —it's time to have fewer regulations. • State PERS Retirement System: The return on that investment was very small last year —less than 4%, while many private retirement accounts returned far more. This discrepancy should be looked into, and the State should try to improve that return. • Drug Crimes: Last Thursday, two people were shot at a home in Redmond in an incident that may have been drug -related. Recognizing that Highway 97 is a corridor, law enforcement needs to address concerns related to 1) drugs and 2) speeding on the highway. • juniper Removal: To reduce fuels and make more water available for other uses. • Fire Danger/Wildfire Hazard Map: In the aftermath of the devastating fires in southern California, people are getting nervous about whether Deschutes County is prepared. People need to be able to protect their homes, and part of that is carrying insurance coverage, yet insurance companies are canceling policies or refusing to extend coverage in the first place. The State must address this, including with regard to inadequate coverage limits of the Oregon FAIR plan. Commissioner DeBone: • Love All, Serve All: The mindset that the County is here for everyone, and trying to make things the best they can be at any point in time. • DSL Land Swap in Redmond: Work to accomplish this by the end of 2025. • China Hat: The federal government is working on a plan to close public access to some areas to allow for fuels reduction work. • juniper Ridge —Addressing unsanctioned camping in cooperation with the City of Bend. • DCSO: A partner in making sure that unsanctioned camping is addressed on County property. • Financial Success: Setting policy direction for budgeting in the near -term future to assess what can be done with available resources. The County is still growing, and BOCC RETREAT JANUARY 27, 2025 PAGE 2 OF 10 the cost of doing business has escalated. Need to be vigilant and keep a close eye on the dollars. • Vibrant Business Economy: EDCO and East Cascades Works help ensure the success of foundational companies that take raw materials and process them. Construction is happening, but it's harder due to increased costs. • Groundwater Protection: Especially in rural South County which has many private on -site systems. Well sampling has shown traces of nitrates in some areas, not in others. Explore the feasibility of installing some infrastructure (shared water and sewer) with a Goal 11 exception. • Newberry Plan: Opportunities for beautiful rural neighborhoods. • Fuels Reduction Efforts: Help property owners understand that 10-20 feet spacing between trees is ideal. The wildfire hazard map depicts some properties as high risk while neighboring properties are moderate risk. All of Deschutes County is at high risk for wildfires, especially during strong wind events. • Expanded BOCC—Discuss whether to establish a committee to look at creating districts. Commissioner DeBone suggested reaching out to Sheriff van der Kamp to ask if he is available to spend some time with the Board today during its retreat. He also suggested touring the radio tower project which is currently being installed at the Road Department, if time permits. Commissioner Chang: • 2025 Legislative Session: Focus in a concerted way on items with budgetary ramifications for the County (e.g., ensuring adequate snowplowing by ODOT this winter and that direct investments are made in public health services). A number of things can and perhaps will affect the County's bottom line. • Adult and Youth Residential Facilities: The opportunity for a youth acute/respite mental health facility which St. Charles has been envisioning and which is supported by the County's Behavioral Health department. A secure adult residential facility is moving forward in Redmond. At the State level, designate a site for a regional youth psychiatric emergency center. The potential for State and/or Congressionally - directed funding for this, which will require coordinated legislative advocacy efforts. Wildfires: The reminder from the California fires that fire events can happen throughout the year, and it's not a question of if, but of when. Promoting fire- resistant building materials and the creation of defensible space. Focus, with the help of the Solid Waste Department, on the disposal of yard debris and biomass material. Push the insurance industry to acknowledge that property owners who create defensible space, use fire-resistant building materials, and reduce fuels on their property to protect it should be insured. Lelack confirmed that Sheriff van der Kamp will be invited to attend today's meeting. A tour of the radio tower will be offered midday. BOCC RETREAT JANUARY 27, 2025 PAGE 3 OF 10 Committee Assignments for 2025: The Commissioners reviewed their appointments and concurred in the following changes: Coordinated Homeless Response Office (CHRO) Board --transfer from Adair to Chang Redmond Economic Development (REDI)—transfer from Chang to DeBone Economic Development Board (EDCO)—transfer from Chang to Adair effective March 1 sc Project Wildfire —transfer from Adair to DeBone Fair Master Plan Steering Committee —appoint DeBone Redmond Airport Community Advisory Committee —transfer from DeBone to Chang Behavioral Health Advisory Board liaison —transfer from Adair to DeBone Deschutes County Fair Association —name Adair as liaison FY 2026 Budget Discussion Robert Tintle, Chief Financial Officer, described work undertaken to develop the FY 26 budget in a way that will address the projected near -term shortfall in the General Fund. Some cost savings have already been identified, and departments have been directed to limit the growth of their General Fund expenditures to 3.3% in the interest of long-term financial stability. Cam Sparks, Budget & Financial Planning Manager, said resetting the previous trajectory of expenditure growth will also require limiting next year's internal service charges to 108% of this year's. Finance has made departments aware of the new budget parameters and has asked that each department determine how it will meet the specified targets, with some deciding to use vacancy savings and others proposing FTE eliminations. Three departments will present their strategies to the Board later this morning. Commissioner DeBone said Deschutes County has been in the enviable position of having a growing budget and being able to pay down debt with relative ease, but must focus on limited growth in the near -term future. Commissioner Adair noted that her property taxes have doubled in ten years. Commissioner Chang suggested considering discrete ballot measures to fund some needs, noting this would take engaging voters to further understanding of what is needed. Commissioner Adair commented on public trust, saying that youth 4H programs were not accommodated in the expansion of the Fair although that commitment had been made. Break: A break was taken at 10:25 am. The meeting resumed at 10:39 am. BOCC RETREAT JANUARY 27, 2025 PAGE 4 OF 10 Department/Office Participation: tion: County Administrator Lelack shared that Sheriff van der Kamp will join the meeting at 1:00 today. In a revision to the published agenda, the Health Services Department presented before Community Justice. Health Services Heather Kaisner, Director of Public Health, distributed a proposal for how the department will meet its targeted savings of $1,825,000 in FY 2026, as follows: close the reproductive health clinic ($520,000 savings); eliminate a vacant position and reduce FY 2025 discretionary spending ($200,000 savings); secure new revenue and/or use one-time COHC Quality Incentive Measure funds ($560,000 savings); and implement certain Environmental Health fee decisions ($545,000 savings). In response to Commissioner Adair, Cheryl Smallman, Health Services Business Manager, said Health Services has 424.50 total FTE, of which 90 work in Public Health. Responding to Commissioner DeBone, Kaisner said public health modernization is not a priority for the governor, whose proposed budget includes just $2 million more for this effort. Kaisner added that the Eastern Oregon Council of Independent Living will assume the support of clients living with HIV. Discussion ensued regarding the County's inspection fees for restaurants and mobile food units, and how these compare with fees assessed by other counties. Reminding that video lottery funds were intended to invest in economic development, including for the leisure and hospitality sectors, Commissioner Chang did not find it inappropriate to use these funds for restaurant inspections. He viewed the proposed Scenario A —which would continue the current $250,000 contribution of video lottery funds to Environmental Health in conjunction with fee increases —as a workable solution for fiscal year 2026 and suggested that this contribution come from the video lottery fund's reserve. Sparks confirmed that the video lottery fund has about $1.1 million in reserve/contingency. Commissioner DeBone stated his agreement with Commissioner Chang that video lottery funds should be used for economic development. In response to a question from Commissioner DeBone regarding the level of expected billing revenues from Medicaid and Medicare in the near future, Holly Harris, Director of Behavioral Health, said the department works hard to bill these funding sources for every BOCC RETREAT JANUARY 27, 2025 PAGE 5 OF 10 service possible. Janice Garceau, Health Services Director, said efforts are being made to secure the ability to reimburse for all mandated services, only some of which are currently reimbursable. Discussion ensued regarding the need for residential care facilities and funding sources. Community Justice Deevy Holcomb, Community Justice Director, reviewed the submitted proposal for $350,000 in budget reductions in the juvenile justice division, which includes eliminating three FTE positions (two Community Service specialists and one Community Justice officer) that have been held open for some time. Holcomb explained that juvenile justice will navigate these reductions by being flexible in terms of work duties —for example, a Community Justice officer might take a shift in detention or fill in as needed in other ways. Holcomb also shared the proposal to achieve $640,000 in savings in the Adult Parole & Probation (AP&P) division by eliminating 1.75 FTE and holding three positions open. Discussion ensued regarding the funding formula used by the State to allocate money for community corrections. Holcomb reminded that the juvenile division is 90% funded by the General Fund, while AP&P is 90% funded by the State. Holcomb assured that the department is looking ahead to 2026 and beyond and assessing its operations to determii e how to best help youth and their families with limited resources. Commissioner DeBone suggested that juvenile justice could partner with neighboring counties to optimize its ability to provide services. In response to Commissioner Adair, Holcomb confirmed that Crook and Jefferson counties are already served by Deschutes County. Commissioner DeBone asked if new partnerships could be added and noted that the current market rate for some services is less than the cost of providing them. Holcomb said the department is actively seeking Medicaid billing status for substance use treatment, which would help reimburse the cost of services provided under this program. Break: A break was taken at 11:38 am. The meeting resumed at 11:52 am. District Attorneys Office District Attorney Stephen Gunnels spoke to a previous external review of the staffing needs of the District Attorney's Office, which had recommended that four Deputy DAs be added to accommodate the department's workload. Two Deputy DAs were added in 2021, but BOCC RETREAT JANUARY 27, 2025 PAGE 6 OF 10 none since then although a large increase in high-level cases (i.e., murders and homicides) has occurred since 2020. Noting that in the last two months alone, four murders have been committed, he said although it is not ideal to have him involved in these cases, that is necessary due to the number of cases and the shortage of Deputy DAs. Saying that the County's budget reduction strategies would cause additional strain on the DA's Office, Gunnels listed possible vacancy savings which could be utilized to achieve the required savings. In response to Commissioner DeBone, Jessica Campbell, Business Manager for the DA's Office, said there have been years when the department has spent 100% of its al►ocated funds, or come close to that. Other years, the department is able to realize vacancy savings or has less need for expert witnesses and other variable costs which has enabled it to return unused budgeted funds at the end of the year. In response to Commissioner Adair, Gunnels said drugs and mental illness are factors in each murder case, without exception. Explaining that cocaine and methamphetamine use can lead to violent behavior because users experience paranoia, he referred to increasing use of cocaine in the community and was hopeful that HB 4002 will result in more people being deflected into treatment. Responding to Commissioner Chang, Gunnels said he had not heard any discussion about possible advocacy coordination to urge that the State increase its allocation for DA offices, although he doubted that any such effort would gain traction. He offered to bring this up at the next statewide DA's association meeting. Lunch: A lunch break was taken at 12:20 pm. The meeting reconvened at 12:40 pm. 9-1-1 Update on Radio Tower Site Work The Board received an update from Emily van Siereveld, 9-1-1 Technical Systems Manager and Nick Bittler, Public Safety Systems Specialist on the radio tower site being constructed at the Road Department for back-up/redundancy. Break. A break was taken at 12:53 pm. The meeting resumed at 1:09 pm. Sheriffs Office Deschutes County Sheriff Kent van der Kamp shared that Aaron Wells, previously employed by the City of Redmond, has joined the DCSO as Undersheriff. Van der Kamp described his efforts to overhaul the DCSO's policies and culture, noting that many staff have applied for promotions as those were made available and that he has altered the promotion process to invite members of the community to sit on the selection panels. In addition, work is BOCC RETREAT JANUARY 27, 2025 PAGE 7 OF 10 being done to: design a mentoring program to advance skills and knowledge; offer corrections staff the opportunity to move to patrol; and modify work schedules to reduce burnout experienced by those who work night shifts. The Sheriff also spoke to efforts to strengthen the department's relationship with the downtown community, referred to his open-door policy, and said since taking office he has already met with 20-30 staff individually. With regard to the department's budget, he intends to establish strong internal and accounting controls with the goal of budgeting conservatively, identifying potential cost -savings, and reducing the budget over the next two years. Saying he is always looking for opportunities to collaborate to address homelessness, van der Kamp referred to talks with the Forest Service about the temporary prohibition on access to the China Hat area, noting that although the cities of Redmond and Bend are concerned about possible impacts from this closure, he expected that DCSO's presence will help alleviate those concerns. Adding that staffing continues to be a challenge, van der Kamp anticipated 13 patrol openings after the upcoming promotions take effect, although his goal was that the department be fully staffed by the summer. Noting that DCSO receives numerous calls regarding illegal immigration but will not be involved as the County cannot enforce federal law, he concluded that he is encouraging his staff to think of how to do things better for less expense. in response to Commissioner DeBone, van der Kamp allowed that the DCSO can enforce dog license requirements on federal land. With respect to decomposing cars/vehicles, he said it is not profitable for tow companies to recover and scrap such vehicles. He added that the east section of Dirt World has been fortified against anyone coming in by the installation of booby -traps and other means. Commissioner DeBone said not all homeless persons are involved in criminal activity and some of them are experiencing heart -wrenching situations. He supported allowing people to use the land if they are not causing environmental damage. Responding to Commissioner Chang, van der Kamp spoke to efforts to find out and address the reasons why people are living in the forest, noting that some people will accept services which enable them to relocate, but others will not. In the case of the latter, he advocated being clear about the consequences of not relocating (e.g., citations). Commissioner DeBone shared information on the State Interoperability Council, saying that 9-1-1 funding comes from Oregon Emergency Management and the next generation 9-1-1 will enable many new features. BOCC RETREAT JANUARY 27, 2025 PAGE 8 OF 10 BOCC Discussion and Feedback County Administrator Nick Lelack invited feedback from the Board on items discussed today. Noting that staff is in the early stages of drafting the FY 2026 Budget, Lelack asked if the Board supports building that budget with a 3.3% growth limit as proposed. Chief Financial Officer Tintle also sought direction on preparing next year's budget for the Board's review and referred to staffs assumption that no special requests from departments for General Fund appropriations will be accepted or considered. In response to Commissioner Adair, Budget & Financial Planning Manager Sparks said the Health Benefits Fund increased by 30% two years in a row in fiscal years 2024 and 2025. The proposal is to increase it by 1 % in FY 2026. Commissioner Adair asked if Finance has looked into why the PERS investment gain was much lower than the gain shown by the County's investments. Commissioner DeBone stated his support for planning the FY 2026 budget based on what was presented today. 5-Member BOCC Preparation: Update/Discussion Deputy County Administrator Whitney Hale shared that Facilities is working to complete changes in the BOCC/Administration's workspace to delineate new offices for the two added coi iimil ssioi iers by Nove� i fiber of 2026. Lelack said no changes are being contemplated for the Board's meeting space in the Barnes Sawyer rooms at this time. Noting that all seven members of the Planning Commission sit together at the dais during its meetings, he said the five -member BOCC could be seated at the dais with himself and County Counsel at the side. Commissioner DeBone supported discussing the creation of districts for the BOCC, saying this question may be put before the voters in November of 2026. Commissioner Adair agreed it is important to resolve this, even though the first two years of the terms of the two new positions would be at -large rather than districted. Discussion ensued about Measure 943, rejected by the voters in 2006, which would have expanded the Commission to five positions and created districts. Commissioner Adair favored the idea of establishing a blue-ribbon committee to develop a recommendation on how to create districts. BOCC RETREAT JANUARY 27, 2025 PAGE 9 OF 10 Saying that a ballot measure would need to be ready by August of 2026 to go on the November 2026 ballot, Lelack asked if the Board supported convening a work session this spring to discuss establishing such a committee. Commissioner Chang said if a committee is formed, it should look at a five -district scenario and a separate scenario where four positions are elected via district and one position is elected at -large. Commissioner DeBone was interested to hear all of the options. Commissioner Adair said this process should start sooner rather than later. Break: A break was taken at 2:12 pm. The meeting reconvened at 2:24 pm. FY 2026 County Goals & Objectives Lelack introduced the discussion of the Board's adopted Goals & Objectives, saying these inform the budgeting process and asking if the Board desired to make any changes. Following Commissioner DeBone's review of the list, Commissioner Chang said the listed items serve as fine high-level umbrella goals. Commissioner Adair spoke to the problems of crime and recidivism and concurred with District Attorney Gunnels that drugs and mental illness impact these. .J J•sll>SIOi ensued a4J.VU+ not having epaltmCrtc Conti ,nue to rie rnrttOtho ROarrl rvt iortorlxi lsvi a I v u 1--. — y on the status of meeting established targets in line with the Board's adopted goals and objectives, but rather reduce these reports to two or three times each year. Commissioner Adair said more than one person is needed to staff the Veterans Services office on Fridays. ADJOURN: Being no further discussion, the meeting was adjourned at 2:35 p.m. DATED this day of 2025 for the Deschutes County Board of Commissioners. ANTHONY DEBONE, CHAIR ATTEST: �4b� 6a_zJ�� P TTI ADAIR, VICE CHAIR RECORDING PHIL CHANG, COMMISSIONER BOCC RETREAT JANUARY 27, 2025 PAGE 10 OF 10 �?v-CES (0 I 2� BOARD OF COMMISSIONERS 2025 BOARD OF COUNTY COMMISSIONERS RETREAT 9:00 AM, MOND", JANUARY 27, 2025 Deschutes County Road Department — 61150 SE 27th Street — Bend (541) 388-6570 1 www.deschutes.org MEETING FORMAT: In accordance with Oregon state law, this meeting is open to the public and can be accessed and attended in person or remotely, with the exception of any executive session. Members of the public may view the meeting in real time via YouTube using this link: http://bit.ly/3mminzy. To view the meeting via Zoom, see below. Zoom Meeting Information: This meeting may be accessed via Zoom using a phone or computer. • To join the meeting from a computer, copy and paste this link: bit.ly/3h3ogdD. • To join by phone, call 253-215-8782 and enter webinar ID # 899 4635 9970 followed by the passcode 013510. AGENDA AND MATERIALS 1. Retreat agenda 2. Retreat materials Deschutes County encourages persons with disabilities to participate in all programs and activities. This event/location is accessible to people with disabilities. If you need accommodations to make participation possible, call (541) 388-6572 or email brenda.fritsvold@deschutes.org. BOARD OF COMMISSIONERS Annual Retreat Agenda January 27, 2025 Deschutes County Road Department 9 a.m. Commissioner Priorities (10 minutes each) 9:30 a.m. BOCC Committee Assignments Discussion FY 2026 Budget Discussion • Overview of FY 2026 Budget Framework and Long Term Financial Forecast 10 a.m. • Review of Limited Growth Impact Assessments for General Fund and Internal Service Fund Departments Departmental/Office Participation (As Identified by BOCC) and Working Lunch Time for the Board to discuss potential FY 2026 budget impacts or FY 2026 opportunities / priorities and projects with departments and offices. 10:30 a.m. 10:30 -11:15 a.m. - Community justice Break 11:15 - 12 p.m. - Health Services 12 - 12:30 p.m. - District Attorney's Office 12:30 p.m. Lunch 1 p.m. BOCC Discussion and Feedback 2 p.m. 5 Member BOCC Preparation - Update / Discussion 2:30 p.m. Break 2:45 p.m. FY 2026 County Goals & Objectives 3:45 p.m. Adjourn Current BOCC Committee Involvement Patti Adair • Central Oregon Health Council (COHC) • Central Oregon Area Commission on Transportation (COACT) • Visit Central Oregon (VCO) • Deschutes County Audit Committee • Deschutes County Behavioral Health Advisory Board liaison • Deschutes County Fair Association • Deschutes County Investment Advisory Committee • Deschutes County Audit Committee • Economic Development Advisory Committee - Sisters • Hospital Facility Authority Board • Project Wildfire • Sisters Vision Implementation Team • Sunriver Chamber of Commerce • Coordinated Homeless Response Office (CHRO) • State of Oregon Local Government Advisory Committee • Association of Oregon Counties Legislative Committee • Central Oregon ACT representative on the Aviation Review Committee for the Critical Oregon Airport Relief Grant Program Commissioner Adair is an alternate for the following: • AOC Board of Directors (alternate for the District 2 Chair) • AOC Legislative Committee (alternate for the District 2 Chair) • AOC Membership Committee (alternate for District 2) Phil Chang • Bend Metropolitan Planning Organization (MPO) • Deschutes Basin Water Collaborative • Deschutes Collaborative Forest Project • Deschutes County Public Safety Coordinating Council • Deschutes County Public Health Advisory Board liaison • Economic Development for Central Oregon (EDCO) • Steering Committee of the Deschutes Trails Coalition • Redmond Economic Development Inc. • Deschutes County Fair Association • COIC's Regional Housing Council • Oregon Transportation Commission - Governor's appointment • Wolf Depredation Compensation and Financial Assistance Committee • Deschutes Cultural Coalition Board 1/08/2025 Commissioner Chang is an alternate for the following: • Central Oregon Area Commission on Transportation (COACT) • Central Oregon Health Council (COF-IC) • Central Oregon Intergovernmental Council (COIC) • Sunriver - La Pine Economic Development Committee Tony DeBone • 9-1-1 User Board • Central Oregon Cohesive Strategy Steering Committee • Central Oregon Intergovernmental Council (COIC) • Deschutes County Historical Society • East Cascades Works CORE3 Executive Council • Deschutes County Fair Association • Sunriver - La Pine Economic Development Committee • Redmond Airport Community Advisory Committee • State Interoperability Executive Council (SEIC) - Governor's appointment Commissioner DeBone is an alternate for the following: • Redmond Economic Development Inc. • Economic Development for Central Oregon (EDCO) 1/08/2025 s 0 C >--Z QJ C — 4-J L- O� lJ o LL : ra - O QJ � c� tYl O �-' V p x W.N N +-j V O E N N �J bA X O v >- LLp 4-J � Ln p vi 00 b�A r6 C:L O Q) 0- C a- j 4-+ V� 4 J � E-0 +J 4-S- Or � � E v N LL +-j U O ro i bJ0 �.� bp•� �� pc � 0Cl Ln V) O O L cu a� bA LL v aJ L- N cu 4-J -� — O - QJ -0 N u O 4-j w E � N QJ > QJ ,_' 0 — �_' > _ p ru -o � Q.� J � 0) O C E X v J t11 ry l� k ay ay o > o rc w E 'tr � CU £ S� G1 y v � m w � w 0 o 4A 0 0 0 O o 0 a w w 0 0 0 0 w +mir 0 0 0 o w vNf h ay SUOII11W F� L� c � fill � n O c�c QJ C N aA > O c6 �' E O N 4- L N N �0 i to 0 - > N �.> � a)Ln 0 a; u 0 aov VNE °�'-'v v> n > vE 0-0 +� aj >, �-00 Ln -0C CCi° M Ln O a) � a-J N w E u E E 4a C E L CL 0 CD 0 0 o O' 0 0 O O O O C O O Ol Ol t� (NY1 N 4A -ul�; -b4 E = v O V) U Lei Q 0 O ' 0 O 0 O o 'Z p tC l0 - Ln �b% A;% b4 M N N v v (3) O a Oc O O V 0 w N v c O Q O 0 o U O v N O N L R CJ u IA O 4- 0 bA R ij O bA 3 co 41 Qj iA to F- O G7 O 4J 41 a1 L N i a, E 41 f0 Q O o Ln to v � v — N O N C 0 0 0 0 .� C aoo v ,� 0) qj 4 0 � 0 0 v v " w ao y v o :� 3 C otA N " U Q C C C '- p C E vi N 4! 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Q 87 O IA b4 bA C o 0 0 M rn 000 M m = F Q oa o o - , o L ~ M N Vf CO � G7 bA O O o 0 L. .' o o O O "5 � O M a N N W N L -bq W Co U m O O 4� U ro � Ul o O m •� � N 0.E N v 0 Q Q u Limited Growth Strategies by Department Table of Contents Administration/BOCC.............................................................................................................................. 2 Assessor................................................................................................................................................... 3 Clerk's Office............................................................................................................................................ 4 Community justice - Adult Parole and Probation................................................................................. 5 CommunityJustice-juvenile..................................................................................................................7 DistrictAttorney's Office......................................................................................................................... 9 District Attorney's Office - Victim's Assistance....................................................................................12 Facilities..................................................................................................................................................14 Finance/Dog Control.............................................................................................................................15 FinanceISF.............................................................................................................................................16 Finance/Tax ............................................................................................................................................17 Health Services - Behavioral Health....................................................................................................18 HealthServices - Public Health............................................................................................................19 IT- Reserve............................................................................................................................................. 21 PropertyManagement..........................................................................................................................23 Page 11 Limited Growth Strategies by Department 1. Department/Office: Administration/BOCC 2. Limited Growth Target: $157,000 3. What % of Total Budget is the Department/Office's Limited Growth Target: 4.5% 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? Average of $150K S. Over the past three years, what trends are observed about the Department / Office's vacancy rate? Admin Only - 6.34% After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. • Reduction of Performance Auditor position from 1.0 to .5 • Utilization of both Deputy County Administrators to cover the vacant Human Resources Director and Manager roles for up to 6-months and billing HR for these services. • Utilization of Communications staff to cover the Audio -Visual system for Board of Commissioners meetings in lieu of using on -call staff. • Removing funding to support retreats and meetings. • Reduction of a public information program funding. • Elimination of software to manage social media. • Cancellation of the website project to minimize future year cost increases and limit costs to departments/offices. Page 12 Limited Growth Strategies by Department 1. Department/Office: Assessor 2. Limited Growth Target: $223,000 3. What % of Total Budget is the Department/Office's Limited Growth Target: 3.1 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? 92% 5. Over the past three years, what trends are observed about the Department / Office's vacancy rate? Average of 13.82%. In the past several years due to retirements, employees leaving for various reasons including better salaries, and the difficulty of attracting and retaining staff there have been continued increased timeframes in filling open positions. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. Looking at 5-year history and assuming that a department this size would seldom be close to spending 100% of budget dollars this reduction over unconstrained is from anticipated vacancy savings. Page 13 Limited Growth Strategies by Department 1. Department/Office: Clerk's Office 2. Limited Growth Target: $63,000 3. What % of Total Budget is the Department/Office's Limited Growth Target: 2.2% 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? The primary revenue source for the Clerk's Office is recording fees. In FY 2023, recording revenues dropped by 50%. The primary driver for the reduction in revenue has been the recent increases in interest rates. This trend was a continuation of the decrease in revenues we witnessed in FY 2023. Election billing and reimbursement is cyclical. Even with these unpredictable variables, our budget has come in $93,574 under budget on average over the past three years. 5. Over the past three years, what trends are observed about the Department / Office's vacancy rate? As we have continued implementing our succession plan, we have continued to fill vacancies left by recent retirements of long-term colleagues. However, we have still had vacancies due to some employees that have moved on for reasons other than retirement. Here are the percentage of unfilled positions we recently have had: FY22 was 4.93%, FY23 was 4.77% FY24 was 1.72% and FY25 (as of Nov) was 13.35%. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. • Tighten M&S Budgeting - We plan to align the M&S budget more closely with actual expenditures. • Optimize Position Vacancy Savings -We will leverage position vacancies as a source of savings by carefully reviewing staffing levels and considering temporary or part-time hires to meet critical needs. Explore Revenue -Generating Opportunities - We continue to evaluate opportunities to generate additional revenue within the department, such as the implementation of subscription -based access to real property records online. Page 14 Limited Growth Strategies by Department 1. Department/Office: Community Justice -Juvenile 2. Limited Growth Target: $301,000 3. What % of Total Budget is the Department/Office's Limited Growth Target: 2.9% 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? Over the past five fiscal years, Juvenile Community Justice expenditures have averaged approximately 94% of the budgeted amounts. The highest budget -to -actual ratio was 97%, while the lowest was 89%. Given this consistency, a 94% ratio appears to be a reliable estimate for future budget -to -actual projections for Juvenile Community Justice. 5. Over the past three years, what trends are observed about the Department / Office's vacancy rate? Over fiscal years 2022-2024, and including the first half of 2025, Juvenile's average vacancy rate has been 7.94%, which equates to approximately 3.89 FTEs based on our total FTE of 49. The highest turnover has been with our Detention Community Justice Specialist positions. To address this, we have implemented proactive measures aimed at reducing turnover within this classification. Additionally, we have faced more recent challenges in filling a vacant Behavioral Health Specialist position. In response to anticipated budget reductions for FY26, we have intentionally kept certain positions vacant this fiscal year. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. Eliminate one Community Justice Officer FTE o We have kept this position vacant for most of the past year, and caseloads have remained manageable. However, we are beginning to see a slight increase in referrals, which could lead to higher caseloads. Depending on the continuation of this trend, we will reassess the supervision structure as needed to ensure caseloads remain manageable. Currently, we don't anticipate this impacting mandated services. • Eliminate two Community Services Specialist FTE. Page 17 Limited Growth Strategies by Department o Since the summer of 2024, we have held two Community Service Specialist positions vacant in anticipation of budget savings needed for fiscal year 2026. As a result, we no longer offer adult work crew supervision; instead, adults must complete community service at other locations or through alternative interventions identified by officers. This limits our ability to take on projects that require less supervision or are more labor-intensive, particularly those suited for adults. We are still offering juvenile work crew services, but due to these staffing changes, we have reduced both the number of work crew days and the number of youth participating. Additionally, we are prioritizing on -site work crew projects because we have only one staff member supervising the youth on crew. These changes would result in roughly $355,000 in savings in FY26. Continue the process of evaluating services in Detention and Probation, while also exploring additional funding opportunities and cost -saving measures. Our goal is to implement strategies through FY26 and into FY27 to ensure we can reduce our budget and meet the targeted growth for FY27 and beyond. Both youth supervision and community service are mandated pieces of Oregon juvenile justice statute, two services that will be limited by reduction of FTE; however, at this time adjustments have been made to accommodate statutory requirements with reduced FTE and required work can still be completed. Page 18 Limited Growth Strategies by Department 1. Department/Office: District Attorney's Office 2. Limited Growth Target: $519,000 3. What % of Total Budget is the Department/Office's Limited Growth Target: 3.8% 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? High Budget Utilization with Variance: • The DA's Office consistently utilized a large portion of its budget, with percentages spent ranging from 89% to 100% in various fiscal years (FY21-FY24). • In FY23, the DA's Office spent 100% of its budget, indicating tight alignment with allocated resources. This contrasts with FY22, where only 89% of the budget was utilized. • Personnel services are the primary expense category, consuming the majority of the budget. Spending on personnel consistently approached full utilization, reflecting stable costs tied to staffing needs. • The materials and services category shows more fluctuation, with spending percentages varying annually (e.g., 81 % in FY21 and 99% in FY23). This suggests variability in operational, case, or project -related expenses. • Despite high utilization rates, the DA's Office typically spent slightly less than its allocated budget. Variances ranged from minor underspending of $42,783 in FY23 to underspending of $1,045,611 in FY22 (90% Personnel & 84% M&S). These trends indicate a generally efficient budget management approach, with most variances driven by operational flexibility or unforeseen expenditures within M&S rather than personnel costs. 5. Over the past three years, what trends are observed about the Department / Office's vacancy rate? Stable Vacancy Rate: • The DA's Office maintained a relatively low and stable vacancy rate, which reflects consistent staffing levels and efficient hiring practices. o FY22:4.52% o FY23:3.52% o FY24:3.67% o FY25: 3.80% (to date) • Minor Fluctuations: Page 19 Limited Growth Strategies by Department 1. Department/Office: Community Justice - Adult Parole and Probation 2. Limited Growth Target: $26,000 from limited growth; $600,000 total funding gap 3. What % of Total Budget is the Department/Office's Limited Growth Target: 0.3% 4. Over the past three years, what trends are observed about the Department / office's total budget utilization? Over the past five fiscal years, Adult Parole & Probation expenditures have averaged approximately 92% of the budgeted amounts. The highest budget -to -actual ratio was 96%, while the lowest was 90%. Given this consistency, a 92% ratio appears to be a reliable estimate for future budget -to -actual projections for Adult Parole and Probation. S. Over the past three years, what trends are observed about the Department / Office's vacancy rate? Over fiscal years 2022-2024, and including the first half of 2025, Adult Parole & Probation's average vacancy rate has been 13.82%, which equates to approximately 5.49 FTEs based on our total FTE of 39.75. In response to anticipated budget reductions for FY26, we have intentionally kept certain positions vacant. We also piloted a new management structure in terms m �s of our front office operations r irrently, we likes that structure and don't anticipate making any changes to that. Our strategy moving forward includes reducing some of these vacant positions and budgeting for vacancy savings in FY26. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. Eliminate one 1.75 FTE and hold 3 FTE vacant We are also anticipating legislative changes that will increase the funding for,funded supervision services. We have been holding several of these positions vacant in hopes of this change and depending on the outcome we will either eliminate all or some of the held FTE at the end of FY26. We do anticipate with increased funding there will likely be increase programmatic requirements in terms of services provided and thus we would like to ensure we have these FTE. This would result in roughly $640,000 in savings in FY26. Page 15 Limited Growth Strategies by Department Continue the process of evaluating services provided by Adult Parole & Probation, while also exploring additional funding opportunities and cost -saving measures. Our goal is to implement strategies through FY26 and into FY27 to ensure we can reduce our budget and meet the targeted growth for FY27 and beyond. The county through its contract with the State of Oregon is responsible for supervision, sanctions and services for justice -involved individuals. Eliminated FTE were responsible for cognitive group and other services that provide rehabilitative services. FTE held vacant are Parole & Probation Officer FTE which means caseloads (while overall reduced) are not as low as they could be, impacting ability to supervise effectively. Page 16 Limited Growth Strategies by Department o Between FY 22 and FY25, the unfilled positions fluctuated between 1-6 positions per month, with average of 2 unfilled positions per month. This suggests a manageable turnover rate with quick replacement times. • Comparison to General Fund Average: o The DA's Office vacancy rate is significantly below the General Fund average of 10%, indicating better staffing stability relative to other departments. • Summary: o Over the past few years, DA's Office has consistently maintained a low and stable vacancy rate. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. • Hold Vacant Positions: o Planned Vacancies: Maintain the 0.25 FTE Deputy District Attorney II position as vacant for cost savings. o Lower -Classification Positions: Hold any lower- classification position (e.g. Legal Assistant) vacancies that occur to avoid backfilling and reduce personnel costs. • Reduce Materials and Services (M&S): o Target non -essential expenses such as: ■ Vicarious trauma resources (explore alternative funding). ■ Extra help staffing (limit temporary hires). ■ Overtime/On Call (limit OT and on call when possible). ■ Travel and training (restrict to mandated or essential needs) ■ Office supplies (consolidate purchases and reduce waste). • Evaluate Personnel -Driven Costs: o If savings targets are not met, explore: ■ Negotiations with union contracts to pause COLA (Cost of Living Adjustments). ■ Implement furloughs to temporarily reduce salary expenses. • Highlight Cost -Saving Contributions: o The DAO would like to emphasize that our office has already saved the General Fund approximately $400,000 through work on an ARPA grant, demonstrating efficiency and added contributions. • Advocate for Adequate Resources: o The DAO would like to reinforce that the DA's Office is already performing more with less, and further cuts will impact mandated services such as prosecution, victim advocacy, and community safety. Page 110 Limited Growth Strategies by Department **Do These Strategies Impact Mandated Services?** Yes: The Deschutes County District Attorney's Office faces escalating demands due to rising caseloads, complex crimes, and mandatory services. Cutting funding would severely impair our ability to serve the community and uphold justice. Caseload Growth • Total Case Counts Reviewed: Up from 6,573 in 2021 to 7,769 in 2024 (to date). • Cases Filed: Increased from 3,755 in 2021 to 4,202 in 2024 (to date). • PCS Cases: Up 91 cases in FY25 ( 92.9%) since HB 4002 re -criminalized certain drug offenses. Serious Offenses and Complexity The office is managing 18 open and active Homicide cases, 13 of these cases are murders, reflecting the growing demand for prosecutorial resources. Murder cases require significant resources, including two prosecutors, a legal assistant, and a victim advocate for each case, as well as costs for expert witnesses, witness fees, and other trial necessities. These cases are highly complex, requiring substantial staffing and financial investment, and their increasing numbers place added strain on the office. Stat: The office currently has 188 Measure 11 pending cases, this includes murder, attempted murder, manslaughter, Assault 1, Assault 2, and other serious offenses. Strained Resources and Limited Mentorship Opportunities Our supervising attorneys are carrying full caseloads due to the office's needs and the complexity of crimes, leaving little time for mentorship as originally intended. With only limited number of attorneys capable of handling high-level cases, our ability to train and develop staff is severely limited. Prosecutorial and Administrative Demands • Expungements: Nearly quadrupled from 217 in 2021 to 868 in 2024 (to date). • Public Records Requests (PRRs): Consistently high, with 569 in 2024 (to date). • Digital Evidence Review: Over 6,257 hours of footage in 2024 (to date), representing 50% of case materials compare to 4,402 hours of footage in 2022. With rising case volumes, complex crimes, and 18 active homicide cases, funding is critical to ensure timely and effective justice. Reducing funding would jeopardize public safety, delay critical services, and weaken confidence in the justice system. Page111 Limited Growth Strategies by Department 1. Department/Office: District Attorney's Office - Victim's Assistance 2. Limited Growth Target: $26,000 3. What % of Total Budget is the Department/Office's Limited Growth Target: 1.6% 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? • Trends in Total Budget Utilization for Fund 212 (Over the Past Three Years): o Personnel Services: ■ The average budget utilization for Personnel Services from FY20 to FY24 is 92%, with underspending ranging from 3% to 15% annually. ■ Recent Trends: Over the past three years (FY22-FY24), the trend shows a slight improvement in utilization: FY22: 93%, FY23: 85% and FY24: 91 %. ■ Implications: While underspending persists, the fluctuations in percentage indicate variability in staffing levels, vacancies, or delays in hiring processes. The consistent underspending suggests room to refine projections or account for staffing vacancies when budgeting. o Materials & Services (M&S): ■ The average budget utilization for M&S is 52%, with underspending ranging from 36% to 51 % annually. ■ Recent Trends: • M&S utilization has been consistently low but peaked in FY24 at 64%, FY22: 46%, FY23: 48%, FY24: 64% ■ Implications: M&S underspending appears more significant and consistent than Personnel Services. The increased utilization in FY24 suggests better alignment or increased needs but highlights a pattern of underutilization in previous years. 5. Over the past three years, what trends are observed about the Department / Office's vacancy rate? • Higher Vacancy Rates: o VAP experienced notably higher vacancy rates compared to the DA's Office: ■ FY22: 1.04% (minimal vacancies). ■ FY23: 9.95% (higher due to 1-2 unfilled positions monthly). ■ FY24:7.46% ■ FY25 (to date): 16.84% o Increase in Vacancies in FY24: Page112 Limited Growth Strategies by Department ■ The increase in FY24 likely reflects challenges in recruitment or retention, potentially impacted by organizational changes or staffing requirements. o Potential Impacts: ■ The higher vacancy rate in VAP could affect service delivery, especially in a department with specialized roles that may take longer to fill. o Summary: ■ The VAP saw an upward trend in vacancy rates, peaking in FY25, which our office is focusing to improve hiring efficiency and retention. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. • Hold Vacant Positions/ Optimize Current Staffing: o In FY25, we downgraded the VAP Program Manager position to a VAP Administrative Supervisor position, which reduce personnel expenditures. o Hold a vacant Victim Advocate position open. These savings could also help offset the budget savings needed in the DA's Office. o Temporarily redistribute workload to minimize the impact of unfilled vacancies on service delivery. • Target Non -Personnel Cost Reductions: o The underspending in M&S offers a clear opportunity to focus on cost -saving measures: ■ Reduce or defer discretionary spending on: - Training and conferences. - On -Call - Non -essential outreach or promotional activities. - Office supplies through streamlined purchasing. • Seek Alternative Funding: o Explore grants, community partnerships, or state programs to support essential functions. • Technology Improvements: o Invest in or utilize existing tools to streamline workflows and reduce staff burden (VAP Portal), minimizing the impact of vacancies on productivity. Page 113 Limited Growth Strategies by Department 1. Department/Office: Facilities 2. Limited Growth Target: $309,000 3. What % of Total Budget is the Department/Office's Limited Growth Target: 5.6% 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? Total budget utilization has ranged from 90% to 95%. FTE vacancies related to new positions have been contributing factors; specifically, the period of time required to fill a position after it has been created. With no new positions anticipated for FY 26, this will not be a factor and budget utilization is expected to exceed 95%. S. Over the past three years, what trends are observed about the Department / Office's vacancy rate? The department vacancy rate has averaged 8.65% but is trending downward. There is currently (1) vacant FTE, a rate of 3.6%. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. • Utilize Beginning Work Capital (BWC) from FY 25 for budget savings in FY 26. • Eliminate one-time capital expenditures in FY 26 for fleet. • No FTE growth in FY 26. • Reduce growth in Materials and Services. Page114 Limited Growth Strategies by Department 1. Department/Office: Finance/Dog Control 2. Limited Growth Target: $3,600 3. What % of Total Budget is the Department/Office's Limited Growth Target: 0.9% 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? On average, Dog Control has utilized 90% of its budget. However, in FY24, Dog Control spent 100% of its budget. Over the same period, on average the GF has contributed $156,000 annually to Dog Control. However, in FY24, the GF only contributed $96,000, a reduction of $60,000, thus the higher utilization of the budget. While the FY26 proposed budget savings is only 0.9% of budget, this follows the $60,000 funding reduction that already occurred in FY25. 5. Over the past three years, what trends are observed about the Department / Office's vacancy rate? Dog Control only has 0.70 FTE allocated to the fund. The vacancy rate is 0% and not a potential source of funding due to vacancy savings. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. • Outsource Dog Licensing Program - Dog Control will implement a new Dog Licensing Software. While expenditures for software maintenance agreements will increase by $15,000, the program will save on postage and supplies costs. • Right -Size Budget - Dog Control reduced the budgets for bank fees, advertising, and printing and binding, and postage. When Spay and Neuter Grants exceed the donations received, the General Fund makes an additional transfer to the Dog Control Fund. Ensure that the grant allocations do not exceed donations in FY26. Page115 Limited Growth Strategies by Department 1. Department/Office: Finance ISF 2. Limited Growth Target: $195,000 3. What % of Total Budget is the Department/Office's Limited Growth Target: 6.2% 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? On average, Finance has utilized 95% of its budget. However, in FY22, Finance spent 98% of its budget. 5. Over the past three years, what trends are observed about the Department / Office's vacancy rate? On average, Finance experiences a 9% vacancy rate. There are approximately 12 FTE allocated to Finance operations. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. • BWC Adjustment - Finance was able to achieve savings in FY24 which provided an additional $71,000 in FY25 through the Beginning Working Capital adjustment. These funds will be carried over into FY26 to provide additional resources. • Vacancy Savings - Finance will budget an amount for vacancy savings. • Right -Size Budget - Finance will reduce various M&S line items to achieve incremental savings. No impact to service expected. Page116 Limited Growth Strategies by Department 1. Department/Office: Finance/Tax 2. Limited Growth Target: $57,000 3. What % of Total Budget is the Department/Office's Limited Growth Target: 5.2% 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? on average, Tax has utilized 90% of its budget. However, in FY23, Tax spent 98% of its budget. 5. Over the past three years, what trends are observed about the Department / Office's vacancy rate? FY22, FY24 and FY25 have a 0% vacancy rate. FY23 experienced a 6.41 % vacancy rate. There are only 3.70 FTE allocated to the GF for general tax support services and not much turnover. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. • Vacancy Savings - Tax will budget $17,000 in vacancy savings to balance the budget. • Right -Size Budget - Tax eliminated the budget for computers and peripherals, and reduced the budgets for office equipment, furniture and fixtures, signage, printing and binding, bank fees, and mailing services. • If ISF charges come in higher than expected and Tax cannot achieve the savings expected through right sizing the budget, we will eliminate a 0.50 FTE as of January 1, 2026. Page117 Limited Growth Strategies by Department 1. Department/Office: Health Services - Behavioral Health 2. Limited Growth Target: $66,000 3. What % of Total Budget is the Department/Office's Limited Growth Target: 0.1 % 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? Over the past three years, Behavioral Health spent approximately 90% of its budget, leaving an average of $4.2M underspent. Behavioral Health spent 96% of its personnel budget, so underspend has been primarily in the M&S category, and directly attributable to not expending Behavioral Health Housing funds (appx. $3.2M budgeted but not spent in FY23 and FY24). S. Over the past three years, what trends are observed about the Department / Office's vacancy rate? Over the past three years, the average vacancy rate has been 11 %, experiencing a high of 20% Qune 2021) and a low of 5% (March 2024). Behavioral Health targeted recruitment and retention efforts that provided a meaningful impact to stabilizing workforce, including rural pay differentials, licensure stipends, and two-year retention bonuses. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. Behavioral Health will absorb the two FTE that were added through a Board action and historically covered with CGF. These two FTE are a Civil Commitment Monitor position and an additional Crisis Supervisor. These positions will now be covered with Medicaid revenue and Medicaid reserves. Behavioral Health does not receive any additional CGF with the exception of local match requirements. In FY 2026, this includes the Intellectual and Developmental Disabilities program and the Projects for Assistance in Transition from Homelessness program. IDD match requires local funds and generates an additional 1.87 dollars for every CGF dollar invested. Behavioral Health will not exceed the limited growth target. Page118 Limited Growth Strategies by Department 1. Department/Office: Health Services - Public Health 2. Limited Growth Target: $190,000 from limited growth; $1,400,000 total funding gap 3. What % of Total Budget is the Department/Office's Limited Growth Target: 0.8% 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? On average, Public Health underspent its budget by approximately $1.5M, expending 91 % of budget. However, this fluctuated from $2.3M in FY22 and $795K in FY24. While Public Health budgets for vacancy savings, the amount under budget correlates to higher levels of vacancy rates (above what was budgeted). For instance, FY22 experienced $2.3M under budget with an average 15% vacancy (3% budgeted) whereas FY24's average vacancy was 9% (6% budgeted) and was under budget by $795K. The amount of reimbursement grants can further misconstrue numbers; meaning, while actuals may be under budget, there may not be revenue received for expenses not incurred. S. Over the past three years, what trends are observed about the Department / Office's vacancy rate? Over the past three years, the vacancy rate fluctuated --a high of 23% in June 2022 and low of 4% in July 2024 (which is closer to pre-Covid levels). Over this timeframe, the average vacancy rate has been 11 %. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. As Public Health looks ahead to FY26, many state awards remain flat, Covid related emergency funding ends, community needs shift, and county funding becomes limited. Anticipating this reality, Public Health proactively assessed programs and service needs in FY25, resulting in ending some direct services (such as the Reproductive Health Clinic) and transitioning other services to community -based organizations (such as the Ryan White Program). Specifically: Approximately 30% savings identified to address the $1.8 million gap and achieve the limited growth target comes from a decision to end providing direct Reproductive Health clinical services. The decision took into account decreased patient utilization, increased community Page 119 Limited Growth Strategies by Department access, increased access to OHP, and longer lasting birth control options. This resulted in fiscal savings that will be applied to FY26 to mitigate the impacts of limited growth targets and increased personnel and indirect costs in FY26. While this decision aids the limited growth target, the below additional strategies are still under discussion and seek to further address the remaining $1.4 million gap. Approximately 30% of limited growth target -related savings will come from decisions specifically related to Environmental Health (EH). DCHS was asked by County Admin to present 3 scenarios during the December 18th Board of County Commissioner meeting regarding EH fees and County investment, including: • Scenario 1: 50% of FY25 County investment level (i.e., TRT remains flat and removal of Video Lottery Funds). o To maintain current service levels, an estimated increase of 29% to fees is needed. If an increase in fees less than 29% is approved, a reduction in staff and services would be required to the level necessary. EH would prioritize mandated services over non -mandated services, eliminating some of the non -fee -based services listed above. If there is no increase in fees, PH must find significant savings in addition to those already achieved and planned. This would likely include elimination of filled FTE, i.e., layoffs across non -mandated public health services including those that generate revenue or match funds. • Scenario 2: County investment flat to FY25 levels. o An increase of 14% to fees is needed to maintain current service levels, including non -fee generating services, such as business consultation. NOTE: Most FY25 revenue is collected during January and February, and FY26 fee increase rates may adjust pending revenue collected. o Approximately 10% savings will come from consideration of not filling vacant positions, such as the Infection Prevention Specialist, home visiting nurses, or other vacancies, as well as limiting FY25 discretionary expenditures, such as travel and training. Not filling vacant positions could impact mandated services. o To address the remaining 30% savings necessary, the department is actively seeking additional funds through grants, enhanced payment models (e.g., PacificSource, Medicaid Administrative Claims reimbursement, Family Connects Oregon), leveraging billable claims (e.g., Social Determinants of Health Screenings, lactation services, etc.), and re-evaluating its service delivery model for its nurse program to ensure it is structured in a way that meets community demand while optimizing revenue potential. One-time funds received through Central Oregon Health Council's Quality Incentive Metric fund distribution may be considered to help address gaps in funding for programs that aid in meeting community metrics, such as those in the nurse home visiting program. Page 120 Limited Growth Strategies by Department 1. Department/Office: IT - Reserve 2. Limited Growth Target: $150,000 3. What % of Total Budget is the Department/Office's Limited Growth Target: 8% 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? Over the past several years, costs within this fund have trended upward mostly due to an increased licensing level for Microsoft. These changes were necessary to enhance security, ensure compliance, and provide additional functionality. 5. Over the past three years, what trends are observed about the Department / Office's vacancy rate? Not applicable. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. The strategy to limit the growth would be to adhere to the 8% growth for this fund. If funds are available at the end of the fiscal year, resources from the 660 Fund can be transferred to the 661 Fund to help supplement the limited growth strategy of 8%. The 661 IT Reserve Fund is unique and considered a strategic financial tool designed to manage non -recurring IT costs, such as hardware replacements, while temporarily accommodating fluctuating expenses like Microsoft licensing (This approach was implemented to mitigate the impact of sudden increases in licensing fees, allowing these costs to stabilize before transitioning them to the 660 Fund). The fund operates with a 10-year projection model, emphasizing the importance of sustainable contributions to address future demands effectively. Without sufficient funding, the reserve may fall short in covering costs associated with technology replacement cycles and fluctuating licensing expenses. Currently, the fund plays a crucial role in buffering against irregular expenses. However, limiting the fund to an 8% growth in FY26 will result in a 51 % surge in service fees for FY27.. Page 121 Limited Growth Strategies by Department Moreover, if FY27 growth is also limited to 8%, the fund will run a negative balance. This would mean that in FY27, the fund would be unable to cover the costs of Microsoft licensing and/or replace aging and failing hardware, putting critical County operations at risk. To smooth these spikes and avoid a funding shortfall, $960,000 in ISF funds is required, representing a 28% ISF increase compared to the proposed 8% growth of $810,000. This adjustment would create a consistent funding trajectory, reducing volatility and ensuring financial stability for the next several years. Page 122 Limited Growth Strategies by Department 1. Department/Office: Property Management 2. Limited Growth Target: $18,000 3. What % of Total Budget is the Department/Office's Limited Growth Target: 2.9% 4. Over the past three years, what trends are observed about the Department / Office's total budget utilization? Property Management has continued to look for M&S savings year -over -year to help offset ISFs that have increased by 40% since FY 2023. Further, PM has continued to look for opportunities to decrease the M&S budget to better align budget to actual. 5. Over the past three years, what trends are observed about the Department / Office's vacancy rate? Over the past 3 years, Property Management has increased FTE's by 1-staff, but has not been affected by staff vacancy. After reviewing your historic budget utilization and vacancy rate, and after reviewing your budget for future savings, please share 1-5 high level strategies you are considering utilizing to meet your department / office's limited growth budget target. 6. Please describe your strategies here. The County's real estate portfolio is comprised of approximately 40% asset and 60% tax deeded properties. Expenses associated with asset properties are funded by Fund 090 Project Development & Debt Service. Currently, $70,000 is transferred from Fund 090 to the General Fund to subsidize a portion of the Property Management Personnel budget. This annual contribution has not increased since FY 2022. Proposal is to increase the transfer to $85,000 from Fund 090 to the general fund. Additionally, Property Management has identified budget savings in the following expense line items: 440350 Software Maintenance Agreements $2,500 460140 Office Supplies $1,000 460610 Computers & Peripherals $1,000 491680 Transfer Out -Vehicle Replacement $748 Total Budget Expense Savings $5,248 Total Budget Revenue Increases $15,000 Page 123 FISCAL YEAR 2026 - PUBLIC HEALTH FY26 LIMITED GROWTH STRATEGY (TARGET $1,825,000) • 30% ($520K) Reproductive Health Clinic Closure • 10% ($200K) Eliminate vacant FTE and reduce FY25 discretionary spending • 30% ($560K) New Revenue and/or use of one-time COHC QIM funds • 30% ($545K) Environmental Health Fee Decisions Environmental Fee Decisions & Impacts Key questions: At what level will the County continue to invest local funds to Environmental Health (EH) in FY26, and up to what percent should fees be raised?' • EH Scenario A: Flat to FY25 o Recommend increase fees up to 14%. ■ IMPACT: No impact to current service levels. • EH Scenario B: Reduce County Investment (Video Lottery Fund - $25010 o Increase fees up to 29%. No further savings to identify. ■ IMPACT: This would be a substantial fee increase, which negatively impacts businesses and hampers EH's productive working relationships with businesses. o Increase fees up to 14%. Identify further savings of $250K. ■ IMPACT: Reductions of non -mandated services and positions across Public Health maybe necessary, some of which are currently filled. Would need to identify CGF within PH to move to offset EH program deficit in order to ensure EH mandated services. o Do not increase fees. Identify further savings of $545K. ■ IMPACT: This would have a significant impact. Public Health would need to identify multiple non -mandated public health programs and positions to eliminate, including those that generate revenue or match funds. Mandated services may also be impacted. ' A number of uncertainties remain about FY26 Environmental Health —including FY25 revenue and FY26 grants —both which would impact the above stated numbers. 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