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HomeMy WebLinkAbout2013-05-20 Budget Meeting Minutes - AMDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org MINUTES OF BUDGET COMMITTEE MEETING DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, MAY 20, 2013 -A.M. Allen Room, Deschutes Services Building Present were Commissioners Alan Unger, Anthony DeBone and Tammy Baney. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; Jeanine Faria and Teri Maerki, Finance; Dave Inbody, Administration; Budget Committee members Clay Higuchi, Mike Maier and Bruce Barrett; andfor a part ofthe meeting, David Givans, Internal Auditor; Susan Ross, Property & Facilities; Anna Johnson, Communications; and several representatives ofvarious service districts. No representatives ofthe media were in attendance. Minutes were taken by Bonnie Baker ofAdministration. Mike Maier opened the meeting at 9:00 a.m. Bruce Barrett was nominated to be Chair this year; the motion was seconded and passed unanimously. Mr. Barrett said the budget balanced for last year and Finance received another award for a distinguished budget. He welcomed Tom Anderson as the newest member of the Committee. The Bend Library County Service District The Bend Library County Service District Budget Committee consists of the Commissioners, Mike Maier and Clayton Higuchi. A discussion took place regarding the debt service. This is the last year, as the bond will be paid off; and at that time the Service District will dissolve, and will drop off the property tax statement. f Minutes of Budget Meeting Monday, May 20,2013 -Morning Page 1 of 16 t I Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 2 of 16 Mr. Maier asked if there has been any thought to continuing this Service District. They do not own the east County location. Mr. Higuchi asked if they are building reserves. Mr. Maier said that it is its own entity and anything further is through its own efforts. At the time of the bonds, the libraries were operated by the County. The locations wanted to operate separately so they were voted on separately. The Service District supported the libraries through the bonding process. MAIER: Move approval of the Bend Library County Service District Budget for FY 2013-14. HIGUCHI: Second. The motion was passed unanimously. The hearing on this District was closed. ___________________________ Sunriver Library County Service District Budget Committee Members are the County Commissioners. Teri Maerki explained there are three years to go on this budget. They were not all formed at the same time. BANEY: Move approval of the Sunriver Library County Service District Budget for FY 2013-14. DEBONE: Second. The motion was passed unanimously. The hearing on this District was closed. ___________________________ Sunriver Service District Budget Committee Members are the County Commissioners, Bob Wrightson, Jim Wilson and Michael Brannan. Bob Wrightson and Michael Brannan attended; Mr. Wilson was out of the area. Mr. Wrightson said they are proposing to hold the budget at the same level and anticipate no salary increases for employees. The Police Department has agreed; they are still negotiating with the Fire Department. Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 3 of 16 Based on comments regarding PERS at the time, the expenses were anticipated being similar to previous years. Expenses will be similar to prior years. They have relatively minor capital expenditures planned (police vehicles). The Police Department is involved in a lot of community affairs, and the new Police Chief and the Fire Chief are doing a great job. BARRETT: Move approval of the Sunriver Service District FY 2013-14 budget. UNGER: Second. The motion was passed unanimously. ___________________________ BARRETT: Move approval of the Sunriver Service District Reserve Budget for FY 2013-14 BANEY: Second. The motion was passed unanimously. The hearing on this District was closed. ___________________________ Black Butte Ranch County Service District Budget Committee Members present were the three Commissioners, Dave Sullivan, Tom Mayberry and Carol Burnham. Dave Sullivan said he is the newest member of the Black Butte Ranch County Service District. The other members were unable to attend. Their budget is austere, but they would like to be able to pay the police more. They are happy with the Police Chief and Department. They get great supp ort from the community. Commissioner Baney asked about insurance and benefits. Mr. Sullivan said they settled this and tried to be very fair with the employees. Most Fire Department calls have to do with health crises. There is good mutual support from other agencies regarding the highway and the area. They will need a new option levy, but these usually pass with a large majority. The values are down on properties, however, so there is less revenue. Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 4 of 16 UNGER: Move approval of the FY 2013-14 budget for the Black Butte Ranch County Service District. DEBONE: Second. The motion was passed unanimously. ___________________________ UNGER: Move approval of the FY 2013-14 reserves budget for the Black Butte Ranch County Service District. DEBONE: Second. The motion was passed unanimously. The hearing on this District was closed. ___________________________ Extension and 4-H County Service District Committee members are Chris Lawrence, Mike Schuleman, Chris Lawrence and Katrina Van Dis, and the County Commissioners. In attendance were Dana Martin, Katrina Van Dis and Darlene Belden; Mike Scholeman was unable to attend. Ms. Martin said that revenue is down. There have been some changes in personnel, including one person leaving, so that funding was applied to a position that was previously County funded, but now will be covered by the State. The Volunteer Coordinator position was added back. Ms. Belden is retiring this year and they included an amount for her retirement buyout. The costs for materials and services are consistent. The greenhouse project is now complete, and they are hosting a lot of vegetation classes there. The capital outlay was $60,000, and they will transfer the balance. They hope to expand the office area but are waiting to see what happens with the various programs. They are still renting space elsewhere. Commissioner Unger noted that they adjusted well when the financial situation got lean. BANEY: Move approval of the FY 2013-14 Deschutes County Extension and 4-H County Service District budget. UNGER: Second. Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 5 of 16 The motion was passed unanimously. ___________________________ BANEY: Move approval of the FY 2013-14 Deschutes County Extension and 4-H County Service District reserve budget. UNGER: Second. The motion was passed unanimously. The hearing on this District was closed. ___________________________ Tom Anderson opened the public hearing on the Deschutes County budget. He said he has relied heavily on those who have been involved in previous budget processes. He has not included anything new and the process is relatively the same. ___________________________ There was an article in the Saturday Bulletin regarding some numbers relating to health benefits. EBAC was asked to make recommendations regarding helping balance the budget. They recommended reducing the employee co-payment to 25% rather than 20%. The savings would amount to around $200,000 rather than the Bulletin’s estimate of $1.4 million. The budget was computed on approximately the $400,000 that was originally estimated. A change to the use of generic drugs rather than name brand drugs would amount to about $100,000 in savings. The Board will ask EBAC to get up to at least $400,000 in savings. EBAC is very engaged in the process and know that the departments bear the burden of expenses. The County can impose a change if EBAC does not come up with solutions. Commissioner Baney feels this was a huge mistake, going from a statement of $1.4 million in savings rather than $400,000. In addition, to impact the plan from 80/20 to 75/25 is huge, but asking employees to do even more is difficult. She wants to be able to trust the process and keep EBAC engaged. They need to know exact numbers for the health benefits fund numbers. Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 6 of 16 Mr. Higuchi asked if a third party provided double-check of the numbers. Sometimes administrators are in a hurry to get some numbers to kick around. It seems difficult for them to be accurate. Mr. Anderson stated they will not get in this position again. Mr. Maier indicated that going to 75/25 is a big jump; he asked if this is in the labor agreements. Mr. Kropp said that they talked about the monthly premium co- pay. Commissioner Baney asked how much of the cost is associated to staff. Changing the benefit might help the plan keep the premium down. Mr. Anderson stated that this will not mean much to most employees. David Inbody added that there is still a maximum amount every year, $2,000. This is why the savings are not as great as first thought. Mr. Anderson said they could increase the monthly co -payment or raise the cap on the maximum deductible. There is a discussion tomorrow on this issue. ___________________________ Mr. Anderson stated that the goals and objectives process has been completed, along with the measures. They are trying to better link the proposed budgets with the goals and objectives. (He referred to a handout, which is attached for reference.) The environment is changing, especially in health care. It is a moving target but the economy is improving somewhat. This should be help ful with revenue in various ways. PERS costs continue to rise considerably, so additional revenue will help offset that. There will be a little more scrutiny on the budgets this year and in the future, especially regarding those departments that have not gone through this in the past. He asked the Commissioners to highlight anything they feel is particularly important. Mr. Maier asked about performance measures; all departments show this tied to goals and objectives except the District Attorney. Mr. Anderson stated that gross numbers do not mean a lot since there are so many moving parts. The trend for FTE’s is still downward, and Health and Juvenile are down quite a bit. ___________________________ Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 7 of 16 Mr. Anderson stated that about a 3.3% increase in valuation is anticipated. This is conservative and may rise in the future as more properties increase in value. Construction activity is up about 22% for the County and much higher in the cities. They need to be careful about going into another phase of growing too much, too fast as in the past, which is not sustainable. ___________________________ Transient room tax is showing a substantial increase as tourist activity escalates. There has been talk about a room tax increase, but it is not built in to the budget. The City of Bend is considering one this year. The cities are already charging more than the County. ___________________________ State revenue covers a lot of things and is up slightly. The whole scene is changing with health care issues. The Commission on Children & Families is going away and staff was merged into other departments. Commissioner Baney said that this will be more of a prevention office scenario. They still do not know what this will mean long-term until the State decides how this is to be handled. They will apply for funding through the hub concep t, ABHA is gone and there will be an application through the ESD for the hub. It would be a regional approach. Mr. Anderson said that Hillary Saraceno and Scott Johnson gave a lot of thought about how to match up employees to the relevant groups within Health and other areas. Their expertise will augment what is being done. The environment is still changing at the State level. ___________________________ Sentencing reform is also in the works, and the results are not known yet. This will impact the Sheriff’s Office, Parole & Probation, Corrections and the District Attorney. ___________________________ Road funding continues to decline, and it will be an ongoing challenge as to how to pay for road maintenances. ___________________________ Enterprise funds will be up somewhat for Solid Waste. ___________________________ The Family Motor Coach Association event will come back to the Fair & Expo in 2014, but the department will need to fund a gap in its revenue until that time. Bookings are starting to come back more than previously. ___________________________ Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 8 of 16 There will be a new Finance Director next year, so there may be other ideas presented on how the budget is formed. General fund resources have a beginning net working capital amount that is higher, but there are more demands on the funding. They have shifted some revenue directly into the Justice Court fund. Justice Court is not doing well at this time in part because the Sheriff’s Office is not citing people into Justice Court. ___________________________ Regarding PERS, there is a $2.5 million increase. There are some charts (attached) regarding the PERS reserve fund and various reserve drawdown scenarios. The 50% drawdown shows a reduction to the PERS reserve fund. The charges to departments would greatly increase. Ms. Faria said it has been drawn down three years. Mr. Maier stated that is the purpose. He asked if the PERS rates being built in to the budget anticipate any changes at the legislative level. Mr. Anderson responded that they do not, since no one is sure what the State will do, or when. The plan is not to budget savings to the departments, but put any potential savings in the reserves for next year. Mr. Maier stated it appears they will still budget this way, and set aside any savings. Mr. Anderson stated that the next biennium would be set for the following year. At the end of 2013, they will look at the overall reserves. The market is the biggest determining factor in the unfunded liability. The Board testified in the more comprehensive PERS reform to get more relief, but this did not pass. Ms. Faria stated there were PERS bonds in 2002 to pay down some of the PERS debt. At the time, it was cheaper to do this. The bonds will not be paid off until about 2028. They were taxable bonds as well. This is figured in the various scenarios. Mr. Anderson stated the 50% draw down rate is recommended with this budget, but this is not sustainable and needs to be evaluated each year. The department heads have discussed this at length, so they know there may be more costs to their operating budgets. The departments recommend the 50% draw down at this time. Some departments will be greatly impacted. Mr. Higuchi thought that some were okay with doing this process this year , but know it cannot be sustained in the future. Mr. Anderson stated they did not have to absorb it last year, so has to be addressed this year. If the unfunded liability or PERS reform does not happen, they will have some intense conversations next year. ___________________________ Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 9 of 16 Mr. Anderson referred to another chart regarding the impacts of the Health Benefits Trust fund on department budgets. Originally, it was 8%; but with more recent projections on health care costs for next year, this is insufficient. The Board felt it is important to maintain a high balance in this fund. They doubled the department amounts to 15%. The other sheet shows the impact to departments. With that 15% increase, there would be the $400,000 from EBAC recommendations ($200,000 in revenue and $200,000 reduction in costs). David Givans is doing an audit on the Deschutes On-site Clinic to make sure it is resulting in the savings that were anticipated. Mr. Higuchi asked about increasing revenue through charges to d epartments. He is concerned about the impact to County services. The County needs to look at a different norm; and what can be done if they want to minimally impact services. Mr. Anderson understands that they need to look at fundamental changes to benefits. He feels the cost increase projections are higher than he anticipated, but he does not want to reduce those since there are so many unknowns. They still need the hard, fast evidence to be able to reduce the numbers. Mr. Higuchi stated that the reserves are probably too high. Chair Unger stated that they have been working towards this to bring it into equilibrium. Mr. Maier asked what the average rise in expenditures has been. Mr. Inbody said it has gone from between 5% and 11% over the years. Mr. Kropp stated that they hired a consultant to come up with an average of 8% for the coming year. Mr. Anderson stated they are undertaking ways to keep this cost down. They do not yet have projections for next year, so they are being conservative. The departments are aware of the 15% for next year. They also talked about an indirect services payment increase as well. Commissioner Baney said there is a lot of new data about wellness programs and prevention. Essentially they are capturing those who are already well, but not that many who need it. The benefit has to balance with the cost. At the end of the day, they are trying to make the plan strong and sustainable. They have a direction to follow to stave off future claims, but in the meantime it is expensive. The wellness initiatives and prevention work can only go so far. Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 10 of 16 Mr. Higuchi stated this is not a wellness program. It is to bring efficiency to the program. Mr. Inbody said wellness is only about $100,000 and not a big part of it. Commissioner Baney asked about the DOC costs. Mr. Anderson stated that it offsets the EBMS expenses. Mr. Inbody said that it saves the County about $1 million overall. Mr. Higuchi said that some things cannot be controlled, so no matter what you do, it is an expense that is going to happen. Other things can be controlled. ___________________________ Regarding labor contracts, Mr. Anderson spoke about bringing about consistency in each bargaining unit. There is still some room to adjust employee contributions, except for FOPPO. ___________________________ In regard to departmental budgets, the Fair and Expo staffing will remain flat. There is a gap in revenue for a while, so general fund would supplement what they need for reserves. The next year revenue should be better. The Fair Board would like to see an increase in room tax revenue. ___________________________ Natural resources includes the weed abatement work that has been done. They are losing some federal funding, but they are looking at other sources. It is hoped that the FEMA 2010 grant will become active. Dan Sherwin retired, so the budget requests part of this be handled by the Road Department if it relates to road rights of way. The private or other public lands portion will be handled by Ed Keith, the County Forester. There are some similarities in this work regarding forests, weeds and use of the land. However, the Weed Board has some concerns and fears their program will lose momentum. ___________________________ The Road Department continues to reduce staff to offset reductions in revenue, but this can only go so far. State and Federal revenue is fluctuating, and this issue has not been solved long-term. They may have ideas on of how to handle some of this. ___________________________ The Solid Waste Department revenue is based on volume and should increase as building increases. There will be no additions to staffing. There is no market for bio-fuels at this time. However, the waste to energy project (using the gas from the landfill) is being discussed. There could be an add-on piece for bio-fuels. Overall, things are looking more stable. Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 11 of 16 ___________________________ The Assessor has budgeted conservatively and staffing is down. He may need to increase staffing if construction significantly increases. ___________________________ In regard to Health Services and the Children & Families Commission, staffing is declining in Health, but is up in Behavioral Health. General fund support will need to be increased for uninsured clients. The Health Department hopes for a more comprehensive way to assess clients to get them into all of the programs they need. ___________________________ Mr. Anderson stated that in Community Development, they hope to bring one person back up to full-time for code enforcement, as a result of changes in construction and permits. Revenue is up and a fee increa se is proposed. Andy High of the Central Oregon Builders’ Association said they will not object to this. The new permit system requires a lot of work, and management is restructuring. The State increased the building surcharge and the County will have to pay for some additional modules, but overall it will be stable and can be maintained by I.T. ___________________________ In regard to the District Attorney’s Office, a comparison was made with other counties (handout attached). Due to a loss in funding for victims’ services, there would be additional general fund support proposed. One big issue is the D.A.’s desire to segregate I.T. services in-house rather than using the County’s system, but asking for County I.T. support of the separate system. This may or may not be part of the D.A.’s request. The D.A. believes this is important, but the Budget Committee needs to know whether this should continue. The D.A. has already converted several systems. The D.A. would like to take over the rest and eliminate the I.T. charges. A cost comparison is needed, as the current spreadsheet may not be entirely accurate. I.T. indirect charges are still in the proposed budget. Mr. Higuchi wants to know what the County’s position is regarding I.T. services. He does not want the County to be faced with departments wanting their own system, and wants to know what the costs would be each way. He wants to hear how having a separate system is cost-effective. Chair Unger stated that departments will assume more responsibility of systems as they change over. Mr. Higuchi feels that a centralized system is much better. People will want their own I.T. person if you let them. Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 12 of 16 Commissioner Baney stated that the D.A. will bring up issues relating to ownership and access to records; that those are the documents of the D.A. and the County has no right to them. Essentially, he will say that some documents were not kept as they should have been, and he has not had access to some that he feels he should have been able to retrieve. It is somewhat different as far as he is concerned. They have talked about using storage off-site. Mr. Maier stated that the County has an outstanding archival facilities that they could use for hard documents, too. However, this is not going to be solved overnight. Commissioner DeBone said that the D.A. wants to have more control over records, especially those relating to the State. I.T. does a good job with certified criminal justice systems already. He wants to know what the line is that the D.A. does not want crossed. He wants to be clear about the most cost-effective way to do this. Mr. Anderson said the D.A. is a separate elected official and it is a bit different. If he can present his proposal in a way that is cost neutral, it should be supported. At this point they are not on the same page. He feels there needs to be more analysis of the proposal to date, but wants to avoid a public confrontation. They cannot remove the I.T. costs at this time without more information and a more objective comparison. There is a big difference between one and two I.T. people. If they get past the systems installation, it should be up to the D.A. at that point. Mr. Maier stated that the D.A. keeps quoting the law. He is curious about other places and what the Attorney General feels is needed. Mr. Kropp stated that Multnomah County has more centralized functions; others do not. Mr. Barrett said if they can show this is justifiable, the Budget Committee can decide if it is logical. Mr. Maier noted there are a lot of loose strings. Mr. Higuchi indicated that it needs to make financial sense. Commissioner Baney said this is the third time this has come up, so a decision needs to be made. Chair Unger noted that they still have not gotten all of the information that is needed and was requested. Mr. Anderson said that the civil commitment process will go to the D.A. in August, and an estimate was made regarding the costs involved. He got the impression that the D.A. feels more staff is needed there. Commissioner DeBone said that the D.A. intends to take over child support enforcement services as well, but this has not yet been decided. ___________________________ Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 13 of 16 Justice Court is in financial difficulty in most part because the Sheriff’s citations have dropped dramatically. Fine revenue is not enough to sustain the Court. Without a turnaround in this, the numbers will get worse. They get citations through the Redmond Police and a small number from OSP. Most are going into Circuit Court because the Sheriff’s fund gets part of that fine. The other possibility is shrinking staffing in Justice Court, although they do not have that many staff. The Sheriff has reasons why he has shifted to Circuit Court, one of them being he thinks the conviction rate is higher in Circuit Court. Commissioner Baney stated the Circuit Court system has reduced staffing and it is a benefit to have Justice Court to take over part of that load. They are already struggling to process the case workload. Mr. Anderson stated that the Circuit Court does not seem to be concerned about the additional workload as much as they want the extra funding to stabilize revenue. Commissioner Baney said that they used to meet with Justice Court regularly. Mr. Maier feels that the Sheriff and Judge Fadeley do not agree on certain things. It was set up to service the citizens so it was more convenient for them, so citizens did not have to come into Bend. Initially Justice Court studies showed them all making money. It was that way for a while. Mr. Anderson said that if it pays for itself, the Sheriff gets any overages. However, citations have gone down since 2008. Mr. Maier noted that it is a waste of time for a Circuit Court to handle traffic citations, too. They also handle small claims and other types of cases. Mr. Barrett stated that this will be a discussion during the presentation. Commissioner Baney asked if a chart could show what kind of activity comes through Redmond Police, too. ___________________________ The Sheriff’s Office is staffing down for now. There are some expensive projects underway including the jail expansion and converting to a new radio system. ___________________________ Community Justice is also staffing down in Juvenile. Adult Parole and Probation will receive some increased funding but sentencing reform may have an unknown impact. ___________________________ Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 14 of 16 9-1-1 Operations will have an answer tomorrow on Election Day. Staffing is flat. They would utilize reserve funds if the ballot does not pass, and look at whether to go out for another levy. Services may be pushed back to the districts. ___________________________ County Clerk revenue is up with the increase in recordings. ___________________________ The Commissioners went through a decision as to how to allocate lottery funds, which will be prioritized for economic development. The advertising budget will be trimmed by having departments cover some costs. The philosophy is to keep the costs down by providing more options to departments, who can decide what is most important. The training budget through Personnel was reduced. Staffing is down as well, but there will be a new director in Fiscal Year 2013-14 and some analysis of the Human Resources system, including automation upgrades and/or outsourcing. In regard to Finance, there is hope to automate more and get away from paper. There is proposal to increase dog licensing fees. A new Finance Manager will be coming on board too. ___________________________ Information Technology’s staffing is flat, but they are working on upgrades and replacement of equipment. ___________________________ County Counsel is looking into a new case tracking system. ___________________________ Property and Facilities is working on a lot of capital projects and other issues. ___________________________ Mr. Anderson distributed a sheet with major policy questions for the Committee. ___________________________ The Bethlehem Inn is thinking long-term and working more towards fundraising to support their vision. ___________________________ Minutes of Budget Meeting Monday, May 20, 2013 - Morning Page 15 of 16 Capital Improvement Programs. Susan Ross said the Jail expansion project was scaled back from its original plan some years ago. (She referred to oversized sketches.) The revised scope focused on leaving the site as status quo as possible. The new housing unit will accommodate 144 beds, a dorm area and required medical facilities. They are working on construction documents and will begin the site work while they are awaiting building permits. Construction should begin in September and be concluded by next June. It will be handled as a CMGC and the various subcontractor work will be bid out. The same general contractor and design team will be utilized. Commissioner Baney added that there was a public meeting regarding the CMGC and there seems to be general support. The North County Services Building is still unknown. They are still vetting a couple of options that could consolidate County services and bring in other agencies. The goal is to provide a one-stop shop for clients. The Sisters school-based health center is on hold due to a development that was going to come in first and provide infrastructure, but was delayed. She hopes they will be on board in the near future. An extension was requested in the meantime. They need to be sure there is funding available to staff it at that time. The annex building remodel houses health services for the most part. Mr. Inbody said that the idea is to remodel this in order to co -locate services for behavioral health and medical health clients. Mosaic Medical will share this workload and the cost. These are proposed for the new budget with the funding indicated. Regarding the Courthouse and D.A. remodel, they can stay within the footprint of the buildings. The basement was the jail a long time ago, and that space will be utilized as offices and storage. They will convert some areas for jury assembly and traffic court. This frees up space so the D.A. will gain some. It will be more convenient for customers as well, as there will be one security point. There are two phases and it will take a couple of years to complete. Mr. Inbody stated that some of the road projects are partially funded by the County. These include Skyliners Road, La Pine and the Tumalo Trail. Some system upgrades are necessary, including 9-1-1 communications and the juvenile security system. Ms. Ross stated that the system is failing in juvenile. New technology requires internet protocols, which they are combining with the jail project. They hope to get a better price doing these together. Necessary purchases are a Solid Waste scale at the Negus transfer station, and an LT. loader for backup at Knott landfill. The Road Department will make some changes regarding equipment, extending out the service of some equipment for a while. Ms. Ross said that Fund 142 comes from property taxes, and is meant to help with smaller capital projects. They budget some every year to handle control systems and equipment upgrades. Mr. Inbody noted that Community Development needs a software upgrade that ties into the State system. There should be less demand on this fund in the future. The City does not want to use this system since they have their own, and they are unwilling to change direction at this time. Being no further discussion , the meeting adjourned at 1 :00 p.m. DATED this Iq~DaYOf ~ 2013 for the Deschutes County Board of Commissioners. Alan Unger, Chair Ta~l chair ATTEST: Anthony DeBone, Commissioner ~~ Recording Secretary Minutes of Budget Meeting Monday, May 20, 2013 -Morning Page 16 of 16 13/445 .. BUDGET COMMITTEE AGENDA Monday, May 20 th , 2013 9:00 AM 9:00 -9:05 AM 9:05 -9:10 AM 9:10 -9:20 AM Program Budget Tab/Page • Elect Chair Bend Library County Service District (Budget Committee-Commissioners, Clayton Higuchi & Mike Maier) • Open public meeting and introductions • Budget discussion • Public comment • Motion to approve budget of $869,535 and set amount of levy at $762,604 • Motion to be seconded • Committee votes • Close budget meeting Sunriver Library County Service District 13/445 (Budget Committee-Commissioners) • Open public meeting and introductions • Budget discussion • Public comment • Motion to approve budget of $102,536 and amount of levy at $89,878 • Motion to be seconded • Committee votes • Close budget meeting Sunriver Service District (Budget Committee­7/310 Commissioners, Bob Wrightson, Jim Wilson & Michael Brannan) • Open public meeting and introductions • Budget discussion • Public comment • Motions to: 1) Approve Sunriver Service District operating budget of $5,734,404 and set tax rate at $3.3100 per $1,000 of assessed valuation (Fund 715) 2) Approve Sunriver Service District Reserve budget of $902,508 (Fund 716) • Motions to be seconded • Budget Committee votes • Close budget meeting Page 1 BUDGET COMMITTEE AGENDA Monday, May 20th , 2013 9:20 -9:30 AM 9:30 -9:45 AM 9:45-10:00 AM 10:00-11:30 AM 11:30 AM -Noon Black Butte Ranch Service District (Budget Committee-Commissioners, Dave Sullivan, Tom Mayberry & Carl Burnham) • Open public meeting and introductions • Budget discussion • Public comment • Motions to: 1) Approve budget of $1,658,700 and set tax rate at $1.0499 per $1,000 of assessed valuation 2) Set local option operating tax rate at $.5500 per $1,000 of assessed valuation • Motions to be seconded • Budget Committee votes • Close budget meeting Deschutes County Extension and 4-H Service District (Budget Committee-Commissioners, Chris Lawrence, Mike Scholeman & Katrina Van Dis) • Open public meeting and introductions • Budget discussion • Public comment • Motions to: 1) Approve Deschutes County Extension & 4-H Service District operating budget of $69'6,093 and set tax rate at $.0224 per $1,000 of assessed valuation (Fund 720) 2) Approve Deschutes County Extension & 4-H Service District Reserve budget of $355,400 (Fund 721) • Motions to be seconded • Committee votes • Close budget meeting Break Deschutes County • Open public meeting • Deschutes County Budget Proposal Capital Improvement Program Program Budget TablPage. 7/299 7/304 8/315 Page 2 BUDGET COMMITTEE AGENDA Monday, May 20th , 2013 Noon -1:00 PM 1:00 -1:30 PM 1:30 -2:00 PM 2:00 -3:00 PM 3:00 -3:15 PM 3:15 -4:15 PM 4:15 -4:45 PM 4:45 -5:00 PM Lunch -Discussion Fair and Expo Center • Introductions • Budget discussion Natural Resource Protection • Introductions • Budget discussion Road • Introductions • Budget discussion Break Solid Waste • Introductions • Budget Discussion County Assessor • Introductions • Budget Discussion Public Comment Cont inue the Deschutes Co unty budget m e eting to Tues day, May 21S t , at 9:00 AM Program Budget TablPage 4/144 4/164 4/152 4/169 4/117 Page 3 '" '" ~ "0 I "0 Ico-.­co E I cu I I ::te: I I I g I S: 1 VI Q) co ~ .5:: 0.. ~ ~ ~ ..... 0 ~ -.;::. ~ Q) co 0.. M 5 N c5 N >~10< ~, >­10 1Jc: 0 ~ .5... OJ OJ ~ ... OJ "'0 ~ co Budget Committee Major Policy Questions 1. PERS -Confirm 50-50 split to pay for FY 14 charges • Action: 2. HBT -Confirm/modify proposed balance of 15% departmental charge increase/$400K EBAC • Action: 3. Fair & Expo Center -Confirm/modify General Fund transfer to support Reserve Fund • Action: 4. Natural Resources -Confirm support for Weed Abatement program • Action: 5. Road -Confirm support for FTE decrease • Action: 6. Solid Waste -Support no fee increases • Action: 7. County Assessor's Office -Confirm support for staffing decrease • Action: 8. Health Services/CFC -Confirm support for consolidation • Action: 9. Health Services -Confirm support for staffing modifications, General Fund transfer increase • Action: 10. Community Development - Confirm support for staffing increase, General Fund transfer, fee increase • Action: 11. District Attorney's Office - Confirm support for General Fund transfer increase (VAP), IT proposal, civil commitments • Action: 12. Justice Court -Confirm support for General Fund subsidy I,• Action: f \ 13. Sheriffs Office -Confirm support for 1145 split, staffing decrease, jail debt • Action: 14. Community justice -Confirm support for General Fund transfer, staffing decrease, 1145 split • Action: 15. 9-1-1 Operations-Identify any changes to proposed budget • Action: 16. County Clerk's Office -Confirm staffing decrease support • Action: 17. BOCC/Admin - Confirm support for staffing increase (Veteran's), video lottery distribution, advertising decrease • Action: 18. Personnel-Confirm support for staffing reduction, training budget reduction • Action: 19. Finance -Confirm support for staffing change, dog license fee increase • Action: 20. Information Technology -Identify and changes to proposed budget • Action: 21. Legal -Identify and changes to proposed budget • Action: 22. Property & Facilities -Identify and changes to proposed budget • Action: 5/19/2013 DESCHUTES COUNTY FY 2013-14 PROPOSED BUDGET May 20,2013 Presentation to the Deschutes County Budget Committee FY 2014 Proposed Budget Goals 1. Budget Toward County Objectives 2. Reflect Changing Environment 3. Address Labor Cost Increases a. PERS b. Health Care Costs 4. Budgetary Scrutiny 5. Mitigate Impacts on Reserves 1 5/19/2013 FY 2014 Deschutes County Goals and Objectives Safe Communities • Promote targeted prevention, diversion and intervention programs to reduce recidivism and future demands on County services • Respond to, investigate and prosecute criminal activity to ensure the guilty are held accountable • Protect the community by providing safe, secure and humane detention facilities for adults and juveniles • Provide for the supervision for adults and juveniles who have participated in criminal activity through parole, probation, post-prison and diversion a -.2 'b ~E A " -\C < FY 2014 Deschutes County Goals and Objectives Healthy People • Ensure children, youth and families are protected, healthy and successful • Support physical, mental and social well -being through partnerships, prevention and access to quality, affordable health care for the most vulnerable populations • Assess, preserve, promote and protect the basic health and wellness of residents • Provide behavioral health treatment and support for community members with the greatest need • Promote preventative health through community education, outreach and advocacy 2 5/19/2013 FY 2014 Deschutes County Goals and Objectives Economic Vitality • Provide safe and effective infrastructure that supports local economic opportunities and livable communities • Support land use policies that promote beneficial utilization of land for economic growth • Support beneficial management and access policies of publicly owned natural resources to promote tourism and recreational activities • Pursue inter-jurisdictional cooperation to enhance service delivery and the cost effectiveness of public service 8 -.!'1"fi ~....~ FY 2014 Deschutes County Goals and Objectives Healthy Environment • Support sound forest and public land management practices and oversight • Enhance and protect air, land and water resources 3 5/19/2013 FY 2014 Deschutes County Goals and Objectives Effective Service Delivery • Support employee development, productivity and safety through training, technology, resources, and tools necessary to deliver quality public services • Support and promote Customer Service "Every Time" Standards • Provide evaluation of employee performance, job satisfaction and wellness • Provide comprehensive support services in an effective and efficient manner • Ensure accurate, secure and timely delivery of public service ""i ER• Moni~or, ~nalyze and report on the financial health of the ,/ organization ~ FY 2014 Budget Summary FY 2012-13 FY 2012-13 FY 2013-14 Original Current Proposed Adopted Budget Budget Budget Total Budget $276,220,160 $289,878,440 $287,161,996 FTEs 808 819 809 4 5/19/2013 FY 2014 Budget Summary FTEs 860 "r-­---­----­----­--­ 8S0 -!---­----­---­---­-­ 840 830 820 ~-----_4 ~6~_=~---- 819 810 800 790 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 Revenues -Property Taxes County General Fund • Assessed valuation estimated +3.5% • Projected revenue +4.2%, +$880,000 -Current and Prior Year • Construction Activity: -Deschutes County +22% -City of Bend +57% -City of Redmond +61% • Home values steadily increasing 5 5/19/2013 Revenues -Transient Room Tax • Current year revenue projections 10% over budget • Proposed Budget -$3,423,000, +11.7% over current year budget • Healthy tourism sector • Does not include tax rate increase -Discussions ongoing -Bend/Redmond -Possible consideration of County increase Revenues -State Revenues • Slight 0.4% increase projected • Changing health care/social service direction - Health Services/Children & Families Commission consolidation • Community corrections funding • Declining Road maintenance funding 6 5/19/2013 Revenues -Enterprise Funds • Solid Waste -Revenue up $200,000 over current year budget • Commercial and franchise disposal -No tip fee increases proposed • Fair & Expo Center -FY 14 Gap in major events • Motor Coach Association -August 2014 -General Fund bridge support Revenues -Interest Earnings • Remain very low -Current return 0.55% -0.6% -Budget at 0.4% • Optimism for future • New investment strategy possible -New Treasurer -Consideration of hiring consultant to assist with investment decisions 7 5/19/2013 General Fund Resources • Beginning Net Working Capital up $800,000 -Property tax collections higher than budgeted • Shift of Justice Court revenue ($440,000) Countywide Expenditures • PERS -State charges increased $2.65 million -Cost absorbed primarily by departments, Reserve Fund continued FY 13 subsidy, plus $430K . Total of $2,230,000 from Reserve Fund (see chart) -Legislative action -SB 822, Other? -Improving stock market • December 2013 unfunded liability will drive FY 16/FY 17 state PERS rates 8 5/19/2013 Countywide Expenditures • Health Care Costs/HBT Fund -Departmental rates increased 15% • See impact chart -$400,000 employee "contributions" -HBT projected fund balance • See chart - Onsite Clinic/Pharmacy • Savings subject of internal audit Countywide Expenditures • Salaries -Labor contracts Proposed FY 2013-14 Union Contract COLA Health Insurance Sheriffs Office Association July 2013 -June 2016 1.6% (CPI: 1.5% -3.5%) Up to 7.5% cost (up to $140) expired June lOll. 2.9% retro. July 2012; 9-1-1 binding arb. 0% July 13 Up to $95 AFSCME July 2011 -June 2014 1.6% (CPI: 1.5% -3.5%) Up to 9.5% cost IUOE (Public Works) July 2012 -June 2015 1.6% (CPI: 1.5% -3.5%) Up to 9.5% cost expired June 2012, FOP PO bindlnll arb. 1.6% Up to $65 Deputy DAs Jan. 2011 -June 2015 1.6% (same as non-reps) Up to $140 9 5/19/2013 FY 14 Proposed Budget • General Fund departments &departments receiving General Fund transfers -Instructed to budget flat -PERS/Health costs • Internal Service departments -Additional review step/FY 14 objectives • FY 14 operational philosophy -Recession mind set -Build reserves -New Finance Director Department Budgets • Major Issues • Policy considerations 10 5/19/2013 Fair & Expo Center • Staffing flat • No major FY 14 events -Smaller bookings increasing • Loss of sponsorship revenue • General Fund bridge funding FY 13 & FY 14 -FY 13 +$100K, FY 14 +$200K • Reserve Fund decreasing • Consideration of TRT tax rate increase • DSL Land Natural Resources • Staffing flat • Future funding uncertain -Title III expiration • FEMA 2010 grant • Senior Advisor (Stutler) Cohesive Strategy investment • Absorption of (non-right of way) Weed Abatement program 11 5/19/2013 Road Department • Continued staffing decreases (3.75 FTE) -Balance achieved? • State & Federal revenue fluctuations • Focus on existing infrastructure maintenance • Absorption of (right of way) weed abatement • Regional shared resources MOU • Skyliners Road project -Spring 2015 Solid Waste • Staffing flat • Revenue increasing +4.4% • No rate increases proposed • Market declining for bio-fuels • Recycling contracts • Waste to Energy project 12 5/19/2013 County Assessor • Staffing down 1.0 FTE -Down 5.5 FTE since FY 09 • As construction increases, staffing may need to increase in coming years • Continued impact of tax appeals Health Services Children & Families Commission • Staffing overall up 2.55 FTE -Public Health down 5.05 FTE -Behavioral Health up 9.1 FTE • CFC Consolidation • Health care reform/Consolidated Care Organizations (CCOs),OHP member expansion • Increased PH General Fund support ­ $394,000 (offset $245K state decrease) • Other-Access Team, Annex expansion 13 5/19/2013 Community Development • Staffing up 0.4 FTE (Code Enforcement) • Projected permit revenue up $850,000 • General Fund transfer down $300,000 • 2.5 -3.5% fee increases proposed • New Permit System • Management re-structuring District Attorney's Office • Staffing flat • Increased Victims' Assistance General Fund support +$100,000 • Information Services proposal • Transfer of Civil Commitment program • Future Issues: -Child Support Enforcement -Veterans' Court 14 5/19/2013 Justice Court • Staffing flat • Fine revenue transferred from General Fund • Significant financial issues -Decrease in Sheriff's Office citations (see chart) -State changes to unitary assessment amount and payment priority -$142,000 FY 14 General Fund subsidy Sheriff's Office • Staffing down 2.0 FTE • No cha nges to Dist. 1/2 tax rates proposed • TRT revenue up $200K, General Fund transfer down $200K • 7.1% Increase in state corrections funding • Jail Expansion project • Radio communications system replacement 15 5/19/2013 Community Justice • Staffing down 4.8 FTE (Juvenile) • Juvenile: -Reduction to one detention pod -General Fund transfer up $50K (labor cost) • Adult Parole & Probation: -Increase in 1145 revenue -$200}OOO • Same Sheriff split -65%/35% -Sentencing reform legislation pending • Could result in increased state support 9-1-1 Operations • Staffi ng fl at • Levy vote Tuesday 5/21 • Budget predicated on levy passage • Levy reduces tax rate 3 cents -Long term problems without permanent levy • Labor contract issues 16 5/19/2013 County Clerk's Office • Staffing down 0.5 FTE • Recording fee revenue projected up $125,000 BOCC/Admin • Staffing up 0.25 FTE (Veterans' Services) • Video Lottery funds re-prioritization • Reduced advertising budget 17 5/19/2013 Personnel • Staffing down 0.25 FTE • Training budget reduced • New Director in FY 14 • Scoping of new Human Resources system Finance • Staffing down 0.5 FTE • Increased dog licensing fees • New Director in FY 14 • Scoping of new financial management system 18 5/19/2013 Information Technology • Staffing flat • Pending retirements/last legacy system replacements • Email software upgrade Legal • Staffing flat • Transfer of civil commitments to DAIs Office • New case tracking system 19 5/19/2013 Property & Facilities • Staffing flat • Energy efficiency • Continuing project management of major capital projects • Redmond large lot industrial process 20 JUSTICE COURT Sheriffs Office citations through Circuit Court and Justice Court. Gross fine revenues resulting from Sheriff's Office citations-by court handling FY07 FY08 FY09 FY10 FY11 FY12 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $­ • Justice Court • Circuit Court Source : Justice Court distribution reports and Circuit Court fine revenue (after unitary assessment deduction) Expense/pop FY 2013 Expense per County Resident $35 .00 $30.00 $25.00 $20.00 $15 .00 $10.00 $5 .00 $- Deschutes $ 32,94 Marion S 30.58 Lane S 30.31 Clackamas $ 27.49 Multnomah $ 25 .74 Jackson $ 24.06 Yamhill S 20.19 Umatilla $ 18.73 Washini/ton $ 17 .97 Douglas $ 13 .73 Josephine $ 12 .83 Personnel Expense per FTE Personnel Exp/m $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $­ Lane $ 121,768 Multnomah $ 113,140 Clackamas $ 111,003 Washington $ 109,433 Deschutes $ 103734 Marion $ 99 ,656 Jackson $ 91,541 Josephine $ 85,258 Yamhill $ 79,255 Umatilla $ 72 ,487 Douglas $ 63 ,023 Felony Cases/Prosecutor Felony Cases per Prosecutor 120.00 .,--------------------------­ 100.00 80.00 60.00 40.00 20 .00 0.00 Lane 109 .93 Umatilla 101.84 Jackson 90 .32 Josephine 86.55 Douglas 85.97 Multnomah 82.35 Marion 82 .20 Washir~l1ton 73 .76 Deschutes 72.31 Clackamas 56.48 Yamhill 55 .36 Misdemeanor Cases per Prosecutor Misdemeanor Cases/Prosecutor 300.00 ~------~--------------~---Multnomah 264 .41 Jackson 202.48 Josephine 197 .88 Washington 15 9.0 3 Deschutes 155.78 Clackamas 132.84 Umatilla 124.03 Douglas 123.95 Marion 120.94 Yamhill 112.64 Lane 74.39 ",.,~"""'_'I""Iv""''''''''''\.t,;_<·",_"",~~~~Jk~~ District Attorney Comparative Data Pop 2012 DAExpenses DA Personnel Exp FY 2011-2012 Assessed Value (billions) FY 2011-2012 Real Market Value (billions) Felony cases/Prosecutor (2008) Misdemeanor cases/Prosecutor (2008) DAStaff (FTE) I Multnomah 748.490 S 19,265,981 S 16,610,062 S 61.0 S 124.7 82.35 264.41 146.81 Washington 542.860 S 9,755,783 S 8,869,555 S 46.8 S 65.3 73.76 159.03 81.05 •I Clackamas 381,685 S 10,492,783 S 8,158,728 S 37.1 S 48.8 56.48 132.84 73.5 Reduced by 5.10 FTE Lane 354,210 S 10,737,546 S 9,010,866 $ 26.0 S 45.2 109.93 74.39 74 Reduced by 11.0 FTE Marion 320,550 S 9,801,734 S 8,134,918 $ 19.6 S 35.0 82.20 120.94 81.63 Reduced by 1.00 FTE Jackson 204,645 S 4,923,373 $ 4,165,128 S 16.3 S 24.6 90.32 202.48 45.5 Deschutes 160,140 S 5,274,667 S 4,247,908 $ 17.7 S 23.5 72.31 155.78 40.95 Douglas 108,200 $ 1,485,755 S 1,373,905 $ 7.6 S 14.8 85.97 123.95 21.8 Yamhill 100,550 S 2,029,622 $ 1,727,764 $ 6.7 S 10.2 55.36 112.64 21.8 Josephine 82.780 S 1,062,000 $ 956,600 S 6.1 S 8.4 86.55 197.88 11.22 Umatilla 77,000 S 1,442,186 S 1,286,641 $ 5.8 $ 6.2 101.84 124.03 17.75 Oregon Average 58.83 133.55 Data based on the following: 2012 PSU Population Estimates FY 2012 County Budget Documents 2012 Oregon Blue Book Department of Justice Cost Projections if this P I is DENIED FY 2011 (Act) FY 2012 (Act.) FY 2013 (Bud.) FY 2014 (Bud.) FY 2015 (proj.) FY 2016 (Proj.) ITO Hours 1,011.4 1,036.15 1,382.6 1,692.5 1,143.4 1,143.4 ISF Hours 74,318 76,022 101,397 130,733 90,966 93,615 ISF Hardware 104,789 107,387 105,324 100,189 103,195 106,200 ISF Dept. Dist. 14,500 5,122 15,733 24,641 25,380 26,119 Reserve 16,471 15,860 15,504 15,492 15,957 16,422 IT Total 210,078 204,391 237,958 271,055 235,498 242,356 • DA Hardware 16,039 38,891 35,000 35,000 35,000 35,000 DA Software 4,271 3,470 25,000 25,000 .25,000 25,000 DCDA Total 20,310 42,361 60,000 60,000 60,000 60,000 1 Total Co. Cost 230,3881 246,7521 297,9581 331,0551 295,4981 302,3561 Cost Projections if this P I is APPROVED FY 2011 (Act.) FY 2012 (Act.) FY 2013 (Bud.) FY 2014 (Req.) FY 2015 (proj.) FY 2016 (proj.) lTD Hours 1,011.4 1,036.15 1,382.6 1,692.5 1143.4 50 ISF Hours 74,318 76,022 101,397 130,733 90,966 4,094 ISF Hardware 104,789 107,387 105,324 100,189 103,195 0 ISF Dept. Dist. 14,500 5,122 15,733 24,641 25,380 26,119 Reserve 16,471 15,860 15,504 15,492 15,957 0 IT Total 210,078 204,391 237,958 271,055 235,498 30,213 DAHardware 16,039 38,891 35,000 68,500 48,000 48,000 DA Software 4,271 3,470 25,000 35,000 35,000 35,000 DA Services 0 0 0 22,128 22,128 22,128 New Personnel N/a N/a N/a 88,000 90,640 93,359 DCDA Total 20,310 42,361 60,000 213,628 195,768 198,487 I Total Co. Cost 230,3881 246,7521 297,9581 ·484,6831 381:351 I 229,5551 Health Benef~ust -Fund 675 Budget and \,. ,Year Forecast FY 2014 through FY 2018 Projections FY 2013 Proposed Budget (15%) _~Yl0~ _ FY ~0!§_1 Annual Forecast yY_2016 _ J _ FY 2017 I FY 2018 Revenues : Insurance Premiums -Interfund Charges Additional Premiums -Part-time employees Employee Monthly Co -Pay COIC Retiree I COBRA Health Insurance Medical Services and Rx Rebates HBT .B.ecommendations -increase in revenues Interest $12 ,871,238 $ 33 ,000 638,000 1,400,000 930,000 67f~_ 73.000 14,783,379 40,000 880,000 1,592,750 958,333 ..2,0,493 60,000 $ 17,000,886 46,000 1,012,000 1,831 ,663 1,102,083 50,493 200,000 60,000 $ 19,551,019 $ 52,900 1,163 ,800 2,106,412 1,267,396 50,493 200,000 60,000 22,483 ,672 $ 25,856,222 60,835 69,960 1,338,370 1,539,126 2,422,374 2 ,785,730 1,457,505 1,676,131 50,493 50,493 200,000 200,000 60 ,000 60,000 Total Revenues Appropriations Personnel Services -all departments HT8 Recommendallons (10 75125 from 80120) rnendallona ' Materials & Services Claims Paid (EBMS) Deschutes On-Site Clinic DOC Pharmacy Other Materials & Services (inc'l. Wellness) Materials & Services Total Appropriations Increase I (Decrease) in NWC Beginning Net Working Capital 16,012,737 18,364,955 21,303,125 24,452,019 28,073,248 32,237/662 200,772 210,823 14,651 ,688 15 ,512,015 842,432 963 ,580 1,933,223 1,800,893 1,148,415 1,166,928 18,575,758 19,043,416 18,776,530 19,254,239 (2,763 ,793) (889,284) 14 ,551 ,028 11 ,700,000 219,256 20,566,889 20,786,145 516,979 10 ,810,716 228,026 22 ,212,240 22,440 ,267 2,011,753 11,327,696 237,147 246,633 23 ,989,220 25,908,357 24,226,367 26,154,990 3,846,882 6,082,671 13,339,449 17,186,330 Ending Net Working Capital $11,787,235 $ 10,810,716 $ 11 ,327,696 $ 13,339,449 $ 17,186,330 $ 23,269,002 Annual Charge to Departments per FTE 15,086 17,349 19,951 22,944 26,386 30,344 # of Months of Next Year's Appropriations in Ending Net Working Capital 7.35 6.24 6.06 6 .61 7.89 9.89 Percentage of Expenditures covered by Revenues 85% 95.38% 102.49% 108.96% 115.88% 123.26%1 Assumptions for FY 2015 through FY 2018: Annual increase in Charge per FTE to Departments 15% Annua l increase in Personnel Appropriations 4% Annual increase in Materials & Services ----"~- - -- - - --- - - - - Projected PERS Increases by Department (Utilizing FY 2013 Subject Wages) Scenarios for Increase in PERS Charges 25 % Depts/ 50% Depts/ 90% Depts/ 100% Depts/ 75 % PERS Rsv 50% PERS Rsv 10% PERS Rsv 0% PERS Rsv2 02-Assessor 35,795.15 71,590.30 128,873.87 143,180.60 05-Clerk 10,064.58 20,129.17 36,232.87 40,258.34 08-BOCC 16,308.40 32,616.79 58,722.37 65,233.59 09-lnformation Technology 30,544.15 61,088.30 109,969.77 122,176.59 10-Building Services 25,206.45 50,412.91 90,754.04 100,825.81 11-District Attorney 59,863.36 119,734.34 215,546 .75 239,461.06 12-Law Library 783.26 1,566.51 2,819.72 3,133 .03 14-Finance 23,335.18 46,670.37 84,009.12 93,340.74 15-Children & Fam Comm 7,814.20 15,628.41 28,133.72 31,256.82 16-Juvenile 67,137.99 134,275.98 241,716.67 268,551.96 Sheriff-All Depts 349,108 .01 697,725.81 1,256,140.72 1,395,014.40 20-Public Health 71,593.06 143,190.63 257,789.66 286,376.75 22-Behavioral Health 137,882.56 275,765.11 496,468.63 551,530.21 23-Veterans' Svcs 1,824 .62 3,649.24 6,570.94 7,298.48 26-Grant Projects 1,675.11 3,350.23 6,030.41 6,700 .46 27-Legal Counsel 10,763 .77 21,527 .55 38,754.44 43,055.10 31-Personnel 11,426.46 22,852.92 41,136.32 45,705.84 36-CDD 40,077.88 80,155 .76 144,292.04 160,311.52 50-Road 68,085.66 136,171.32 245,130.61 272,342.64 50-Forester 2,470 .61 4,941.24 8,895.79 9,882.46 62-Solid Waste 21,740 .64 43,481.28 78,273.79 86,962.56 71-Risk Management 3,737 .28 7,474.56 13,454.21 14,949.12 74-Extension/4-H 1,784.14 3,568.27 6,423 .60 7,136.54 75-DC 9-1-1 57,805.05 115,610.11 208,118.81 231,220.22 81-Justice Court 5,107.19 10,214.38 18,388.35 20,428.75 82-Parole & Probation 41,105.08 82,128 .56 147,868.20 164,233.14 96-Fair and Expo 13,176.10 26,352.20 47,436.03 52,704.40 Totals 1,116,215.94 2,231,872 .25 4,017,951.45 4,463,271.13 Deschutes County Annual Premium per FTE Requested and Proposed Budgets FY 2014 I Base 8% Inc $ w 15% Inc I Add'17%$ w 80/0 Inc I A Charge per FTE $ 15,086 General Fund Assessor 460 ,120 Clerk 120,435 BOPTA 7,794 District Attorney 629,836 Tax 72,412 Veterans' 45,258 Property & Facilities 25,646 Grant 15,086 Total General Fund 1,376,588 Behavioral Health 2,167,841 Public Health 982,846 Juvenile 727,140 Adult 487 ,274 COD 437,491 F&E 133,883 CFC 82,973 Justice Court 75,429 Victims' Assistance 60 ,344 Dog Licensing 15,388 Total wI GF Support 5,170,609 Internal Service Funds Building Services 359 ,045 Admin 96 ,549 BOCC 45,258 Finance 109 ,976 Legal 90,515 Personnel 88 ,252 IT 251,934 TotaiiSF 1,041,529 Sheriff's Fund 3,281,180 Road 792,009 DC 911 656,236 Solid Waste 316,803 Risk 49,029 GIS 42,240 Extension 36,457 HBT 28,663 Annual Fair 16,976 Natural Resource 15,086 Healthy Start 9,052 Law Library 7,543 SO Communication 7,543 TRTlWelcome Center 5 ,884 Video Lottery 1,508 Total 5,266,209 Total Premium 12,854,936 B $ 16,293 496,933 13 0 ,0 71 8 ,4 18 880,228 78 ,206 48,8 79 27,698 16,293 1.-,726 2 ,341 ,286 1,061 .481 785,317 526.260 472.4 94 144.695 89,81 1 8 1,484­ 66,172 16819 U84.28I 381,771 104.214 48879 118,775 97757 95313 272,091 1,124,880 3 ,543.701 865,376 708.740 342,160 52.952 46,620 39374 30,956 18334 16,293 9 ,776 8 ,146 8,146 6 ,3 55 1,629 5,887548 13 883.433 C 0 E $ 1,207 $ 17,349 $ 1,056 36,813 529,145 32,212 9 ,636 138,503 8,432 624 8,964 546 50,392 724 ,321 44,093 5,794 83,275 5,069 3,621 52,047 3,168 2,052 29,493 1,795 1 ,207 17,349 1,056 110,138 1,583,097 96,371 173,445 2,493,052 151,766 78,635 1,130,289 68,808 58 ,177 836,223 50,906 38,986 560,373 34,113 35,003 503 ,121 30,627 10,712 153,968 9,373 6,638 95,420 5 ,809 6,035 86,745 5,281 4,828 69,396 4,224 1,231 17 ,349 730 413,690 5,945,936 361,637 28,726 . 412 ,906 25,135 7,725 111 ,034 6,760 3 ,621 52 ,047 3,168 8,799 126,474 7,699 7,242 104,094 6,337 7,061 101,492 6,179 20,157 289 ,728 17,637 83,331 1,197,775 72,915 262,521 3,773,407 229,706 63,367 910,823 55,447 52,504 754 ,682 45,942 25,347 364.329 22,179 3,923 56,384 3,432 3,380 48,577 2,957 2,917 41,927 2,553 2,293 32,963 2,007 1,358 19,522 1,188 1,207 17,696 1,403 724 10,409 633 603 8,675 529 603 8 ,675 529 471 6,767 412 121 1 ,735 106 421,339 6,056,571 369,023 1,028,497 14,783,379 899,946 C. Additional charges to departments with an 8% increase (B less A) D. Charges to departments for FY 2014 with a 15% increase in rates. Rate used for Proposed Budget. E. Charges to departments for the additional 7% ( 0 less B) ---- PERS Reserve Draw Down Scenarios Projections Utilizing Rates Effective 7/1/2013 FY2014 Rates PERS PERS/ Debt Employee Service Reserve OPSRP Rate lAP Rate Rate Rate OPSRP General Service 11.10 6.00 1.72 (6 .32) OPSRP Police & Fire 13.83 6.00 1.72 (7 .05) PERS General Service 13.18 6.00 1.72 (8.40) PERS Police & Fire 20.02 6.00 1.72 (9.14) Total Rate Charged to Depts 12.50 14.50 12.50 18.60 % Rate Increase FY 2013 to FY 2014 - - - - FY 2014 Subject Wages (Requested Budget) 17,873,814 4,733,647 24,473,098 10,330,238 PERS/OPSRP (Charges to Depts) 1,983,994 654,663 3,225,554 2,068,114 7,932,325 Estimated Charges (Payments) IEmployee lAP Debt Service (Charges to (Charges to PERS Reserve Fund I Depts) Depts) Offset Total Charges I 100% Draw Down 1,072,429 307,430 (1,129,625) 2,234,228 284,019 81,419 (333 ,722) 686,379 1,468,386 420,937 (2,055,740) 3,059,137 619,814 177,680 (944,184) 1,921,424 3,444,648 987,466 (4,463,271) 7,901,168 OPSRP General Service 11 .10 6.00 1.72 (4 .74) 14.08 12.64 17,873,814 1,983,994 OPSRP Police &Fire 13.83 6.00 1.72 (5 .29) 16.26 12.14 4,733,647 654,663 PERS General Service 13.18 6.00 1.72 (6.30) 14.60 16.80 24,473,098 3,225,554 PERS Police &Fire 20.02 6 .00 1.72 (6.86) 20.89 12 .31 10,330,238 2,068,114 7,932,325 75% Draw Down 1,072,429 307,430 (847,219) 2,516,634 284,019 81,419 (250,292) 769,809 1,468,386 420,937 (1,541 ,805) 3,573,072 619,814 177,680 (708,138) 2,157,470 3,444,648 987,466 (3,347,454) 9,016,985 50% Draw Down OPSRP General Service 11 .10 6 .00 1.72 (3 .16) 15.66 25.28 20,776,002 2,306,137 1,246,560 357,347 (656,522) 3,253,522 OPSRP Police & Fire 13 .83 6.00 1.72 (3 .53) 18.02 24.28 5,442,348 752 ,677 326,541 93,608 (192,115) 980,711 PERS General Service 13.18 6.00 1.72 (4 .20) 16.70 33.60 22,080,836 2,910 ,254 1,324,850 379,790 (927,395) 3,687,499 PERS Police & Fire 20.02 6.00 1.72 (4 .57) 23 .17 24.57 9,942,640 1,990,516 596,558 171,013 (454,379) 2,303,708 7,959,584 3,494,509 1,001,758 (2,230,411) 10,225,440 0% Draw Down OPSRP General Service 11.10 6.00 1.72 18.82 50.56 20,776,002 2,306,137 1,246,560 357,347 3,910,044 OPSRP Police & Fire 13 .83 6.00 1.72 21.55 48.62 5,442,348 752,677 326,541 93,608 1,172,826 PERS General Service PERS Police & Fire 13.18 20.02 6.00 6.00 1.72 1.72 r 20.90 27.74 67.20 49.14 22,080,836 9.942,640 2,910,254 1,990,516 1,324,850 596,558 379,790 171,013 4,614,894 2,758,087 7,959,584 3,494,509 1,001,758 12,455,851 Health BenefH'. ust -Fund 675 Budget and \ j Year Forecast FY 2014 t h ro ugh FY 2018 Projections FY 2013 Proposed Budget (15%) FY 2014 FY 2015 I Annual Forecast FY 2016 I FY 2017 I FY 2018 Revenues: Insurance Premiums -Interfund Charges Additional Premiums -Part-time employees Employee Monthly Co-Pay COIC Retiree I COBRA Health Insurance Medical Services and Rx Rebates HBT Recommendations -increase in revenues Interest $ 12 ,871,238 33,000 638,000 1,400,000 930,000 67,499 73,000 $ 14,783,379 40 ,000 880,000 1,592,750 958,333 50,493 60,000 $ 17,000,886 46,000 1,012,000 1,831,663 1 ,102 ,083 50,493 200 ,000 60,000 $ 19,551,019 $ 52,900 1,163,800 2,106,412 1,267,396 50,493 200,000 60,000 22,483,672 $ 25,856,222 60,835 69,960 1,338,370 1,539,126 2,422,374 2,785,730 1,457,505 1,676,131 50,493 50,493 200,000 200,000 60,000 60,000 Total Revenues 16,012,737 18,364,955 21,303,125 24,452,019 28,073,248 32,237,662 Appropriations Personnel Services -all departments 200,772 210,823 219,256 228,026 237,147 246,633 HTB Recommendations (to 75125 from 80120) HBT Recommendallons ­($100 K Labl$100K TBD Materials & Services Claims Paid (EBMS) Deschutes On-Site Clinic DOC Pharmacy Other Materials & Services (inc'l. Wellness) Materials & Services 14 ,651,688 842,432 1,933,223 1,148,415 18,575 ,758 (200,0001 15,512,015 963,580 1,800,893 1,166,928 19,043,416 20,566,889 22,212,240 23 ,989,220 25,908 ,357 Total Appropriations 18,776,530 19,254,239 20,786,145 22,440,267 24,226,367 26,154,990 Increase I (Decrease) in NWC (2,763,793) (889,284) 516,979 2,011,753 3,846,882 6,082,671 Beginning Net Working Capita l 14 ,551,028 11,700,000 10 ,810,716 11,327,696 13,339,449 17,186,330 Ending Net Working Capital $11,787,235 $ 10,810,716 $ 11,327,696 $ 13,339,449 $ 17,186,330 $ 23,269,002 Annual Charge to Departments per FTE 15,086 17,349 19,951 22,944 26 ,386 30,344 # of Months of Next Year's Appropriations in Ending Net Working Capital 7,35 6,24 6.06 6.61 7.89 9.89 Percentage of Expenditures covered by Revenues 85% 95 .38% 102.49% 108.96% 115.88% 123.26% Assumptions for FY 2015 through FY 2018: Annual increase in Charge per FTE to Departments 15% Annual increase in Personnel Appropriations 4% Annual increase in Materials & Services 8% Deschutes County Annual Premium per FTE Requested and Proposed Budgets FY 2014 Charge per FTE General Fund Assessor Clerk BOPTA District Attorney Tax Veterans' Property & Facilities Grant Total General Fund Behavioral Health Public Health Juvenile Adult COD F&E CFC Justice Court Victims' Assistance Dog Licensing Total wI GF Support Internal Service Funds Building Services Admin BOCC Finance Legal Personnel IT TotaiiSF Sheriffs Fund Road DC 911 Solid Waste Risk GIS Extension HBT Annual Fair Natural Resource Healthy Start Law Library SO Communication TRT/Welcome Center Video Lottery Total Total Premium I Base $w 8%lnc 8% Inc $ w 15% Incl Add'17% I A B C 0 I E $ 15,086 $ 16.293 $ 1,207 $ 17,349 $ 1,056 460,120 120,435 7,794 629,836 72,412 45,258 25,646 15,086 1,376,588 2,167,841 982,846 727 ,140 487,274 437,491 133,883 82,973 75,429 60,344 15,388 5,170,609 496,933 130,071 8,418 880.228 78.206 48.879 27.698 16.293 1.488.726 2,341286 1061 .481 785317 526,280 472,494 144595 8t,e11 81 .464 86172 16.619 UMi281 36,813 9,636 624 50 ,392 5,794 3,621 2,052 1,207 110,138 173,445 78,635 58,177 38,986 35,003 10,712 6,638 6,035 4,828 1,231 413,690 529,145 138,503 8,964 724,321 83,275 52,047 29,493 17 ,349 1,583,097 2,493,052 1,130,289 836,223 560,373 503,121 153,968 95,420 86,745 69,396 17,349 5,945,936 32,212 8,432 546 44,093 5,069 3,168 1,795 1,056 96,371 151,766 68,808 50,906 34,113 30 ,627 9,373 5,809 5,281 4,224 730 361 ,637 359,045 96,549 45,258 109,976 90,515 88,252 251,934 1,041,529 3,281,180 792,009 656,236 316,803 49,029 42 ,240 36,457 28 ,663 16,976 15,086 9,052 7,543 7,543 5,884 1,508 5,266,209 12,854,936 387771 104.274 48:87a 118.776 97.757 95.313 272,091 1124._ 3.543 .701 ~376 708.740 342,150 52..952 45620 39.374 30958 18.334 1e~ 9776 8 .148 8.146 6.355 1.629 5,887,648 13.883.433 28,726 7,725 3,621 8,799 7,242 7,061 20,157 83,331 262,521 63,367 52,504 25,347 3,923 3,380 2,917 2,293 1,358 1,207 724 603 603 471 121 421,339 1,028,497 412 ,906 111,034 52 ,047 126,474 104,094 101,492 289,728 1,197,775 3,773,407 910,823 754,682 364,329 56,384 48,577 41,927 32 ,963 19,522 17,696 10,409 8,675 8,675 6,767 1,735 6,056,571 14,783,379 25,135 6,760 3,168 7,699 6,337 6,179 17,637 72,915 229,706 55,447 45,942 22,179 3,432 2,957 2,553 2,007 1,188 1,403 633 529 529 412 106 369,023 899,946 A. Charges to departments for FY 2014 FTE at FY 2013 rates to ants with an lncraase. R 8 C. Additional charges to departments with an 8% increase (B less A) D. Charges to departments for FY 2014 with a 15% increase in rates . Rate used for Proposed Budget. E. Charges to departments for the additional 7% ( 0 less B) ------ PERS Reserve Draw Down Scenarios Projecti ons Utilizing Rates Effective 7/1/2013 FY2014 Rates Estimated Charges (Payments) % Rate FY 2014 Debt PERS Total Rate Increase FY Subject Wages PERS/OPSRP Employee lAP Debt Service PERS/ Employee Service Reserve Charged 2013 to FY (Requested (Charges to (Charges to (Charges to PERS Reserve Fund OPSRP Rate lAP Rate Rate Rate to Depts 2014 Budget) Depts) Depts) Depts) Offset Total Charges 100% Draw Down OPSRP General Service 11.10 6.00 1.72 (6 .32) 12.50 -17 .873.814 1.983.994 1.072,429 307.430 (1.129.625) 2.234,228 OPSRP Police & Fire 13.83 6 .00 1.72 (7.05) 14.50 -4,733,647 654,663 284.019 81,419 (333,722) 686,379 PERS General Service 13.18 6 .00 1.72 (8.40) 12.50 -24,473,098 3,225.554 1,468,386 420,937 (2,055.740) 3,059,137 PERS Police & Fire 20.02 6 .00 1.72 (9.14) 18 .60 -10,330.238 2,068,114 619,814 177,680 (944,184) 1,921,424 7.932.325 3,444.648 987,466 (4,463 ,271) 7,901.168 75% Draw Down OPSRP General Service 11.10 6.00 1.72 (4 .74) 14 .08 12.64 17,873,814 1,983.994 1,072,429 307,430 (847,219) 2,516,634 OPSRP Police & Fire 13.83 6.00 1.72 (5.29) 16.26 12.14 4,733,647 654,663 284,019 81 ,419 (250,292) 769,809 PERS General Service 13.18 6.00 1.72 (6 .30) 14.60 16.80 24,473,098 3.225.554 1,468.386 420,937 (1.541,805) 3,573,072 PERS Police & Fire 20.02 6 .00 1.72 (6.86) 20.89 12.31 10.330,238 2,068.114 619,814 177,680 (708,138) 2,157,470 7.932,325 3,444.648 987,466 (3 ,347,454) 9,016.985 50% Draw Down OPSRP General Service 11 .10 6.00 1.72 (3 .16) 15.66 25.28 20,776.002 2.306.137 1,246 .560 357,347 (656,522) 3,253,522 OPSRP Police & Fire 13.83 6.00 1.72 (3.53) 18.02 24.28 5,442,348 752,677 326,541 93,608 (192,115) 980,711 PERS General Servi ce 13.18 6.00 1.72 (4 .20) 16 .70 33.60 22 ,080,836 2.910,254 1,324,850 379 ,790 (927,395) 3,687,499 PERS Police & Fire 20 .02 6 .00 1.72 (4.57) 23.17 24.57 9,942 ,640 1.990,516 596.558 171,013 (454,379) 2,303,708 7,959.584 3,494,509 1,001,758 (2,230,411) 10,225,440 0% Draw Down OPSRP General Service OPSRP Police & Fire PERS General Service PERS Pol ice & Fire 11.10 13.83 13 .18 20.02 6.00 6.00 6.00 6.00 1.72 1.72 1.72 1.72 I 18.82 21.55 20 .90 27.74 50.56 48.62 67 .20 49 .14 20.776,002 5,442,348 22,080,836 9,942 ,640 2,306 ,137 752,677 2,910.254 1,990,516 1,246,560 326.541 1.324 .850 596,558 357,347 93 ,608 379,790 171.013 3,910,044 1,172,826 4,614.894 2,758,087 7.959,584 3,494,509 1,001,758 12,455,851 Projected PERS Increases by Department (Utilizing FY 2013 Subject Wages) Scenarios for Increase in PERS Charges 25% Depts/ 50% Depts/ 90% Depts/ 100% Depts/ 75% PERS Rsv 50% PERS Rsv 10% PERS Rsv 0% PERS Rsv2 02-Assessor 35,795 .15 71,590.30 128,873.87 143,180.60 05-Clerk 10,064.58 20,129.17 36,232.87 40,258.34 08-BOCC 16,308.40 32,616.79 58,722.37 65,233.59 09-lnformation Technology 30,544.15 61,088.30 109,969.77 122,176.59 10-Building Services 25,206.45 50,412.91 90,754.04 100,825.81 11-0istrict Attorney 59,863.36 119,734.34 215,546.75 239,461.06 12-Law Library 783.26 1,566.51 2,819.72 3,133.03 14-Finance 23,335.18 46,670.37 84,009.12 93,340.74 15-Children & Fam Comm 7,814.20 15,628.41 28,133.72 31,256.82 16-Juvenile 67,137.99 134,275.98 241,716.67 268,551.96 Sheriff-All Oepts 349,108.01 697,725.81 1,256,140.72 1,395,014.40 20-Public Health 71,593.06 143,190.63 257,789.66 286,376.75 22-Behavioral Health 137,882 .56 275,765.11 496,468.63 551,530.21 23-Veterans'Svcs 1,824.62 3,649.24 6,570.94 7,298.48 26-Grant Projects 1,675.11 3,350.23 6,030.41 6,700.46 27-Legal Counsel 10,763.77 21,527.55 38,754.44 43,055.10 31-Personnel 11,426.46 22,852.92 41,136.32 45,705 .84 36-COO 40,077.88 80,155.76 144,292.04 160,311.52 50-Road 68,085.66 136,171.32 245,130 .61 272,342 .64 50-Forester 2,470.61 4,941.24 8,895.79 9,882.46 62-Solid Waste 21,740.64 43,481.28 78,273 .79 86,962 .56 71-Risk Management 3,737.28 7,474.56 13,454.21 14,949.12 7 4-Extension/ 4-H 1,784.14 3,568.27 6,423.60 7,136.54 75-DC 9-1-1 57,805.05 115,610.11 208,118.81 231,220.22 81-Justice Court 5,107.19 10,214.38 18,388.35 20,428.75 82-Parole & Probation 41,105.08 82,128.56 147,868.20 164,233.14 96-Fair and Expo 13,176.10 26,352.20 47,436 .03 52,704.40 Totals 1,116,215.94 2,231,872.25 4,017,951.45 4,463,271.13