2013 BUDGET PRESENTATION WITH PROJECTIONS FOR 2014SEPTEMBER 25, 2012

MONROE COUNTY BOARD OF COMMISSIONERS

R. LaMar Frederick, ChairmanWilliam D. Sisk, Vice-Chairman

Michael Bosanac, Director of Administrative Services

OUTLINE OF PRESENTATIONSummary of what was provided in 9/18/2012 Preliminary

Budget

1. REVIEW WHAT WAS PROJECTED LAST YEAR2. WHERE WE STAND TODAY ON 2013 BUDGET3. RESOURCES OF THE COUNTY FOR THE

2013 BUDGET4. WHAT FIGURES, DATA AND OTHER

UNKNOWNS ARE YET TO BE INCLUDED IN BUDGET

5. FRAMEWORK TO NARROW THE SHORTFALL FOR THE 2013 BUDGET

APPROXIMATELY 25-30 MINUTES

LAST YEAR’S PROJECTIONS FOR 2013 BUDGET

•REVENUES: $40,552,672•EXPENDITURES: $42,232,790

SHORTFALL $1,680,118

(SEE PAGE 8 OF 2012-2013 BUDGET)

2013 & 2014 BUDGETS AS OF 9/18/12

2013 2014REVENUES: $40,348,658 $40,978,633EXPENDITURES: $41,818,158 $41,827,763

SHORTFALL $1,469,500 $849,130

PROJECTIONS FROM LAST YEAR ARE IN LINE WITH WHERE WE ARE TODAY-NO SURPRISES WITH SHORTFALL

REVENUE REDUCTIONS/CONTINUED DECLINE •2013 REVENUES ARE DOWN 5% OR $2.2

MILLION OVER 2012

•PROPERTY TAXES ARE DOWN JUST UNDER 1% OR $204,000 OVER 2012

•PAGE 9 OF THE PRELIMINARY BUDGET SHOWS 7 CATEGORIES OF REVENUE -ALL LOWER THAN THE 2012 BUDGET AMOUNTS

PERSPECTIVE ON RESOURCES OF THE COUNTY FOR 2013

WHY IS THE FINANCIAL CHALLENGE STRAINING OUR ABILITY TO MEET PUBLIC SERVICES?

2008 ADOPTED BUDGET $53 MILLION2013 PRELIMINARY BUDGET $40 MILLION • LESS FUNDING BY $13 MILLION

• OF WHAT IS AVAILABLE IN 2013, APPROX. $3.7 MILLION MORE ALLOCATED TO PENSION AND RHC OBLIGATIONS

PERSPECTIVE CONTINUED• REVENUES ARE AT THE LEVEL THE COUNTY

HAD IN 2002; 11 YEARS AGO

• PROPERTY TAXES ARE AT THE LEVEL THE COUNTY HAD IN 2005; 8 YEARS AGO (Property taxes = 67% of General Fund Revenues)

GIVES SOME INSIGHT AS TO THE ORGANIZATION DOING MORE WITH LESS OR AT LEAST WORKING WITH A LOT LESS.

2013 BUDGET UNKNOWNS

FOLLOWING ITEMS ARE YET TO BE INCORPORATED INTO BUDGET & WILL IMPACT THE BUDGET ACCORDINGLY:

1. COST ALLOCATION PLAN RESULTS-WE EXPECT LOWER OVERHEAD COSTS/LOWER GF REVENUE

2. STATE HEALTH CARE CAPS-DUE 10/1-- INCREASE IN THE CAP OF 3.5%

3. DENTAL RATES-EXPECT MINOR INCREASE

BUDGET UNKOWNS CONTINUED

4. OUTCOMES OF MEETINGS WITH OFFICES/DEPARTMENTS-UNLESS BOARD DIRECTS OTHERWISE, WE WILL ESSENTIALLY HOLD TO THE FINANCE AMOUNTS

5. OUTCOMES FROM PERSONNEL SERVICES COMMITTEE MTG. 10/4-ANY NEW COSTS WILL ADD TO THE SHORTFALL. RECOMMEND ONLY THOSE POSITIONS OR REQUESTS THAT ARE FUNDED FROM RESTRUCTURING, GRANTS, MILLAGE OR NEW REVENUES BE APPROVED. ALL OTHERS SHOULD NOT BE APPROVED

2013 EXPENDITURE SUMMARY

1. AS OUTLINED IN THE BUDGET GUIDELINES, WE CUT EXPENSES IN NEARLY EVERY COST CENTER STAYED---AWAY FROM EMPLOYEE POSITIONS

2. OVERALL BUDGET GOAL-TO MAINTAIN OPERATIONS AT STATIC LEVEL ENTERPRISE WIDE

3. CUT OVERTIME4. USED ACTUARY RATES FOR PENSION

EMPLOYER CONTRIBUTIONS LESS EMPLOYEE CONTRIBUTIONS

5. SAME FORMULA FOR RHC AS 2012 BUT LOWER OVERALL AMOUNT DUE TO 12/31/11 ACTUARIAL VALUATION

6. CONTINGENCY AT $300,000 BASED ON LAST COUPLE YEARS OF ACTUAL EXPENDITURES

SPECIAL REVENUE FUNDS•GENERALLY, NO ISSUES. MAINTAIN

OPERATIONS AT CURRENT LEVELS

•AS A TOTAL, LOWER GF CONTRIBUTION BY $201,362 OVER 2012 BUDGET

•SRF’S HAVE SOME FUND BALANCE BUILT UP OVER THE PAST FEW YEARS DUE TO LOWER EXPENSES

• INCLUDE RATIONAL USE OF A PORTION OF FUND BALANCES IN SRF’S FOR 2013

SPECIAL REVENUE FUNDS CONTINUED

•BIGGEST CHALLENGE IS IN THE INMATE DORMITORY FUNDDUE TO 2 CIRCUMSTANCES:A. LOST $140,000 IN FOOD SALE

REVENUE1. FAIRVIEW2. SALVATION ARMY HARBOR LIGHT

B. EXPENDED BALANCE IN INMATE COMMISSARY FUND LAST TWO YEARS PAYING FOR A CORRECTIONS OFFICER POSITION

FRAMEWORK TO NARROW SHORTFALL

1. EXPIRING CBA’S OFFER COST SHARING FORMULAS $200,000

2. CUSTODIAL STAFFING CHANGES DUE TO 2 RETIREMENTS $60,000

3. CAPITAL OUTLAY BUDGETSHERIFF PATROL VEHICLES $132,000ANIMAL CONTROL TRUCK $18,000FUND PURCHASES FROM PROPERTY FORECLOSURE FUND BALANCE

$150,000

FRAMEWORK CONTINUED

4. COMPUTER CAPITAL OUTLAY (FUND $100,000 OF $340,00 FROM TRANSFER-IN FROM PROPERTY/ LIABILITY EARNINGS)

$100,000

5. ELIMINATE COURTHOUSE SECURITY $88,515

SUB-TOTAL$598,515

FRAMEWORK SUMMARY

TOTAL FROM PRIOR SLIDE $ 598,515

PRELIMINARY SHORTFALL $1,469,500

REVISED SHORTFALL $870,985

USE OF SPECIAL REVENUE FUND BALANCES

PRELIMINARY BUDGET ALREADY CONTAINS THE FOLLOWING AMOUNTS:

FRIEND OF THE COURT $ 50,000INMATE DORMITORY

$200,000PUBLIC HEALTH

$210,000CHILD CARE $250,000

FURTHER USE OF FUND BALANCE ?

•CURRENT RESERVES AT 12/31/11:

GENERAL FUND: UNRESERVED/UNDESIGNATED $5,772,828

BUDGET STABILIZATION $3,033,655

TOTAL RESERVES $8,806,483

CALENDAR OF UPCOMING DATESOCTOBER 4 PERSONNEL COMMITTEEOCTOBER 9 FULL BOARD ACTS ON

PERSONNEL CMTE. ACTIONOCTOBER 23 PRESENT REVISED BUDGET

TO FINANCE COMMITTEE ASRECOMMENDED BUDGET

NOVEMBER 1 TRANSMIT NOTICE OF AD FOR BUDGET PUBLIC HEARING

NOVEMBER 13 PUBLIC HEARING/ADOPTION OF BUDGET

BOARD OF COMMISSIONERS

•GUIDANCE•DIRECTION•POLICY•VISION

QUESTIONS AND FOLLOW UP