county manager’s recommended budget for fy2013 · mecklenburgcountync.gov. the economy is...

County Manager’s Recommended Budget for FY2013

May 15, 2012

MecklenburgCountyNC.Gov

Overview

• Budget Summary• Economic and Service Context• Revenues• Expenditures

– General Fund– Law Enforcement Service District– Fire Protection Service Districts

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Presenter

Presentation Notes

Spacing issues between bullets


FY13 Budget Summary

Total Budget

FY12 Adopted FY13 Recommended

$ Change % Change

Revenues 1,385,005,882 1,416,308,228 31,302,346 2.3

Expenses 1,385,005,882 1,416,308,228 31,302,346 2.3

• FY13 Recommended Tax Rate – 79.22¢• Decrease of 2.44¢ from current rate of 81.66¢

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County Budget

FY12 Adopted FY13 Recommended

$ Change % Change

Revenues 1,025,235,007 1,063,623,284 38,388,277 3.7

Expenses 1,025,235,007 1,063,623,284 38,388,277 3.7


The Economy Is Improving

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383,889

439,759

432,165

350,000

360,000

370,000

380,000

390,000

400,000

410,000

420,000

430,000

440,000

450,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Empl

oyed

Res

iden

ts

Fiscal Year

Number of Employed Mecklenburg County Residents


New Applications for Services are Decreasing

5

7,326

7,8128,017

7,558

6,000

6,500

7,000

7,500

8,000

8,500

FY09 FY10 FY11 FY12

Medicaid and NC Health Choice Applications

890

991

0

200

400

600

800

1,000

1,200

1,400New CSE Applications per Month


However, Caseloads Continue to Climb

6

88,230

96,838 103,501111,816

6,000

26,000

46,000

66,000

86,000

106,000

126,000

FY09 FY10 FY11 FY12

Medicaid Caseloads

35,754

39,447

33,00034,00035,00036,00037,00038,00039,00040,00041,000

Active CSE Cases by Month


FY13 Revenue (Projected)

Source FY12 Adopted FY13Recommended

$ Change % Change

Net Property Taxes 880,397,487 897,522,990 17,125,503 2.0

Prior Year’s Taxes 17,840,000 14,827,500 (3,012,500) -16.9

Sales Tax – County1 119,000,000 127,200,000 8,200,000 6.9

Other County Revenues2 5,747,520 21,392,794 15,645,274 272.2

Interest on Investments 2,250,000 2,680,000 430,000 19.1

County Sub-Total 1,025,235,007 1,063,623,284 38,388,277 3.7

Other Revenue 359,770,875 352,684,944 (7,085,931) -2.0

Total Revenue 1,385,005,882 1,416,308,228 31,302,346 2.3

1Does not include sales taxes dedicated to CMS debt service ($37.8 million).2Includes $14.6 million in Register of Deeds, Criminal Justice Services, Business Support and other revenue realignedfrom the service budgets to Other Revenue.

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FY11 Budgeted FY12 Budgeted* FY13 Projected

Value (in millions) $100,310.0 $110,577.0 $116,200.0

Change (in millions) $267.0 $10,267.0 $5,623.0

Percent Change 0.11% 10.24% 5.08%

Net Yield of One Cent

$9,779,250 $10,781,258 $11,329,500

Tax Rate $0.8387 $0.8166 $0.7922

Collection Rate 97.5% 97.5% 97.5%

Property Value & The Tax Rate

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*FY2012 was a revaluation year.

Presenter

Presentation Notes


Lowest Tax Rate in 8 Years

0.73640.7567

0.8368

0.8189

0.8387 0.8387 0.8387 0.8387

0.8166

0.7922

0.68

0.70

0.72

0.74

0.76

0.78

0.80

0.82

0.84

0.86

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13


Sales Tax

FY12 Budget

FY13 Recommended

$ Change

% Change

County 117,000,000 127,200,000 10,200,000 8.7CMS Debt Service

31,515,000 37,800,000 6,285,000 19.9

Total 148,515,000 165,000,000 16,485,000 11.1

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Sales Tax Trend

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

FY2011 Actual

FY2012 Actual

FY2013 Projected

NOTE: March through June 2012 is also projected for purposes of developing the budget.

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Department Amount

Register of Deeds 9,108,000

Non-Departmental 3,138,000

Court Justice Services 1,864,036

Business Support 489,000

Total 14,599,036

Other County Revenue

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• Revenues moved from service budgets to County Revenue• Increases transparency of department expenses and County

revenues• FY13 revenues will be “higher” by this amount


FY13 ExpensesCounty Funds

Service FY12 Adopted

FY13Recommended $ Change % Change

Debt Service (County) 89,963,869 122,359,965 32,396,096 36.0

Paygo Capital 32,343,773 33,988,500 1,644,727 5.1Education Services –Operational

356,899,101 367,442,150 10,543,049 3.0

Education Services – Debt Service

138,124,000 120,030,535 (18,093,465) -13.1

County Services 407,904,264 419,802,134 11,897,870 2.9Total 1,025,235,007 1,063,623,284 38,388,277 3.7

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Presenter

Presentation Notes

This is different than what we say in Harry’s remarks about county departments increasing by 2.8% and education services increasing by 3%, so this will be very confusing. What’s correct?


Item Amount

CMS Debt Service (15,743,583)

Behavioral Health Center (10,000,000)

Capital Reserve (8,750,000)

Technology Reserve (4,100,000)

Volunteer Fire Department (2,393,661)

CPCC Debt Service (2,349,882)

Medical & Dental Reserve (1,750,000)

Employee Premiums (1,000,000)

Development Agreements – 1st Ward Park (338,690)

Total (46,425,816)

ReductionsCounty Funds

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FY13 Budget by Priority

15

0 200,000,000 400,000,000 600,000,000 800,000,000

Priority 7

Priority 6

Priority 5

Priority 4

Priority 3

Priority 2

Priority 1

County Funding

Non-County Funding

Presenter

Presentation Notes

Put priority 1 on top like in previous years. Go with county funding only. Include both FY12 and FY13 for each priority level.


FY12 vs. FY13 by Priority

0 200,000,000 400,000,000 600,000,000 800,000,000

Priority 7

Priority 6

Priority 5

Priority 4

Priority 3

Priority 2

Priority 1

FY13 Recommended Budget

FY12 Adopted Budget


Debt Service Fund

Debt Service(County Tax Dollars

Required)

FY12 Adopted

FY13Recommended

$ Change

% Change

CMS 120,557,000 104,813,417 (15,743,583) -13.1CPCC 17,567,000 15,217,118 (2,349,882) -13.4General 89,393,869 80,847,305 (8,546,564) -9.6Fund Balance -- 41,512,660 41,512,660 100.0Total 227,517,869 242,390,500 14,872,631 6.5

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Presenter

Presentation Notes

I thought we were done with WTVI debt service?


Pay-As-You-Go Capital Funding

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FY12 Adopted

FY13Recommended

$ Change % Change

Paygo 32,343,773 33,988,500 1,644,727 5.1

• Equivalent to 3¢ on the tax rate• Value of a penny increases from $10,781,258 $11,329,500• Means of reducing the need to incur debt to pay for capital projects


Education ServicesFY12

AdoptedFY13

Recommended$ Change %

ChangeCMS Operating 326,039,101 335,132,664 9,093,563 2.8Capital Replacement 4,960,000 4,960,000 0 0.0CMS Debt Service 120,557,000 104,813,417 (15,743,583) -13.1Sub-Total CMS 451,556,101 444,906,081 (6,650,020) -1.5

CPCC Operating 25,900,000 26,899,486 999,486 4.1CPCC Debt Service 17,567,000 15,217,118 (2,349,882) -13.4WTVI Transition - 450,000 450,000 100.0Sub-Total CPCC 43,467,000 42,566,604 (900,396) -2.1

Total 495,023,101 487,472,685 (7,550,416) -1.5

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Presenter

Presentation Notes

Again, how does this correlate to previous slide that says education services funding will decrease in county funding. How does this correlate with Harry’s comments?


Item Increase Amount

Comment/ % Increase

Health Insurance Rate Increase 720,477 County shareRetirement Rate Increase 2,053,116 County shareUtilities Rate Increase 1,838,100 Sustaining operationsCIS Cost Model Adjustment 71,669 Sustaining operationsInsurance Increase 108,771 Sustaining operationsEnrollment Growth 2,110,291 Student growthCharter School Enrollment Growth 2,191,139 Student growthFY13 Recommended Increase 9,093,563 2.8%

CMS Operating Increase

20

NOTE: Does not include $16.4 Million in redirections.

Presenter

Presentation Notes

Did not fund items that are beyond the County’s responsibility: Pay raises for teachers School resources officers Expansion of services


CMS Request Unfunded

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Item Request Amount Comment

1% Cola 7,480,112 State responsibility

Additional 2% Cola/Market Adjustment 18,555,613 State responsibility

CMPD SRO Contract Increase 2,078,728 Expansion of service

Charter School Rate Adjustment 1,121,122 Expansion of service

Response to Intervention Screening 645,362 Expansion of service

Project LIFT Support 205,364 Expansion of service

Attracting/Retaining High Performers 125,000 Expansion of service

Truancy Court Expansion 75,000 Expansion of service

High School Class Size Adjustment 3,023,430 Expansion of service

Instructional Tech Positions for H.S. 1,322,500 Expansion of service

Multimedia Support 215,000 Expansion of service

Total 34,847,231

Presenter

Presentation Notes

Requested $27.5 Million� Funded $9.1 Million Focused on: Sustaining current operations Student growth


CMS Per Pupil

22

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Per Capita Debt FundingPer Capita Operating Funding

Per P

upil

Fund

ing


Item Increase Amount

Comment/% Increase

Health Insurance Cost Increase 308,502 County shareUtilities 690,984 County responsibilityWTVI Transition 450,000 Per agreementFY13 Recommended Increase 1,449,486 5.6%

CPCC Operating Increase

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Presenter

Presentation Notes

Did not fund: Salary adjustments Annualized merit Deferred maintenance


CPCC Request Unfunded

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Item Request Amount Comment

Pay for Performance/Market Adjustments 1,800,000 State responsibility

Restore Annualized Merit 600,000 State responsibility

Deferred Maintenance1 2,286,387 Outside of Capital Reserve Process

Total 4,686,387

1CPCC participates in the County’s Capital Reserve process for maintainingfacilities and equipment. In FY2013, CPCC submitted $2.1 million worth of projectsof which $360,000 is funded.

Presenter

Presentation Notes

Requested $6.1 Million� Funded $1.4 Million Focused on: Sustaining current operations WTVI Transition


County Services

FY12Adopted

FY13Recommended

$ Change % Change

County Services 407,904,264 419,802,134 11,897,870 2.9%

NOTE: County Services includes funding for Charlotte-Mecklenburg Public Library,Community Service Grants, and MEDIC. Excluding the funds for MEDIC and Libraryreduces the percent increase to 2.3%.

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Presenter

Presentation Notes

Why mention OPEB? I’d suggest saying this includes the libraries and community service grants (does it also include MEDIC? If so, mention this as well). No reason to mention all the rest of these items. Again, let’s start here and add a slide that highlights key changes mentioned in Harry’s remarks (and scrap previous slide).


• Health Department Transition• Medicaid Waiver• Charlotte-Mecklenburg Public Library• Park and Recreation• Tax Assessor’s Office• Enterprise Reserve Policy and Funding

Notable Changes

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• Transition from Carolinas HealthCare System on July 1, 2013 (start of FY14)

• Timing requires the County to fund start-up costs in FY13

• $2 Million in Recommended Budget– 17 additional Health Department positions– Other necessary start up costs (i.e., materials,

hardware, and software)

Health Services Transition

27


• Carry forward $10 Million in unspent mental health funds to develop service– Adding 202 full-time positions– Build technology infrastructure

• Costs to be reimbursed from Medicaid funds

Medicaid Waiver Service

28


Item Amount

Sustaining operations increases 620,948

Regional libraries open on Sundays 811,393

Total 1,432,341

Public Library

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Item Amount

Sustaining operations increases 1,434,888

Maintenance equipment replacement 100,000

New regional sportsplex operations 163,668

Romare Bearden Park 360,445

Park Planner 58,098

Expanded Youth Employment Program 45,000

Total 2,162,099

Park and Recreation

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NOTE: Expansion costs total $727,211.


Tax Assessor’s Office

31

Item Amount

Revaluation Fund 500,000

Appeals Related Expenses 350,000

Tax Assessment Software Upgrades1 2,505,786

Total 3,355,7861Software upgrades funded through the Technology Reserve.


• Comply with GASB 54

• Revisions designed to effectively manage fund balance

• Comply with best practices (i.e., GFOA, LGC, etc.)

Proposed Fund Balance Policy Revision

32


FY12 Adopted FY13 Recommended $ Change

General Fund General Fund Fund Balance

Capital 8,750,000 6,100,000 (2,650,000)

Technology 4,100,000 6,500,000 2,400,000

Fleet 1,100,000 1,100,000 0 0

Unallocated 1,400,000 1,400,000

Total 13,950,000 1,100,000 14,000,000 1,150,000

Enterprise Reserves

33

• Funding for reserves consistent with proposed fund balance policy


Community Service Grant Target Areas AmountImprove the High School Graduation Rate 1,326,500Train and Place Unemployed Workers 165,616Prevent Health Risks and Diseases 1,424,000Promote Financial Self-Sufficiency 156,000

Total 3,072,116

Community Service Grants

34

• Sustains what was implemented last year as new process focused on critical success factors


Employee Compensation

• Projected average increase 3%• Range 0 – 4.5%• 2% increase to payroll• Increase based on performance

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Item Amount

401k/457b County Match (Deferred Compensation) 2.1 M

Health & Dental Claims Increase 4.3 M

Employee Pay Increase (Pay-for-Performance) 4.4 M

Annualized Merit 1.3 M

Health & Dental Claims (New Employees) 1.2 M

Presenter

Presentation Notes


Recommended Positions

36

4,397

5,266

4,273

3000

3500

4000

4500

5000

5500

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Empl

oyee

s

Fiscal Year

Unfunded


Two Year ComparisonCounty Funds

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Service FY11Adopted

FY12 Adopted

FY13Recommended

$ Change from FY11

% Change from FY11

Debt Service (County)* 62,506,254 89,963,869 122,359,965 59,853,711 96%

Paygo 29,337,750 32,343,773 33,988,500 4,650,750 16%

Educational Funding Debt Service

131,713,705 138,124,000 120,030,535 (11,683,170) -9%

Educational Funding-Operational Cost

328,810,000 356,899,101 367,442,150 38,182,150 12%

County Services 402,476,981 407,904,264 419,802,134 17,775,153 4%

TOTAL 954,844,690 1,025,235,007 1,063,623,284 108,778,594 11%


• Board directed continuing with existing arrangement with the City of Charlotte and funding Lake Patrol from the General Fund

• Funding based on population and proportional share of CMPD operating costs

Law Enforcement Service District

38


Law Enforcement Service District

39

FY12 Adopted FY13Recommended

$ Change % Change

Assessed Valuation

6,396,162,008 6,596,065,000 199,902,992 3.1

Total Net Tax Levy

11,467,170 12,788,329 1,321,159 11.5

General Fund -- 680,000 680,000 100.0

Total 11,467,170 13,468,329 2,001,159 17.5

Tax Rate 18.66¢ 19.37¢ 0.71¢ 3.8


• Creates 5 Fire Protection Service Districts with separate tax rates to generate revenue to pay for volunteer fire services

• Eliminates $2.4 million subsidy for VFDs in the General Fund

• Accounts for 0.2¢ of the proposed 2.44¢ Tax Rate Reduction

Fire Protection Service District

40


FY12 Adopted Budget

FY13 Recommended Budget

General Fund 2,515,929*

Tax Rate Revenue Cost of Service

Charlotte ETJ 5¢ 2,398,995 2,253,728

Cornelius ETJ 5¢ 35,675 35,675

Davidson ETJ 5¢ 83,745 83,745

Huntersville ETJ 5¢ 277,155 277,155

Mint Hill ETJ 7¢ 500,528 500,528

Fire Protection Service District

41

*NOTE: For FY13, $122,268 remains in the Fire Marshall service to pay for a fire educator, Forestry contract with the State, and education materials. $2,393,661 associated with the Volunteer Fire Department subsidy has been eliminated from the general fund.


Municipality County Tax Rate Municipal Rate Total RateCharlotte1 0.7922 0.4730 $1.2652

Davidson1 0.7922 0.3500 $1.1422

Pineville 0.7922 0.3200 $1.1122

Matthews 0.7922 0.3025 $1.0947

Huntersville1 0.7922 0.2825 $1.0747

Mint Hill 0.7922 0.2700 $1.0622

Cornelius 0.7922 0.2500 $1.0422

Unincorporated2 0.7922 0.2437 $1.0359

Combined Tax Rates

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1 Denotes FY13 municipal recommended rate.2 Includes .05¢ for the Fire Protection Service District Tax and .1937¢ for the Law Enforcement ServiceDistrict Tax. Fire Protection Service District Tax rate is 5¢ in all towns except Mint Hill where it is 7¢.


Next Steps

Key Dates Time ActivityMay 24 6:00 PM Public HearingMay 29 3:00 – 5:00 PM CPCC Presents Budget RequestMay 30 & 31 5:00 – 9:00 PM Straw Voting workshopsJune 5 6:00 PM Adopt the budget

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For Additional Information

• On County Website: CountyBudget.CharMeck.org

• Follow on Facebook and Twitter

• Speak at Public Hearing– Call 704-336-2086 or register on-line

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• Department directors and their staff• Finance, HR, Public Information, & Citizen

Involvement• Office of Management and Budget staff• General Managers• County Manager

Thank You

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county manager’s recommended budget for fy2013 · mecklenburgcountync.gov. the economy is...

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