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  • 2014 La Plata County Budget Table of Contents

    2014 Budget Message ............................................................................................... 1-7

    All County Funds 2014 Budget Summary ..................................................................... 8

    General Fund Revenues .......................................................................................... 9-12

    General Fund Expenditures and Revenues by Cost Center .................................. 13-83

    Road and Bridge Fund ........................................................................................... 84-90

    Capital Equipment Replacement Fund .................................................................. 91-93

    Human Services Fund ......................................................................................... 94-100

    District Attorney Fund ........................................................................................ 101-102

    Capital Improvement Fund ................................................................................. 103-104

    Durango Hills Road Improvement District Fund ................................................. 105-106

    Employee Medical Self Insurance Fund .................................................................... 107

    Joint Sales Tax Fund ................................................................................................ 108

    2014 Staffing Structure ...................................................................................... 109-159

    2014 Capital Plan .............................................................................................. 160-162

    5-Year Capital Plan ............................................................................................ 163-165

    Capital Equipment Replacement Plan ...................................................................... 166

    2014 Technology Plan .............................................................................................. 167

    Interfund Transfers Summary ................................................................................... 168

    All Fund Contingency Summary......................................................................... 169-170

    Spending Authorities Chart ................................................................................ 171-172

    Resolutions Adopting a Budget, Appropriating Sums of Money, and Certifying a

    Mill Levy ............................................................................................................. 173-179

    La Plata County Palo Verde Public Improvement District #3:

    La Plata County Palo Verde Public Improvement District #3 Fund ........................... 180

    Adopting a Budget, Appropriating Sums of Money, and Certifying a Mill Levy .. 181-184 i

  • We are plCountys prepared Principles La Plata priorities l

    M C Im

    or C

    se P

    cu The 2014unit, the Lthe Gener The La Pby state sjail, coronand distribservices; As you wthe samerevenues does invoexpendituBridge fuplaced inSecond A The 2014declining the currenfortunate expendituterm on ube recomuncertain It is impoBridge Fuunless it i

    leased to preoverall finanin complianc

    s and the Cou

    Countys 20isted below a

    Maintaining coContinued invemplementationrganizational

    Compliance wieasonal emplrograms or pustomer servi

    budget incluLa Plata Coural Fund, five

    lata County gstatutes as wener, building inbution; vehicland administ

    ill see below,e time projec

    will level outolve utilizing

    ures includingnd by directi the Genera

    Avenue as we

    4 budget atterevenues. Dnt financial chto have a siz

    ure gap that wutilizing unres

    mmended in thfinancial time

    rtant to note und. The growis compared

    sent the La Pcial plan for ce with all a

    untys own bud

    14 budget wand attempting

    ompetitive salaestment in can of technologefficiency anith the Affordaloyees rojects suppoice

    udes all of thenty Palo Verdspecial reven

    government bell as many anspection ande licensing; crative service

    revenue foreting modest t in 2015 with

    g the unreseg capital outlang an additio

    al Fund. Signll as the Cour

    empts to balaDue to prudenhallenges by zeable unresewe anticipate iserved fund bhe future to es.

    that one of swth of the unto underfund

    2014 BuPlata Countys

    the fiscal yeapplicable Codgetary and f

    was developeg to balance t

    ary and benepital infrastrugy projects thd improve cuable Care Act

    orting the Org

    e funds of thede Public Impnue funds, on

    budget includauxiliary servid district attorconstruction aes.

    ecasts show increases in

    h potential inerved fund bay. In additioonal $800,00nificant investrthouse for Fe

    ance many ct financial marelying on th

    erved fund bain both 2014 a

    balance for fuassist us wit

    several areasnreserved funing of our Ro

    dget Mess 2014 Budgeear beginningolorado Statefinancial polic

    ed taking intothese prioritie

    fits for emplocture projects

    hat streamlinestomer servict and reconcil

    anizational D

    e primary govprovement Dine capital fund

    es funding foces. This incrney; land us

    and maintenan

    continued prosales tax co

    creases begibalance to on, the budge0 dollars in stments in remederal Court p

    competing neanagement ine unreserved

    alance that wiand 2015. Honding operatih establishin

    s needing attend balance inoad and Bridg

    ssage et. The 2014 g January 1,

    e Statutes, Gcies.

    o consideraties with the co

    oyees s e business proce ling concerns

    Development I

    vernment as wistrict #3. Thd, and two int

    or the full rancludes public e planning; pnce of roads

    operty tax revollection. It iinning in 201offset the det includes efsales tax revmodeling botpurposes are

    eeds and reqn the past thed fund balancill assist us wowever, it wouional costs. Ag a soft lan

    ention is the n the Generage fund. Thi

    Adopted Bud, 2014. This

    Generally Acc

    on the Counontinued decli

    ocesses, incr

    s as it relates

    Initiative and

    well as one bhe primary goternal service

    nge of County safety consis

    property valuaand bridges;

    venue declines anticipated6. The prop

    difference in fforts to stabvenue that otth the Vectra also propose

    uests during e County is prce in the Genwith bridging tuld be unwiseAs a result, ading during

    underfundingal Fund is sois structural i

    dget represenbudget has

    cepted Accou

    nty Managerne in revenue

    rease

    to temporary

    improved

    lended compovernment ince funds.

    y services reqsting of the sation, tax collehealth and h

    es in 2014 whd that propertposed 2014 b

    revenues vilize the Roadtherwise woua Building ed.

    a difficult timrepared to we

    neral Fund. Whe revenue ve for us to relyadditional step

    these difficu

    g of our Roaomewhat decmbalance mu

    nts the been

    unting

    s five es.

    y and

    ponent cludes

    quired sheriff, ection

    human

    hile at ty tax

    budget versus d and

    uld be 1101

    me of eather

    We are versus y long ps will lt and

    d and eiving ust be

    1

  • addressedplaced on RevenuesWe remaimpact reconservatcollectionsdue primarevenues Another lataxes are have budsales taxcollections Property revenues.2005. Pro2014 Prop

    A third mausing fundthe publicLa Plata Cyear annsignificantThe Counawarded intergoverfunding ($ Overall, thmillion froprimarily t

    10,000

    20,000

    30,000

    40,000

    d in order to en our local tran

    s in concerned

    evenues, bothtively. The Cs for 2014 ararily to the fato level off in

    arge elementup about 7%geted 2014 c

    x less amouns in 2014 are

    Tax and Sal. The chart boperty tax revperty tax reve

    ajor source ods provided b

    c assistance, cCountys Humounced reinst source of funty has recefunding thro

    rnmental reve$830,000), lot

    he 2014 Adopom 2013 budgto the decreas

    0,000

    0,000

    0,000

    0,000

    2002

    ensure that onsportation sy

    d with how loh in the sho

    County Assesre projected toalling prices a 2015.

    t of the Coun% from 2012 lecollections witnts shared wprojected to

    les Tax revebelow illustratvenues, the reenue has decr

    f revenue is gby a variety ofchild and aduman Servicesstatement of unding for capeived notificaough the Staenues are shttery funds ($3

    pted Budget get. This is thse in the price

    2003 2004

    Prope

    P

    ur Road and ystem.

    ocal, state anort and long sor has provio decrease $and decrease

    ntys revenue evels, which eth a 3% incre

    with the City be approxima

    enues combintes the combed portion of treased 47% s

    grants and otf state and fe

    ult protective ss Department

    the energy pital improvemtion that ourate gaming hared revenu300,000), and

    projects revehe result of the and level of

    2005 2006

    ertyTax&

    ropertyTax

    Bridge fundin

    nd national eterm, therefoded property

    $3.3 Million ore in productio

    base is the Cexceeds the leease over 20

    of Durangoately $14.5 m

    ned represenined 2014 revthe bars, are since 2010.

    ther intergovederal sourcesservices, andt. After a thr

    impact assisment projectsr District Attogrant prograes, such as d highway use

    nues at nearhe 18.8% decf gas producti

    2007 2008 2

    SalesTaxR

    ng is sufficien

    economic issore, we cont

    y tax valuationr 17.7% fromon of natural

    Countys 2% evel we had b13, meaning , Town of B

    million.

    nt approximatvenues are aat approxima

    ernmental revs, provides fu

    d child supporree-year progstance grant

    s in La Plata Corney and Pam in 2014.severance taer tax funds (

    ly $60.8 milliocrease in assion.

    2009 2010 2

    Revenues

    SalesTax

    nt to meet the

    ues will conttinue to budgn numbers, an 2013, to $15 gas. We e

    sales tax. Ybudgeted in 2net sales tax

    Bayfield and

    tely 50% of at the lowest lately the 2004

    venues. The unding for apprt enforcemengram suspenst program, wCounty over t

    Public Safety Other sign

    axes and fed($2.8 million).

    on, which is asessed valuat

    2011 2012 2

    e growing dem

    tinue to negaget revenuesnd our proper5.6 million. Txpect proper

    Year to date, 2013. For nox (total CounTown of Ign

    the Countyslevels since b

    4 revenue leve

    State of Coloproximately 8nt provided thsion, the Statwhich has bethe last 15+ yprograms w

    ificant sourcderal mineral

    a decrease otion from 201

    2013 2014

    mands

    atively s very rty tax This is rty tax

    sales w, we ty 2% nacio)

    s total before els.

    orado, 7% of rough te last een a years.

    will be ces of

    lease

    f $1.9 3 due

    2

  • Expendit The 2014elected oResourceSafety funfunctions

    PersonnePersonnerecomme

    S

    Vva

    NCduad

    In

    suthtrcl

    MinprupUav

    General OOperatingorganizati

    ures

    4 budget inveofficials (with es, Informationnction, 20% total the rema

    el Costs Totael costs comprnded a numb

    taffing Levels

    Vacancies: Cacancy we wi

    No Cost of LivCounty did no

    ue to the Codvanced up th

    n 2013, the Courveyed 26 likhat County remending slightllosely with the

    Medical, Dentancrease in coroposed to inp to the plate

    Unfortunately, vailable to pro

    Operating Bug budgets repional acknow

    ests 21% of the exceptio

    n Technologyin Capital Ouaining 6%.

    al $30,170,69rise the larges

    ber of measure

    s: There are n

    urrently all vaill be able to e

    ving Adjustmet include any

    ountys declinhrough Electe

    ounty compleke organizatiomains highly ly downward e markets wa

    al & Vision Rosts. The C

    ncrease slightover the last by covering

    ovide increas

    udgets Total presents the

    wledgement of

    Pub

    the Countyson of the Shey, and Facilitieutlay, 14% in

    Expendit

    94: st use of resoes designed t

    no new positio

    acancies are ensure the co

    ents or Merit y cost of livingning revenuesed Officials an

    eted a Compeons that mostcompetitive, wand the recom

    as approved fo

    Rates: The CCountys anntly more thanfour years bythe lions sh

    es to employ

    $23,535,305second larg

    f the fiscal ch

    GGov

    blicWorks13%

    PublicSafet26%

    s resources ieriff), Adminises & Groundsn Health & W

    tures By Fun

    ources at 42.5to reduce the

    ons included

    being reviewontinued need

    increases in g or merit incs. However, nd Departmen

    ensation Studyt closely resemwithin 5% of tmmendation tor 2014. The

    Countys mednual contribut $350,000 in y funding the hare of the iee salaries.

    5: est use of rehallenges of

    Generalvernment21%

    tyHealtWelf14

    Ca

    O

    in General Gstration, Cous. Additionall

    Welfare, 13%

    nction

    5%. Over the Countys sta

    in the 2014 B

    wed prior to bd for each pos

    2014: This creases in sa

    promotions nt Heads wer

    y with the assmble La Platathe market. Hto adjust the p

    ese adjustmen

    dical renewation towardthe coming ylarge majorityncreases, the

    esources at the new eco

    th&fare4%

    apitalOutlay20%

    OtherUses6%

    Government, unty Attorneyly, 26% is invin Public Wo

    e last several affing budget:

    Budget.

    being filled. Bsition.

    is the first yealaries. This d

    and reclassifre approved.

    sistance of Foa County. ThHowever, the pay structurents impact 74

    al for 2014 reemployee heyear. The Cy of health inse County ha

    33.1%. As nomy, our el

    which includ, Finance, H

    vested in the Porks, and all

    years we hav

    By evaluating

    ear since 201decision was fications that

    ox Lawson whe survey indicpay structures to align mo

    4 employees.

    epresents anealth insuranounty has stesurance incres fewer reso

    a reflection oected official

    es all uman Public other

    ve

    each

    11 the made were

    hich cated es are re

    8.4% nce is epped eases. ources

    of the s and

    3

  • department heads have submitted operating budgets that reflect a $2.5 million reduction from 2013 approved budget levels. In early 2009, we implemented a process to scrutinize all position vacancies, capital projects and larger technology and service agreements, as well as discretionary travel and training, prior to expenditures being spent or committed. We plan to continue that enhanced focus in 2014. Capital and Infrastructure Total $13,007,663: Capital and infrastructure investments represent 18.3% of the Countys 2014 total use of resources. Infrastructure: Another one of the priorities established by the County Manager at the beginning of our 2014 budget process was to continue to invest in our roads, bridges, and facilities infrastructure. The 2014 budget proposes a number of significant projects, most notably, the Oxford Intersection project. This project is estimated to cost $3.5 million and will be funded through a Federal Hazard Elimination grant, an Energy Impact grant and County funding. This project will result in addressing a number of important safety issues at this intersection. The County has agreed, in concept, to a cost share arrangement with the City of Durango for the construction of Wilson Gulch Road, representing 33% of actual construction costs up to a maximum of $1,980,000. Recently the City applied for and was awarded a RAMP grant from Colorado Department Of Transportation (CDOT) which could potentially reduce the Countys contribution to approximately $696,000. The Wilson Gulch Road project will extend an existing road into an area within the city limits of Durango which is proposed for retail development. The road extension will also provide additional capacity for development in nearby areas and may mitigate the traffic impacts on a nearby county road. We have proposed funding the $696,000 out of the Capital Improvements Fund instead of the Road and Bridge Fund due to the significant depletion of the Road and Bridge unreserved fund balance. Funding will ultimately depend upon development and approval of an intergovernmental agreement with the City. The County has also committed $300,000 to construct a turn lane on County Road 210 into the boat ramp area at Lake Nighthorse. This project was originally expected to occur in 2013. However, due to delays in opening Lake Nighthorse for recreation, we have postponed construction of the turn lane. It is in the Countys best interest to wait until an agreement is in place allowing recreation to occur before the turn lane is constructed. We initially considered moving forward with a partial reconstruction of County Road 210 as well. The project costs were estimated to be approximately $2,000,000. Earlier this year we applied for an Energy and Mineral Impact Grant to provide 50% of the funding for this project. Unfortunately, during the 2014 Budget development process it became clear that the Road and Bridge Fund does not have adequate funds to make this project occur even with the assistance of a grant. As a result, these improvements will be placed on hold until a future year. Capital: The 2014 budget includes $7.2 million in non-infrastructure capital projects. These projects are focused around ongoing renovations at County facilities, including the courthouse, the Vectra Building 1101 Second Avenue and a multi-agency firearms range. The most significant initiative is our work with the United States District Court, United States Probation Department, United States Marshals, United States Attorneys Office and the General Services Administration (GSA) to renovate and remodel a portion of the County Courthouse into a facility that would be leased by the GSA to provide facilities for federal court functions. We believe such a move will, in the long term, provide enhanced access to the federal judiciary for citizens of Southwest Colorado. The project will require the County to renovate the space initially and recover the cost of most of those improvements over the term of the lease with the federal government. Accordingly, we have set aside $2,000,000 in the 2014 Capital Improvement Fund budget for the estimated remodel costs, with a portion of those costs to be reimbursed by the proposed tenants. We have also budgeted $3.5 million for the remodel of the recently purchased Vectra Bank building at 1101 East Second Avenue to accommodate the offices that will be displaced by the courts project (the Board of County Commissioners, the County Assessor and the Administration and Finance Department staff). The decision to enter a leasing arrangement for the federal courts will ultimately be decided by the Board in 2014. Capital Equipment Replacement Fund (CERF): At Board direction, staff implemented the centralized fleet management program effective January 1, 2005. Now in the ninth year of operation, we believe this program has allowed us to better manage

    4

  • vehicle allocations, usage, maintenance and replacement. We have proposed purchasing $1.41 million in new vehicles and heavy equipment in 2014. This fund is extremely healthy, and after an initial analysis, we have determined that this fund is very likely over funded at this time. It is our intent to utilize over $900,000 in this fund to offset other expenses in the organization for 2014. In the first quarter of 2014 Finance staff will complete a more in depth review of the CERF fund to see if additional changes should be recommended. We will continue to review the rental and maintenance charges for the various departments using vehicles to ensure we capture all the costs so the CERF remains strong and viable. Technology: As part of the development of the 2014 budget, we have reviewed all technology initiatives as part of a separate budget module and with an eye toward the Countys long-term technology objectives. We received requests exceeding $600,000 including workstation and printer replacement, software upgrades and purchases, and network infrastructure. Other projects expand network capacity and provide more system storage and security. Due to our budget constraints we are recommending funding in the amount of approximately $363,000 for technology projects. We have recently implemented Laserfiche, IQM2, and a Cityview upgrade. All three of these implementations have presented their own unique challenges and we will continue to monitor these programs throughout 2014 as appropriate to more readily support our needs. Public Service Agency and Community Funding: The public service agency budget includes funding for diverse programs like library services, the county fair, housing programs and economic development services. Other examples of programs funded include San Juan Basin Health, the Mental Health/Acute Treatment Center, and Animal Protection/Sheltering. In 2014 the County has budgeted approximately $1.9 million for public service agencies, a decrease of $73,000 from the amount awarded in 2013. We believe that by funding these types of agencies and programs, we can improve the quality of life in the community and/or decrease the need for the County to directly provide some of these services. For the second year in a row we have entered into a partnership with United Way of Southwest Colorado to assist the County in reviewing and funding recommendations for specific agencies that have applied for funding in 2014. Under this arrangement, certain agencies applications were reviewed by United Way to determine their consistency with the County's established funding criteria. United Way provides recommendations; the recommendations are reviewed by County staff and ultimately the final funding decisions are made by the Board of County Commissioners. Agencies that are not reviewed as part of the United Way project are evaluated by County staff. In 2013, approximately $296,000 worth of funding was provided to the agencies evaluated by United Way. Due to declining County revenues United Way provided recommendations for allocating $250,000 worth of funding in 2014. Joint Sales Tax Fund: Pursuant to a 1990 intergovernmental agreement with the City of Durango, a portion of the Countys 2% sales tax is set aside for such projects as may, by annual agreement between the City of Durango and La Plata County, be designated as joint funded projects eligible for funding. Programs proposed to be funded with joint sales taxes in 2014 are the library and senior programs and the ongoing transfer to landfill for post closure monitoring and maintenance. A preliminary analysis indicates that the Joint Sales Tax Fund balance may be exhausted by 2017. Both the Durango City Council and the Board of County Commissioners have committed to further discussions in 2014 to discuss how to best address this issue.

    5

  • Debt: In mid-2012, the County completed an advance refunding of the Certificates of Participation (COPs) issued in 2004 for the Old Main Professional Building. There are currently no debt issues outstanding, although the County bears responsibility for accrued employee vacation and sick leave. Those amounts are paid out as the time is used and are included in the salary budgets for the respective operating departments. In its financial statements, the County also records an accrual for the long-term costs associated with maintaining closed landfill sites and for environmental cleanup of the County jail site, although only the current portion of those long-term costs are included within the operational budgets. Summary: In total, the 2014 budget anticipates $60.8 million in revenues, $71 million in expenditures, resulting in the use of $10.2 million of the Countys Fund Balances. The following table lists County Funds revenues, expenditures, and changes in fund balances:

    Basis of Budgeting and Accounting La Plata County uses the modified accrual basis of accounting for all governmental (General, Special Revenue, Debt Service, and Capital Projects) and agency funds. Revenues are recognized when they become measurable and available as net current assets. Measurable means that the amount of the transaction can be determined and available means collectible within the current period, or soon enough thereafter, to be used to pay liabilities of the current period. Non-current receivables are not recognized until they become current receivables. Those revenues subject to accrual are property taxes, interest revenue, special assessments, and charges for services. Sales taxes collected and held by the State of Colorado at year-end on behalf of the County also are recognized as revenue. Fees, permits, fines, entitlements, and shared revenues are not susceptible to accrual because generally they are not measurable until received. Grant revenues are recognized as they are earned. For budgetary purposes, expenditures are generally recorded when the related fund liability is incurred, except 1) principal and interest on general long-term debt is recognized when due; and 2) accumulated unpaid vacation not expected to be paid within the next year is not recognized until it is paid out. Expenditures for services that extend over more than one accounting period are accounted for as expenditures of the period of acquisition.

    Funds 2014 Budget

    Revenues 2014 Budget

    Expenditures

    2014 Budget Change in Fund

    Balance General Fund 31,308,834$ 34,058,836$ (2,750,002)$ Special Revenue Funds:

    Road & Bridge Fund 11,131,175 12,284,785 (1,153,610) Human Services Fund 5,155,015 5,615,686 (460,671) Joint Sales Tax Fund 2,144,149 2,253,793 (109,644) Durango Hills Road Improvement Fund 80,769 132,350 (51,581) District Attorney Fund 2,234,137 2,234,137 -

    Capital Improvement Fund 2,680,000 8,128,431 (5,448,431) Internal Service Funds:

    Capital Equip. Replacement Fund 2,092,911 2,508,405 (415,494) Employee Medical Insurance Fund 4,041,525 3,843,480 198,045

    Total County 60,868,516$ 71,059,903$ (10,191,386)$

    6

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