bexar county budget department spring 2012 fy 2011-12 budget update

Bexar County Budget DepartmentSpring 2012

FY 2011-12 Budget Update

FY 2011-12 Budget Plan

The FY 2011-12 Adopted Budget targeted cuts needed to balance budget through the forecast period, while maintaining County capacity for service delivery and employee compensation, which included:

$2 M (annualized) mid-year savings from May Freeze

$5 M from Attrition/Vacancy Program

$5 M from targeted cuts in FY 2011-12 Budget

$5 M for Return on Investment (ROI) from use of Technology to be identified in FY 2012-13 Budget

2

FY 2011-12 Original Forecast3

Submitted Department Plans

Cost SavingsCMAG - District Clerk ($60,459)Criminal District Attorney ($821,202)Criminal District Courts ($91,465)County Clerk ($260,863)District Clerk ($316,070)Economic Development ($100,001)Judge/Commissioners ($25,951)Justice of the Peace - Precinct 1 ($12,375)Justice of the Peace - Precinct 1, Place 3 ($19,842)Justice of the Peace - Precinct 2 ($22,435)Juvenile ($1,100,000)Purchasing ($40,974)

4

Submitted Department Plans

County ManagerCommunity Resources ($426,216)Information Technology ($938,513)Infrastructure Services ($571,024)Appellate Public Defender's Office ($124,578)Budget ($49,522)Human Resources ($214,660)Judicial Support Services ($183,962)

Total County Manager’s Cuts ($2,508,475)

5

Departments on the Attrition Plan

Amount Needed

Constable Pct. 2 $51,895

County Auditor $84,894

County Courts at Law $110,466

Juvenile Courts $47,994

Probate Courts $39,277

6

Technology Savings

• Technology Efficiencies and Innovations:

• Lawson Implementation $642,477

• Automation of County Clerk processes $191,275

• Re-negotiation of communication contracts $344,986

• Interactive Foreclosure Maps $238,252

• BCIT is working to realize additional savings toward the $5M goal.

7

Targeted Cuts

• An additional $5 million in savings through

targeted programmatic reductions were identified by the Budget Department. These savings were realized through Jail Staffing, reduction of Court Appointed Attorney Fees in the County and Civil Courts, reductions in Juvenile Detention costs, and recurring revenues.

8

Revised Forecast Assumptions

House Bill 1038: appraisers taking into consideration surrounding properties to include foreclosures

Community Housing Development Organizations lawsuit - County will LOSE approximately $1 million per year in Ad Valorem

Based on preliminary tax rolls, ad valorem revenues for FY 2012-13 are less than the Fall Projection

9

Result: this forecast lowers projected property tax revenue growth from previous forecasts:

Current Previous Dollar Decrease

(1.6%) in FY 2012-13 1.0% $ 4,962,3921% in FY 2013-14 2.0% $ 7,394,4952% in FY 2014-15 3.0% $ 9,972,5133% through FY 2016 3.0% $ 10,271,689

Revised Forecast Assumptions10

Revised Forecast Without Strategic Issues

General FundFY 2010-11

ActualFY 2011-12

EstimateFY 2012-13

Projection

Beginning Balance

54,710,249 61,003,379 61,269,150

Revenues 324,929,328 328,057,898 317,277,019*

Available Funds 380,073,960 389,061,277 378,546,169

Expenditures 319,070,581 327,792,127 328,089,135

Fund Balance 61,003,379 61,269,150 50,457,034

11

*Original Projection for FY 2012-13 Revenues was $320,895,305, a difference of $3,618,286.

Revised Forecast Without Strategic Issues

12

Revised Long Range Forecast13

Strategic Issues

Detention Update

15

This FY

Service Delivery Plan

• Planning tool for use in preparing for increased service demand as a result of:

•Increases in overall Bexar County population

•Increased population in unincorporated area

•A more urban-like and developed unincorporated area

16

• Used annual growth rate in the 2000s to project the growth through 2017 using 2010 population as the baseline

DecadeAnnual PercentagePopulation Increase

1960-1969 2.09 %

1970-1979 1.91 %

1980-1989 1.99 %

1990-1999 1.75 %

2000-2009 2.10 %

2010-2019 2.10 %

Service Delivery Plan17

• Bexar County’s population projected to increase by 13.3 percent through 2017

• Increase of 268,000 citizens

• Estimated Bexar County population in 2017 of 1.9 million citizens

Service Delivery Plan18

•If cost-effective service delivery methods aren’t identified, the cost of serving our growing County population could be $19.2 million over the next five years.

•This does not include “City Like” Services

Service Delivery Plan19

• If “City Like” Services were in the unincorporated area of Bexar County:

• Tax rate increase of $1.2251 per $100 valuation

• Would bring total tax rate up to $1.552 per $100 valuation

• Constitutional Limit of $0.80 per $100 valuation

• There is an RFP out to develop options for citizens in the unincorporated area to acquire more “City Like” Services, as needed.

Service Delivery Plan20

• County will need to change our way of delivering services:

• E-gov, technology, automation

• More efficient business processes

• More cost-effective staffing models

• Proactive service delivery planning program

• Focus on Core Service Delivery

Service Delivery Plan21

Employee Compensation

Going forward, the County will need to identify ways to fund Cost of Living Adjustments to keep up with future inflation growth and maintain market competitiveness with other employers

FYI: 1% salary increase for all County employees = $2,133,453

22

Employee Compensation

74% of County Operating Revenue is provided by property taxes

Employee salaries and benefits account for 70% of County Operating Expenses

23

Employee Healthcare

Medical inflation trends are expected to be 9% per year over the forecast period

Segal Company: 9.6%source: 2012 Segal Health Plan Cost Trend Survey

Aon Hewitt: 9.9% source: 2011 Healthcare Trend Survey

Towers Watson: 7%source: 2011 Annual Towers Watson/National Business Group on Health Employer Survey

24

$41,899,133

$45,670,055

$49,780,360

$54,260,592

$59,144,046

$64,467,010

$35,000,000

$40,000,000

$45,000,000

$50,000,000

$55,000,000

$60,000,000

$65,000,000

$70,000,000

FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17

Healthcare

Healthcare Five Year Forecast25

Employee Healthcare

Claims Group (total 2011 claims) % Claimants % Costs

8.4% 53.9%

8.2% 15.2%

12.2% 12.9%

17.8% 10.2%

53.4% 7.8%

26

Employee Healthcare

* Medical Plan shortfall based on current premium equivalent levels

County Contribution $28,359,303

Employee/Retiree Contribution $10,088,519

Total Contributions $38,447,822

Total Contributions $38,447,822

Total Expenditures $41,410,516

Medical Plan Shortfall * $2,962,694

27

Employee Healthcare

• We have used one-time money for the past two years

• Healthcare Changes:

• County and employees pay more for same coverage

• Reduce benefits to better match current contributions

• Decrease costs through healthy lifestyle, preventive care, plan incentives

• RFP Medical Insurance Provider

28

Employee Healthcare

• Employee Health Clinic• Clinic Visits

• FY 2010-11 3,236• FY 2011-12 Estimate 4,300

• Types of services provided• Pre-employment physicals • Medical care for minor injuries or illness• Preventive Health Screenings • Wellness Programs

29

Strategic Issues Summary

• Service Delivery Plan• Providing services to growing population

• Employee Compensation• Maintain market competitiveness• Cost of Living Adjustments

• Employee Healthcare• Rising healthcare costs• RFP for medical insurance provider

• Complete BCIT Cost Savings Plan for inclusion in the Budget.

30

LRFF Summary

LRFF Summary

• Economic recovery has not yet resulted in increased revenue for the County

• Offices and Departments will need help identifying funding for new programs

• Prioritize new funding requests for one-time expenditures demonstrating reduction in future staffing needs (Increased productivity)

• County still has to address strategic issues including healthcare

32

The Proposed Budget will address the shortfall by:

Refining Revenue Projections

Continuing to identify operational efficiencies

LRFF Summary33

Budget Calendar

Budget Submissions Due May 25

Certified Tax Roll Received July 25

Proposed Budget August 21

Work SessionsAugust 23 & 28,

September 5

Adopted Budget September 11

34