County of Berks

Proposed FY2006 Budget

County Commissioners MeetingNovember 17, 2005

County of BerksFY2006 Presentation

• Budget Schedule

• Budget: Highlights and Service Initiatives

• Fiscal Conditions

• Budget Summary

Budget Schedule

• November 17, 2005 Present Proposed FY06 Budget

• December 20, 2005 Adopt Final FY06 Budget

• Public Review– County Commissioners Office

– Budget Office

– County Website www.co.berks.pa.us

County of BerksProposed FY06 Budget

• The budget utilizes the existing tax rate

• The budget is balanced, expenditures match revenues, so we are not deficit spending and as a result,

• No fund balance is used to balance the budget

Current Conditions

• Budget challenges continue– Assessed value growth

– Federal and State budget cuts

– Growth in revenue; few options for generating revenue

– We have identified efficiencies, made cuts, reallocated resources, etc. but more needed

• Future Projections

Personnel/Staffing

• FY06 personnel costs virtually the same as FY05 costs

• Voluntary Severance

• Health Insurance

• Short Term/Long Term Disability

• Pension Obligation

• Net New Positions

– 1 Guardian

– 2 OSII-temporary

– 2 OSII-permanent

– 1 Courtroom Clerk

Not for Profit - Initiatives

• Library: $250,000 to enable additional PT staffing

• RACC: $200,000 additional for one time capital expenses

• Berks Economic Partnership: an additional $250,000 County and LEDA funds for a total contribution of $500,000

Ag Land Preservation and Open Space

• Borrowing Amount $36,000,000

• Debt Service included in budget forecast

• Spending levels to be determined

Capital Projects

2006 Capital Projects• Prison Expansion• Elections• Facilities• Parks & Recreation

– Connector Trail– Tulpehocken Creek

Watershed– Adaptive Recreation Area– Berks Leisure Area– Kaercher Creek Park

Projects Under Consideration– Community Corrections

– Antietam Lake

Budget Summary

TAX OVERVIEW

2005 2006 % Change

Millage Rate 6.935 6.935 0%

Assessed Value 17,009,763,300 17,366,539,400 2.10%

Tax Revenue

Property Tax -General Use $112,593,046 $114,954,661 2.10%Prior Year Taxes - General $100,000 $100,000 0.00%Interims $451,271 $570,501 26.42%Tax Claim $3,500,000 $3,500,000 0.00%

Total Tax Revenue $116,644,317 $119,125,162 2.13%

BUDGET SUMMARY EXCLUDING BOND FUNDED CAPITAL PROJECTS

2005 2006 % Change

Total Revenue $401,587,733 $403,342,135 0.44%

Total Expenses $393,171,379 $397,525,819 1.11%

Excess Revenue over Expenses $8,416,354 $5,816,316 -30.89%

BUDGET SUMMARY GENERAL FUND ONLY

2005 2006 % Change

Total Revenue $193,965,982 $193,791,622 -0.09%

Total Expenses $180,980,526 $176,290,136 -2.59%

Excess Revenue over Expenses $12,985,456 $17,501,486 34.78%

BOND FUNDED CAPITAL PROJECTS - 2006

Revenue $8,011,045

Expenditures $52,065,269

Revenue represents proceeds from new borrowing for Agland Preservation and Open Space. Target borrowing $36M over 4 years.

Expenditures represent consumption of existing proceeds from 1998,1999 and 2002 Bond Issues plus $8M of new borrowings.

Prison Upgrade & Expansion $29 M Other Projects $8 M Ag Land & Open Space $15 M

$52 M

FUND BALANCE OVERVIEW

RecommendedRecommended Proposed

2006 Beginning 2006 Budget 2006 Budget (*) 2006 Ending

Fund Balance Revenues Expenditures Reclass Fund Balance

General Fund

Unreserved 31,880,067$ 193,791,622$ 176,290,136$ (15,266,583)$ 34,114,970$

Reserved/Designated 13,541,041 6,702,400 20,243,441

45,421,108 193,791,622 176,290,136 (8,564,183) 54,358,411

Special Revenue 6,884,988 162,856,614 171,376,142 8,564,183 6,929,643

Enterprise (8,254,470) 46,693,899 49,859,541 0 (11,420,112)

Total Designated/Undesignated Fund Balance 44,051,626 403,342,135 397,525,819 (8,564,183) 49,867,942

Without Capital Projects Fund

Capital Projects Fund 44,863,317 8,011,045 52,065,269 0 809,093

Total Designated/Undesignated Fund Balance 88,914,943$ 411,353,180$ 449,591,088$ 0 50,677,035$

Projected Reservations of Fund Balance @ 12/31/06

Designations 3,078,432$

Reservations 17,165,009

Special Revenue Fund Operating Transfers 8,564,183

28,807,624

Reversal of 12/31/2005 Reserved/Designated (13,541,041)

Total Reclass 15,266,583$ (*)

2006 Recommended Budget Revenue by Source

Grants46%

Departmental Earnings

14%

Real Estate Taxes29%

Other Revenue5%

Interfund Transfers6%

2006 Recommended Budget Expenditures by Function

Public Safety11%

Berks Heim7%

Youth Detention3%

Not for Profits1%

Debt Service4%

Emergency 9111%

Bond Funded Capital Projects

12%

Miscellaneous2%

Judicial9%

Public Works0%

General7%

Human Services39% Community &

Economic Devlpmnt2%

Cultural/Recreation2%

2006 Recommended Budget Consumption of Taxes

By Function

Berks Heim

1% Culture/Rec.

5%

Public Works

-2%

Public Safety

29%

Comm.&Econ.

Development

2%

General Govt.

5%

Emergency 911

-1%Judicial

27%

Debt Service

17%

Human Services

7%

Youth Detention

2%

Miscellaneous

5%

Not for Profits

3%

2006 2007 2008

Total Revenue 403,342,135$ 401,848,304$ 404,920,992$

Total Expense 397,525,819$ 410,392,275$ 427,391,362$

Net Surplus/(Deficit) 5,816,316$ (8,543,971)$ (22,470,370)$

Millage Rate Increase - 0.50 1.30

Includes new Debt Service for 2006 through 2008 related to Agland Preservation / Open Space borrowing $28M. Target $36M through 2009.

Does not include Prison Expansion / Community Corrections operating costs of $5.2M - 2007, $6M - 2008, $7.1M - 2009.

3 YEAR FINANCIAL FORECAST

General Fund Balance Projection

12/31/2006 12/31/2007 12/31/2008

Balance @ January 1st, except for 2006 - Unreserved and Designated $54,358,411 $54,358,411 $45,814,441

Reservations of Fund Balance: ($20,243,441) ($21,130,108) ($22,016,775)

Projected Operating Transfers - Special Revenue Funds ($8,564,183) ($8,564,183)

Projected Surplus or (Deficit) ($8,543,970) ($22,470,370)

Unreserved Fund Balance (Deficit) @ December 31st $34,114,970 $16,120,150 ($7,236,887)

General Fund Budgeted Expenditures $176,290,136 184,223,192 192,513,236

Percent of General Fund 19.35% 8.75% -3.76%

Total Operating Expenditures $397,525,819 410,392,275 427,391,362

Percent of Total Operating Expenditures 8.58% 3.93% -1.69%

Note: 2007 and 2008 General fund expenditures are adjusted for an assumed rate of inflation of 4.5%

Comments and Questions