kalamazoo county government. budget forecasting/five year budgets sustainable financial practices ...

Kalamazoo County Government

COUNTY FINANCE FOR THE FUTURE:Exploring The New Reality of Government in the New Economy and Current Political Climate

September 24th, 2012

David C. Maturen, ChairKalamazoo County Board of Commissioners


VISION: A Diverse and Dynamic Community with a Healthy Economy and Environment where People and Businesses have the Opportunity to Thrive


Dollars and Sense


Overarching Strategies2003 thru present

Budget Forecasting/Five Year Budgets

Sustainable Financial PracticesEmployee CompensationInnovative Practices


Budget Forecasting/Five Year Projections:2007 thru 2012

2007 2008 2009 2010 2011 2012 $74,000,000

$76,000,000

$78,000,000

$80,000,000

$82,000,000

$84,000,000

$86,000,000

$88,000,000

$90,000,000

$92,000,000

County of KalamazooOperating Expenditures

2007 5-year ProjectionsActual Original Budgets


Implementation Strategies2007 thru 2012

Head count relatively flat (741 – 745)

Salary schedule increases less than revenue growth (5.5%)

Employee benefits remain stable (40% blended)

10%36.5%57%


Unallocated Fund Balance Progression - 2003 thru present

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* $-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Fund Balance Progression

Unrestricted Unreserved Balance as a % of Revenues

*2012 Decrease a result of transfer to Capital


General County Public Improvement - 2003 thru present

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* $-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

General County Public Improvement(Facilities Funding)

Fund Balance

*Does not include $16,000,000 projected spending for Jail project in 2012


Innovative Best Practices Culture

3 Examples:

Mandated Service: Jail and Revenue SharingInternal Function: Employee Health Care InitiativesOptional Service: Parks, Expo Center & Trails


Jail and Revenue Sharing2005 thru present

The Problem(s): 2 failed jail millage requests Elimination of revenue sharing,

creation of revenue sharing reserve The Solution/Approach: Revenue sharing reserve shifted to capital Self-imposed austerity program Dual goals

self-fund jail solutioneliminate reliance on uncertain future funding


Employee Health Care Initiatives

The Problem:

Rapidly increasing (double digit) yearly health care costs for employees

The Solution/Approach:Implemented data-driven measurable program with

successful track record from local private sector one-to-one coaching firm.

Instituted 100% self funded health plan; modified benefits to emphasize personal responsibility and prevention.

Kalamazoo County GovernmentEmployee Health Care

Initiatives

More healthy, productive and satisfied workforce; with positive impact on their families.

The Results:Self fundingDesign changesNationally recognized best practice wellness program80% participationNo appreciable increase in Health Care Expenses in last 5 years

2007 2008 2009 2010 20110

100000020000003000000400000050000006000000700000080000009000000

10000000

Wellness Initiative

Health Benefit Pkg


Parks, Expo Center &Trails

The Problem:

Budget difficulties in 2004 questioned ability for ongoing funding of Parks (non-mandated service); talk of closing a park that year.

The Solution/Approach: Goal established: self-sufficiency in 10

years Concentrated customer-driven focus Emphasized community partnerships


Parks, Expo Center &Trails

The Results: Over the last 5-6 years:

Park Attendance Up 79% >1 million visitors/year!

Non-Tax Park Revenue Up 69% ($439,310)From 46% General Fund Support to 18%Nearly $2 million in EndowmentsCloser relationships with community

partnersExpo Center >300,000 visitors; 12,000

overnights

kalamazoo county government. budget forecasting/five year budgets sustainable financial practices ...

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