orange county budget fy 2009-10 worksession overview july 21, 2009
TRANSCRIPT
ORANGE COUNTYBUDGETFY 2009-10
Worksession Overview July 21, 2009
Presentation OutlinePresentation Outline
Worksession Agenda
Proposed FY 09-10 Budget
Future Budget Challenges
Budget Timeline
Presentation OutlinePresentation Outline
Worksession Agenda
Proposed FY 09-10 Budget
Future Budget Challenges
Budget Timeline
Worksession AgendaJuly 21, 2009Worksession AgendaJuly 21, 2009
• Introduction• Fire Rescue• Public Safety Office /
Radio Communications• MSTUs Public Hearing• Corrections• Corrections Medical• Community & Environmental
Services• Parks & Recreation• Orange County CRA (OBT)• I-Drive CRA
Day 1 - Budget Worksession
• Utilities• Public Works• Growth Management• Convention Center• Administrative
Services• Health Services• Family Services• LYNX
Day 2 - Budget Worksession
Worksession AgendaJuly 22, 2009Worksession AgendaJuly 22, 2009
• Constitutional Officers• Court Administration• Jury Services• Sheriff• Library• Outside Agencies / Commissioner
Reports• Summary of Changes / Requests
– Approval of:• Proposed Millages / Budget• Budget Consent Agenda
Day 3 - Budget Worksession
Worksession AgendaJuly 23, 2009Worksession AgendaJuly 23, 2009
Presentation OutlinePresentation Outline
Worksession Agenda
Proposed FY 09-10 Budget
Future Budget Challenges
Budget Timeline
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
• General Fund $ 821M $ 748M (9.0%)
• Special Revenue 1,405 958 (31.8%)
• Debt Service 358 378 5.5%
• Enterprise Funds 815 676 (17.1%)• Internal Service 236 223
(5.5%)$ 3,635M $2,983M
(18.0%)
FY 2009 FY 2010 %
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
County’s Total Budget
• Items That Cause Budget Fluctuations
– Large capital projects/debt issues
– Increases in grants and multi-year grant awards
– Accounting/budgeting changes
• Impact of Budgeting Standards
– Interfund Transfers – $365 million
– Internal Service Funds – $223 million
– Pass Through Funds
• Fund balance/reserves
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
Rate Rate Change
• Countywide 5.1639 4.4347 (14%)
• Fire MSTU 2.5862 2.2437 (13%)
• Sheriff MSTU 2.1234 1.8043 (15%)
Millage Rate Comparison
2007Millage
2010Millage
Taxable Value: $200K Home $1,975 $1,697 ($278)
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
FY 2008-09 FY 2009-10 Millage Property Property Rate Taxes Taxes Change
• Countywide 4.4347 $474.6M $427.9M ($46.7)
• Fire MSTU 2.2437 130.6 116.2 (14.4)
• Sheriff MSTU 1.8043 105.1 93.5 (11.6) Total $710.3M $637.6M ($72.7)
Maintaining Current Millage Rate
Property Tax Revenues Down 10%
$0
$200
$400
$600
$800
$1,000
$1,200
2007 2008 2009 2010
Mil
lion
s
Countywide Tax
Sheriff MSTU
Fire MSTU
Sales Tax
PST
State SharedRevenue
$959 $959 $942
$853
($89)
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
$474 $476 $475 $428
$107 $107 $105$94
$130 $133 $131$116
$128 $126 $116 $104
$89 $89 $88 $87
Major Revenue Sources
• Deleting 300+ Vacant Positions
• Operating Budget Reductions
• Using Current Year Cash Savings• CIP Savings• Reserves
2010 Budget Strategies
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
• Constitutional Officers 5• Administrative Services 22• Comm. & Environ. Services 33• Convention Center 29• Corrections 19• Family Services 16• Fire Rescue 7• Growth Management 82• Health Services 4• Public Works 48• Utilities 15• County Admin. Support 20• Other 8TOTAL 308
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
Deleted Positions
FY 2008-09 Budget
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
General Government
$289M
Public Safety$498M
Outside Agencies $147M
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
General Government
$289M
Public Safety
$498M
Outside Agencies
$147M
$482M
Outside Agencies
$147M
General Government
$289M
Public Safety
$498M
$249M
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
$482M
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
Outside Agencies
$147M
General Government
$289M
Public Safety
$498M
$142M
$249M
$482M
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
Outside Agencies
$147M
General Government
$289M
Public Safety
$498M
$142M
$249M
$482M
$60M Savings
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
General Government
$249M
Public Safety$482M
Outside Agencies $142M
Tax Based Operating Budget
Public Safety$482M
Public SafetyTax Based Operating Budget
• Sheriff $184M
• Fire Rescue 146
• Corrections 146
• Other ___6_
TOTAL $482M
ProposedFY 2010
3.2% Decrease
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
• Administrative Services $46M• Family Services 45• Health Services 37• Parks & Recreation 31• Comm. & Environ. Services 20• Growth Management 10• Other 60
TOTAL $249M
General Government
$249
ProposedFY 2010
General GovernmentTax Based Operating Budget
13.8% Decrease
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
• Constitutional Officers $ 53M• LYNX 35• Other 54 (CRAs, Outside Agencies ,Courts, CRP)
TOTAL $142M
Outside Agencies $142M
ProposedFY 2010
Outside AgenciesTax Based Operating Budget
3.4% Decrease
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
General Government
$249M
Public Safety$482M
Outside Agencies $142M
Tax Based Operating Budget
$60M Reduction
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
• Deleting 300+ Vacant Positions
• Operating Budget Reductions
• Using Current Year Cash Savings• CIP Savings• Reserves
$60M
2010 Budget Strategies
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
• CIPs– Animal Services Expansion Deleted ($8.4M) – Corrections Expansion Reduced ($9.1M)
• General Fund Reserves– $51.1 Million– 6.8% of General Fund
2010 Budget Strategies
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
• Deleting 300+ Vacant Positions
• Operating Budget Reductions
• Using Current Year Cash Savings• CIP Savings• Reserves
2010 Budget Strategies
$60M
$30M
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
• Regular Employees
– No cost of living adjustments
– Annual salary increases
– Periodic market studies
• Bargaining Unit Employees
– Step plans
– Negotiated annual step increases and various incentives
– Periodic market studies
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
Salary History 2000-2010
• Five Year Average Annual Salary Increases 2006-2010:– Regular employees: 2.7%
• Ten Year Average Annual Salary Increases 2001-2010:– Regular employees: 3.3%
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
Proposed FY 09-10 BudgetProposed FY 09-10 Budget
2,600
2,700
2,800
2,900
3,000
3,100
3,200
3,300
3,400
3,500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Employees
General County Employees (Excludes: Const. Offices, Enterprise Operations, and Public Safety)
Presentation OutlinePresentation Outline
Worksession Agenda
Proposed FY 09-10 Budget
Future Budget Challenges
Budget Timeline
Future Budget ChallengesFuture Budget Challenges
Revenue Outlook 2011 and Beyond• Property Tax Outlook
– FY 2011 - (5.6%)
• Sales Tax & Other Major Revenues
– FY 2011 - (2.0%)?
$0
$200
$400
$600
$800
$1,000
$1,200
2007 2008 2009 2010 2011
Mil
lion
s
Countywide Tax
Sheriff MSTU
Fire MSTU
Sales Tax
PST
State SharedRevenue
$959 $959 $942
$853
($89)
$474 $476 $475 $428
$107 $107 $105$94
$130 $133 $131$116
$128 $126 $116 $104
$89 $89 $88 $87
Major Revenue Sources
$810
$402
$88
$109
$101
$85
($43)
Future Budget ChallengesFuture Budget Challenges
Sheriff• $183.9 million operating budget
• Largest budget in county
• Sheriff’s MSTU millage rate:
– Reduced from 2.1234 to 1.8043 over the last three years
– 15% reduction
• Sheriff’s MSTU supports approximately 50% of Sheriff’s budget
Future Budget ChallengesFuture Budget Challenges
Sheriff• FY 2010 budget includes no salary increases
• Trend not sustainable
• FY 2011 will require evaluation of revenue enhancement options and/or service level adjustments
Future Budget ChallengesFuture Budget Challenges
Fire Rescue• $145.8 million operating budget• Budget is structurally imbalanced• Based on current trends, Fire will
deplete reserves by FY 2011• Fire’s MSTU millage rate:
– Reduced from 2.5862 to 2.2437 over the last three years
– 13% decrease
Future Budget ChallengesFuture Budget Challenges
• New stations and equipment replacement on hold
• Various programs on hold• FY 2010 budget is based on no salary
increases• Trend not sustainable • FY 2011 will require evaluation of revenue
enhancement options and/or service level adjustments
Future Budget ChallengesFuture Budget Challenges
Fire Rescue
Corrections• $148.7 million operating budget
• Budget highly dependent on inmate population
• Current inmate population is 3,800 compared to August 2008 peak of 4,955
• Inmate population is volatile and can increase in future based on a variety of factors
Future Budget ChallengesFuture Budget Challenges
Corrections• Future facility requirements
• Medical care costs
• Juvenile Assessment Center
Future Budget ChallengesFuture Budget Challenges
Public Safety Radios• County operates an extensive public
safety radio system
• The current radio system has been in operation since 1992
• The FY 10 budget provides $9 million to replace Sheriff’s out-dated radios
• The budget includes approximately $5 million to replace radios in Fire, Corrections, and other departments
• Radio infrastructure CIP needs to be funded in future
Future Budget ChallengesFuture Budget Challenges
State Mandated Costs• The FY 10 budget includes
approximately $66 million in state mandates
• These costs include:– $45M FRS – $9.3M Medicaid match– $8.1M DJJ– $3.7M Medical Examiner’s Office
• As State revenues decline, we may see additional mandates
• Future impact of federal and state mandates on county’s budget is unknown
Future Budget ChallengesFuture Budget Challenges
Primary Care Access Network (PCAN)• The budget includes $14.6 million for 11 PCAN
clinics• Over the past ten years, patients being served have
increased from 5,000 to 100,000• Increases in healthcare costs and expensive
secondary care creates financial challenges for the PCAN program
• Program needs to be restructured to control costs:– Cap enrollment– Close clinic(s)– Provide more revenue support– Restrict secondary care
Future Budget ChallengesFuture Budget Challenges
• Orange County’s funding for LYNX has increased from $23 million to $40 million over the past 5 years
• In FY 09, the County’s $40 million funding contribution included extra funding for fuel costs
• Major recipient of stimulus funding
• Once stimulus funding goes away, funding will have to be increased
Future Budget ChallengesFuture Budget Challenges
LYNX
LYNX• For FY 10, LYNX funding is
$35 million
• LYNX is providing status quo service next year
• Providing dedicated funding for LYNX continues to be a challenge
Future Budget ChallengesFuture Budget Challenges
Public Works• 48 positions are being
eliminated in FY 2010• Staffing level below FY 2000• Providing adequate O&M
funding continues to be a challenge
• Level of services have been reduced
• CIP has been reduced by $70 million from FY 09 - 14
• Funding new road construction will continue to be a challenge
Future Budget ChallengesFuture Budget Challenges
Family Services• Increasing demand for
mental health and homeless issues
• Lack of funding for safety net programs
• Streamline service delivery
Future Budget ChallengesFuture Budget Challenges
Facility Costs• Facilities Management
maintains over 6 million square feet
• Escalating maintenance costs with aging infrastructure
• Over the past five years, utility costs have increased from $7.4 million to $12.2 million, which is a 65% increase
• Costs and square footage are increasing, while budget is decreasing
Future Budget ChallengesFuture Budget Challenges
Healthcare Costs• $72 million program covering 9,111
employees and 18,981 total members
• Includes BCC, Constitutional Officers (except Sheriff), LYNX and other organizations
• Medical trend is 9% increase
• Future funding challenges
• County continues to implement cost containment strategies: Self insurance, wellness programs, plan design changes, and other
Future Budget ChallengesFuture Budget Challenges
Environmental Protection
• Limited funding for Total Maximum Daily Load (TMDL)/water quality
• Air and petroleum programs funding uncertain
• GreenPLACE maintenance
Future Budget ChallengesFuture Budget Challenges
Tourist Development Tax• TDT collections are down
due to the recession
• Attendance & operating revenues for the OCCC are down
• Additional OCCC operations subsidy will be needed
• Challenges for Community Venues
Future Budget ChallengesFuture Budget Challenges
Utilities• Declining revenues in
Utilities due to economic conditions
• Water supply continues to be a concern heading into the future– Funding for alternative water
supply projects
• Funding for solid waste cell construction continues to be a challenge
Future Budget ChallengesFuture Budget Challenges
Presentation OutlinePresentation Outline
Worksession Agenda
Proposed FY 09-10 Budget
Future Budget Challenges
Budget Timeline
• Budget Worksession with BCC Jul 21 – 23– Approval of Tentative Millage Rates– Approval of Tentative Budget– Approval of Budget Consent Agenda
• Notify PA of Proposed Millage Rates Aug 1
• PA Mails TRIM Notices Aug 12 - 17
• 1st Budget Public Hearing – 6:00 p.m. Sep 10
• 1st Library Public Hearing – 5:01 p.m. Sep 15
• 2nd Library Public Hearing – 5:01 p.m. Sep 22
• 2nd Budget Public Hearing – 6:00 p.m. Sep 24
Budget TimelineBudget Timeline
ORANGE COUNTYBUDGETFY 2009-10
Worksession Overview July 21, 2009