HomeMy WebLinkAboutAgenda - 04-08-2010 - 2 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 8, 2010
Action Agenda
Item No. 2
SUBJECT: FY 2010-11 Budget Work Session
DEPARTMENT: County Manager and Financial PUBLIC HEARING: (Y/N) No
Services
ATTACHMENTS): INFORMATION CONTACT:
Attachment 1. FY 2010-11 Projected Budget Frank Clifton, (919) 245--2300
Funding Issues .` i Clarence Grier, (9'19) 245-2453
PURPOSE: For the Board to make decisions regarding development of the FY 201 0-11
budget.
BACKGROUND:
1) Current Year Fiscal Update
■ Recommended Board Action - The County Manager recommends the Board
receive an update from staff regarding the County's current FY 2009--10 fiscal
status.
a) Revenues - Overall revenue collections are ahead of where they should be at
this point in the fiscal year.
i} Real Property Taxes - Preliminary reports indicate property tax revenues
year-to-date are ahead of the prior years' collection rates. Of the $122.3
million budgeted for real property taxes, the Tax Administration Office has
collected about 100.5% of total budget or $'123 million as of March 31, 20109
an increase of$5.5 million over the previous fiscal year.
2) FY 2010-11 Budget Activity to Date
• Recommended Board Action - The County Manager recommends the Board
receive information regarding staff activity to-date in preparation for the upcoming
FY2010.11 budget.
The FY2010--11 Budget process presents another year of challenges. On the revenue
side, we anticipate little or no growth in the county's tax base. The normal growth in
the real property valuation will be offset by decreases in motor vehicle valuations,
foreclosures and bankruptcies. Additionally, the Commissioners have expressed a
continued desire to avoid a tax rate increase.
In regards to expenditures, departments have submitted their budget requests. Total
projected revenues are expected to be $'174.2 million. Preliminary departmental
requests for FY2010--11 total $187.5 million. Thus, we have a $'13.4 million difference
between requests and estimated revenues. This is an increase of $7.7 million over
our previous projection. It is stressed that this gap is prior to the County Manager
doing a formal review of each department's proposal and developing the Manger's
recommended budget. Variations from previous estimates are highlighted in
Attachment 1. As discussed in prior meetings, the Manager is obligated to provide
the county Commission a balanced budget recommendation. Doing so, will involve
significant changes in how Orange County approaches many services and programs
from past practices. Difficult choices will demand dramatic decisions be made.
Revenues
• Sales tax losses of $1.9 million.
• Reduced impact fees of $1 million.
• Losses of intergovernmental revenues of approximately $1 million.
Expenditures
$1.4 million for new EMS staff to reduce emergency response time.
• $1.75 million increase in current expenses for both School Systems.
• $1.5 million for new capital equipment and vehicles.
a] county Manager FY2010-11 Budget Preparation Directions to Departments
In order to balance the FY2010-11 budget goals and meet the anticipated priorities, it
will be necessary to decrease future spending levels and programs. Because of this,
the County Manager has provided the following direction to department directors as they
prepare for their FY 2010-11 budget meetings.
Departments should submit FY2010-11 budget requests reflecting core services
only. The dollar amount or potential percentage decreases will be 15% in order to
balance the FY2010--11 budget.
Department heads are expected to look critically at their department and propose
reductions in, and in some instances elimination of, programs; non-mandated
services and activities to achieve a balanced budget.
Attachment
General Fund
2010/2011 Projected Budget Funding Issues
Preliminary
2009/2010 2010/2011 2010/2011 Difference
Expenditures $ 177,589,039 $ 177,724,539 $ 1777724,539
Add
County Attorney $ 99,500
Sanitation convenience Ctrs $ 369000
Budget 100%Salaries $ 11165,200 $ 11165,200 $
New EMS Response Time(staff) $ 1,400,000 (1) $ 1,400,000
Schools Current Expense $ 11745,000 (2) $ 17745,000
Net New Debt $ 21511,656 $ 218549862 $ 3439206
Retirement $ 656,289 $ 695,000 $ 38,711
Vehicles&Equipment $ 500,000 $ 11560,000 (1) $ 170509000
Employee Benefits Increase $ 315,000 $ 235,000 $ (80,000)
Transfer To CI P Library $ 245,000 $ 2459000 $ -
Retiree Incentive Savings $ 900,000 $ 900,000 $ -
Energy Costs Increase $ 1009000 $ - (1) $ (100,000)
Rebuild Fund Balance $ 400,000 $ - $ (400,000}
Additions $ 135,500 $ 5,7939145 $ 10,800,062 $ 49006,917
Less
Possible Positions Eliminated $ 9129134 $ 912,134
Deductions $ 9121134 $ 912,134 $ -
. . .... . ....:.:.::.
Total Expenditures 1.8`7,87 2,467 $ 410069917
Revenues $177,589,039 $ 177,589,039 $ 177,589,039 $
Add
Property Tax Growth $ 615,000 $ 11400,000 $ 785,000
Sales Tax growth $ 72,500 $ (17900,000) $ (11972,500)
Intergovernmental Revenues $ (11000,000) $ (11000,000)
Impact Fees $ (11000,000) $ (1,000,000)
Charges for Services&Fees $ 150,000 $ (348,000) $ (498,000)
Fund Balance Applied $ 135,500
Additions $ 1359500 $ 837,500 $ (29848,000) $ (39685,500)
Less
Investment Income $ 500,000 $ 500,000 $ -
Deductions $ 500,000 $ 500,000 $ -
Total Revenues
.. .. . ..: .. $1770926,539 $174,241,03W
(3>685>500)
Budget over/Short $ - $ (5,579,0"1'1) $ (13,371,428; $ (71692,417)
(1)Revised based on Departmental Requests
(2)Based on requests from CHCCS for a$46/student increase and 279 new students for both school systems