2015 routt county budget

8/10/2019 2015 Routt County budget

1/31

2015 BUDGET

136 6th Street, Steamboat Springs, CO 80477 Web:http://www.co.routt.co.us

ROUTT COUNTY

The mission of Routt County is to efficiently deliver a balance of public

services and infrastructure to provide a safe and healthy place to live

for present and future generations.
http://www.co.routt.co.us/http://www.co.routt.co.us/http://www.co.routt.co.us/http://www.co.routt.co.us/http://www.co.routt.co.us/


2/31

2015 Budget Overview

The 2015 Routt County budget projects $57,674,000 in revenues and $63,166,000 in expenses resultingin $5,492,000 of expenses over revenues, and after removing $390,000 of noncash expenses such asdepreciation, the use of reserves is $5,102,000. The 2015 budget as compared to the 2014 budget

includes a $6,887,000 or 14% increase in revenues and a $3,922,000 or 7% increase in expenses. The2015 budget is separated into governmental activities and business type activities as follows.

Governmental Activities include the Countys basic services such as Property Tax Administration,Public Safety, Human Services, Community Services, Road and Bridge and Administration. Revenuesare anticipated to increase $1,709,000 or 4% to $39,906,000, expenses are anticipated to decrease$916,000 or 2% to $44,748,000 and results in expenses over revenues of $4,842,000. The decrease inreserves is the result of several planned Road and Bridge replacement infrastructure projects.

The Countys base property tax revenue, which funds governmental activities, is anticipated to increase$509,000 or 3.7% and is limited to this increase by the Taxpayers Bill of Rights (TABOR).

Sales tax from all sources is anticipated to increase $372,000 or 7% based on 2014 collections.

The modest growth experienced in the Countys two largest revenue sources property tax and sales taxremains tentative given the continued degree of uncertainty in the economy.

The County in 2015 desires to serve more of the County's low income working families by helping alleligible low income working families making less than 130% of the federal poverty level (FPL)guidelines with child care benefits. The 130% FPL guideline for a family with two adults and twochildren is an annual gross income of $30,612. The County anticipates to more than double the number ofchildren in 2015 from the 28 children who participated in the program during 2014. Child Care benefits inthe Human Services budget are anticipated to increase $82,000 or 26% to $394,000 from the 2014 budget,

The planned replacement of Road and Bridge infrastructure includes two bridges on County Road 67, 19miles of road will be overlaid and 22 miles of roads will be chip and sealed. The combined 41 miles ofroads budgeted for overlay and chip and seal represents 25% of the total paved road system. In addition,the remaining $.6 million of the $1.5 million of improvements to CR 14 Phase IV is in the 2015 budgetwith the anticipation of further improvements in the future. Total infrastructure expense is $5.7 millionand is primarily funded by the Road and Bridge Funds reserves.

In addition, $3.0 million of funding for the small bridge program (bridges with spans of less than twentyfeet and greater than four feet) has been included in the 2015 to 2020 budgets, as compared to $.6 millionin the 2014 budget. The small bridge program includes the replacement of sixteen bridges needingreplacement as a result of a 2013 survey. Two of the small bridges are planned to be replaced in the 2015budget.

The 2015 compensation plan includes a 2.8% market adjustment across all pay scales and for eligibleemployees, a current anniversary step and two catch up steps. The Countys Step Compensation Planwas partially reinstated in 2014 after being suspended during the time period 2009 2013. Thecompensation plans cost is $634,000 or 4%. The compensation increase is being funded by the increasein property and sales tax revenues.

Real estate values in the County continue to trend upward for single and multi-family homes. TheCounty anticipates an increase of 15% in assessed valuation from the 2015 reappraisal, which is based onthe Countys assessed valuation at June 30, 2014, for property taxes collected in 2016. An increase of

1


3/31

15% in assessed valuation results in gaining back approximately 50% of the total 31% decrease inassessed valuation since 2010. The increase in assessed valuation for base property tax revenue will nothave an impact, other than increasing the TABOR property tax credit limit and allowing for property taxrevenue increases within the TABOR revenue limitation. Voter approved property tax revenue will seethe anticipated 15% increase.

The recent decrease in oil prices is having a positive impact on the Countys cost of asphalt. The cost of aton of asphalt decreased 13% and represents an $115,000 annual decrease in the cost of the paved roadprogram. The cost of a gallon of fuel has remained flat with last years prices.

Nationally, gross domestic product increased in two of the three quarters ended September 30, 2014, afterfour quarters of increase in 2013. Unemployment has decreased from 2013 levels by 2.2% to 3% in theCounty and by 1.5% to 5.8% nationally.

The County however should not be overly optimistic due to a number of negative or inconsistenteconomic indicators. Consumer confidence has improved, but continues to fluctuate nationwide. Wagegrowth is relatively flat nationally. The County has an average of 564 families on food assistance for thefirst nine months of 2014, an increase of 12% from 2013 and has 15% of its total population or 3,548

individuals on Medicaid or public assistance for health care.

Business Type Activities include the Yampa Valley Regional Airport (YVRA), the Regional BuildingDepartment, the Phippsburg Water and Sanitation System and the Milner Sanitation System. Revenuesare anticipated to increase $5,172,000 or 41% to $17,768,000, expenses are anticipated to increase$4,832,000 or 36% to $18,418,000, which results in expense over revenues of $650,000. After removingnoncash expenses such as depreciation, reserves decrease $260,000. The business type activities arefundamentally financially self-sufficient by charging fees for services and receiving grants from state andfederal governments.

The 2015 YVRA operations budget anticipates an $11,000 operating income as compared to the $.4million operating loss in the 2014 budget. The prior year operating loss is the result of significant

decreases in enplanements due to the recession adversely impacting car rental, shuttle and parking lot feesand the restaurants continued operating loss. YVRA enplanements have decreased from a high in 2008 of140,000 to an anticipated 96,000 in 2014, a decrease of 44,000 or 31%. The 2015 YVRA budget reflectsan 8.76 decrease in full time equivalents (FTEs) totaling $.3 million, offset by a $.1 million increase incompensation, and a $.2 million decrease in operating costs.

In addition, YVRAs operating expenses decreased $1.3 million for the contribution to the Town ofHayden for the construction of a Water Tank Storage System (WTSS) in 2014. The WTSS is needed toprovide an adequate supply of water to hydrants and the second floor of the terminal. YVRA will utilizean interfund loan from the Road and Bridge Fund of $1.5 million, over 15 years at 3% to finance thecontribution. Construction of the WTSS is anticipated to be substantially complete in 2014.

YVRA capital expenditures include $12.5 million of the 2014/2015 $16.7 million runway rehabilitationand service road project. The project is 100% funded from Federal Aviation Administration AirportImprovement Grants, Passenger Facility Charges and a State Aviation System Grant.

The 2015 compensation plan for business type activities also includes the 2.8% market adjustment acrossall pay scales, the current anniversary step and two catch up steps as discussed above in thegovernmental activities section. The cost of the compensation plan is $127,000 or 4%.

2


4/31

Conclusion

The County continues to analyze the budget wherever possible to effectively increase revenues anddecrease costs.

Since 2009, the County has made significant changes to weather the negative impacts of a 31%

decrease in assessed property values and a 37 % decrease in sales tax. In response, the County cutemployee salaries 10% to 5%, implemented a reduction in the workforce, suspended the StepCompensation Plan, delayed performing a compensation market survey, cut operating expenses andextended the replacement life of equipment and infrastructure.

Right now, the long-term forecast projects a balanced budget. The 2015 budget is a snapshot in timebased on both known factors and certain assumptions. This financial plan will need to be revised by theCounty to respond to changing economic conditions.

As new financial information becomes available, management will respond in an appropriate manner tomaintain the Countys overall financial well being.

3


5/31

REVENUES / INTERFUND LOAN PROCEEDS

1,709,000$ Governmental Activities revenues are anticipated to increase $1,709,000 or 4% from

$38,062,000 budgeted for 2014 to $39,771,000 budgeted for 2015. Noted below are the

primary reasons for the changes in revenues.

5,172,000 Business Type Activities revenues and interfund loan proceeds are anticipated to increase

$5,172,000 or 41% from $12,596,000 budgeted for 2014 to $17,768,000 budgeted in 2015.

Noted below are the primary reasons for the changes in revenues.

PROPERTY TAX

645,000 Property tax revenue from all sources is anticipated to increase $645,000 to $18,322,000 or

4% over the 2014 budget. The primary changes in property tax are as follows.

The property tax increase, as defined in the following sentences, is split between Routt County

base property taxes and voter-approved property taxes. Base property taxes provide revenue for

basic services delivered by the General Fund, Road and Bridge, E-911 Communications and

Human Services. Voter-approved property taxes provide revenue for the Purchase of

Development Rights Program, Museums and Developmental Disabilities.

509,000 The Countys base property tax revenue is anticipated to increase $509,000 or 3.7% and is

limited to this increase by the Taxpayers Bill of Rights (TABOR). The TABOR property taxrevenue limit increase of 3.7% is composed of a .9% increase from new construction and a 2.8%

increase from inflation.

(17,000) Property tax from voter-approved mill levies, which are not subject to TABOR, decreased

$17,000 or 0.6%. The decrease comes from the decline in assessed valuation. Overall, Routt

Countys 2014 net assessed valuation decreased $6.1 million to $973 million or .6%.

145,000 Specific ownership tax is collected on vehicles and allocated to the county and each taxing entity

based on the percentage allocation of property tax to each taxing entity. Based on 2014

collections, specific ownership taxes allocated to the County are anticipated to increase $145,000

or 17% for base property taxes.

SALES TAX

372,000 Sales tax from all sources is anticipated to increase $372,000 to $5,604,000 or 7% above the

2014 budget. Sales tax is composed of a 1% sales tax, a 1% building use tax and a 1% auto use

tax.

368,000 Sales tax is anticipated to increase $368,000 to $4,960,000 or 8% above the 2014 budget. This

increase is based on actual 2014 sales tax collections increasing 8% from 2014 budget. There is

some uncertainty with this projection given the possibility of changing economic conditions.

- Building use tax is not anticipated to change from the $235,000 in the 2014 budget. The 2015

budgeted Building use tax of $235,000 is equal to 2010 actual collections. Building use tax is

projected to be $522,000 in 2014. The Building use tax budget has been projected conservatively

given the uncertainty of the building industry and certain Federal revenues such as Payment in

Lieu of Taxes (PILT). In 2014, after approximately six month of the Federal fiscal budget year

had passed, PILT was budgeted and appropriated.

4,000$ Auto use tax is anticipated to increase $4,000 to $409,000 or 1% above the 2014 budget. Theincrease is based on actual auto use tax collections and County residents purchasing cars outside

of the County.

GOVERNMENTAL ACTIVITIES

4


6/31

STATE

376,000$ State revenues are anticipated to increase $376,000 to $4,242,000 or 10% above the 2014

budgetprimarily because of the changes in the revenues noted below.

26,000 Public Health state revenue increases $26,000 or 60% to $69,000 due to increased funding from

the State of Colorado Department of Public Health and Environment. The State provides funding

to Environmental Health, and the funds are subsequently forwarded as a pass-through to the

Northwest Colorado Visiting Nurses Association.

34,000 Road and Bridge Highway Users Tax Funds (HUTF) are anticipated to increase $34,000 to

$2,785,000 or 1% above the 2014 budget primarily due to historical trends.

275,000 Human Services Child Welfare state funding increased $275,000 or 166% to $441,000 as a

result of the shifting of program reimbursements from federal to state funding to reflect historical

trends.

41,000 Human Services Old Age Pension has increased $41,000 or 107% to $85,000 because of

increased use of the program by the aging population.

FEDERAL

128,000 Federal revenues are anticipated to increase $128,000 to $6,820,000 or 2% above the 2014

budgetprimarily because of the changes in the revenues noted below.

55,000 Community Services federal revenue is anticipated to increase $55,000 or 100% above the 2014budget. The increase is due to an anticipated federal grant to fund the purchase of a replacement

Council on Aging van for the South Routt County area.

120,000 Road and Bridges Payment in Lieu of Taxes (PILT) federal revenue is expected to increase

$120,000 to $1,640,000 or 8% over the 2014 budget primarily due to the end of the Federal

Sequestration Program.

(210,000) Human Services Child Welfare federal revenue decreased $210,000 or 49% to $219,000 as a

result of shifting program reimbursements from federal to state funding to reflect historical

trends.

(49,000) Human Services Family Preservation federal revenue has decreased $49,000 or 80% to $12,000

as a result of the allocation not being utilized and therefore being reallocated by the State.

105,000 Human Services Temporary Assistance for Needy Families (TANF) federal revenue increased$105,000 or 70% to $254,000 to cover the increase in client benefits as a result of an increase in

program utilization. Through September 2014, there were 62 households that received basic cash

assistance as compared to 26 households through September 2013, an increase of 131%.

92,000 Human Services Enhanced Medicaid is a new program in the 2015 budget. The allocation was

created to fund the increased workload resulting from the Affordable Care Act.

62,000$ Human Services Child Care federal revenue increased $62,000 or 31% to $262,000, in order to

serve more of the County's low-income working families. The desire is to serve all eligible low

income working families making less than 130% of the federal poverty level (FPL) guidelines.

For example, the 130% FPL guideline for a family with two adults and two children is annual

gross income of $30,612. In September 2014, there were 28 children being served in the child

care program. The County anticipates to more than doubling the number of children in the

program from this change in the FPL guideline.

5


7/31

FEES

(6,000)$ Fees are anticipated to decrease $6,000 to $4,172,000 or 0% below the 2014 budgetprimarily

because of the changes in revenues noted below.

(154,000) Clerk fees are anticipated to decrease $154,000 to $351,000 or 31% under the 2014 budget. The

decrease in Clerk recording fees is due to a reduction in loan financing and oil and gas

transactions.

18,000 Motor Vehicle registration and the related fees are anticipated to increase $18,000 to $328,000

or 6% over the 2014 budget. The increase in Motor Vehicle fees is due to the public continuing

to purchase new vehicles.

66,000 Accounting overhead fees increased $66,000 or 5% to $1,266,000 from the 2014 budget. The

increase is the result of changes in the 2013 allocation of overhead charges to various

departments. Building Department overhead increased $26,000 or 15% to $205,000 as a result of

an increase in Information Systems services related to the replacement of the permit software.

Fair overhead increased $3,000 or 3% to $104,000. Human Services overhead increased

$70,000 or 35% to $269,000 as a result of an increase in County Attorney and Information

Systems services. Planning overhead increased $5,000 or 2% to $263,000 as a result of an

increase in County Attorney services. Yampa Valley Regional Airport overhead decreased

$39,000 or 8% to $425,000 due to a decrease in Information System services.

(58,000) Public Trustee fees are anticipated to decrease 27% or $58,000 to $157,000 primarily due to adecline in the number of foreclosures in the County. The number of foreclosures budgeted for

2014 was 150 as compared to 100 foreclosures budgeted for 2015.

29,000 Treasurer fees are budgeted to increase $29,000 or 5% to $611,000 primarily due to revenue

from a bank earnings allowance. The earning allowance from the bank is based on the County's'

bank balances and is applied as an offset to bank charges. The associated revenue and expense

have no financial impact and are reflected to provide more disclosure to the public

90,000 Road and Bridge fees are anticipated to increase $90,000 or 33% to $279,000 as a result of an

agreement between Twenty Mile Mine and Routt County. The agreement is for road repairs and

maintenance on County Road 27 relating to the hauling of coal and mining.

OTHER

200,000 Other revenues are anticipated to increase $200,000 to $611,000 or 49% above the 2014

budgetprimarily because of the changes in revenues noted below.

46,000 Human Services implemented the Bridges Out of Poverty Program, which is funded by $33,000

of local support through the Routt County United Way. Also, First Impressions has budgeted an

increase of $13,000 in funding from a long-time local supporter.

150,000 Heavy Equipmentproceeds from the sale of equipment are projected to increase $150,000 to

$160,000 or 1495% in 2014. This is due to the scheduled replacement and or sale of a sander

truck, a grader, a backhoe and a bulldozer in 2015 as compared to only the replacement of a plow

truck in 2014.

INTERFUND LOAN RECEIPTS

-$ Interfund loan receipts remain at $135,000 and consist of $125,000 in payments from Yampa

Valley Regional Airport (YVRA) and $10,000 from the Milner Sanitation System to the Road

and Bridge fund.

YVRA's interfund loan is for $1,500,000 in 2014, to finance YVRA's capital contribution to the

Town of Hayden for the construction of a water tank storage system. Debt service associated with

this loan is $125,000 per year over a 15-year term with a 3% interest rate.

Milner Sanitation System's interfund loan was for $120,000 in 2011 to finance costs associated

with a discharge line extension. The debt service associated with this loan is $10,000 per year

over a 20-year term with a 5% interest rate.

6


8/31

STATE

1,366,000$ State revenues are anticipated to increase $1,366,000 to $1,967,000 or 227% above the 2014

budget because of a change in revenues for Yampa Valley Regional Airport (YVRA) noted

below.

Yampa Valley Regional Airport budgeted state revenue of $1,967,000 for 2015. Revenue

consists of $1,791,000 in funding for the runway rehabilitation, vehicle service road and otherpavement rehabilitation projects, $53,000 for the completion of the master plan update and

$123,000 of State Aviation fuel tax. Budgeted 2014 state revenue included $126,000 to complete

the master plan update, $356,000 toward the fire truck replacement and $119,000 of State

Aviation fuel tax.

FEDERAL

5,225,000 Federal revenues are anticipated to increase $5,225,000 to $9,842,000 or 113% above the

2014 budgetbecause of the changes in Yampa Valley Regional Airport revenues noted below.

Yampa Valley Regional Airport (YVRA) federal revenue for 2015 of $9,842,000 consists of

Federal Aviation Administration (FAA) Airport Improvement Program (AIP) funding of

$9,474,000. This revenue funds 90% of the construction costs related to the 2014-2015 runway

rehabilitation, vehicle service road and the other pavement rehabilitation projects. Other federal

revenues for 2015 include $352,000 in Passenger Facility Charges (PFC) and $16,000 in

Transportation Security Administration (TSA) revenue which partially reimburses YVRA for

contracted law enforcement officers. YVRA federal revenue for 2014 of $4,617,000 consisted of

$345,000 in PFC revenue and $4,272,000 of federal grant revenue. The 2014 federal grant

revenue consisted of FAA AIP grant revenue for the first phase of construction for the runway

rehabilitation, vehicle service road and the other pavement rehabilitation projects.

FEES

157,000 Fees are anticipated to increase $157,000 to $5,811,000 or 3% above the 2014 budget.Noted

below are the primary reasons.

280,000 Regional Building Department fees increase $280,000 or 31% to $1,180,000 over the 2014

budget. This increase represents the current projected levels of building activity, resulting froman improving local economy.

(126,000)$ Yampa Valley Regional Airport fees decreased $126,000 or 3% to $4,481,000 below the 2014

budget.

Airfield fees are anticipated to decline $25,000 or 3% to $892,000. This is primarily due to a

decrease in landing fees as a result of airlines continuing to utilize smaller aircraft to maximize

load factors and minimize fuel and other operating expenses. The landing fee rate of $4.28 per

thousand pounds remains unchanged.

BUSINESS TYPE ACTIVITIES

7


9/31

FEES - CONTINUED

Restaurant fees decline by $32,000 or 5% to $632,000 due to less catering, lower priced grab and

go off season menu items and lower volume due to the two-month closure of the runway.

Restaurant staffing decreases are expected to offset the decreases in revenue.

Terminal and passenger services square footage rental revenue is anticipated to increase $47,000

or 3% to $1,472,000 over the 2014 budget. The increase in the square footage rental revenue is

primarily due to an to an increase of $1.50 or 4% to $39.94 per square foot. The terminal and

passenger services budget is funded primarily with square footage rental revenue from theairlines and various landside vendors such as car rental and taxi companies. The passenger

services red coat function has been discontinued in order to fund a portion of the restaurants

$195,000 operating loss. The Steamboat Ski Corporation has offered to increase the presence of

their Ambassador program on busy travel days throughout the ski season to partially offset the

ending of the 'red coat' program. The discontinuance of the passenger services 'red coat' function

and various terminal cost savings measures allows $112,000 of square footage rental revenue to

be allocated to the restaurant. The restaurants operating loss after the allocation of $112,000 of

square footage rental revenue is $83,000 or a 57% reduction.

Terminal concession fees decline by $40,000 or 36% to $70,000 from the 2014 budget. The

decrease is due to the health club not becoming a viable program, which resulted in a decrease of

$14,000 in anticipated health club membership fees. In addition, the initial start up of the ski

rental concession did not perform as anticipated and resulted in a $22,000 or 88% decrease in

concession fees. Gift shop revenues decrease $6,000 as a result of changes in the recently

renewed contract, and advertising increased $3,000 to reflect current trends.

Landside fees decreased $85,000 or 7% to $1,067,000 from the 2014 budget. Rental car fees are

anticipated to decreased $101,000 or 15% to $558,000. This is the combined effects of an overly

optimistic forecast in 2014, and the negative impacts associated with a two-month airport closure

for the runway rehabilitation project in 2015. Parking fees partially offset the car rental decrease

by $17,000 due to a rate increase from $7.00 to $9.00 per day. The parking lot fee increase is also

partially diluted by the two-month airport closure. Parking lot fees are anticipated to increase to

$267,000 or 7%.

Security fees are anticipated to increase $9,000 or 3% to $275,000 due to higher costs,

associated with compensation increases and time spent monitoring the hold room exit area.

3,000$ Phippsburg Water and Sanitation Systemfees increase $3,000 or 3% to $113,000 due to a $5

or 6% increase to $90 per quarter wastewater fee. The last increase in the wastewater rate was in

2012.

8


10/31

OTHER

(76,000)$ Other revenues are anticipated to decrease $76,000 to $148,000 or 34% below the 2014

budget.Noted below are the primary reasons.

(70,000) Yampa Valley Regional Airport other revenue decreases $70,000 or 32% to $148,000 from the

2014 budget. Administrative revenue decreased $28,000 because the 2014 budget included

$25,000 of revenue from local sources for cost sharing expenses associated with a consultants

evaluation of additional air service potentials from origins other than Denver. Capital credits

received from the electric cooperative decreased $3,000 based on amounts received in 2014.Interest income decreased $3,000 or 51% due to a decrease in reserves. Other capital revenues

for YVRA consist of local contributions that declined $10,000 and revenue from Customer

Facility Charges (CFC's) assessed to the rental car agencies. CFC revenue decreased $29,000

from $154,000 to $125,000. The CFC's are being utilized to fund the debt service payments

related to the interfund loan for the capital contribution to the Town of Hayden for the water tank

storage system. The decrease in CFC funding occurs because the 2015 budget reflects CFC

revenue up to the amount of interfund debt service. Then the CFCs un-applied collections are

recorded as deferred income and used for projects in the future.

(5,000) Phippsburg Water and Sanitation System other revenue decreases $5,000 or 100% below the

2014 budget. The local revenue budgeted for 2014 consisted of a $5,000 capital contribution

from the Upper Yampa Water Conservancy District as a 50% match toward the cost of the water

rights study. The water rights study has been canceled indefinitely per direction of the RouttCounty Board of Commissioners.

INTERFUND LOAN PROCEEDS

(1,500,000)$ Interfund loan proceeds decreased $1,500,000 or 100% from the 2014 budget.

Yampa Valley Regional Airport (YVRA) is anticipated to receive $1,500,000 of interfund loan.

The loan proceeds from the Road and Bridge Fund are to finance YVRA's capital contribution to

the Town of Hayden for the construction of a water tank storage system and a waterline

extension. The interfund loan debt service associated with this loan is $125,000 per year over a

15-year term with a 3% interest rate.

9


11/31

PERSONNEL

1,053,000$ Governmental Activities personnel expenses increased $1,053,000 to $18,883,000 or 6%

above the 2014 budget. The primary changes in personnel costs are noted below in the

Governmental Activities section.

(331,000)$ Business Type Activities personnel expenses decreased $331,000 to $3,105,000 or 10% below

the 2014 budget. The primary changes in personnel costs are noted below in the Business

Type Activities section.

634,000$ Compensation A current anniversary step, two 'catch up' steps to eligible employees and a

2.8% market adjustment was made across all pay scales in the 2015 budget. The steps and the

market adjustment increased compensation by $634,000 or 4%. The increases in compensation

are based on acceptable job performance. From 2009 to 2013 the Step Compensation Plan was

suspended because of the financial impacts of the recession and resulted in a maximum of five

steps (catch up steps) being missed during this time period. Two catch up steps were reinstated in

both 2015 and 2014, leaving the potential for one catch up step to be reinstated in the future. The

County has hired a consultant to perform a market compensation survey in 2015.

299,000 Full Time Equivalents (FTEs)in Governmental activities increased 4.65 FTEs or 2% to 231.10

FTEs. The primary change in FTEs is as follows.

165,000 Human Services increased 2.63 FTE's or 14% to 21.83 FTEs from the 2014 budget as follows.

Human Services added a 1.0 FTE as an Eligibility Tech to process eligibility requirements as a

result of the increased workload related to the Affordable Care Act (ACA) and Medicaid

expansion programs. In addition, a second 1.0 FTE Administrative Assistant was added at the

front desk to help field the initial phone and walk in contacts related to the increased workload

mentioned previously. These position are funded by Federal and State revenues at approximately

80% of the cost of the positions.

Human Services added a .63 FTE for the Bridges Out of Poverty program. This position is

primarily funded from local contributions.

The Collaborative Management Coordinator function was previously outsourced to the State's

Probation Department and funded in the Human Service's Collaborative Management operations

budget. In 2014, the outsourced Collaborative Management position became a .5 FTE of the

County. The impacts to the personnel and operations budget had no significant impact to the

Human Services Department bottom line.

The Affordable Care Act Health Coverage Guide .5 FTE who assisted citizens in navigating the

health insurance marketplace and securing health insurance was not rehired and the position's

duties were absorbed by existing personnel.

78,000 Human Resources during 2014, increased 1.0 FTE or 50% to 3.0 FTEs for a Human Resource

Generalist to assist with recruiting and staffing, compliance with regulatory reporting,

compensation and benefit administration, employee development and training and the

development and administration of policies, programs and guidelines.

38,000$ Sheriff FTEs increased .75 or 3% to 26.23 FTEs for a Civil/Evidence Technician to perform the

evidence duties in a timely manner and to provide a backup for the Civil Deputy.


10


12/31

13,000$ Accounting added a temporary .39 FTE in order to have an efficient and effective transition of

duties for a retiring Accounting Manager.

- Health Insurance The 2015 budget does not include a change in health insurance rates for the

employer or the employee. There will be a change in the deductible of $100 for those employees

electing the Health Savings Account as a result of the Affordable Care Act.

(13,000) Overtime - Road & Bridge decreased overtime by $11,000 based on historical trends. The

Sheriff's Investigations Department decreased overtime by $2,000 based on historical trends.

21,000 Workers Compensation increased $21,000 due to the 2014 increase in compensation.

112,000 Other changes in personnel include turnover in staff and related benefit costs such as health

insurance and retirement.

127,000 Compensation A current anniversary step, two 'catch up' steps to eligible employees and a

2.8% market adjustment was made across all pay scales in the 2015 budget. The steps and the

market adjustment increased compensation by $127,000 or 4%. The increases in compensation

are based on acceptable job performance. From 2009 to 2013 the Step Compensation Plan was

suspended because of the financial impacts of the recession and resulted in a maximum of five

steps (catch up steps) being missed during this time period. Two catch up steps were reinstated in

both 2015 and 2014, leaving the potential for one catch up step to be reinstated in the future. The

County has hired a consultant to perform a market compensation survey in 2015.

(335,000) Full Time Equivalents (FTEs)in Business Type activities decreased 9.16 FTEs or 16% to 48.11

FTEs. The primary change in FTEs is as follows.

(299,000) Yampa Valley Regional Airport (YVRA) decreased FTEs by 8.76 or 18% to 41.24 from the 2014

budget.

The decrease in YVRA FTEs is the result of the recession and the negative impacts from the

decrease in enplanements to rental car contracts that expired in 2013, the operating loss from the

restaurant, the negative impact to reserves from construction litigation related to the Phase II

Terminal Renovation and the use of reserves to fund the Phase III Terminal Renovation. YVRA

enplanements have decreased from a high in 2008 of 140,000 to an anticipated 96,000 in 2014, a

decrease of 44,000 or 31%.

The decreases in FTEs are primarily in the terminal, passenger services and restaurant

departments. Terminal FTEs decrease mainly due to the Assistant Director retiring and the

position not being filled. The passenger services program has been discontinued resulting in a

decrease of 1.57 FTE. As a result, the Steamboat Ski Corporation has offered to increase the

presence of their Ambassador program on busy travel days throughout the ski season. During the

non ski season, the restaurant will have minimal staffing and a simpler to prepare "grab and go"

type menu, which results in a 4.37 decrease in FTEs. Smaller FTE decreases totaling .76 FTEoccurred in various other departments such as airfield and terminal to assist in balancing the

YVRA budget. In addition, the decrease in overtime resulted in a 1.06 decrease in FTEs. See the

comments below for the decrease in YVRA overtime.

(36,000)$ Building Department FTEs decreased by .40 or 6% to 6.41 FTEs from the 2014 budget. The 2014

budget included the former retiring Building Official spending .18 FTE to train the new Building

Official. Additionally, a .22 FTE reduction for the seasonal part time position was made to

reflect historical trends.


11


13/31

-$ Health Insurance The 2015 budget does not include a change in health insurance rates for the

employer or the employee. There will be a change in the deductible of $100 for those employees

electing the Health Savings Account as a result of the Affordable Care Act.

(74,000) Overtimefor YVRA has been reduced by $74,000 or 84% to $13,000 from the 2014 budget.

Overtime worked will not be paid out except to seasonal employees with all other overtime being

carried over as compensatory time to be used during the April and May 2015 airport closure for

runway rehabilitation.

(2,000) Workers Compensation The decrease in workers compensation is primarily the result of the2015 decrease in FTEs.

(47,000)$ Other changes in personnel include turnover in staff and related benefit costs such as health

insurance and retirement.

12


14/31

OPERATIONS

276,000$

(1,508,000)$

Department Change Comments

Detention Center $ (214,000) The 2014 budget included $214,000 for contract housing for an inmate

with special health needs that could not be met at the Routt County

Detention facility. During 2014 this inmate plead guilty and was

sentenced and moved to the State Department of Corrections so no costs

are included in the 2015 budget.

Road and Bridge 37,000 Road administration includes a $37,000 or 34% increase to $156,000. The

bi-annual pavement survey will be completed in 2015 for $27,000 and theUS Highway 40 Access Plan conducted by the Colorado Department of

Transportation will be completed in 2015 for $10,000.

(106,000) Road maintenance includes a $106,000 or 13% decrease to $729,000.

Culvert costs decreased $80,000 due to the inventory being replenished

and rental costs decreased $18,000 because this line item is moved to the

Equipment Pool to consolidate like expenses.

253,000 Bridges less than 20 feet includes an increase of $253,000 or 71% to

$608,000. This includes the replacement of Gun Creek Bridge on County

Road 36 for $315,000 and the replacement of the Middle Creek Bridge on

County Road 27 for $186,000. These bridge replacements costs were

offset by various engineering costs in 2014. The 2014 adopted budget hada small bridge multi year program that totaled $644,000. The 2015 budget

has a small bridge multi-year program totaling $2,975,000 an increase of

$2,331,000 or 462%. By 2020 the County has been able to plan and fund

all sixteen bridges less than twenty feet needing replacement as a result of

a survey completed in 2013.

79,000 Gravel increased $79,000 or 27% to $375,000. The increase is due to the

need for additional gravel road maintenance.

17,000 Safety includes an increase of $17,000 or 6% to $292,000 due to pavement

marking costs anticipated to increase 10%. The scope of the program did

not change.

Road and Bridge (74,000)$ Chip and Seal includes a decrease of $74,000 or 9% to $761,000. This

decrease is a combination of a rate increase of $.03 or 2% to $1.97 per

square yard based on 2014 actual costs and a decrease in miles chipped

and sealed from 24.41 in 2014 to 22.33 in 2015. This represents 13% of

the County's paved road system.

Governmental Activities operating costs are budgeted to increase from the 2014 budget

by $276,000 or 2% to $16,357,000. The major changes in operating costs are noted

below in the Governmental Activities section.

Business Type Activities operating costs are anticipated to decrease from the 2014

budget by $1,508,000 or 38% to $2,472,000. The major changes in operating costs are

noted below in the Business Type Activities section.


13


15/31

Communications $ 107,000 The 2015 budget includes an increase of $91,000 in expenditures for

maintenance of the communications systems that has not been performed

on a regular basis since the system was put in place in 2002. In addition,

there is $12,000 in the Radio Tech operations budget for small tools, test

equipment and supplies to perform maintenance, along with $4,000 for

travel and training so the Radio Tech has the knowledge to maintain the

system adequately.

Human Services 82,000 Child Care benefits are anticipated to increase $82,000 or 26% to

$394,000, in order to serve more of the County's low income working

families. The desire is to serve all eligible low income working families

making less than 130% of the federal poverty level (FPL) guidelines. For

example, the 130% FPL guideline for a family with two adults and two

children is annual gross income of $30,612. In September 2014, there

were 28 children being served in the child care program. The County

anticipates to more than double the 28 children in the program from this

change in the FPL guideline. The increased benefits will be partially

funded by the purchase of an additional child care allocation from other

counties in the state that did not completely use their allocation and

increased funding from the County.

72,000 Temporary Assistance to Needy Families (TANF) benefits have increased

$72,000 as a result of increased demand for the program. Through

September 2014, there were 62 households that received basic cash

assistance as compared to 26 households through September 2013, an

increase of 36 households or 131%. The increase in the TANF program

expenses is partially funded by an increase in Federal revenue and the

remainder from the County.

45,000 Old Age Pension benefits increased $45,000 or 29% to $80,000 due to an

aging population creating increased demand for the program. The Old Age

Pension Benefit program is 100% reimbursed by the State.

Public Trustee (45,000) Operating costs decreased $45,000 or 28% to $113,000 primarily due toless advertising expense from fewer foreclosures, reflecting an

improvement in the economy. For 2015, 100 foreclosures are budgeted

compared to 2014 budgeted foreclosures of 150.

Department Change Comments

Yampa Valley Regional

Airport (YVRA)

$ (1,521,000) Operating costs decreased $1,521,000 or 42% to $2,123,000 from the

2014 budget.

The contribution to the Town of Hayden decreased $1,340,000 for the

construction of a Water Tank Storage System (WTSS). The WTSS will beowned by the Town of Hayden and is needed to provide an adequate

supply of water to hydrants and the second floor of the terminal. YVRA

will utilize an interfund loan from the Road and Bridge Fund of

$1,500,000 over 15 years at 3% to finance the contribution. Construction

of the WTSS is anticipated to be substantially complete in 2014.

Overhead charges decreased $39,000 primarily due to less utilization of

Information Services.


14


16/31


Airport (YVRA)

Depreciation expense decreased $14,000 mainly due to the write off of not

fully depreciated building improvements replaced during the Phase III

Terminal Renovation Project that were identified during the 2013 asset

inventory process.

After excluding the contribution to the Town of Hayden for the WTSS,

overhead and depreciation mentioned above, the following items,

discussed by department, contributed to reducing the operating loss of

$351,000 budgeted in 2014 to $11,000 operating income budgeted for

2015.

Administrative operating expenses decreased $65,000 primarily due to a

decrease in consulting services, continuing education, travel and related

costs. Consulting services for 2014 included a study to evaluate additional

air service potentials from origins other than Denver.

Airfield operating expenses decreased $19,000 mainly due to a $11,000

decrease in crack seal and runway painting because the 2015 Runway

Rehabilitation Project includes these items, a $6,000 decrease in small

equipment purchases less than $5,000 and a $2,000 decrease in continuing

education.

Airport Rescue and Fire Fighting operating expenses decreased $22,000

mainly due to lower continuing education, travel and related costs and no

small equipment purchases less than $5,000 budgeted for 2015.

Terminal operating expenses decreased $14,000 due to less continuing

education, travel and lower building repairs and maintenance costs.

Security operating expense decreased $12,000 reflecting cost cutting

measures which represent historical trends over the last several years.

Landside operating expenses decreased $21,000 due to a $8,000 decrease

in landscaping and a $6,000 decrease to reflect historical trends over the

last three years for paid and employee parking lot expenses.


Airport (YVRA)

Restaurant operating expenses increased $25,000 to reflect historical

trends for cost of goods sold.

15


17/31

CAPITAL/INFRASTRUCTURE

$ (497,000)

$ (244,000)

$ 6,677,000

Governmental Activities capital costs are anticipated to decrease $497,000 to $2,547,000 or 16% below the2014 budget. Changes from the 2014 budget and some of the more notable projects in 2015 are as follows.Communications Pool capital expense is $44,000 in 2015 and decreased $486,000 from 2014. The decrease is from$500,000 budgeted in 2014 to replace the communications dispatch radio consoles compared to $44,000 budgetedin 2015 to replace back up batteries at a tower site and design costs to repair a building at the Mt. Werner sitescheduled for 2016. The 2015 capital budget for the Building and Plant Pool is $703,000, a decrease of $247,000from 2014. In 2015, Building and Plant capital includes $341,500 from items not completed in 2014 for

replacement of the security/fire alarm systems and two remodel projects at the Detention Center and a new yardstorage facility at the Justice Center. Capital additions in 2015 for Building and Plant include a $90,000 Sheriffimpound lot expansion at the Detention Center and $85,000 for the Justice Center to replace service windows in theClerk of Court and District Attorney offices with more secure windows and exterior window treatment in theProbation Office. The decrease in capital expense for the Building and Plant Pool from the prior year is fromcompletion of a $113,000 phone system replacement and completion of $157,000 of the total $280,000 originallybudgeted to replace the Detention Center roof. The $50,000 lightening arrester system for the roof was moved to2015 and the total cost of the roof replacement is $207,000 or $63,000 less than originally budgeted.

Capital budgeted in the Motor Pool decreased $177,000 in 2015 to $301,000 from 2014. The decrease is primarilydue to a reduction in the number of vehicles due for replacement based on the Pool's replacement cycle. Capitalbudgeted in the Heavy Equipment Pool in 2015 is $758,000 an increase of $380,000 over 2014 mainly fromreplacing a $328,000 grader in 2015. Heavy Equipment capital replacements also include a sander truck for

$42,000 and a backhoe for $125,000 and additions for 2015 continue to include $120,000 in district shop remodelsnot completed in 2014 and $37,000 for a vehicle message sign and a fork lift. Information Systems capital expenseincreased $33,000 in 2015 from the prior year to $741,000. Capital additions for Information Systems include$180,000 to design and install conduit and fiber from the Historic Courthouse to the Justice Center andreplacements include $142,000 to complete installation of the Building Department's permitting/land managementsoftware started in 2014, $137,000 to replace the Clerk's recording system and $248,000 in other equipment andsoftware according to the Pool'sreplacement cycle.

Infrastructure costs are anticipated to decrease $244,000 to $5,725,000 or 4% below the 2014 budget. Theoverall decrease is comprised of a $584,000 increase in overlay costs for County Road (CR) 27, CR 35, CR 53 andCR 129, a reduction in reconstruction costs of $150,000 for CR 14 and $390,000 due to rescheduling work into thefuture on CR 23, CR 25 and CR 55, and a decrease of $288,000 for engineering costs completed in 2014 for majorbridge replacements. The County is overlaying 18.7 miles or 11% of the paved road system.

Business Type Activities capital costs are anticipated to increase $6,677,000 to $12,682,000 or 111% belowthe 2014 budget. Capital costs for 2015 consist of $12,672,000 for the Yampa Valley Regional Airport (YVRA)and $10,000 for the Phippsburg Water and Sanitation System. Capital costs for 2014 consisted of $5,985,000 forYVRA and $20,000 for Phippsburg Water and Sanitation System. The $6,677,000 increase is primarily attributedto timing differences for the 2014-2015 two-year YVRA runway rehabilitation, vehicle service road and relatedpavement rehabilitation construction projects.

YVRA capital expenditures of $12.7 million budgeted for 2015 include completion of the runway project at a costof $12.5 million, the completion of the master plan at $.1 million and $.1 million of other capital items. The 2015budget reflects a $16.7 million cost for the 2014 - 2015 construction project with $4.2 million spent in 2014 and$12.5 million budgeted in 2015.

YVRA capital expenditures of $6.0 million budgeted for 2014 included $4.7 million for the first phase of the twoyear runway project, $.7 million for the fire truck purchase, $.2 million for the master plan update and $.4 millionof other capital expenditures. The 2014 budget reflected a $15.3 million cost for the 2014 - 2015 constructionproject as compared to the $16.7 million in the 2015 budget. The actual bids on the project came in substantiallyhigher.

Listed below are the 2015 major capital and infrastructure items greater than or equal to $100,000 for bothGovernmental and Business Type Activities.

16


18/31

CAPITAL/INFRASTRUCTURE

Major Capital/Infrastructure Items Outside

Greater than or equal to $100,000 Department Cost Funding Net

Governmental Activities

Upgrade and Replace Detention

Center Security System Building & Plant 208,000$ - 208,000$Replace Backhoe Heavy Equipment 125,000 - 125,000

Replace Grader Heavy Equipment 328,000 - 328,000

Design and Install Conduit and Fiber

between Historic Courthouse and

Justice Center Information Systems 180,000 180,000

Upgrade Regional Building Department's

Permitting/Land Management Software Information Systems 142,000 - 142,000

Replace Clerk's Recording Software Information Systems 137,000 137,000

Replace Green Pipe Bridge CR67 Road and Bridge 1,152,000 921,000 231,000

Replace Butler Creek Bridge CR67 Road and Bridge 553,000 442,000 111,000

Overlay CR 27 - Oak Creek to

to CR 32 Middle Creek Road and Bridge 1,016,000 - 1,016,000Overlay CR 35 - From CR 41 to CR 14 Road and Bridge 293,000 - 293,000

Overlay CR 53 - Hayden City Limits to

Seneca Haul Road Road and Bridge 1,028,000 - 1,028,000

Overlay CR 129 - State Park Office to - -

end of pavement Road and Bridge 646,000 - 646,000

Pave parking lot - Steamboat Springs

Shop Road and Bridge 206,000 166,000 40,000

Reconstruction CR 14 Phase IV Road and Bridge 600,000 - 600,000

Total Governmental Activities 6,614,000 1,529,000 5,085,000

Business Type ActivitiesRunway Rehabilitation / Vehicle

Service Road and other rehabilitation YVRA 12,523,000 12,523,000 -

Complete Master Plan Update YVRA 100,000 100,000 -

Total Business-Type Activities 12,623,000 12,623,000 -

Total Major Capital/Infrastructure Items 19,237,000$ 14,152,000$ 5,085,000$

17


19/31

DEBT SERVICE

$ (4,000) Governmental Activities debt service expense decreased $4,000 to $1,236,000 or 0%from the 2014 budget.

On April 5, 2012, the County issued $13,290,000 of 2012 Series Refunding Certificatesof Participation (COPs) for the Justice Center Project with interest rates ranging from2.0% to 3.25%. The debt service for the COPs is $1,236,000 in 2015 compared to

$1,240,000 budgeted in 2014. The outstanding balance of the COPs at the end of 2015 is$10,555,000.

- Business Type Activities debt service expense is $24,000 and unchanged from the2014 budget.

Phippsburg Water and Sanitation System - Debt service for 2015 of $24,000represents a full year of interest and principal payments on three loans issued to fund aportion of the upgrades to the wastewater treatment lagoons, a portion of a waterfiltration facility and an upgrade to the facility. Loans were issued in 2003, 2006 and2009 for $131,000, $116,000 and $25,000, respectively with interest rates of 5% and 20year terms. The outstanding balance of the Phippsburg Water and Sanitation System

debt at the end of 2015 is $173,000.

INTERFUND LOANS ISSUED/DEBT SERVICE

(1,500,000) Governmental Activities interfund loan issued decreased $1,500,000 from the 2014budget to $0 in the 2015 budget.

Road and Bridgeis anticipated to fund an interfund loan in 2014 to the Yampa ValleyRegional Airport (YVRA) for $1.5 million. The $1.5 million interfund loan will financeYVRAs contribution to the Town of Hayden for the construction of a Water TankStorage System. This loan has a 15 year term with 3% interest and annual debt service

payments of $125,000.

$ - Business Type Activities interfund loans debt service in 2015 is $135,000 and isunchanged from the 2014 budget.

Yampa Valley Regional Airports interfund loan debt service for the interfund loanfrom the Road and Bridge Fund totals $125,000 and is unchanged from the 2014 budget.The debt service payment on the $1.5 million interfund loan referenced in the previousgovernmental activities interfund loan section is $125,000. The outstanding balance ofthe YVRA interfund loan at the end of 2015 is $1,419,000.

Milner Sanitation Systems$10,000 interfund loan debt service remained unchanged in

2015 on the $120,000 interfund loan, issued in 2012 from the Road and Bridge Fund tofinance sewer line discharge modifications, which has a 20 year term and a 5% interestrate. The outstanding balance of the Milner Sanitation System interfund loan at the endof 2015 is $104,000.

18


20/31

RESERVES

Reserves are composed of the following. Restricted reserves are externally imposed by creditors,grantors, laws and regulations of other governments, constitutional provisions, etc. Committed reservesare constrained by limitations the Board of County Commissioners has imposed on various funds. Forexample, substantial reserves have been committed for the replacement of equipment and Road andBridge infrastructure. The following is a summary of the Countys reserves.

Significant Items Affecting Reserves and Resources


Reserves from 2015 governmental activities are anticipated to decrease $4.8 million as a result of severalplanned Road and Bridge projects and the replacement of equipment.

Items that could have a significant impact on future County resources include the following.

Modest revenue growth is anticipated in major revenue sources such as property and sales tax. Propertytax revenue is predicted to have modest growth over the next few years given some positive signs for newconstruction. Sales tax revenue is also predicted to have modest growth over the next several years giventhe 8% increase in actual sales tax in 2013 and the anticipated 8% increase in sales tax for 2014, flat orvery modest growth in state and national wages, fluctuating consumer confidence and a continued degree

Reserves Summary

(in millions)

Governmental

Activities

Business Type

Activities Total

Restricted Reserves

TABOR reserve 0.9 0.2 1.1

Public Trustee 0.2 - 0.2

Purchase of Development Rights 2.5 - 2.5

Affordable housing down payment

assistance program 0.1 - 0.1

Inmate commissary funds 0.1 - 0.1

Other 0.1 - 0.1

Total restricted reserves 3.9 0.2 4.1

Committed Reserves

Road and Bridge operations &

infrastructure replacement 10.4 - 10.4

Equipment replacement 10.8 - 10.8

General Fund 1.8 - 1.8

E911 Communications 0.9 - 0.9

Human Services 0.3 - 0.3

Self-Funded health insurance 2.1 - 2.1

Yampa Valley Regional Airport

operations and capital replacement - 0.5 0.5

Regional Building Department - 1.8 1.8

Water and sanitation - 0.1 0.1

Total committed reserves 26.3 2.4 28.7

Total reserves 30.2$ 2.6$ 32.8$

19


21/31

of uncertainty in the economy. State and Federal revenues are not predicted to increase appreciably givenwhen or if the federal government will be able to address the significant annual, negative Federaldeficit and how the elimination of this deficit will impact the County.

In 2015, a market survey for the compensation system will be conducted to determine the competitivenessof the compensation system for implementation in 2016. The step compensation plan has one potentialremaining catchup step from the five missed during the postponement of the step compensation plan asa result of the recession.

County Road 14 Phase IV (CR 14) is an approximately 5 mile section of road that has the highest averagedaily traffic count of all County roads. CR 14 was not adequately engineered and therefore pavement hasnot performed as anticipated for numerous years. The $13 million budget has been prepared as anestimate of the potential construction costs. Two elections have been held, and both have failed to fundthe improvements to CR 14. In the past few years several attempts have been made to obtain grants forCR 14, but have proven to be unsuccessful. The current financial plan is to set aside future favorablebudget variances to make improvements to CR 14. The County plans to spend $900,000 in 2014 and$600,000 in 2015 for a total of $1.5 million for improvements to CR 14.

Future Reserves

The long term forecast projects a balanced budget as presented in the following graph GovernmentalActivities Committed Reserves.Committed reserves are being used in the future to fund the plannedreplacement of equipment and Road and Bridge infrastructure.

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Dollars

Year

Governmental Activities Committed Reserves

Combined

Road and Bridge

Equipment Pool

General

20


22/31

Business Activities

Reserves for business type activities are anticipated to decrease in 2015 by $.3 million due to thefollowing items.

Yampa Valley Regional Airport (YVRA) reserves are budgeted to decrease $.6 million due to therunway rehabilitation project.

In 2014, YVRAsbudget included an operating loss of $351,000 as a result of significant decreases inenplanements due to the recession adversely impacting car rental and parking fees and the restaurantscontinued operating loss. For the 2015 budget, personnel and operating expenses were significantlyreduced to improve the financial condition of YVRA resulting in $11,000 of operating income.

YVRAs operating income is anticipated to improve slightly to approximately $.1 million over the nextfew years because of the runway rehabilitation projects completion in 2015 and reserves are anticipated toincrease to $1.2 million in 2017 primarily from the cash flow generated from depreciation.

Regional Building Department reserves are anticipated to increase $.3 million due to the growthexperienced in 2014 and anticipated to remain in 2015. If construction growth continues over the next fewyears, an adjustment may be considered to adjust Building Department fees down to levels before the

recession.

Water and Sanitation Systemsreserves are anticipated to remain constant over the next few years.

Conclusion

The 2015 budget is a snapshot in time based on both known factors and certain assumptions. Thisfinancial plan will need to be revised by the County to respond to changing economic conditions. Therecent decreases in oil prices will positively impact the Countys financial condition by reducing fuel andasphalt costs. However, there is continued uncertainty with the Countys revenue sources, potentialimpacts from the 2015 compensation market survey and the cost of health care services.

As new financial information becomes available, management will respond in a manner appropriate tomaintain the Countys overall financial well being.

21


23/31

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

Property Tax Federal Fees Sales Tax State Other InterfundLoans

WHERE THE MONEY COMES FROM

Government and Business Activities

2015 2014

Property Tax32%

Federal29%

Fees17%

Sales Tax10%

State11%

Other1%

InterfundLoans

0%

ALLOCATION OF WHERE THE MONEY COMES FROM


22


24/31

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

Personnel Operations Capital Infrastructure Debt Service Interfund Loans

WHERE THE MONEY GOES


2015 2014

Personnel35%

Operations30%

Capital24%

Infrastructure9%

Debt Service2%

InterfundLoans0%

ALLOCATION OF WHERE THE MONEY GOES


23


25/31

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

Property Tax Federal Fees Sales Tax State Other InterfundLoans



2015 2014

Property Tax46%

Federal17%

Fees11%

Sales Tax14%

State11%

Other1%

InterfundLoans0%

ALLOCATION OF WHERE THE MONEY COMES FROMGovernmental Activities

24


26/31

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

Personnel Operations Capital Infrastructure Debt Service Interfund Loans



2015 2014

Personnel42%

Operations36%

Capital6%

Infrastructure13%

Debt Service3%

InterfundLoans0%



25


27/31

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

Fees Federal State Other Interfund Loans


Business -Type Activities

2015 2014

Fees33%

Federal55%

State11%

Other1%

InterfundLoans

0%

ALLOCATION OF WHERE THE MONEY COMES FROMBusiness-Type Activities

26


28/31

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

Personnel Operations Capital Debt Service &Interfund Loans


Business-Type Activities

2015 2014

Personnel17%

Operations13%

Capital69%

Debt Service &Interfund Loans

1%


Business-Type Activities

27


29/31

2014/2015 2014/2015

2014 2014 2015 $ Budget % Budget

Revenue and Interfund Loans Budget Projected Budget Change Change

Property Tax 17,677,000$ 17,816,000$ 18,322,000$ 645,000$ 4%

Fees 9,832,000 10,412,000 9,983,000 151,000 2%

Sales Tax 5,232,000 5,890,000 5,604,000 372,000 7%

State 4,467,000 5,949,000 6,209,000 1,742,000 39%

Federal 11,309,000 9,065,000 16,662,000 5,353,000 47%

Other 635,000 603,000 759,000 124,000 20%

Total Revenue 49,152,000 49,735,000 57,539,000 8,387,000 17%

Interfund Loans 1,635,000 1,517,000 135,000 (1,500,000) -92%

Total 50,787,000 51,252,000 57,674,000 6,887,000 14%

Expense and Interfund Loans

Personnel 21,266,000 20,787,000 21,988,000 722,000 3%

Operations 20,061,000 19,217,000 18,829,000 (1,232,000) -6%

Capital 9,049,000 8,106,000 15,229,000 6,180,000 68%

Infrastructure 5,969,000 3,070,000 5,725,000 (244,000) -4%

Debt Service 1,264,000 1,264,000 1,260,000 (4,000) 0%

Interfund Loans 1,635,000 1,517,000 135,000 (1,500,000) -92%

Total 59,244,000 53,961,000 63,166,000 3,922,000 7%

Revenues/Interfund Loans Under

Expense/Interfund Loans (8,457,000) (2,709,000) (5,492,000) 2,965,000 -35%

Reserves Beginning 40,112,000 40,112,000 37,905,000 (2,207,000) -6%

Depreciation and Other Non-Cash

Items 518,000 502,000 390,000 (128,000) -25%

Reserves Ending 32,173,000$ 37,905,000$ 32,803,000$ 630,000$ 2%

Reserve Summary

Restricted Reserves 2,299,000$ 4,252,000$ 4,106,000$ 1,807,000$ 79%

Committed Reserves

General Fund 1,699,000 1,702,000 1,778,000 79,000 5%Road and Bridge 12,655,000 15,122,000 10,398,000 (2,257,000) -18%

Human Services 245,000 251,000 251,000 6,000 2%

E 911 Communications 880,000 969,000 955,000 75,000 9%

Equipment Replacement 10,364,000 10,878,000 10,782,000 418,000 4%

Self-Funded Health Insurance 1,464,000 2,049,000 2,102,000 638,000 44%

Yampa Valley Regional Airport 1,330,000 1,058,000 474,000 (856,000) -64%

Regional Building Department 1,115,000 1,497,000 1,835,000 720,000 65%

Water and Sanitation 122,000 127,000 122,000 - 0%

Total Reserves 32,173,000$ 37,905,000$ 32,803,000$ 630,000$ 2%

Routt County

Governmental and Business Type Activities

28


30/31

2014/2015 2014/2015

2014 2014 2015 $ Budget % Budget


Property Tax 17,677,000$ 17,816,000$ 18,322,000$ 645,000$ 4%

Fees 4,178,000 4,661,000 4,172,000 (6,000) 0%

Sales Tax 5,232,000 5,890,000 5,604,000 372,000 7%

State 3,866,000 5,038,000 4,242,000 376,000 10%

Federal 6,692,000 4,965,000 6,820,000 128,000 2%

Transfers 6,000 6,000 - (6,000) -100%

Other 411,000 475,000 611,000 200,000 49%

Total Revenue 38,062,000 38,851,000 39,771,000 1,709,000 4%

Interfund Loans 135,000 17,000 135,000 - 0%

Total 38,197,000 38,868,000 39,906,000 1,709,000 4%


Personnel 17,830,000 17,553,000 18,883,000 1,053,000 6%

Operations 16,081,000 15,132,000 16,357,000 276,000 2%

Capital 3,044,000 2,267,000 2,547,000 (497,000) -16%

Infrastructure 5,969,000 3,070,000 5,725,000 (244,000) -4%

Debt Service 1,240,000 1,240,000 1,236,000 (4,000) 0%

Interfund Loans 1,500,000 1,500,000 - (1,500,000) -100%

Total 45,664,000 40,762,000 44,748,000 (916,000) -2%

Revenues/Interfund Loans Under

Expense/Interfund Loans (7,467,000) (1,894,000) (4,842,000) 2,625,000 -35%

Reserves Beginning 36,910,000 36,910,000 35,016,000 (1,894,000) -5%

Reserves Ending 29,443,000$ 35,016,000$ 30,174,000$ 731,000$ 2%

Reserve Summary

Restricted Reserves 2,136,000$ 4,045,000$ 3,908,000$ 1,772,000$ 83%

Committed Reserves

General Fund 1,699,000 1,702,000 1,778,000 79,000 5%

Road and Bridge 12,655,000 15,122,000 10,398,000 (2,257,000) -18%

Human Services 245,000 251,000 251,000 6,000 2%

E 911 Communications 880,000 969,000 955,000 75,000 9%

Equipment Replacement 10,364,000 10,878,000 10,782,000 418,000 4%

Self-Funded Health Insurance 1,464,000 2,049,000 2,102,000 638,000 44%

Total Reserves 29,443,000$ 35,016,000$ 30,174,000$ 731,000$ 2%

Routt County


29


31/31

2014/2015 2014/2015

2014 2014 2015 $ Budget % Budget


Fees 5,654,000$ 5,751,000$ 5,811,000$ 157,000$ 3%

State 601,000 911,000 1,967,000 1,366,000 227%

Federal 4,617,000 4,100,000 9,842,000 5,225,000 113%

Other 224,000 128,000 148,000 (76,000) -34%

Total Revenue 11,096,000 10,890,000 17,768,000 6,672,000 60%

Interfund Loans 1,500,000 1,500,000 - (1,500,000) -100%

Total 12,596,000 12,390,000 17,768,000 5,172,000 41%


Personnel 3,436,000 3,234,000 3,105,000 (331,000) -10%

Operations 3,980,000 4,085,000 2,472,000 (1,508,000) -38%

Capital 6,005,000 5,839,000 12,682,000 6,677,000 111%

Debt Service 24,000 24,000 24,000 - 0%

Transfers 6,000 6,000 - (6,000) -100%

Interfund Loans 135,000 17,000 135,000 - 0%

Total 13,586,000 13,205,000 18,418,000 4,832,000 36%

Revenues/Interfund Loans Under Expense/Interfund Loans (990,000) (815,000) (650,000) 340,000 -34%

Reserves Beginning 3,202,000 3,202,000 2,889,000 (313,000) -10%

Depreciation and Other Non-Cash

Items 518,000 502,000 390,000 (128,000) -25%

Reserves Ending 2,730,000$ 2,889,000$ 2,629,000$ (101,000)$ -4%

Reserve Summary

Restricted Reserves 163,000$ 207,000$ 198,000$ 35,000$ 21%

Committed Reserves

Yampa Valley Regional Airport 1,330,000 1,058,000 474,000 (856,000) -64%

Regional Building Department 1,115,000 1,497,000 1,835,000 720,000 65%

Water and Sanitation 122,000 127,000 122,000 - 0%

Total Reserves 2,730,000$ 2,889,000$ 2,629,000$ (101,000)$ -4%

Routt County

Business Type Activities

2015 routt county budget

Documents