berks county proposed fy2009 budget county commissioners meeting november 18, 2008
TRANSCRIPT
Berks County
Proposed FY2009 Budget
County Commissioners MeetingNovember 18, 2008
Berks CountyFY2009 Budget Presentation
• Budget Schedule
• Summary of Proposed Budget
• Significant Budget Factors
• Significant Capital Plan Changes
• Budget Initiatives
• Budget Execution Risks
• Select Budget Details
• Budget Projections
• Questions and Commentary
Berks CountyProposed FY08 Budget
Budget Schedule
• November 18, 2008 Present Proposed FY09 Budget
• December 16, 2008 Adopt Final FY09 Budget
• Public Review– County Commissioners’ Office
– Budget Office
– County Website www.co.berks.pa.us
Berks CountyProposed FY09 Budget Summary
• No tax increase. Tax rate @ 6.935 mills. Net 2009 billing $121.5M
• Total net tax revenue is projected at $125.5M
• General Fund revenue and expenditures of $217.6M and $205.6M, respectfully
• Operating revenue & expenditures of $471.2M and $469.1M, respectfully
• No new headcount. Reflects FTE reduction of 95 budgeted positions.
Berks CountyProposed FY09 Budget Summary- Cont’d
• The budget reflects a surplus of $2.1M. No fund balance is used to balance the budget
• $22.68M in capital projects. Partially fund with $6.3M of Reserves. Only AgLand and open space is funded with debt.
• Set aside $1.34M of general fund balance for future capital needs
• Unreserved/undesignated fund balance is projected at $101.9M or 21.7% of total operating expenditures
Berks CountySignificant FY09 Budget Factors
Decreases:• Assessed value increase only
0.95% - decrease in tax revenue ($908K)
• Nursing home MA increase only 1% - revenue decrease ($800k)
• Increases pension costs ($7.8M)
• Lower interest rates –reduced interest income ($500K)
Increases• Refinance and reduce debt –
lower debt service $3.5M
• Defer CRC program – reduce operating costs by $3M
• Youth Ctr. Bed mix change – reduce cost by $630K
• Reduce headcount –lower personnel costs by $1.6M
Berks CountySignificant FY 08 to 09 Capital Changes
• Tabled the Prison expansion project – reduced capital by $17M
• Tabled the Video Visitation project – reduced capital by $1.2M
• Tabled Haycreek trail project – reduced capital by $3.9M
• Committed $6.75M of reserves to 2009 capital projects
• Reduced outstanding debt by $55.6M P &I (Principal only $30.6M)
Berks CountyProposed FY09 Budget Initiatives
• Strategic planning. Align resources and staff with strategic priorities. Right size
• Lower service costs. Focus on shared resource, process improvement
• Pursue performance contract financing to lower utility costs
• Implement park recommendations-active recreation facilities
• Right size fleet. Move to a lease rental model
• Align not for profit funding with strategy. 2009 funding decrease of $84K. Deeper cuts 2010 – 2012
Berks CountyProposed FY09 Budget Initiatives – Cont’d
• Continued funding of Reading Area Community College @ $3.2M
• Ag Land- $1M for new fed state certification funding. $5.479M in total easement payments. Move to self funded model. No new debt.
• Open space easement acquisitions $724K.
• Conversion of $36M line of credit to GOB debt. Re-allocation of $10M to 911 infrastructure upgrade 2011
• Improve data/decision support with ERP software
• Improve IT capabilities
Berks CountyProposed FY09 Budget Execution Risks
Crime impacts on:• Prison population – 1,200• Children placements in CYS• Juvenile placements in JPO and YDC• Court costsOperational risks:• Pension investment performance – ARC Pmt • Employee health• Net new employees• Final union contract wage increases 2009• Tax growth - Assessed value versus inflation• Federal state budget cuts – unfunded mandates
Select Budget Details
• Tax Revenue and Consumption• Capital Plan Summary•Fund Balance Summary
• Budget Projections
Berks County Tax Revenue Summary
2008 2009
Millage Rate 6.935 6.935
Assessed Value 18,165,776,900 18,337,452,500
Percent Change 1.70% 0.95%
Tax Revenue - Net
Annual Tax Billing $120,298,188 $121,531,444Interims $750,000 $500,000Tax Claim Collections $3,500,000 $3,500,000
Total Tax Revenue $124,548,188 $125,531,444
Note: Tax Revenue is net of discounts and uncollectibles of 4.6%.
Berks CountyTax Consumption by Function
Judicial 28%$35M
Emergency 9110.4%$0.5M
Miscellaneous 2%$2M
Not for Profits 3%$4M
General Govt. 4% $5M
Comm. & Econ. Developmnt
1%$2M
Public Safety 37%$45M
Public Works -2% ($2M)
Culture/Rec. 6%$7M
Youth Detention 1%$1M
Berks Heim -0.4% ($0.5M)
Human Services8%$9M
Debt Service 12% $15M
Berks CountyGENERAL FUND BALANCE OVERVIEW - Year End 2009
(In Millions)
Total Fund Balance 131.568$
Reservations-Cumulative Losses:
Berks Heim (8.427)$ Youth Detention Center (7.124)$ Other Reservations:
Worker Comp Trust Fund (1.866)$ Hazmat, Encumbrances and Other (1.915)$
Designations:
Self Insured Health Fund (4.000)$
Environmental Litigation Fund (1.814)$ Tipping Fees Solid Waste/Recycling Fund (3.126)$
Capital Projects (1.340)$
Total Unreserved Fund Balance 101.956$
Berks County2009 CAPITAL PROJECT Summary (In Millions)
Total Plan $22.68
Prison Projects $4.52 Steam Plant $1.00 County Bridges $2.37 County Parks $5.04 Agland preservation $5.48 IT and ERP Software $1.58 Other projects $2.69
$22.68
Note: Prison includes $3.5M for security system.
Note: Bridge projects include: Berne Station, Buttonwood, Christman Road. $1.8MBridge projects are funded exclusively by fed and state revenues
Note: Park projects include: Antietam Dam repair $3M, Gruber Wagon Works $1M.The projects are funded with county, state and local grants.
2009 2010 2011 2012
Total Revenue 471$ 473$ 480$ 487$
Total Expenditures 469$ 480$ 496$ 507$
Net Surplus/(Deficit) 2$ (7)$ (16)$ (20)$
Unreserved Fund Balance $101M $90M $69M $43M
Percent of Expenditures 21.7% 18.8% 14.0% 8.5%
Assumptions:No tax increase. Deficits funded with fund balance or future budget cutsTax base grows at 1% 2010, 1.5% 2011, 2% in 2012Other revenues grow on average 1% per yearNo decline in federal and state fundingNo headcount growth.
Pension costs increase through 2011 and then decline
Wage inflation contained at 2.5% per year
No new debt. 911 upgrade paid for with 2009 debt at total cost of $10M.
4 YEAR BUDGET PROJECTIONS (In Millions)Berks County
Comments and Questions