bexar county budget department spring 2012 fy 2011-12 budget update
TRANSCRIPT
Bexar County Budget DepartmentSpring 2012
FY 2011-12 Budget Update
FY 2011-12 Budget Plan
The FY 2011-12 Adopted Budget targeted cuts needed to balance budget through the forecast period, while maintaining County capacity for service delivery and employee compensation, which included:
$2 M (annualized) mid-year savings from May Freeze
$5 M from Attrition/Vacancy Program
$5 M from targeted cuts in FY 2011-12 Budget
$5 M for Return on Investment (ROI) from use of Technology to be identified in FY 2012-13 Budget
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FY 2011-12 Original Forecast3
Submitted Department Plans
Cost SavingsCMAG - District Clerk ($60,459)Criminal District Attorney ($821,202)Criminal District Courts ($91,465)County Clerk ($260,863)District Clerk ($316,070)Economic Development ($100,001)Judge/Commissioners ($25,951)Justice of the Peace - Precinct 1 ($12,375)Justice of the Peace - Precinct 1, Place 3 ($19,842)Justice of the Peace - Precinct 2 ($22,435)Juvenile ($1,100,000)Purchasing ($40,974)
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Submitted Department Plans
County ManagerCommunity Resources ($426,216)Information Technology ($938,513)Infrastructure Services ($571,024)Appellate Public Defender's Office ($124,578)Budget ($49,522)Human Resources ($214,660)Judicial Support Services ($183,962)
Total County Manager’s Cuts ($2,508,475)
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Departments on the Attrition Plan
Amount Needed
Constable Pct. 2 $51,895
County Auditor $84,894
County Courts at Law $110,466
Juvenile Courts $47,994
Probate Courts $39,277
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Technology Savings
• Technology Efficiencies and Innovations:
• Lawson Implementation $642,477
• Automation of County Clerk processes $191,275
• Re-negotiation of communication contracts $344,986
• Interactive Foreclosure Maps $238,252
• BCIT is working to realize additional savings toward the $5M goal.
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Targeted Cuts
• An additional $5 million in savings through
targeted programmatic reductions were identified by the Budget Department. These savings were realized through Jail Staffing, reduction of Court Appointed Attorney Fees in the County and Civil Courts, reductions in Juvenile Detention costs, and recurring revenues.
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Revised Forecast Assumptions
House Bill 1038: appraisers taking into consideration surrounding properties to include foreclosures
Community Housing Development Organizations lawsuit - County will LOSE approximately $1 million per year in Ad Valorem
Based on preliminary tax rolls, ad valorem revenues for FY 2012-13 are less than the Fall Projection
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Result: this forecast lowers projected property tax revenue growth from previous forecasts:
Current Previous Dollar Decrease
(1.6%) in FY 2012-13 1.0% $ 4,962,3921% in FY 2013-14 2.0% $ 7,394,4952% in FY 2014-15 3.0% $ 9,972,5133% through FY 2016 3.0% $ 10,271,689
Revised Forecast Assumptions10
Revised Forecast Without Strategic Issues
General FundFY 2010-11
ActualFY 2011-12
EstimateFY 2012-13
Projection
Beginning Balance
54,710,249 61,003,379 61,269,150
Revenues 324,929,328 328,057,898 317,277,019*
Available Funds 380,073,960 389,061,277 378,546,169
Expenditures 319,070,581 327,792,127 328,089,135
Fund Balance 61,003,379 61,269,150 50,457,034
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*Original Projection for FY 2012-13 Revenues was $320,895,305, a difference of $3,618,286.
Revised Forecast Without Strategic Issues
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Revised Long Range Forecast13
Strategic Issues
Detention Update
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This FY
Service Delivery Plan
• Planning tool for use in preparing for increased service demand as a result of:
•Increases in overall Bexar County population
•Increased population in unincorporated area
•A more urban-like and developed unincorporated area
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• Used annual growth rate in the 2000s to project the growth through 2017 using 2010 population as the baseline
DecadeAnnual PercentagePopulation Increase
1960-1969 2.09 %
1970-1979 1.91 %
1980-1989 1.99 %
1990-1999 1.75 %
2000-2009 2.10 %
2010-2019 2.10 %
Service Delivery Plan17
• Bexar County’s population projected to increase by 13.3 percent through 2017
• Increase of 268,000 citizens
• Estimated Bexar County population in 2017 of 1.9 million citizens
Service Delivery Plan18
•If cost-effective service delivery methods aren’t identified, the cost of serving our growing County population could be $19.2 million over the next five years.
•This does not include “City Like” Services
Service Delivery Plan19
• If “City Like” Services were in the unincorporated area of Bexar County:
• Tax rate increase of $1.2251 per $100 valuation
• Would bring total tax rate up to $1.552 per $100 valuation
• Constitutional Limit of $0.80 per $100 valuation
• There is an RFP out to develop options for citizens in the unincorporated area to acquire more “City Like” Services, as needed.
Service Delivery Plan20
• County will need to change our way of delivering services:
• E-gov, technology, automation
• More efficient business processes
• More cost-effective staffing models
• Proactive service delivery planning program
• Focus on Core Service Delivery
Service Delivery Plan21
Employee Compensation
Going forward, the County will need to identify ways to fund Cost of Living Adjustments to keep up with future inflation growth and maintain market competitiveness with other employers
FYI: 1% salary increase for all County employees = $2,133,453
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Employee Compensation
74% of County Operating Revenue is provided by property taxes
Employee salaries and benefits account for 70% of County Operating Expenses
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Employee Healthcare
Medical inflation trends are expected to be 9% per year over the forecast period
Segal Company: 9.6%source: 2012 Segal Health Plan Cost Trend Survey
Aon Hewitt: 9.9% source: 2011 Healthcare Trend Survey
Towers Watson: 7%source: 2011 Annual Towers Watson/National Business Group on Health Employer Survey
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$41,899,133
$45,670,055
$49,780,360
$54,260,592
$59,144,046
$64,467,010
$35,000,000
$40,000,000
$45,000,000
$50,000,000
$55,000,000
$60,000,000
$65,000,000
$70,000,000
FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17
Healthcare
Healthcare Five Year Forecast25
Employee Healthcare
Claims Group (total 2011 claims) % Claimants % Costs
8.4% 53.9%
8.2% 15.2%
12.2% 12.9%
17.8% 10.2%
53.4% 7.8%
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Employee Healthcare
* Medical Plan shortfall based on current premium equivalent levels
County Contribution $28,359,303
Employee/Retiree Contribution $10,088,519
Total Contributions $38,447,822
Total Contributions $38,447,822
Total Expenditures $41,410,516
Medical Plan Shortfall * $2,962,694
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Employee Healthcare
• We have used one-time money for the past two years
• Healthcare Changes:
• County and employees pay more for same coverage
• Reduce benefits to better match current contributions
• Decrease costs through healthy lifestyle, preventive care, plan incentives
• RFP Medical Insurance Provider
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Employee Healthcare
• Employee Health Clinic• Clinic Visits
• FY 2010-11 3,236• FY 2011-12 Estimate 4,300
• Types of services provided• Pre-employment physicals • Medical care for minor injuries or illness• Preventive Health Screenings • Wellness Programs
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Strategic Issues Summary
• Service Delivery Plan• Providing services to growing population
• Employee Compensation• Maintain market competitiveness• Cost of Living Adjustments
• Employee Healthcare• Rising healthcare costs• RFP for medical insurance provider
• Complete BCIT Cost Savings Plan for inclusion in the Budget.
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LRFF Summary
LRFF Summary
• Economic recovery has not yet resulted in increased revenue for the County
• Offices and Departments will need help identifying funding for new programs
• Prioritize new funding requests for one-time expenditures demonstrating reduction in future staffing needs (Increased productivity)
• County still has to address strategic issues including healthcare
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The Proposed Budget will address the shortfall by:
Refining Revenue Projections
Continuing to identify operational efficiencies
LRFF Summary33
Budget Calendar
Budget Submissions Due May 25
Certified Tax Roll Received July 25
Proposed Budget August 21
Work SessionsAugust 23 & 28,
September 5
Adopted Budget September 11
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