Proposed Budget. June 12, 2018

Transcription

1 Proposed Budget June 12,

2 Development of the Budget Board Strategic Priorities Board-established fiscal/budget/reserve policies Ongoing Revenues = or > Ongoing Expenses Reserve for Contingencies $5.8 million Reserve for Unfunded Pension Liability $4.0 million Reserve for Economic Development $102 thousand Estimated June 30, 2018 General Fund balance $27.9 million should not be relied upon for ongoing costs 2

3 Development of the Budget Reviewed the six self-insurance funds can any proposed rate increases be absorbed by excess reserve balances? $16.6 million savings realized in Auditor-Controller performed an audit on fees Countywide some fee adjustments are reflected in the Proposed Budget Due to timing of the audits, a second Fee Hearing is scheduled for July 10, 2018 Any remaining departments will go individually if needed 3

4 Development of the Budget Retirement Costs 50% of the Proposed Budget is for salary & employee benefits ($880.3 million) The County s unfunded pension liability increased from $1.4 billion to $1.5 billion On June 8 th, the Retirement Board approved to lower the assumed rate of return from 7.4% to 7.25% for the 2019 calendar year Annual impact to the County is $8.7 million 4

5 Development of the Budget Proposed Budget includes $23 million for 5% additional contribution toward the unfunded pension liability General Fund contribution of $8.5 million $31.1 million additional contribution through June 30,

6 Major Know Budget Impacts Animal Services agreement with City of Stockton ends June 30, Negotiations are currently underway cost = $1.4 million increase of $780 thousand / not sustainable Sheriff staff continue to look at other alternatives Cannabis No new dollars are included in the Proposed Budget to address new costs related to commercial and personal cannabis cultivation 6

7 Major Know Budget Impacts Office of the Medical Examiner $2 million included in Proposed Budget for the additional associated costs for a total budget of $4.9 million for Coroner/Medical Examiner services Homelessness The County will apply again for planning funds currently estimated at $128 thousand for funding of the Program Administrator-Homelessness Initiatives position 7

8 Major Know Budget Impacts Child Support Funding DCSS is a leader in a coalition of Child Support Offices around the State to engage with legislature with a proposal to change funding structure to be more equitable County could potentially receive additional resources in Negotiated Savings CAO and County Counsel negotiated a $2.5 million reduction in the old Courthouse Equity buyout payment Recommend the savings be reserved for future Law & Justice facilities projects 8

9 Major Know Budget Impacts County Innovation CAO & ISD partnering to organize and provide data from many different sources to make more informed decisions. Emergency Preparedness Will update Emergency Operations Plan with focus on ensuring preparedness, evacuation support, shelter operations, public information, and that outreach is incorporated and updated. 9

10 All Funds Appropriations Proposed Budget ($ in Millions) Adopted Recommended Increase/ (Decrease) Departmental Appropriations $1,629,531,773 $1,742,206,329 $112,674,556 Appropriation for Contingencies 5,000,000 5,000,000 0 Total Appropriations $1,634,531,773 $1,747,206,329 $112,674,556 Sources of Funding Departmental Revenues $1,298,840,729 $1,407,451,145 $108,610,416 General Purpose Revenues 268,216, ,866,735 16,650,152 Fund Balance General Fund 32,630,594 10,596,100 (22,034,494) Contingency/Reserve Funds (13,652,514) (4,886,003) 8,766,511 All Other Funds 48,496,381 49,178, ,971 Total Sources of Funding $1,634,531,773 $1,747,206,329 $112,674,556 10

11 Appropriations $1.75 Billion 11

12 Use of Funds Source of Funds $1.75 Billion $1.75 Billion 12

13 Net County Cost $290.6 Million General Purpose Revenue $284.9 Million 13

14 Budget Highlights Conclusion Structurally-balanced budget: Net County Cost (NCC) $290,576,832 Less: Approp. for Contingency - 5,000,000 Versus: General Purpose Revenue (GPR) $285,576,832 $284,866,735 GPR is $710 thousand less than NCC Shortfall is funded by fund balance 14

15 Staffing Staffing Summary Increase/(Decrease) Approved* Recommended Amount Percent General Government % Capital Maintenance % Environmental Protection % Law & Justice 1, , % Roads & Facilities % Health Services 2, , % Human Services 1, ,376.5 (53.7) -3.8% Education % Parks & Recreation (14.0) -23.5% Total Staffing 7, , % *Totals include midyear adjustments approved by the Board of Supervisors. 15

16 Staffing Net Staffing increase = FTE positions Part-time FTEs Full-time FTEs Add 229 Positions 81 SJGH 40 Mental Health Services 27 Human Services Agency 17 District Attorney 12 Probation 16

17 Staffing Delete 127 positions 85 Human Services Agency 14 Child Support Services 11 SJGH Vacant Positions (as of April 30, 2018) 6,358 full-time positions 710 vacant (11.1%) Human Services Agency 167 SJGH 119 Sheriff/Coroner 97 Behavioral Health Services 79 17

18 Budget Highlights Employee Relations 17 Rep units representing 96% of workforce Four agreements either have or will expire by June 30, 2018 Probation Officers Sheriff s Management Sheriff s Non-Management Sheriff s Sergeants Represents 7.5% of the County workforce NCC for every 1% increase totals $1.3 million Potential salary increases are not included in the Proposed Budget 18

19 Budget Highlights Public Improvement Program Total Program $19.7 million $1.0 million New Projects $18.7 million Carry Over/Re-Budgeted Law & Justice $13.9 million Sheriff-Morgue Replacement $8.8 million Sheriff-Detention Facility $2.6 million Sheriff-Jail/Honor Farm Upgrades $960K Old Courthouse $775K DA Office Development & Planning - $285K Juvenile Justice Center Projects $280K Admin Building reconfig. for DA $150K 19

20 Parks Projects Budget Highlights Public Improvement Program $1.3 million Mickey Grove Zoo $555K Regional Sports Complex $446K Oak Grove Park $285K Countywide Projects Countywide Facility Upgrades $1.6 million Security improvements Arc Flash Assessment Hazelton Complex bathrooms/fire alarm system HVAC repairs Exterior paint & repairs 20

21 Budget Highlights Public Improvement Program County Facilities Master & Project Planning $775K ADA Building Upgrades $740K Facility Parking Lot Repairs $675K Facility Flooring Replacement $500K Underground Fuel Tanks Monitoring $200K 21

22 Budget Highlights Law & Justice Total budget = $346.1 million Increase of $19.9 million Net Increase of 27 positions 16 District Attorney 11 Probation 7 Correctional Health 6 Sheriff 2 Public Defender (11) Child Support (4) ADAP transferred to SAS 22

23 Budget Highlights Law & Justice (continued) Neighborhood Deputy District Attorney Program added 3 positions for program Serving Downtown Stockton, North and South County Program has been effective and will continue in Update during the Final Budget Hearing DA Space Planning Potential plan to demolish the 3-story old Courthouse and build a new building for DA, Family Justice Center, and possibly Court security 23

24 Budget Highlights Health Care Services Mental Health Services Act Funding 3-Year Plan ( ) $168.9 million Will utilize $70 million in MHSA Fund Balance Expand Intervention Services Efforts to divert non-violent/nonserious offenders into treatment services Expand Mobile Crisis Support Teams Enhance Clinical Services Support Homeward Bound Initiative 24

25 Budget Highlights San Joaquin General Hospital San Joaquin General Hospital Proposed budget totals $426.7 million Increase of 70 full-time positions Increase of 34.5 full-time equivalent positions General Fund support $2.1 million June 30, 2018 Fund Balance projected at $180.8 million $78.8 million available for operations Remainder designated for capital costs or repayment set asides $29.8 million in capital expenditures $15.3 million for Phase 2 Hospital building $14.5 million for medical equipment & repairs Projected net income is $7.9 million 25

26 Budget Highlights San Joaquin General Hospital (continued) Phase 2 Acute Care Patient Wing Expansion Project Scheduled for completion in late Neonatal Intensive Care Unit beds 20 Private Medical/Surgical beds CDCR agreement extended through June projected income $79 million Cerner Health Information & Electronic Health Record Implemented in March 2018 Resources devoted to addressing Hospital charges and payment collection 26

27 Budget Highlights Human Services Agency Budget Totals $175.1 million Deletes 84 vacant positions $4.1 million savings ACA applications have been decreasing In-Home Supportive Services $18.0 million budget $8.7 million Realignment funding Minimum wage will move from $11 per hour to $15 by January 2022 State funding for SJC provided for uncertainty for future year s funding 27

28 Supplemental Requests Department Requests $10.9 million Requests withdrawn $5.8 million Funded $4.9 million Ongoing $3.9 million One-time $982 thousand Not funded $260 thousand 28

29 Supplemental Requests Departments Unfunded: $260 thousand County Departments Board of Supervisors Registrar of Voters Treasurer-Tax Collector Assessor-Recorder-County Clerk County Counsel General Services District Attorney Public Defender Sheriff-Coroner UC Cooperative Extension Supplemental Requests Amount Requested* Amount Funded Amount Unfunded $15,500 $15,500 $0 296, , , ,983 91, , , , , , ,502,762 1,502, , , ,299,766 2,299, ,060 5,060 0 Total $5,124,595 $4,864,746 $259,849 * Amount requested after Departmental withdrawls 29

30 Supplemental Requests Non-County Organization Requests $1.8 million Funded $1.5 million Not funded $274 thousand Historical Society base funding of $349 thousand is not included in these totals 30

31 Supplemental Requests NCOs Unfunded: $274K Requests from Non-County Organizations Organization Amount Requested Amount Funded Amount Unfunded Other County Funding Boys & Girls Club of Stockton $85,812 $0 $85,812 $0 Bread of Life 55,000 55, Child Abust Prevention Council 81,008 81, ,372,467 Children's Home of Stockton 161,297 73,327 87,970 0 Comm. Partnership for Families 150, , ,763,010 Haven of Peace 96,535 96, PUENTES 26,550 26, The Voice of Stockton 59, ,800 0 Women's Center - YFS 176, , ,177,567 SJ Historical Society 265, , ,050 San Joaquin ihub 20,000 10,000 10,000 0 SJC Economic Development 100,000 70,000 30,000 0 SJ Partnership 50,000 50, Zoological Society 100, , $1,427,577 $1,153,995 $273,582 $6,936,094 31

32 Multiyear Budget Outlook to

33 Multiyear Budget Outlook Net County Cost ($ in Millions) FUNDING SOURCES GENERAL FUND ($ in Millions) Proposed Projected General Purpose Revenue (GPR) Current Property Taxes $234.4 $244.3 $254.7 $264.9 $275.5 Sales Taxes Redevel Pass Thru/Homeowner Relief Tobacco Settlement Fund Property Transfer Taxes Interest Income Franchise Fees/Fines/Penalties Total General Purpose Revenue $284.9 $297.8 $309.2 $320.5 $332.2 Departmental Revenues $596.6 $600.8 $605.6 $610.4 $615.3 General Fund Balance Contingency/Reserve Funds (4.9) (2.6) (2.7) (2.8) (2.9) Unfunded Pension Reserve Total Other Sources $602.3 $608.2 $612.9 $619.2 $625.5 Total Funding Sources $887.2 $906.0 $922.1 $939.7 $957.7 Total Labor Cost Salary $450.1 $455.5 $461.1 $467.1 $473.4 Retirement Unfunded Pension Liability Paydown Extra-Help/Contract Overtime/Holiday Pay Health/Dental/Vision Payroll Taxes/Other Benefits Total Labor Cost $880.3 $910.4 $941.3 $973.5 $1,006.6 General Fund-Labor Cost (37% of total) $325.7 $336.8 $348.3 $360.2 $372.4 Other Costs Contributions to Economic Prom. Reserve Contributions to Unfund. Pension Res Contributions to Reserve for Conting Total General Fund Cost $887.2 $906.0 $922.1 $939.7 $957.7 RESERVES CONTINGENCIES $87.4 $89.7 $92.4 $95.2 $98.1 GENERAL $10.0 $10.0 $10.0 $10.0 $10.0 UNFUNDED PENSION LIABILITIES $20.0 $21.0 $21.0 $19.4 $16.3 ECONOMIC DEVELOPMENT $0.7 $0.8 $0.9 $1.0 $ EXCESS TAX LOSS $19.3 $20.1 $21.0 $21.8 $22.7

34 REVENUE Multiyear Budget Outlook Assumptions Property Taxes 5.00% growth & % & % Sales Tax 5.0% through % Tobacco Settlement $7.3 million annually General Fund balance $27.9 million through % of labor NCC (approximately $10.0 million) 34

35 EXPENSES Multiyear Budget Outlook Assumptions Labor Costs based on existing labor contracts 7.5% of the workforce has contracts that either have, or will expire by June 30, 2018 Retirement 2.6% General / 3.6% Safety through % increase Reflecting decreasing investment rate Unfunded Pension Liability 5% contribution annually Drawdown from the Reserve required beginning Projected Reserve June 30, 2023 = $16.3 million Health Care Costs 4% increase annually 35

36 Structurally-Balanced Budget Concerns with Base Budget Budget Highlights Conclusion Labor Contracts under negotiation 4 7.5% of workforce Projected NCC for every 1% salary increase equals $1.3 million Unfunded Pension Liability January 2017 funded ratio = 64.6% Unfunded liability = $1.6 billion; SJC share $1.5 billion Propose funding 5% additional contribution = $23.0 million ($8.5 million NCC) 36

37 Budget Highlights Conclusion Retirement costs for former local health district employees Historically, annual payments to CalPERS toward unfunded liability absorbed by Public Health Services budget savings Annual liability has been increasing General Fund contributions are now required to pay the liability $1.3 million through $1.3 million General Purpose Revenues growth is slowing Property & Sales Tax are the majority of GPR funding (89.6%) 37

38 Recommended Actions Desire to fund items as part of Final Budget Hearing will come from one-time funds (Contingency Reserve) 1. Approve Proposed Budget for consideration 2. Set Final Budget Hearing to begin June 26 th at 9:00 a.m. 38

39 Questions? 39