TABLE OF CONTENTS. Salt Lake County 1

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2 TABLE OF CONTENTS Table of Contents... 1 Mayor s Message to the Citizens of Salt Lake County... 2 Elected Officials... 3 Profile of Salt Lake County... 4 Economic Outlook... 6 County Financial Condition... 8 Net Budget Calculation Property Taxes Budget Overview Sources of Funds Uses of Funds Full-Time Equivalent Employees (FTEs) Capital Projects County Debt Statistical Indicators Glossary Recognition of Salt Lake County Sheriff s Office Search & Rescue by Mayor McAdams and Councilmembers Snelgrove and Granato Salt Lake County 1

3 MAYOR S MESSAGE TO THE CITIZENS OF SALT LAKE COUNTY On behalf of Salt Lake County, I am pleased to present this Budget in Brief for This summary provides important financial information that is intended to present a clear picture of our county s financial health, as well as highlight some of our top priorities and a look ahead to future financial challenges. Today, Salt Lake County is more than a million strong and growing. What was once a sea of farmland with islands of population is now an urbanized expanse, with precious pockets of open space. Economists tell us that our state is in the midst of an unprecedented transformation both demographically and economically. County government functions must reflect the world of 2014, not the world of Given the rapid pace of change confronting us, we must act to shape the future we choose. Salt Lake County s financial position remains strong. We hold a triple A bond rating from all ratings agencies. Unemployment is low and our economy is growing. Our conservative county budget recognizes that our residents the people who hired us want government to live within its means. At a time when deficits and debt in Washington are crowding out any possibility of investments in the future by the federal government our fiscally responsible approach gives us choices. The future we choose is one where important community assets arts and cultural facilities, museums, parks, trails and other activities are well cared for today, so they ll be available tomorrow. This year we ll invest $12.5 million to fix and refresh some of those facilities. We will update our exhibits at Clark Planetarium; we will complete the Jessie E. Quinney Ballet Center next to the newly renovated and restored Janet Quinney Lawson Capitol Theatre. We will finish most of the Jordan River Trail a walking trail and bikeway that stretches nearly the length of the county. We re pursuing innovative public/private partnerships to support education, help reduce the number of offenders who cycle in and out of our jail, improve our active transportation network to help with air quality and support families efforts to stay healthy. We have restructured regional development in order to field the strongest possible economic development team. The best way to keep taxes low is to support private sector growth and the goodpaying jobs that come with companies big and small that start or expand in Salt Lake County. The future we choose is one where community means more to our residents than a shared commuting pattern. The future we choose is one where government services and an economic framework join as an interconnected network that supports individual initiative, rather than gets in the way. I believe that here in Salt Lake County we have everything we need assets, experience and values to ensure a bright future. Sincerely, Ben McAdams Salt Lake County Mayor Salt Lake County 2

4 ELECTED OFFICIALS County Mayor... Ben McAdams County Council: At-Large A... Randy Horiuchi At-Large B... Richard Snelgrove At-Large C... Jim Bradley District 1... Arlyn Bradshaw District 2...Michael Jensen (Chair) District 3... Aimee Winder Newton District 4... Sam Granato District 5... Steve DeBry District 6... Max Burdick County Assessor... Kevin Jacobs County Auditor... Gregory P. Hawkins County Clerk... Sherrie Swensen District Attorney... Sim Gill County Recorder... Gary Ott County Sheriff... James M. Winder County Surveyor... Reid J. Demman County Treasurer... K. Wayne Cushing Salt Lake County 3

5 PROFILE OF SALT LAKE COUNTY Salt Lake County comprises an area of 742 square miles. It is bordered on the west by the Great Salt Lake (one of the largest inland bodies of water in the United States) and the Oquirrh Mountains, and on the east by the Wasatch Mountains. Salt Lake County is the most populous county in the state of Utah. The 2012 estimated County population of million represents approximately 37% of the total State population. The City and County area, often referred to as "the Crossroads of the West", is one of the largest metropolitan areas between Phoenix and the Canadian border, north to south, and between Denver and California, east to west. Over the past several years the growth and change in population, business, and industry have brought a national and international reputation to the Salt Lake valley. The Salt Lake area received further worldwide attention in February 2002 as host of the Olympic Winter Games. Salt Lake County is home to 16 incorporated cities and one incorporated town ranging in size from approximately 190,000 citizens to about 400 citizens. The first city was incorporated more than 150 years ago while the most recent was established in The County also includes several unincorporated communities (e.g., Magna, Kearns, and Millcreek). City governments provide municipal services such as garbage collection and disposal, snow plowing, street and sidewalk improvements, animal control services, and planning and zoning services to their residents, and Salt Lake County provides those same services to residents in the unincorporated areas as well as several of the smaller cities on a contract basis. Salt Lake County - Municipal Boundaries & Unincorporated County. Salt Lake County 4

6 PROFILE OF SALT LAKE COUNTY (CONT.) The County s government is structured as a Council Executive form, where the executive is elected and is referred to as Mayor. There are nine part-time council members, three voted at-large to staggered six-year terms, and six are elected by district with staggered four-year terms. The County Mayor s term is four years. There are eight other elected officials who have independent authority defined by statute: the Assessor, Auditor, Clerk, District Attorney, Recorder, Sheriff, Surveyor and Treasurer. The County provides a diversified range of regional countywide services, as well as certain municipal services. County services include: Human Services public health services, behavioral health, aging & adult services (senior centers, meals on wheels, etc.), youth services, and the library system (except for Murray City,and Salt Lake City, which each maintain their own library systems). Community Services parks and recreation, visitor promotion and convention services (Calvin L. Rampton Salt Palace Convention Center, South Towne Exposition Center), center for the arts (Abravanel Hall, Capitol Theater, Rose Wagner Performing Arts Center), golf courses, and the Clark Planetarium. Public Safety felony and misdemeanor prosecution by the District Attorney s Office; incarceration (jail), protective services, and law enforcement services provided by the Sheriff s Office; pretrial and probation services provided by Criminal Justice Services; and Justice Courts. Municipal Services business licenses, street lighting, traffic engineering, highways, animal services, planning and zoning, development services. Other Property tax assessing and collecting, surveying, flood control, solid waste management, recording, elections, marriage licenses, passports, and ordinance enactment and enforcement. J L Sorenson Recreation Center Salt Lake County 5

7 ECONOMIC OUTLOOK In 2014, Salt Lake County s sales tax base is projected to increase about 4.4%. This follows three years of gains in County taxable sales: 6.7% in 2011, 7.1% in 2012 and 2.8% in Projected 2013 growth was higher, but it was halved by the federal sequester, shutdown and threats of default. Locally, a slowdown of mineral production and new construction also constrained growth. These factors contributed to a 1% decline in taxable business investment. In contrast, retail durable goods rose 10% in 2013 due to car and truck sales. Retail nondurables, such as food and clothing, grew 3%. This momentum should continue to gain strength in Salt Lake County Taxable Sales Percent Change from Prior Year 15.0% 12.9% 10.0% 5.0% 0.0% 6.4% 6.7% 7.1% 4.4% 2.8% 0.7% (f) -5.0% -5.4% -10.0% -10.3% -15.0% The Salt Lake County economic outlook for 2014 is more upbeat for three reasons: 1) Wages and salaries in the county will rise between 5% and 6% as employment increases nearly 3% and average wages grow 2.5%. 2) Business investment should rebound as mineral production picks up and the prospects of another federal shutdown fade for defense contractors. 3) New home construction will increase between 5% and 12% due to strong, steady employment gains, improving consumer confidence, and increasing household formation. Because of these factors, Salt Lake County taxable sales should grow between 4% and 5% in Salt Lake County 6

8 ECONOMIC OUTLOOK (CONT.) The risk of headwinds slowing the Salt Lake County economy in 2014 has subsided recently. Compromise on the federal budget is a sign of increased determination on the part of many lawmakers to avoid another government shutdown. Success in these negotiations has halted another fight until March 2015 over the Federal debt ceiling, as well. A second potential headwind is the fourth quarter weakness in residential and commercial new construction. However, this too is expected to subside as business and consumer confidence improves in the wake of the compromises in Washington D.C. The Salt Lake County economy is expected to continue to outpace other competitive Western metro areas in demand for employment and in taxable sales Employment Growth in Selected Western Metropolitan Areas Percent Change from Prior Year Salt Lake 3.4% Denver 2.7% Boise 2.6% Phoenix 2.4% Los Angeles 1.8% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% After Storytime Craft Project - Kearns Library Salt Lake County 7

9 COUNTY FINANCIAL STATUS: PRESENT & FUTURE The recent period of financial uncertainty has resulted in a greater emphasis on fiscal sustainability and structural balance in the County s budget process. As policy makers have incorporated a longer view in their budget policy decisions, the County s fiscal health going forward has improved. In a recent rating report, Moody s Investor Service stated the County s financial position is sound. Key Benchmarks Salt Lake County is one of only 30 counties (out of 3,140 counties and county-equivalent administrative units in the United States) that have a simultaneous triple A bond rating with Moody s Investors Service, Standard & Poor s, and Fitch Ratings. The County s exemplary bond rating translates into significantly reduced interest costs for taxpayers. Standard & Poor s has assigned its highest score of strong in its most recent assessment of the County s financial management. Only 22 of the 30 counties referred to above have received this Financial Management Assessment (FMA) score. Standard & Poors states an FMA score of strong indicates that practices are strong, well embedded, and likely sustainable. The ratio of the County s general obligation debt outstanding per capita is very low in comparison with other AAA rated counties. In a recent rating report, Fitch Ratings states the county s debt levels are low and principal amortization is rapid. Salt Lake County expects to maintain solid Fund Balance reserves. A significant measure of a government s financial condition is the level of fund balances, especially for the General Fund. The County Council has adopted a minimum reserve policy for several funds. Fund balances are considered by bond rating agencies in determining Salt Lake County s credit worthiness. The projected ending fund balances for selected funds are summarized in the table below: Salt Lake County 8

10 COUNTY FINANCIAL STATUS: PRESENT & FUTURE (CONT.) Current Financial State Salt Lake County s financial state remains strong. Advanced planning and a series of proactive financial initiatives enabled the County to deal with the Great Recession relatively unscathed despite unprecedented revenue declines. At the same time, the county has strategically positioned itself for the future by initiating several capital construction projects designed to meet customer demand by taking advantage of the County s strong financial rating and the bond markets historically low cost of borrowing. Our fund balances are healthy Budget Overview The 2014 Adopted budget is fiscally responsible. It is structurally balanced with revenues matching expenditures and the budget is aligned with the County s long term goal to restore and maintain assets. Most importantly, this budget preserves essential services for citizens. No programs were forced to close or discontinue service. Total appropriations decreased slightly in 2014 to $993 million, down from the 2013 Adjusted Budget of $1 billion. After adjusting the overall budget for internal charges and other interfund charges, the total 2014 Budget for all funds is approximately $871 million on a net basis, an increase of 3.5% over the 2013 Adopted Budget of $844 million. Watershed Planning and Restoration Program - Jordan River Parkway Salt Lake County 9

11 COUNTY FINANCIAL STATUS: PRESENT & FUTURE (CONT.) Major Initiatives Due to revenue constraints, new initiatives were severely curtailed for Still, a handful of new requests were generally allowed in the case of a new or restricted revenue source. The most significant new initiatives include: Regional Development. Salt Lake County today is an urbanized expanse where commuters daily cross into and out of multiple jurisdictions, unaware of city or service district boundaries. They expect seamless and efficient service delivery, requiring the various providers to coordinate regional decision making. When successful, it means better services at a lower cost. The budget carries forward the newly created organization of Regional Development. The budgets for Economic Development, Community Resources and Development, Emergency Services and the Criminal Justice Advisory Board are funded within Regional Development. The money funding certain new programs is derived from state legislation clarifying that Redevelopment Agencies (RDA)s are not entitled to tax increment revenue relative to the 2013 tax increase levied. A projected $2.2 million annually will be available for regional initiatives. Those include: streamlining and modernizing emergency dispatch computer technology, Utah Communications Agency Network radio equipment, high-speed ballot counters, bike-trail connectivity countywide and other projects that focus specifically on regional service delivery. Transportation Projects. During the 2013 legislative session, the state diverted 50% of local highway construction and transportation corridor preservation fee to Salt Lake County. This fee is expected to generate approximately $4.1 million annually. The County has issued excise tax bonds yielding approximately $42 million of project money. Accordingly, both the debt service payments and construction projects were appropriated during Capital Maintenance. The County continued its focus on deferred maintenance projects by appropriating $9.3 million in the Capital Improvements Fund and $6.5 million of TRCC funds for this purpose. The Mayor and Council have committed $2.5 million over two years from TRCC to the Clark Planetarium to refresh exhibits. There is also funding for a new joint operations center for both Public Works and Parks and Recreation. This shared facility is a result of collaboration between the departments of Public Works and Community Services. It is anticipated the departments will ultimately save money by sharing a fueling station/truck wash, equipment, the cost of land, and by better coordination in the event of an emergency. The existing facilities are both considered deferred maintenance projects, so the new construction will be considered deferred maintenance by replacement. Salt Lake County 10

12 COUNTY FINANCIAL STATUS: PRESENT & FUTURE (CONT.) New Senior Center. The 2014 budget includes funds to build a new senior center in Midvale City. Current population growth trends show baby boomers reaching the age to begin taking advantage of services offered by our Aging & Adult Services division. Employee Compensation. The 2014 Budget includes a pay increase for eligible employees of 2.5%. Also, a full restoration of County contributions to employee 401(k) accounts is included in this budget. Contributions were suspended in April 2009 in response to rapidly deteriorating economic conditions and declining revenues. The Council also approved funding for a study of employee compensation during Budget Challenges Much of the County s expected annual budget challenges revolve around inflation and what is often referred to as the downward bias of property taxes. Inflation (otherwise known as growth) in the Salt Lake County government budget is largely driven by rising health care costs, retirement system adjustments passed down by the State of Utah, and other various increases in operating costs. Currently, Utah s system of setting property tax rates does not allow the rates to offset the increased costs resulting from inflation. As a result our property tax revenues grow more slowly than both population-driven increases in service demand and inflationary cost increases. Over time, the overall reduction in purchasing power of funds available may reduce County s services to citizens. Draper Senior Center - Aging and Adult Services (Photo courtesy of EDA Architects) Salt Lake County 11

13 COUNTY FINANCIAL STATUS: PRESENT & FUTURE (CONT.) In addition to inflationary pressures, another issue negatively impacting revenues is the ongoing diversion of property tax revenues to community development and renewal agencies (CDRA) which are also known as redevelopment agencies. CDRAs divert increased property tax revenue from project areas to provide incentives for development within the project area. For example, these incentives may pay for necessary infrastructure related to the development. As of 2013, the total taxable value captured by CDRAs in Salt Lake County is approximately $5.4 billion and the related revenue loss to Salt Lake County is $14.8 million. Salt Lake County sales tax revenues have continued to recover from sharp declines during the recession and are projected to return to the high water mark of Notwithstanding the County s improving revenue picture, after county organizations had submitted their 2014 budget requests, policy makers were left with a structural deficit of $28.7 million. The solution to the $28.7 million structural deficit relied heavily on cuts to new requests. Specifically, 59 new full time equivalent positions were requested for The Adopted Budget adds only FTEs, with grants and operating revenues funding a significant portion of these new FTEs. This represents an increase of 1/3 of 1% on the overall budgeted FTE level. Sledge Hockey - Adaptive Recreation Salt Lake County 12

14 NET BUDGET CACULATION Salt Lake County s adopted budget for all funds is approximately $992.8 million. Included in this amount are the budgets for the County s three internal service funds and various interfund charges. Internal service funds are used to account for the financing of services provided by one County agency to other County agencies (rather than to the general public). These services are provided on a cost reimbursement basis. Internal service and enterprise funds only budget for operating expenses; consequently, these funds plan for and track capital purchases separately, and do not include their capital purchases in the adopted budget. After adjusting the adopted budget for these internal service and interfund charges, and for the excluded capital purchases, the 2014 adopted net budget is approximately $872.7 million NET BUDGET CALCULATION FOR SALT LAKE COUNTY FUND NAME 2014 ADOPTED BUDGET ADD: BALANCE SHEET PURCHASES BY PROPRIETARY FUNDS GROSS BUDGET TOTAL LESS: INTERFUND & INTERNAL SERVICE CHARGES 2014 ADOPTED NET BUDGET GENERAL FUND 272,097, ,097,866 (31,655,302) 240,442,564 GRANT PROGRAMS FUND 123,899, ,899,183 (909,292) 122,989,891 TRANSPORTATION PRESERVATION FUND 5,950,200-5,950,200-5,950,200 MUNICIPAL SERVICE FUND 47,421,936-47,421,936 (5,887,489) 41,534,447 MUNICIPAL SVC-TORT LIABILITY LEVY 302, , ,000 FLOOD CONTROL FUND 9,302,734-9,302,734 (686,340) 8,616,394 CLASS B & COLLECTOR ROAD FUND 10,744,641-10,744,641 (824,855) 9,919,786 OPEN SPACE FUND 1,096,679-1,096,679-1,096,679 VISITOR PROMOTION FUND 8,232,941-8,232,941-8,232,941 ZOOS, ARTS & PARKS FUND 17,524,618-17,524,618-17,524,618 HOUSING PROGRAMS 1,821,700-1,821,700-1,821,700 ECON DEV & COMMUNITY RESOURCES 1,091,326-1,091,326-1,091,326 STATE TAX ADMINISTRATION LEVY 25,344,498-25,344,498-25,344,498 REDEVELOPMENT AGENCY OF SL CO 291, , ,684 LIBRARY FUND 38,855,332-38,855,332-38,855,332 HEALTH FUND 34,958,151-34,958,151 (13,346) 34,944,805 GOVERNMENTAL IMMUNITY FUND 4,050,000-4,050,000 (993,651) 3,056,349 BOND DEBT SERVICE 44,137,223-44,137,223-44,137,223 BOND DEBT SVC-MILLCREEK SID 429, , ,115 BOND DEBT SVC-MUNIC BLDG AUTH 7,295,024-7,295,024-7,295,024 BOND DEBT SVC - STATE TRANSPORTATION 3,132,540-3,132,540-3,132,540 STATE TRANSPORTATION BOND PROJECTS 9,723,100-9,723,100-9,723,100 EXCISE TAX ROAD REV BOND PROJECTS 39,050,100-39,050,100-39,050,100 RECREATION BOND PROJECTS 869, , ,549 PARK BOND PROJECTS 39,570,000-39,570,000-39,570,000 TRACY AVIARY 310, , ,000 HOGLE ZOO FACILITY CONSTRUCTION 178, , ,000 DIST ATTORNEY FAC CONSTRUCTION 14,071,365-14,071,365-14,071,365 CAPITAL IMPROVEMENTS FUND 9,314,788-9,314,788-9,314,788 MBA: FLEET BUILDING 6,400,000-6,400,000-6,400,000 MBA: PUBLIC HEALTH CENTER 18,095,000-18,095,000-18,095,000 MIDVALE SENIOR CENTER 5,170,000-5,170,000-5,170,000 PARKS / PUBLIC WORKS OPERATIONS CENTER 5,785,600-5,785,600-5,785,600 GOLF COURSES FUND 7,774, ,000 8,074,437-8,074,437 SOLID WASTE MANAGEMENT FUND 13,456,614 2,624,000 16,080,614 (4,000) 16,076,614 EQUESTRIAN PARK 1,488,921-1,488,921-1,488,921 SALT PALACE CONVENTION CENTER 20,799,058-20,799,058-20,799,058 TRCC:TOURISM, REC., CULTURAL & CONVENTION 10,550,441-10,550,441-10,550,441 SOUTH TOWNE EXPOSITION CENTER 4,510,461-4,510,461-4,510,461 CAPITOL THEATRE FUND 10,241,272-10,241,272-10,241,272 FINE ARTS FUND 9,191,449-9,191,449-9,191,449 PLANETARIUM FUND 7,898,495-7,898,495-7,898,495 FLEET MANAGEMENT 21,780,180 9,044,968 30,825,148 (17,718,442) 13,106,706 FACILITIES SERVICES 19,910,943 84,400 19,995,343 (19,292,653) 702,690 CAPITAL PROJECTS REVOLVNG FUND PEOPLESOFT PROJECT FUND 1,552,557-1,552,557-1,552,557 EMPLOYEE SERVICE RESERVE 57,096,106 7,000 57,103,106 (54,149,731) 2,953,375 GRAND TOTAL: 992,767,827 12,060,368 1,004,828,195 (132,135,101) 872,693,094 Salt Lake County 13

15 PROPERTY TAXES Community Development / Redevelopment 6.7 SL County - Countywide 16.9 Libraries 4.1 School Districts 44.2 Municipalities 20.5 Other 7.6 ALLOCATION OF PROPERTY TAXES COLLECTED BY SALT LAKE COUNTY Salt Lake County s tax levy is only part of your total property tax bill. On average, the County keeps about 17 cents of each property tax dollar it collects, for countywide services, and about 3 cents for library services outside of Salt Lake City and Murray City. Municipalities (cities and towns) receive about 20 cents to pay for police, fire, road maintenance and other services. Community development and renewal agencies (also known as redevelopment agencies), which are controlled by municipalities, receive about 7 cents. School districts receive the largest share of the property tax at about 44 cents, and all of the other taxing entities such as special improvement, water and sewer, and mosquito abatement districts receive about 8 cents. PROPERTY TAX CALCULATION - EXAMPLE PRIMARY RESIDENTIAL PROPERTY Appraised Market Value 45% Residential Exemption = Taxable Value X Countywide Tax Rate = Taxes Due $ 200,000 $ 90,000 = $ 110,000 X = $ BUSINESS PROPERTY Appraised Market Value = Taxable X Countywide Value Tax Rate = Taxes Due $ 200,000 = $ 200,000 X = $ Current Utah law gives homeowners a break on property tax by way of the residential exemption. Most other kinds of property are taxed at their full fair market value. This example is based on 2013 tax rates. Salt Lake County 14

16 PROPERTY TAXES (CONT.) HOW SALT LAKE COUNTY USES ITS SHARE OF YOUR PROPERTY TAXES Public Safety cents - Jails, criminal prosecution, alternatives to incarceration, court security, and indigent legal expense. General Public Services cents - Elections, assessment and taxation, flood control, education, economic development, support functions, and those functions required by law. Human Services cents - Support services for abused and neglected children, treatment for substance abuse and mental illness, and services to help seniors live independently. Public Health cents - Disease prevention, environmental protection, and family health support. Voter Approved Bond Debt Service cents - Debt service for several bond projects that include major facilities like the county jail and nonprofit community projects like the Hogle Zoo, Tracy Aviary, and the Utah Museum of Natural History. SALT LAKE COUNTY PROPERTY TAX ALLOCATION PUBLIC HEALTH 5% VOTER APPROVED BOND DEBT SERVICE 15% HUMAN SERVICES 13% PUBLIC SAFETY 48% GENERAL PUBLIC SERVICES 19% Salt Lake County 15

17 BUDGET OVERVIEW: GOVERNMENT- WIDE SOURCES OF FUNDS 2014 ADOPTED BUDGET: GOVERNMENT-WIDE SOURCES OF FUNDS $1,078.5 MILLION INTER/INTRA FUND TRANSFERS 13% OTHER 6% PRIOR YEAR FUND BALANCE 20% FEES FOR SERVICES 8% GENERAL PROPERTY TAX 25% GRANTS & CONTRACTS 13% SALES AND OTHER TAXES 14% LICENSES AND PERMITS <1% RENTAL INCOME 1% 2012 SOURCES OF FUNDS ACTUALS GENERAL PROPERTY TAX ADJUSTED BUDGET 2014 ADOPTED BUDGET $ $ $ SALES AND OTHER TAXES GRANTS AND CONTRACTS FEES FOR SERVICES RENTAL INCOME LICENSES AND PERMITS OTHER Totals: $ $ $ INTER/INTRA FUND TRANSFERS PRIOR YEAR FUND BALANCE Grand Totals: $ $ 1,092.4 $ 1,078.5 The Other category of Sources of Funds is comprised of bond proceeds, fines, interest, concessions, contributions, refunds, Fleet external revenues, sale of materials & capital assets, and miscellaneous revenues not otherwise classified. In any given year, bond proceeds will typically account for over 50% of total Other sources of funds. Other sources of funds tend to experience major fluctuations from year to year. Salt Lake County 16

18 BUDGET OVERVIEW: GOVERNMENT- WIDE USES OF FUNDS BY ELECTED OFFICE In this Budget in Brief document, the Salt Lake County budget is illustrated in two very different but significant ways. First, the budget is shown from a government-wide perspective by elected official; and second, from a segregated spending perspective. The graph and table below illustrate Salt Lake County s overall budget as appropriated to its various elected officials. The graphs on pages further illustrate the breakdown by major function or service for each elected official, and also summarize uses of funds for capital outlay and debt service ADOPTED BUDGET: GOVERNMENT-WIDE USES OF FUNDS - BY ELECTED OFFICE $992.8 MILLION OTHER ELECTED 4% SHERIFF 10% ALL ELECTED - CAPITAL OUTLAY 19% ALL ELECTED - DEBT SERVICE 6% DIST ATTORNEY 3% MAYOR - ADMIN SERVICES 6% MAYOR - COMMUNITY SERVICES 11% MAYOR - PUBLIC WORKS 7% MAYOR - HUMAN SERVICES 23% MAYOR - NON- DEPARTMENTAL SVCS 9% MAYOR - REGIONAL DEVELOPMENT 2% 2012 USES OF FUNDS ACTUALS ALL ELECTED - CAPITAL OUTLAY ADJUSTED BUDGET 2014 ADOPTED BUDGET $ $ $ ALL ELECTED - DEBT SERVICE ASSESSOR AUDITOR CLERK COUNCIL DIST ATTORNEY JUSTICE COURTS MAYOR - ADMIN SERVICES MAYOR - COMMUNITY SERVICES MAYOR - HUMAN SERVICES MAYOR - NON-DEPARTMENTAL SVCS MAYOR - REGIONAL DEVELOPMENT MAYOR - PUBLIC WORKS RECORDER SHERIFF SURVEYOR TREASURER Totals: $ $ 1,004.8 $ Salt Lake County 17

19 WIDE USES OF FUNDS BY ELECTED OFFICE (CONT.) ASSESSOR $13.0 million Personal Property Appraisal 13% Mass Appraisal 53% Admin & Misc 24% CLERK $5.9 million Motor Vehicle Appraisal 10% AUDITOR $4.7 million Stat & Gen - Tax Admin 25% Property Tax Admin 33% Auditing 42% COUNCIL $3.7 million Admin, Council, Marriage 23% BUDGET OVERVIEW: GOVERNMENT- Council- Tax Admin 30% Elections 77% Council 70% DISTRICT ATTORNEY $33.9 million JUSTICE COURT $1.6 million Tort Liability 13% Civil Legal Counsel 24% Criminal Justice 61% County Justice Court 100% DA- Tax Admin 2% Salt Lake County 18

20 BUDGET OVERVIEW: GOVERNMENT- WIDE USES OF FUNDS BY ELECTED OFFICE (CONT.) Printing 1% MAYOR: ADMIN SERVICES $60.6 million Telecom 6% Fleet Mgmt 36% Contracts & Proc. 2% Info Services 24% Gov't Center Ops 7% Facilities Mgmt 1% Facilities Svcs 18% MAYOR: HUMAN SERVICES $225.7 million Records Mgmt & Archives 1% Human Resrcs 4% Visitor Promo 7% Golf Courses 7% MAYOR: COMMUNITY SERVICES $114.2 million Planetarium 7% Fine Zoo, Arts, & Parks Program 14% Arts 8% Convent. & Expo Centers 17% Parks & Rec 40% MAYOR: NON- DEPARTMENTAL SERVICES $86.7 million Commun Develop & Housing 1% Behavioral Health 42% Criminal Justice 5% Aging Svcs 8% Health 16% Library 16% Youth Svcs 5% Indigent Legal 7% Extension Svcs <1% ESR 66% Mayor Adm, Ops & Fin 9% Other Statutory Functions 15% Emerg Svcs 2% Township Svcs 1% TRCC Advisory Bd 6% Open Space 1% MAYOR: PUBLIC WORKS $66.4 million Public Works 31% Street Lighting 1% Planning 9% Solid Waste 20% Flood Control 14% Animal Services 8% Addressing 1% Class B Roads 16% CJAC 2% MAYOR: REGIONAL DEVELOPMENT $16.5 million Pre- School Prog 4% Region Devel Econ Devel 8% Progs 17% Commun Resrces 66% Emergency Mgmt 3% Salt Lake County 19

21 BUDGET OVERVIEW: GOVERNMENT- WIDE USES OF FUNDS BY ELECTED RECORDER $5.3 million Tax Recording 51% General Recording 49% Unincorp. Admin <1% SHERIFF $100.8 million Court Services & Security 14% County Jail 74% CW Investigation & Support 12% OFFICE (CONT.) SURVEYOR $2.9 million TREASURER $3.4 million Surveying 65% Mapping 19% Recording 16% Tax Relief 11% Tax Collection 53% Accntg & Other 36% ALL ELECTED: CAPITAL OUTLAY $187.9 million Edu, Rec & Cultrl 35% General Gov't 11% Public Works 34% Tax Admin <1% Public Safety 7% Health Svcs 10% Social Svcs 3% State Trans. Bond Trans. 5% Preservation 5% Special Imprvmnt 1% ALL ELECTED: DEBT SERVICE $59.7 million Muni Bldg. Authority 12% Voter Approved 77% Salt Lake County 20

22 BUDGET OVERVIEW: GOVERNMENT- WIDE USES OF FUNDS BY LEGALLY SEGREGATED FUNCTION Salt Lake County government has one of the more complicated budgets to understand, largely stemming from the 49 separate funds managed by the County. Different funds are established in many cases as required by law, and in some cases to further management objectives. The funds established by law are required by state statute. This is usually due to revenues authorized by the state for a specific use, or alternatively because there are different taxpayers contributing to a particular service, necessitating a segregation of funds. Policy makers must understand when balancing budgets that the General Fund can t be used to solve budget problems in the Library or Municipal Services funds because they are not funded by the same taxpayers. Likewise, Library funds can t be transferred to the General Fund. The second way to view the government-wide budget is by segregated uses of revenues. The chart below illustrates the same total appropriations from page 17, but divided up according to use instead of by elected official. The graphs on pages further illustrate the spending by type of service provided to citizens. ENTERPRISE FUNDS 2% LIBRARY FUND 4% MUNICIPAL SERVICES FUNDS 5% 2014 ADOPTED BUDGET: GOVERNMENT-WIDE USES OF FUNDS - BY SEGREGATED FUNCTION $992.8 MILLION INTERNAL SERVICE FUNDS 10% MILLCREEK FIRE FLOW S.I.D. <1% GENERAL FUND & RELATED COUNTYWIDE FUNDS 79% USES OF FUNDS 2012 ACTUALS 2013 ADJUSTED BUDGET 2014 ADOPTED BUDGET GENERAL FUND & RELATED COUNTYWIDE FUNDS $ $ $ MUNICIPAL SERVICES FUNDS LIBRARY FUND ENTERPRISE FUNDS INTERNAL SERVICE FUNDS MILLCREEK FIRE FLOW S.I.D Totals: $ $ 1,004.8 $ Salt Lake County 21

23 BUDGET OVERVIEW: GENERAL FUND & OTHER COUNTYWIDE FUNDS USES OF FUNDS The General Fund and other County-wide funds account for functions and services provided on a County-wide basis. Subdivisions within this category can often be linked with a different fund, but they share the common theme of providing services on a County-wide basis ADOPTED BUDGET: GENERAL FUND & RELATED FUNDS - USES OF FUNDS $785.4 MILLION EDUCATION, RECREATION & CULTURAL 14% CAPITAL OUTLAY 23% DEBT SERVICE 8% SOCIAL SERVICES 16% GENERAL GOVERNMENT 9% TAX ADMINISTRATION 3% PUBLIC SAFETY/CRIMINAL JUSTICE 21% PUBLIC WORKS 2% HEALTH SERVICES 4% USES OF FUNDS 2012 ACTUALS 2013 ADJUSTED BUDGET 2014 ADOPTED BUDGET GENERAL GOVERNMENT $ 43.2 $ 49.1 $ 68.0 TAX ADMINISTRATION PUBLIC SAFETY/CRIMINAL JUSTICE HEALTH SERVICES SOCIAL SERVICES PUBLIC WORKS EDUCATION, RECREATION & CULTURAL CAPITAL OUTLAY DEBT SERVICE Grand Total $ $ $ Salt Lake County 22

24 BUDGET OVERVIEW: MUNICIPAL SERVICES FUNDS USES OF FUNDS The Municipal Services funds account for city-type services for residents of the unincorporated areas of Salt Lake County which include Magna, Kearns, Millcreek, White City, Copperton, Big Cottonwood, Granite and other small islands of unincorporated areas ADOPTED BUDGET: MUNICIPAL SERVICES FUNDS - USES OF FUNDS $48.0 MILLION ANIMAL SERVICES 11% CAPITAL OUTLAY 18% GENERAL GOVERNMENT 11% PLANNING & DEVELOPMENT 12% PUBLIC SAFETY/CRIMINAL JUSTICE 3% PUBLIC WORKS 45% 2012 USES OF FUNDS ACTUALS GENERAL GOVERNMENT ADJUSTED BUDGET 2014 ADOPTED BUDGET $ $ 4.3 $ 5.0 PUBLIC SAFETY/CRIMINAL JUSTICE PLANNING & DEVELOPMENT PUBLIC WORKS ANIMAL SERVICES CAPITAL OUTLAY Totals: $ 38.3 $ 51.5 $ 48.0 Panoramic view of Salt Lake Valley (Photo courtesy of Howard Jackman) Salt Lake County 23

25 BUDGET OVERVIEW: ENTERPRISE FUNDS & LIBRARY FUND USES OF FUNDS PHYSICAL FACILITES 7% INFO, TECH, SUPPORT SVCS 10% LIBRARY PROJECTS 7% 2014 ADOPTED BUDGET: LIBRARY FUND - USES OF FUNDS $38.9 MILLION LIBRARY ADMIN 5% PUBLIC SERVICES 71% USES OF FUNDS 2012 ACTUALS 2013 ADJUSTED BUDGET 2014 ADOPTED BUDGET LIBRARY ADMIN $ 4.0 $ 2.3 $ 2.0 PUBLIC SERVICES INFO, TECH, SUPPORT SVCS PHYSICAL FACILITES LIBRARY PROJECTS Totals: $ 33.0 $ 34.9 $ ADOPTED BUDGET: ENTERPRISE FUNDS - USES OF FUNDS $21.2 MILLION SOLID WASTE MANAGEMENT FUND 63% GOLF COURSES FUND 37% USES OF FUNDS 2012 ACTUALS 2013 ADJUSTED BUDGET 2014 ADOPTED BUDGET GOLF COURSES FUND $ 7.3 $ 7.6 $ 7.8 SOLID WASTE MANAGEMENT FUND Totals: $ 19.9 $ 20.6 $ 21.2 Salt Lake County 24

26 BUDGET OVERVIEW: INTERNAL SERVICE FUNDS USES OF FUNDS Internal Service funds are established to provide certain support services to County departments and divisions. Salt Lake County s employee service reserve (statutory and non-statutory employee benefit management), facilities services and fleet management are operated from internal service funds ADOPTED BUDGET: INTERNAL SERVICE FUNDS - USES OF FUNDS $98.8 MILLION FACILITIES SERVICES 20% FLEET MANAGEMENT 22% EMPLOYEE SERVICE RESERVE 58% 2012 USES OF FUNDS ACTUALS 1 EMPLOYEE SERVICE RESERVE ADJUSTED BUDGET 2014 ADOPTED BUDGET $ $ $ 57.1 FACILITIES SERVICES FLEET MANAGEMENT Totals: $ $ $ The reduction in the Employee Service Reserve Fund in 2014 is the result of a change in accounting practices Kearns Jr. High After School Program - Youth Services Salt Lake County 25

27 BUDGET OVERVIEW: FULL-TIME EQUIVALENT EMPLOYEES 2014 FULL-TIME EMPLOYEES BY FUND TYPE SPECIAL REVENUE FUNDS 44% INTERNAL SERVICE FUNDS 4% ENTERPRISE FUNDS 2% GENERAL FUND 50% FULL-TIME EMPLOYEES BY FUND TYPE GENERAL FUND SPECIAL REVENUE FUNDS ENTERPRISE FUNDS* INTERNAL SERVICE FUNDS 2010 Budget Budget Budget Budget Budget * Sanitation became a separate entity in 2013, decreasing the number of employees in the Enterprise Funds. Salt Lake County 26

28 BUDGET OVERVIEW: FULL-TIME EQUIVALENT EMPLOYEES (CONT.) 2014 FULL-TIME EMPLOYEES BY FUNCTION REC & CULTURE 19% PUBLIC HEALTH 13% PUBLIC WORKS 5% TAX ENTERPRISE INTERNAL ADMIN. FUNDS SERVICE 5% 2% FUNDS 4% GENERAL GOV'T 8% PUBLIC SAFETY 35% SOCIAL SERVICES 9% 2014 FULL-TIME EMPLOYEES BY FUNCTION GENERAL PUBLIC SOCIAL REC & PUBLIC PUBLIC TAX ADMIN. PROPRIETARY GOV'T SAFETY* SERVICES CULTURE HEALTH WORKS FUNDS* 2010 Budget Budget Budget Budget Budget * Sanitation became a separate entity in 2013, which accounts for nearly all of the decrease in Proprietary Funds employees. Salt Lake County 27

29 BUDGET OVERVIEW: CAPITAL PROJECTS Salt Lake County continually strives to provide its citizens with cost effective state-of-the-art facilities that enhance the communities where they live. The County also promotes energy conservation and green environmental standards for all capital projects. Capital projects in Salt Lake County include buildings, parks, open space improvements, a broad network of County roads, as well as an extensive bridge, viaduct, and flood control infrastructure located throughout the County. The County strives to follow the highest Leadership in Energy and Environmental Design (LEED) standards, making County facilities as energy efficient and environmentally friendly as possible. The following are examples of Salt Lake County facilities and other improvements that have been built, renovated, and maintained with County capital projects funding: The 2014 Budget includes the following major capital projects: Financial System Salt Lake County is implementing a comprehensive, fully integrated Enterprise Resource Planning (ERP) System for purchasing, payroll, human resources and finance. The County is shifting its business processes to a common County-wide standard utilizing the Oracle/PeopleSoft Enterprise system. Public Health Building This new facility will streamline multiple offices and solve environmental and compliance issues with current buildings, saving tax dollars in the long run. Midvale Senior Center Salt Lake County and Midvale City have been working together to provide a new senior center for Midvale residents. This new senior center will be a larger updated facility with easier access in an area highly populated with seniors. Salt Lake County 28

30 BUDGET OVERVIEW: CAPITAL PROJECTS (CONT.) Capitol Theatre Expansion and Renovation This is a public/private partnership with Ballet West. This renovation will give long-term stabilization to Ballet West, improve public spaces such as restrooms, seating, HVAC and expand the Capitol Theatre lobby. Park Bond Projects In November 2012, Salt Lake County voters approved a $47 million park bond to complete the Jordan River Parkway Trail, complete Parleys Trail from the mouth of Parleys Canyon to the Jordan River, acquire land for future park development in Magna, and build three new regional parks in Bluffdale, Draper and West Valley City/Kearns. Fleet Service Facility The current shops are not structurally sound, and do not meet seismic and building codes. This new building will meet building codes, be more energy efficient, and increase service capacity. District Attorney Building This new facility will provide needed office space for prosecutors and other staff in close proximity to the Matheson Court building downtown. Public Works and Parks and Recreation Operations Center - Salt Lake County Public Works and Parks and Recreation will join operations centers into one central valley operations headquarters, located in West Jordan CAPITAL & RELATED EXPENDITURES BY ASSET TYPE: $187.9 MILLION CAPITAL EQUIPMENT RELATED TO CAPITAL PROJECTS 1% OTHER 14% CAPITAL PROJECT CONSTRUCTION IN PROGRESS 30% LAND & LAND IMPROVEMENTS 31% INFRASTRUCTURE 20% BUILDING & BUILDING IMPROVEMENTS 4% Salt Lake County 29

31 BUDGET OVERVIEW: COUNTY DEBT & DEBT SERVICE Bonds are a way of borrowing money for the County. The bond promises payment of the original investment plus interest by a specific date/dates in the future. Salt Lake County utilizes four primary categories of bond debt: General Obligation (GO) Bonds Lease Revenue Bonds held in the Municipal Building Authority (MBA) Sales Tax Revenue Bonds Special Assessment Bonds Legally, Salt Lake County could issue general obligation debt up to about $2.12 billion, which is 2% of the $ billion adjusted fair market value of taxable property in the County. Given all sources of current debt in the County, the County is well below reaching its statutory limit. Currently, the County has total outstanding GO debt of approximately $239.3 million. Salt Lake County currently utilizes 11.0% of its legally permitted GO debt capacity. GENERAL OBLIGATION DEBT UTILIZATION Current GO Debt $239.3 Million 11% Unused Legal Debt Capacity $1,881.3 Million 89% Salt Lake County 30

32 BUDGET OVERVIEW: COUNTY DEBT & DEBT SERVICE (CONT.) 2014 BOND DEBT SERVICE BY BOND TYPE: Municipal Building Authority 18% Sales Tax Revenue Bond 12% Excise Tax Revenue Bond 5% Special Assessment 1% General Obligation 64% 2014 BOND DEBT SERVICE BY BOND TYPE BOND TYPE INTEREST PRINCIPAL TOTAL General Obligation $ 7.2 $ 34.5 $ 41.6 Municipal Building Authority Sales Tax Revenue Bond Excise Tax Revenue Bond Special Assessment GRAND TOTAL $ 20.2 $ 44.4 $ 64.6 Maintaining an Animal Services Vehicle - Fleet Management Salt Lake County 31

33 STATISTICAL INDICATORS: OPERATING EXPENDITURES PER CAPITA $ $ $ $ $ $ $ $ $0.00 TOTAL OPERATING EXPENDITURES PER CAPITA 1 - S.L. COUNTY Operating Expenditures per Capita is essentially the price of County government. 1. Actual expenditures per capita are reported for 2005 through Budgeted expenditures per capita are reported for 2013 and TOTAL MUNICIPAL SERVICES OPERATING EXPENDITURES PER CAPITA - UNINCORPORATED S.L. COUNTY $ $ $ $ $ $ $ In 2010, municipal services expenditures decreased as a result of the law enforcement patrol function of the County moving to a separate government entity with the formation of the Unified Police Department (UPD). Salt Lake County 32

34 STATISTICAL INDICATORS: CAPITAL & DEBT SERVICE EXPENDITURES PER CAPITA $ $ $ $90.00 $60.00 $30.00 TOTAL CAPITAL EXPENDITURES PER CAPITA 1 $ The significant increase in Capital Expenditures per Capita in 2013 is due to the combined effect of Salt Lake County tripling its outlay to fund deferred capital maintenance needs and the capital outlay related to the $47 million Park Bonds approved by County voters in November Actual expenditures per capita are reported for 2005 through Budgeted expenditures per capita are reported for 2013 and TOTAL DEBT SERVICE EXPENDITURES PER CAPITA $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $ The significant increase in Debt Service Expenditures per Capita in 2008 is due to a mandated accounting change relating to how Salt Lake County reports Municipal Building Authority (MBA) debt service. Salt Lake County 33

35 STATISTICAL INDICATORS: FULL-TIME EMPLOYEES PER 1000 COUNTY RESIDENTS TOTAL FULL-TIME EMPLOYEES PER 1000 COUNTY RESIDENTS Since 2005, the number of full-time employees per 1000 County residents has declined. TOTAL MUNICIPAL SERVICES FULL-TIME EMPLOYEES PER 1000 UNINCORPORATED COUNTY RESIDENTS In 2010, Municipal Services full-time employees significantly decreased as a result of the law enforcement patrol function of the County moving to a separate government entity with the formation of the Unified Police Department (UPD). Salt Lake County 34

36 GLOSSARY Appropriation: An authorization by the County Council to spend up to a specified dollar amount for an approved project or program during any given fiscal period. Bond: An interest-bearing certificate of indebtedness sold by the County as a means of borrowing funds. The bond promises payment of the original investment plus interest by a specified date or dates in the future. Bonds typically involve long-term indebtedness to pay for capital projects. Bond Rating: An evaluation of the creditworthiness of a government entity, and of its ability to repay its debt on schedule. Bond ratings are issued by private rating agencies such as Standard & Poors, Moody s Investor Services, and Fitch Ratings, and are based on factors such as the amount of debt incurred and the economic and demographic characteristics of the borrowing government, and financial management practices. The higher the rating, the lower the interest costs for bonds issued. AAA or Aaa are the highest ratings issued by bond rating agencies. Budget: A plan for financial operations for a fiscal period, embodying estimates for proposed expenditures and the means of financing the expenditures. Capital Asset: Assets of a durable nature, which are intended to be held or used long-term, and which may be depreciated over time. Examples of capital assets include land, land improvements, buildings, infrastructure, machinery, furniture, and other equipment. Capital Project: Major construction, acquisition, or renovation activities which add value to a government's physical assets or significantly increase their useful life. Projects are also called capital improvements. County Option Sales and Use Tax: The rate is one quarter of 1 percent, and has been enacted by all counties in Utah except Emery, Kane, and Millard. Where enacted, the tax applies to the same transactions as the state sales & use tax. Consumer Price Index (CPI): Any one of a set of nationwide and regional price level indicators that are published by the U.S. Department of Labor s Bureau of Labor Statistics. The CPI is constructed using the prices of a representative market-basket of goods and services. Changes in the CPI over time are used to determine the average inflation rate for that period of time. Employee Service Reserve Fund: The fund utilized to manage County employee benefits such as health insurance and retirement plans. Enterprise Fund: Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. Salt Lake County 35

37 GLOSSARY (CONT.) Internal Service Fund: Internal Service funds are used to account for the financing of goods or services provided by one organization to another County organization on a cost reimbursement basis. LEED (Leadership in Energy and Environmental Design): Nationally recognized, non-regulatory approach that has been shown to result in quantifiable low impact development. Low Impact development is assumed to benefit both the environment and the local economy. Local Option Sales and Use Tax: The local option sales and use rate is one percent. This local tax applies to the same transactions as the state sales and use tax laws. All counties and municipalities have enacted this tax. For counties, this tax applies to taxable sales occurring in the unincorporated county only. Municipal Building Authority (MBA): An organizational entity that is closely related to the County and that is created for the purpose of financing the construction of certain County facilities through the issuance of Municipal Building Authority Lease Revenue Bonds. Organization (Org): A budget level unit for appropriation controls that represents a basic functional division of County government. Per Capita: Per person (literally, per head ). The ratio of a data measure (e.g. total operating expenditures) divided by the total population, yielding the amount of that data measure per person (e.g. total operating expenditures per person, or per capita). Special Improvement District (SID): An area legally defined through ordinance by the County Council for the installation of public infrastructure improvements. SIDs collect special assessments and issue Special Assessment Bonds to finance infrastructure improvements. Special Revenue Fund: A fund established to account for special taxes or other revenues required by law or contractual agreement to be used only for specified purposes and which therefore must be kept separate from other County monies. Structural Balance: When a government entity's budgeted ongoing sources of funds are equal to its budgeted ongoing uses of funds, that entity's budget is said to be in structural balance. When budgeted ongoing sources of funds are less than budgeted ongoing uses of funds, a structural deficit occurs, and when budgeted ongoing sources of funds exceed budgeted ongoing uses of funds, a structural surplus occurs. TRCC: Tourism, Recreation, Cultural, and Convention Fund. The TRCC Fund is a special revenue fund. Zoo, Arts, and Parks (ZAP): Used to refer to a sales and use tax dedicated for funding zoological, arts and parks projects, and to the County special revenue fund that manages and accounts for these dedicated sales and use tax revenues. Salt Lake County 36

38 WANT TO KNOW MORE? Do you have other questions about the County s budget? Is this report useful to you? Do you believe it should include different or additional information? We would like to hear from you! To ask questions about Salt Lake County s budget, or to leave feedback about this report, please contact: Lance Brown Director of Planning & Budget Salt Lake County Mayor s Financial Administration 2001 South State Street, Suite N4100 PO Box Salt Lake City, UT (385) lbrown@slco.org This 2014 Budget In Brief is also available as a PDF document at: Albion Basin - Wasatch Canyons Master Plan Project (Photo courtesy of Visit Salt Lake) Salt Lake County 37