Berrien County. Annual Budget

Transcription

1 Berrien County 2019 Annual Budget

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3 Table of Contents Enabling Resolution... 3 Budget Overview Introduction... 5 All Funds Summary: All Funds Summary by Fund Type... 6 All Funds Budget History by Functional Area... 7 All Funds Budget History by Category... 8 All Funds Personnel History... 9 Revenue Assumptions and Analysis Expenditure Assumptions and Analysis Fund Summaries Excluding Component Units Introduction to Fund Summaries Description of Funds General Fund Summary: Statement of Revenue, Expenditures, and Changes in Fund Balance Statement by Category Statement by Functional Area Revenue by Category and Account Expenditures by Function and Activity Special Revenue Funds Summary: Schedule of Revenue and Expenditures by Fund and Activity Road Department Fund Parks and Recreation Fund Parks and Recreation Environmental Fund Parks and Recreation Grants and Projects Funds Parks and Recreation Millage (PA90) Fund Historical Association Loan Fund Berrien Community Foundation Fund Friend of the Court Fund Friend of the Court Programs Fund Judicial Grants and Programs Fund Health Department Base Operating Fund Health Drug Court/Treatment Fund Health Department Grant and Program Funds Berrien County Landfill Use Fund Soil Erosion and Sedimentation Control Fund Economic Development Grants and Programs Fund Register of Deeds Automation Fund Register of Deeds Foreclosure Search Fund Homestead Audit Administration Fund Indigent Defense Fund Prosecutor Programs and Grants Fund Service Millage (Incl. Operations) Fund Service Grants Fund Concealed Pistol Licensing Fund Public Safety Millage Fund Local Law Enforcement Contracts Fund Sheriff s Special Teams and Programs Fund Sheriff s Grants Fund Drug Law Enforcement Fund Federal Forfeiture Drug Law Enforcement Fund NARC Special Fund Emergency Management Grants and Programs Fund Animal Control Grants and Programs Fund Law Library Fund Senior Citizens Millage Fund

4 Table of Contents Berrien Bus Program (Operational) Fund Berrien Bus Grant and Program (Capital Purchase) Funds Four Winds Local Revenue Sharing Fund Three Oaks Village Land Purchase Fund Campaign Finance Administration Fund Social Services Fund Child Care Fund DHS Child Care Fund Family Division Grants and Programs Fund Soldiers and Sailors Relief Fund Veterans Trust Fund Board of Public Works Fund Capital Projects Funds Summary: Schedule of Revenue and Expenditures by Fund and Activity Capital Projects Fund Vehicle Capital Fund Capital Reserve Fund Animal Shelter Construction Fund Schedule of Capital Spending Requests by Project Internal Services Funds Summary: Schedule of Revenue and Expenditures by Fund and Activity Workers Compensation Insurance Fund Health Insurance Fund Unemployment Insurance Fund Property / Liability Insurance Fund Enterprise Funds Summary Schedule of Revenue and Expenditures by Fund and Activity Delinquent Tax Revolving Fund Delinquent Tax Foreclosure Fund Delinquent Personal and Lease Tax Fund Drain Equipment Revolving Fund Water and Sewer Project Funds Fund Summaries for Component Units Land Bank Authority Component Unit Brownfield Authority Component Unit Building Authority Component Unit Economic Development Corporation Component Unit Drain Commission Component Unit Other Schedules Transfers Indirect Cost Transfers Administration Fee Transfers Appropriations Appendix Primary Government Departmental Budgets... A Land Bank Authority Component Unit Departmental Budgets... B Brownfield Authority Component Unit Departmental Budgets... C Economic Development Corporation Component Unit Departmental Budgets... D Drain Commission Component Unit Departmental Budgets... E 2

5 Enabling Resolution Enabling Resolution will be inserted here upon formal approval of the Berrien County Board of Commissioners. 3

6 Enabling Resolution Enabling Resolution will be inserted here upon formal approval of the Berrien County Board of Commissioners. 4

7 Budget Overview Introduction The primary purpose of this document is to provide citizens with information and insight into the 2019 Adopted Budget. This document is divided into five major sections: 1. The BUDGET OVERVIEW provides a comprehensive view of the adopted budget for primary government (excluding component units) for the 2019 Berrien County Budget. This section provides assumption and analysis information regarding the budget and breakdowns of revenue and expenditure groupings across funds. 2. The FUND SUMMARIES section provides a description of fund types, history of expenditures by fund within each type, and individual fund statements with revenues and expenditures broken down by type. 3. The FUND SUMMARIES FOR COMPONENT UNITS section provides individual fund statements with revenues and expenditures broken down by type. The Land Bank Authority, Brownfield Authority, Building Authority, Economic Development Corporation, and Drain Commission are included here. The Road Department and Mental Health Authority are not contained herein. 4. The OTHER SCHEDULES section provides detailed information regarding transfers, indirect cost transfers, administration fee transfers, and appropriations. This information is provided as support for the Budget Overview and Fund Summaries. 5. The APPENDIX section provides individual department level budgets by account and is base level information for budget. 5

8 Budget Overview 2019 All Funds Budget Summary By Fund Type (Excludes Component Units, Trust Funds, and GASB Adjustments) Year ended December 31 General Fund Special Revenue Funds Debt Service Funds Capital Projects Funds Internal Service Funds Proprietary Funds Total Revenues Property taxes $ 38,423,784 $ 9,564,000 $ - $ - $ - $ 1,883,089 $ 49,870,873 Licenses and permits 209, , ,433 State revenue sharing 4,428, ,428,776 Intergovernmental revenue 2,571,132 37,328, ,899,287 Charges for services 6,499,031 6,032, ,002,474 1,108,384 14,642,078 Fines and forfeitures 426,508 12, ,558 Interest revenue 576,500 28, , , ,285 Indirect cost and admin fees revenue 3,374,739 3,380, ,755,684 Other revenue 1,428,675 1,149, ,512, ,093 19,663,711 Total revenues 57,938,578 57,995, ,527,520 3,768, ,230,685 Expenditures Operating expenditures: Legislative 1,145, , ,175,292 Judicial 8,654,116 4,583,595-1,500, ,737,711 General government 17,530,025 3,433, ,740-1,418,499 23,227,191 Public safety 19,759,012 11,032,673-3,281, ,073,222 Public works 367,085 24,501, ,700 24,872,854 Health and welfare 919,920 22,830, , ,904,981 Recreation and cultural - 1,945, , ,175,056 Comm and economic development 493,203 1,439, ,933,189 Other governmental activities 1,966, ,505,290-17,471,700 Total operating expenditures 50,835,063 69,766,967-6,040,677 15,505,290 1,423, ,571,196 Debt service: Principal 168, , ,168 Interest 7,568 16, , ,792 Total debt service 175, , , ,960 Total expenditures 51,010,799 70,018,967-6,040,677 15,505,290 1,887, ,463,156 Revenue over (under) expenditures 6,927,779 (12,023,181) - (6,040,677) 2,022,230 1,881,378 (7,232,471) Other financing sources (uses) Issuance of long-term debt 155, ,000 Transfers in 2,901,089 13,529,092-4,300, ,000 20,980,181 Transfers out (9,983,868) (4,896,313) (6,100,000) (20,980,181) Total other financing sources (uses) (6,927,779) 8,632,779-4,300,000 - (5,850,000) 155,000 Net increase (decrease) in fund balance $ - $ (3,390,402) $ - $ (1,740,677) $ 2,022,230 $ (3,968,622) $ (7,077,471) 6

9 Budget Overview All Funds Budget Summary By Function (Excludes Component Units, Trust Funds, and GASB Adjustments) Year ended December Incr (Decr) vs 2018 Audited Percent Adopted Percent Adopted Percent Amount Percent Revenues Property taxes $ 47,568, % $ 48,626, % $ 49,870, % $ 1,244, % Licenses and permits 599, % 698, % 710, % 11, % State revenue sharing 4,440, % 4,427, % 4,428, % 1, % Intergovernmental revenue 19,604, % 41,285, % 39,899, % (1,385,827) -3.4% Charges for services 14,954, % 14,844, % 14,642, % (202,340) -1.4% Fines and forfeitures 444, % 519, % 438, % (81,042) -15.6% Interest revenue 356, % 281, % 821, % 539, % Indirect cost and admin fees revenue 5,833, % 6,694, % 6,755, % 61, % Other revenue 18,276, % 18,259, % 19,663, % 1,404, % Total revenues 112,078, % 135,636, % 137,230, % 1,594, % Expenditures Operating expenditures: Legislative 1,012, % 1,067, % 1,175, % 107, % Judicial 12,148, % 13,925, % 14,737, % 812, % General government 20,812, % 21,963, % 23,227, % 1,263, % Public safety 27,853, % 35,753, % 34,073, % (1,680,724) -4.7% Public works 5,376, % 25,771, % 24,872, % (898,497) -3.5% Health and welfare 21,831, % 25,436, % 23,904, % (1,531,984) -6.0% Recreation and cultural 1,737, % 2,706, % 2,175, % (531,319) -19.6% Comm and economic development 1,793, % 1,974, % 1,933, % (41,421) -2.1% Other governmental activities 17,361, % 16,614, % 17,471, % 857, % Total operating expenditures 109,927, % 145,214, % 143,571, % (1,643,750) -1.1% Debt service: Principal 140, % 454, % 404, % (50,490) -11.1% Interest 1,086, % 1,148, % 487, % (660,673) -57.5% Total debt service 1,227, % 1,603, % 891, % (711,163) -44.4% Total expenditures 111,154, % 146,818, % 144,463, % (2,354,913) -1.6% Revenue over (under) expenditures 924,669 (11,181,706) (7,232,471) 3,949,235 Other financing sources (uses) Issuance of long-term debt 240, , ,000 5,000 Bond premium/discount (6,384) Transfer of operations 7,706, Transfers in 16,410,452 25,056,962 20,980,181 (4,076,781) Transfers out (16,410,452) (25,056,962) (20,980,181) 4,076,781 Total other financing sources (uses) 7,941, , ,000 5,000 Net increase (decrease) in fund balance $ 8,866,168 $ (11,031,706) $ (7,077,471) $ 3,954,235 7

10 Budget Overview All Funds Budget Summary By Function (Excludes Component Units, Trust Funds, and GASB Adjustments) Year ended December Incr (Decr) vs 2018 Audited Percent Adopted Percent Adopted Percent Amount Percent Revenues Property taxes $ 47,568, % $ 48,626, % $ 49,870, % $ 1,244, % Licenses and permits 599, % 698, % 710, % 11, % State revenue sharing 4,440, % 4,427, % 4,428, % 1, % Intergovernmental revenue 19,604, % 41,285, % 39,899, % (1,385,827) -3.4% Charges for services 14,954, % 14,844, % 14,642, % (202,340) -1.4% Fines and forfeitures 444, % 519, % 438, % (81,042) -15.6% Interest revenue 356, % 281, % 821, % 539, % Indirect cost and admin fees revenue 5,833, % 6,694, % 6,755, % 61, % Other revenue 18,276, % 18,259, % 19,663, % 1,404, % Total revenues 112,078, % 135,636, % 137,230, % 1,594, % Expenditures Operating expenditures: Salaries and wages 37,315, % 42,298, % 43,216, % 918, % Benefit costs 20,318, % 23,208, % 23,172, % (36,834) -0.2% Road materials 433, % 4,115, % 4,930, % 815, % Supplies 2,605, % 3,512, % 3,402, % (109,927) -3.1% Fuel 438, % 848, % 868, % 20, % Contractual services 5,099, % 5,036, % 5,032, % (3,991) -0.1% Consulting services 6, % 8, % 6, % (2,132) -25.0% Engineering services 4, % 256, % 350, % 94, % Boarding services 2,389, % 3,793, % 2,545, % (1,248,171) -32.9% Health services 1,999, % 2,534, % 2,624, % 89, % Legal services 1,107, % 1,163, % 1,216, % 52, % Road construction services 1,127, % 10,925, % 8,540, % (2,385,000) -21.8% Other services 1,573, % 1,908, % 1,782, % (125,633) -6.6% Memberships and subscriptions 108, % 142, % 143, % % Communications 431, % 522, % 460, % (61,992) -11.9% Advertising 94, % 70, % 63, % (6,750) -9.6% Travel 303, % 383, % 361, % (22,461) -5.9% Employee training and improv 177, % 256, % 249, % (7,651) -3.0% Education expenses % 2, % 2, % - 0.0% Recreation and incentive program 27, % 23, % 21, % (1,949) -8.5% Freight and postage 330, % 366, % 338, % (27,308) -7.5% Copier charges 58, % 57, % 49, % (8,363) -14.5% Insurance 14,109, % 15,251, % 16,515, % 1,263, % Property tax expenses 2, % 5, % 3, % (2,300) -42.6% Utilities 1,025, % 1,456, % 1,335, % (120,221) -8.3% Repair and maintenance 2,066, % 2,842, % 2,750, % (92,009) -3.2% Bldg, equip, and software rental 198, % 328, % 294, % (33,454) -10.2% Inventory adjustments (11,023) 0.0% - 0.0% - 0.0% - Witness and jury compensation 142, % 183, % 173, % (9,712) -5.3% Usage fees % % % - 0.0% Admin fees 325, % 235, % 237, % 1, % Indirect cost 5,507, % 6,458, % 6,518, % 59, % Debt costs 47, % 53, % 42, % (11,453) -21.3% Contingency - 0.0% 1,500, % 1,915, % 415, % Depreciation 8, % 5, % 9, % 3, % Capital outlay 4,357, % 11,091, % 10,006, % (1,084,937) -9.8% Appropriations 3,837, % 3,937, % 3,866, % (70,912) -1.8% Project costs 1,159, % - 0.0% - 0.0% - All other items 1,198, % 430, % 523, % 93, % Total operating expenditures 109,927, % 145,214, % 143,571, % (1,643,750) -1.1% Debt service: Principal 140, % 454, % 404, % (50,490) -11.1% Interest 1,086, % 1,148, % 487, % (660,673) -57.5% Total debt service 1,227, % 1,603, % 891, % (711,163) -44.4% Total expenditures 111,154, % 146,818, % 144,463, % (2,354,913) -1.6% Revenue over (under) expenditures 924,669 (11,181,706) (7,232,471) 3,949,235 Other financing sources (uses) Issuance of long-term debt 240, , ,000 5,000 Bond premium/discount (6,384) Transfer of operations 7,706, Transfers in 16,410,452 25,056,962 20,980,181 (4,076,781) Transfers out (16,410,452) (25,056,962) (20,980,181) 4,076,781 Total other financing sources (uses) 7,941, , ,000 5,000 Net increase (decrease) in fund balance $ 8,866,168 $ (11,031,706) $ (7,077,471) $ 3,954,235 8

11 Budget Overview Budgeted Full Time Equivale nt Employe e (FTE) by Functional Area Department Change Econ Dev Grants & Prog Economic Development Comm & Economic Developmt Administrator Assessor/Equal Dept (1.4) Attorney/Corp Counsel Building and Grounds Clerk of Court Cooperative Extension Data Proc/Info Tech Drain Commissioner Elections Financial Services Indigent Defense Mailing Dept Motor Pool Personnel Department (0.9) Printing Prop Desc/Map Grants Prop Descript/Mapping (0.0) Prosecuting Attorney Purchasing Records Center Register of Deeds Treasurer General Government Chld Care-Probate (Ct) Health Dept (Non-Grnt) Health Grants and Prog (1.0) Medical Examiner Veterans Programs Health and Welfare Family Division Friend of the Court Judicial Grants & Prog (0.8) Tri-Court Judicial Board of Commissioners Legislative Ops (Com/Dispatch) Animal Control Civil Def/Homeland Sec Corrections/Jail Div (1.5) Jail Maintenance Local Law Enforcement Marine Law Enforcement Public Safety Admin (0.8) Public Safety Grants Public Safety Programs Special Teams Public S afety (1.0) Board of Public Works Road Department Public Works Parks and Recreation Recreation and Cultural Grand Total

12 Budget Overview Primary Government Revenue Assumptions and Analysis Revenue for Primary Government, excluding other financing sources (transfers, capital lease proceeds, gain (loss) on sale of assets, and use of fund balance) and indirect and administration costs, are budgeted for 2019 at $ million. This represents an increase of $1.594 million or 1.2 percent from the 2018 adopted budget. The Road Commission, a separate component unit of government, was dissolved in September 2017 and became a department of primary government. The trend information below shows the addition of the road department beginning in the last quarter of

13 Budget Overview Revenues for Primary Government excluding the road department are budgeted to increase 3.1 percent while the road department is budgeted to decrease 7.0 percent from the 2018 budget. The summary below provides a comparison of 2019 budget revenues by category compared to the 2018 adopted budget and 2017 actual: Year ended December Incr (Decr) vs 2018 Audited Percent Adopted Percent Adopted Percent Amount Percent Revenues Property taxes $ 47,568, % $ 48,626, % $ 49,870, % $ 1,244, % Licenses and permits 599, % 698, % 710, % 11, % State revenue sharing 4,440, % 4,427, % 4,428, % 1, % Intergovernmental revenue 19,604, % 41,285, % 39,899, % (1,385,827) -3.4% Charges for services 14,954, % 14,844, % 14,642, % (202,340) -1.4% Fines and forfeitures 444, % 519, % 438, % (81,042) -15.6% Interest revenue 356, % 281, % 821, % 539, % Other revenue 18,276, % 18,259, % 19,663, % 1,404, % Total 106,245, % 128,941, % 130,475, % 1,533, % Indirect cost and admin fees revenue 5,833,017 6,694,370 6,755,684 61, % Total revenues $ 112,078,858 $ 135,636,363 $ 137,230,685 $ 1,594, % Taxes Taxes are a primary source of revenue to the County and are comprised of real estate, personal, and leasehold property, payment in lieu of, industrial and commercial, delinquent, and interest and penalties received on late payment of taxes. Real estate tax makes up most of this amount. For the year of 2019, taxes are budgeted at approximately 38.2 percent of the County s total revenues. The projection for all tax revenues totals $ million, an increase of $1.245 million or 2.6 percent from the 2018 adopted budget, and includes the general operating, law enforcement, 911, senior citizen, and park millage, industrial and commercial, and other items as noted. Current taxes increased $1.591 million while delinquent 11

14 Budget Overview taxes decreased $346 thousand. The summary below provides a comparison of 2019 budget revenue by category compared to 2018 adopted budget and 2017 actual: Year ended December Incr (Decr) vs 2018 Audited Percent Adopted Percent Adopted Percent Amount Percent Current Property, PILT, and TIFA General Fund (1010) $ 35,645, % $ 36,057, % $ 37,310, % $ 1,253, % Parks Millage (PA 90) Fund (2087) 717, % 737, % 764, % 27, % 911 Service Millage (2610) 3,225, % 3,313, % 3,440, % 126, % Public Safety Millage (2640) 2,513, % 2,578, % 2,677, % 98, % Senior Citizens Millage (2700) 2,153, % 2,210, % 2,294, % 84, % Total 44,254, % 44,897, % 46,488, % 1,590, % Delinquent Taxes, Int, and Penalties 3,313, % 3,729, % 3,382, % (346,484) -9.3% Total Primary Government 47,568, % 48,626, % 49,870, % 1,244, % Component Units Landbank Authority (2410) 14,337 15,580 13,574 (2,006) -12.9% Brownfield Redevelopment Auth (2430) 918,250 1,255,000 1,255, % Grand Total $ 48,500,986 $ 49,896,949 $ 51,139,447 $ 1,242, % State equalized values increased by $ million or 0.5 percent. Taxable values increased to $7.859 billion, an increase of 2.5 percent. The 2018 millage rates remain flat vs 2017, therefore change in current taxes can be attributed primarily to the taxable value increases. Licenses and permits Licenses and permits represent fees charged by the County to individuals and business for things such as marriage, food service, and dog licenses, as well as burial, pistol, septic, well, and other types of permits. This source of revenue amounts to $710 thousand, or 0.5%, of total revenues for the 2019 budget. This represents an increase of 1.7 percent from the 2018 adopted budget. This increase is primarily driven by a food licenses and septic permits. 12

15 Intergovernmental revenue Budget Overview Intergovernmental revenue is a major source of revenue for the County and consists of grants and reimbursements from Federal, State, and local units of government. One of the important sources of intergovernmental revenue is state revenue sharing which is illustrated separately on the financial statements. Intergovernmental revenue accounts for $ million or 34.0 percent of total 2019 revenues. Of this amount, the Road Department is $ million or 51.7 percent of the total intergovernmental revenue. For the 2019 budget, intergovernmental revenue is down $1.384 million or 3.0 percent from the 2018 adopted budget. This is driven by a decrease in Road Department revenue of $1.679 million. The following provides a comparison to 2018 adopted budget and 2017 actual: Year ended December Incr (Decr) vs 2018 Audited Percent Adopted Percent Adopted Percent Amount Percent Primary Government excl Road Dept Federal grants $ 5,164, % $ 5,564, % $ 5,432, % $ (131,577) -2.4% State revenue sharing 3,689, % 3,678, % 3,678, % % State revenue sharing - Cobo Hall 750, % 748, % 750, % 1, % State reimbursement - Personal Property 843, % 301, % 289, % (11,929) -4.0% State grants, funding, and reimburse 9,452, % 10,806, % 11,243, % 437, % Local contributions 6, % 7, % 6, % (325) -4.6% Total 19,907, % 21,106, % 21,401, % 295, % Road Department Federal grants 392, % 2,300, % 2,900, % 600, % State grants, funding, and reimburse 3,458, % 17,626, % 16,527, % (1,099,200) -6.2% Local contributions 287, % 4,680, % 3,500, % (1,180,000) -25.2% Total 4,137, % 24,606, % 22,927, % (1,679,200) -6.8% Total Primary Government 24,045, % 45,712, % 44,328, % (1,384,154) -3.0% Component Units State grants, funding, and reimburse 73, Grand Total $ 24,118,146 $ 45,712,217 $ 44,328,063 $ (1,384,154) -3.0% For the 2019 budget, state revenue sharing remains flat vs 2018 and the previous 3 years. 13

16 Budget Overview Charges for services Charges for Services are fees charged to individuals or business for services rendered. Revenue sources for this category divided into three groups, court related charges, fees and services, and sales. Court related charges are comprised of court costs, bond costs, and other court type fees. Fees and services are charges primarily set by statute, charter, or ordinance such as real estate transfer, tax, recording, filing, and certified copy fees, health clinic fees, booking or boarding fees, landfill use fees, etc. Sales are auction sales, scrap and salvage, printed materials, etc. This source accounts for $ million or 11.2 percent of the 2019 budget revenue. For the year of 2019, charges for services are projected to decrease by $202 thousand or 1.4% from the 2018 adopted budget. This decrease is attributed to numerous offsetting increases and decreases, however it is worth noting the budgeted decrease in Trial Court Costs of $334 thousand and Delinquent Tax fees and charges of $214 thousand which impact the net decline. Fines and forfeitures Fines and Forfeitures are revenues charges for County ordinance and penal fines, and bond forfeitures. This source accounts for $439 thousand or 0.3 percent of total revenue. For the year of 2019, fines and forfeitures are projected to decrease from the 2018 adopted budget by $81 thousand or 15.6 percent. Interest revenue Interest revenue is derived from investment and interest bearing accounts when allowed by law. Although historically a higher percentage of total revenue prior to the recession, current interest rates, although improving slightly, have relegated it to $821 thousand or 0.6 percent of 2019 projected revenue. Other revenue Other revenue is used for various accounts not covered by categories previously discussed with the exception of other financing sources. These sources are made up of benefit reimbursements to the Internal Service funds from various funds, casino cost reimbursements, contributions and grants from private sources, rents, special assessments which are levied much like a tax for governmental services such as water and sewer or drains, refunds, and other reimbursements. Internal service cost reimbursements and administrative fees are included, however broken out for illustrative purposes on the financial statements. Other revenue category accounts for $ million or 15.1 percent of total revenues, excluding indirect costs and administrative fees, for the 2019 budget. This represents an increase of $1.405 million or 7.7 percent from the 2018 adopted budget. The increase in other revenue, excluding indirect costs and admin fees, of $1,405 million is attributed to an additional refund to the General Fund from MMRMA of $326 thousand, reimbursements to the Healthcare Internal Service Fund of $1.868 million, reimbursements to Worker s Compensation Internal Service Fund of $269 thousand, partially offset by a reduction in water and sewer system assessments of $684 thousand driven Benton Township Water system refunding, no longer requiring County involvement, and other donations, refunds, reimbursements, etc. reduction of $374 thousand. Year ended December Incr (Decr) vs 2018 Audited Percent Adopted Percent Adopted Percent Amount Percent MMRMA reimbursement (refund) $ 513, % $ 674, % $ 1,000, % $ 325, % Healthcare internal service fund 13,238, % 14,015, % 15,883, % 1,868, % Worker's compensation internal service fund 135, % 296, % 565, % 268, % Water and sewer system assessments 2,196, % 1,073, % 389, % (683,815) -63.7% Refunds, rents, donations, reimburse, etc. 2,192, % 2,199, % 1,825, % (374,238) -17.0% Total $ 18,276, % $ 18,259, % $ 19,663, % $ 1,404, % 14

17 Other financing sources Budget Overview Other financing sources consists special or extraordinary items such as bond or insurance recoveries, gain on sale of fixed assets, bond, note, and capital lease proceeds, and transfers in for inter-fund or operating purposes. Transfers amount to $ million, a decrease of $4.077 million from the 2018 adopted budget. Primary Government Expenditure Assumptions and Analysis Expenditures for Primary Government, excluding other uses of funds, indirect cost, and administration fees, are budgeted for 2019 at $ million. This is a decrease of $2.416 million or 1.7 percent from the 2018 adopted budget. The Road Commission, a separate component unit of government, was dissolved in September 2017 and became a department of primary government. The trend information on the next page shows the addition of the road department beginning in the last quarter of

18 Budget Overview Expenditures for Primary Government excluding the road department are budgeted to decrease 1.2 percent while the road department is budgeted to decrease 4.0 percent from the 2018 budget. The summary below provides a comparison of 2019 budget expenditures by category compared to the 2018 adopted budget and 2017 actual: Year ended December Incr (Decr) vs 2018 Audited Percent Adopted Percent Adopted Percent Amount Percent Salaries and wages $ 37,315, % $ 42,298, % $ 43,216, % $ 918, % Benefit costs 20,217, % 23,208, % 23,172, % (36,834) -0.2% Road construction services and materials 1,560, % 15,040, % 13,470, % (1,570,000) -10.4% Professional and contractual services 12,180, % 14,700, % 13,557, % (1,143,148) -7.8% Supples and fuel 3,043, % 4,360, % 4,270, % (89,914) -2.1% Utilities 1,025, % 1,456, % 1,335, % (120,221) -8.3% Repair and maintenance 2,066, % 2,842, % 2,750, % (92,009) -3.2% Other insurance and taxes 14,213, % 15,256, % 16,518, % 1,261, % Appropriations 3,837, % 3,937, % 3,866, % (70,912) -1.8% Debt service 1,227, % 1,603, % 891, % (711,163) -44.4% Capital outlay 4,357, % 11,091, % 10,006, % (1,084,937) -9.8% General fund contingency - 0.0% 1,500, % 1,450, % (50,000) -3.3% All other items 4,276, % 2,826, % 3,199, % 372, % Total 105,321, % 140,123, % 137,707, % (2,416,227) -1.7% Indirect cost and admin fees 5,833,017 6,694,370 6,755,684 61, % Total expenditures $ 111,154,189 $ 146,818,069 $ 144,463,156 $ (2,354,913) -1.6% 16

19 Budget Overview Personnel costs Personnel costs are costs of salaries and wages, and employer portion of benefits for employees. Included in this category are salaries and wages of elected and appointed officials, deputies, supervisory employees, permanent and temporary employees, overtime, and per diems. Benefits include employer portion of social security, medicare, health insurance, life insurance, pension, OPEB, unemployment, and worker s compensation insurance. These expenses account for $ million or 48.2 percent of total expenditures for the 2019 budget. This represents an increase of $881 thousand or 1.3 percent from the 2018 budget. The chart below shows personnel costs over time. 17

20 Budget Overview Below is a summary of these costs: Year ended December Incr (Decr) vs 2018 Audited Percent Adopted Percent Adopted Percent Amount Percent Salaries and wages Board and per diem $ 199, % $ 222, % $ 212, % $ (10,482) -4.7% Full Time/Judges Std 33,114, % 37,930, % 38,266, % 336, % Temporary 1,658, % 1,928, % 1,860, % (67,842) -3.5% Overtime 2,014, % 2,016, % 2,341, % 325, % Comp Time 328, % 200, % 535, % 335, % Total 37,315, % 42,298, % 43,216, % 918, % Benefit costs Social Sec/Medicare 2,653, % 3,178, % 3,079, % $ (98,782) -3.1% Health Insurance 7,673, % 9,123, % 9,228, % 105, % Dental/Vision 448, % 660, % 746, % 85, % Life Insurance 139, % 175, % 162, % (13,569) -7.7% Pension 6,625, % 7,252, % 7,147, % (104,631) -1.4% OPEB Healthcare 2,572, % 2,389, % 2,180, % (209,289) -8.8% Unemployment Insurance - 0.0% 10, % 63, % 53, % Worker's Comp Insurance 103, % 419, % 564, % 145, % Total 20,217, % 23,208, % 23,172, % (36,834) -0.2% Grand Total $ 57,532, % $ 65,507, % $ 66,388, % $ 881, % Salaries and wages Salaries and wages are budgeted at $ million, an increase of 2.2 percent from the 2018 adopted budget. The 2019 budget places full time equivalent employees at 766.3, an increase of 10.5 from the 2018 budget. Changes in personnel are shown on page 9. Benefit costs Benefit costs are budgeted at $ million, a decrease of 0.2 percent or $37 thousand from the 2018 adopted budget. Of this decrease, $209 thousand is due to a decreased contribution to meet OPEB requirements. Pension contributions decrease slightly due to a decrease in the pension contribution rates partially offset by changes in compensation. The chart below shows the actuarial calculated pension contribution rates over time: 18

21 Budget Overview The chart below shows pension funding over time. Pension, including component unit (Riverwood) was 69.9 percent at the end of $ $ Pension Funding Trend $ $ $ % Pension Percent Funded Trend $ in Millions $ $ $ $ $ $ $ $ $ $ $ $ % 70.0% 65.0% 67.4% 71.0% 64.2% 67.3% 69.9% $ % Actuarial Accrued Liability Valuation Assets The chart below shows retiree health care funding over time. Retiree health care benefits are pre-funded by contributions from employer (County) and are considered a self-insured program. At the end of 2017, retiree health care benefit funding was 49.7 percent. Like pension, this amount includes the component unit. $ $ Retiree Healthcare Funding Trend $ $ $ % 65.0% Retiree Healthcare Percent Funded Trend 62.0% $ in Millions $ $ $ $ $ $ $ $ $ $ $ % 55.0% 50.0% 45.0% 40.0% 55.5% 43.2% 46.3% 49.7% $ % Actuarial Accrued Liability Valuation Assets Non-personnel costs Non-personnel costs are costs of items not related to payment of employees or benefits with the exception of payments to the insurer or governmental agency from the Internal Service Funds. Included in this category are supplies, fuel, professional and contractual services, communications, repair and maintenance of facilities or equipment, indirect costs, capital outlay, etc. The items listed below are a few highlights. Professional and contractual services Professional and contractual services are comprise of payments to third party service providers for services performed and include jail health services, building and grounds maintenance services, legal and audit services, child boarding costs, memberships and subscriptions, etc. These expenses are broken out into separate significant groupings for illustrative purposes. These services account for $ million or 9.8 percent of 2019 budget expenditures. This represents a decrease of $1.143 million from the 2018 budget. The following provides a 19

22 Budget Overview comparison by grouping to 2018 adopted budget and 2017 actual: Road construction services and materials Road construction services and materials are costs associates with purchases of materials and contracted road construction services by the road department and include those associated with federal aid expenditures. These expenses account for $ million or 9.8 percent of 2019 budgeted expenditures. This represents a decrease of $1.570 million or 10.4 percent. Supplies and fuel Year ended December Incr (Decr) vs 2018 Audited Percent Adopted Percent Adopted Percent Amount Percent Contractual services $ 5,099, % $ 5,036, % $ 5,032, % $ (3,991) -0.1% Consulting services 6, % 8, % 6, % (2,132) -25.0% Engineering services 4, % 256, % 350, % 94, % Boarding services 2,389, % 3,793, % 2,545, % (1,248,171) -32.9% Health services 1,999, % 2,534, % 2,624, % 89, % Legal services 1,107, % 1,163, % 1,216, % 52, % Other services 1,573, % 1,908, % 1,782, % (125,633) -6.6% $ 12,180, % $ 14,700, % $ 13,557, % $ (1,143,148) -7.8% Supplies and fuel are comprised of various types of supply items and fuel for County vehicles. These expenses account for $4.270 million or 3.1 percent of the 2019 budgeted expenditures. The following provides a comparison of 2019 budget to the 2018 adopted budget and 2017 actual: Year ended December Incr (Decr) vs 2018 Audited Percent Adopted Percent Adopted Percent Amount Percent Supplies Food $ 558, % 654, % 595, % (58,914) -9.0% Cleaning/custodial 140, % 189, % 202, % 12, % Medical 797, % 659, % 688, % 29, % Office 107, % 163, % 157, % (5,146) -3.2% Operating 342, % 471, % 483, % 12, % Printing/publishing 66, % 159, % 107, % (51,667) -32.5% Safety gear and equipment 80, % 71, % 67, % (4,400) -6.2% Small tools 57, % 94, % 95, % % Uniforms/accessories 110, % 133, % 131, % (2,319) -1.7% Vehicle 117, % 470, % 467, % (3,000) -0.6% Road operating 28, % 228, % 187, % (41,000) -17.9% All other 199, % 216, % 218, % 2, % Total 2,605, % 3,512, % 3,402, % (109,927) -3.1% Fuel 438, % 848, % 868, % 20, % Total $ 3,043, % $ 4,360, % $ 4,270, % $ (89,914) -2.1% Insurance and taxes Insurance and taxes are costs for liability and property insurance, payments for benefit insurance to insurers or governmental agencies from Internal Service Funds, or taxes on non-exempt properties owned by the County. These expenses account for $ million or 12.0 percent of expenditures for the 2019 budget. This represents an increase of $1.262 million or 8.3 percent from the 2018 adopted budget. The following provides a 20

23 Budget Overview comparison of 2019 budget to the 2018 adopted budget and 2017 actual: Year ended December Incr (Decr) vs 2018 Audited Percent Adopted Percent Adopted Percent Amount Percent Internal service fund benefits Worker's comp insurance $ 367, % $ 275, % $ 388, % $ 113, % Healthcare insurance 12,339, % 12,894, % 13,653, % 758, % Unemployment insurance 14, % 21, % 13, % (8,412) -38.9% Property/liability insurance 568, % 949, % 1,278, % 328, % Total 13,289, % 14,141, % 15,333, % 1,192, % Vehicle, property, liability premiums 921, % 1,110, % 1,182, % 71, % Property taxes 2, % 5, % 3, % (2,300) -42.6% Total $ 14,213, % $ 15,256, % $ 16,518, % $ 1,261, % Repair and maintenance Repair and maintenance are expenditures to the assets of the County. These expenditures are for building and grounds, vehicles, machinery and equipment, office equipment, computer and network equipment, and software. These expenses account for $2.751 million or 2.0 percent of expenditures for the 2019 budget. The following provides a comparison of 2019 budget to 2018 adopted budget and 2017 actual: Appropriations Appropriations are expenditures to outside agencies or between primary government and component units. These expenses account for $3.867 million or 2.8 percent of expenditures for the 2019 adopted budget. A list of General Fund appropriations is shown on page 122 of this document. Capital outlay Year ended December Incr (Decr) vs 2018 Audited Percent Adopted Percent Adopted Percent Amount Percent Building and grounds $ 388, % $ 739, % $ 665, % $ (73,543) -9.9% Vehicles 150, % 266, % 235, % (30,150) -11.3% Equipment 448, % 531, % 512, % (19,279) -3.6% Office equipment 35, % 47, % 47, % % Computer equipment/network 83, % 121, % 135, % 13, % Software 959, % 1,117, % 1,138, % 21, % Other % 20, % 15, % (5,000) -25.0% Total $ 2,066, % $ 2,842, % $ 2,750, % $ (92,009) -3.2% Capital outlay is expenditures that result in the acquisition of or addition to capital assets. These may be large or small in nature depending on type. These expenses account for $ million or 7.3 percent of expenditures for the 2019 adopted budget. Of this total amount, $6.041 million are expended through capital project funds, $2.050 million is Road Department equipment and building improvements, $843 thousand is related to a 911 operations, $465 thousand is Berrien Bus equipment grants, $383 thousand is from the General Fund, and $73 thousand is from the Parks and Recreations projects. Pages 93 and 94 provides details for capital project funds spending of $6.041 million. Funding of the Capital Project Funds expenditures of the $6.041 million is provided by an appropriation from the Delinquent Tax Revolving Fund of $4.300 million and use of existing fund balance of $1.741 million. 21

24 Budget Overview Debt service Debt service is the payment of principal and interest on long or short term debt, including capital lease items. Debt service payments for primary government account for $892 thousand or 0.6 percent of 2019 budgeted expenditures. The debt service payments are comprised primarily of interest payments of $385 thousand on repayment of long term debt incurred in the construction of water and sewer systems with various communities in Berrien County, road department principal and interest payments on debt of $252 thousand, and General Fund capital lease principal and interest payments of $176 thousand. Indirect cost and administration fees Internal service cost reimbursements and administrative fees are for services provided by supporting departments. The increase from the 2018 adopted budget is $61 thousand. These expenditures are offset in a revenue account from which these reimbursement of costs or fees are charged. Other financing uses Other financing uses consists special or extraordinary items including transfers out for inter-fund or operating purposes. Transfers amount to $ million, a decrease $4.077 million from the 2018 adopted budget. 22

25 Fund Summaries Introduction to Fund Summaries The following section of this publication provides the Berrien County budget by fund. Funds are classified by seven types: General Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, Internal Services Funds, Proprietary Funds, and Component Unit Funds. Pages 24 through 26 provide you with a brief description of each fund type and a list of funds categorized within each type. A consolidated summary by fund type as well as financial summary for each fund follows. See table of contents for summary and fund page numbering. 23

26 Fund Summaries General Fund Description of Fund Types The General Fund is the primary operating fund and accounts for the basic services provided by the County. The Courts, Prosecutor, Sheriff/Jail, County Clerk, Treasurer, Register of Deeds, Drain Commissioner, Administration, and Animal Control all are primarily funded through the General Fund. The General Fund receives funding from property taxes, state revenue, charges for services, and other sources. The General Fund also makes transfers to other funds (i.e. Health Department, Child Care Fund, etc.) to pay for a portion of these services. Special Revenue Funds Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specific purposes other than debt service or capital projects. The list below are the County s Special Revenue Funds for Primary Government: Road Department (2010) Parks and Recreation (2080) Parks Environmental Affairs (2082) Parks and Recreation Grants (2085) Parks Millage (PA 90) Fund (2087) Historical Association Loan Fund (2110) Berrien Community Foundation (2130) Friend of the Court Fund (2150) Friend of the Court Programs (2155) Judicial Grants & Programs (2175) Health Department (2210) Health Drug Court Treatment (2211) Health Department Grants & Programs (2215) Berrien County Landfill Use (2270) Soil Erosion and Sedimentation Control (2390) EDC Grants and Programs (2445) Register of Deeds Automation (2560) Register of Deeds Tax Foreclosure Search (2561) Homestead Audit Administration (2590) Indigent Defense (2600) Prosecutor Grants and Programs (2605) 911 Service Millage (2610) 911 Service Grants (2615) Concealed Pistol Licensing (2630) Public Safety Millage (2640) Local Law Enforcement Contracts (2642) Sheriff's Special Teams & Programs (2644) Sheriff's Grants (2645) Drug Law Enforcement (2650) Federal Forfeiture Drug Law Enforcement (2651) Narc Special Fund (2653) 24

27 Fund Summaries Special Revenue Funds - Continued Emergency Management Grants and Programs (2665) Animal Control Grants and Programs (2675) Law Library (2690) Senior Citizens Millage (2700) Berrien Bus Program (2810) Berrien Bus Grants and Programs (2815) Four Winds Local Revenue Sharing (2851) 3 Oaks Village Land Purchase (2860) Campaign Finance Administration (2870) Drain Commissioner Grants and Programs (2880) Social Services (2900) Child Care (2920) DHS Child Care (2921) Family Division Grants and Programs (2925) Soldier and Sailor Relief (2930) Veteran's Trust (2940) Board of Public Works (2960) Debt Service Funds Debt service funds are used to account for all financial resources restricted, committed, or assigned to expenditure for principal and interest. Berrien County has two funds for this purpose: Bridge Bond (3010) Building Authority (4500) included in Component Unit Section Capital Project Funds Capital project funds are used to account for all financial resources restricted, committed, or assigned to expenditures for the acquisition or construction of capital assets. Berrien County has five active capital project funds. They are: Capital Improvements (4010) Vehicle Equipment Replacement (4020) Capital Reserve (4030) Animal Shelter Construction (4130) Building Authority Capital Fund (4500) (Not included in primary government here) Enterprise Funds Enterprise type funds are used to report any activity for which a fee is charged to external users for goods or services where the principal revenue source is from (a) activity financed by debt that is secured solely by a pledge of the net revenues from fees charged for activity, (b) laws or regulations require that the activity s costs of providing services, including capital costs (such as depreciation or debt service), be recovered with fees or charges, rather than with taxes or similar revenues, or (c) the pricing policies of the activity establish fees and 25

28 Fund Summaries Enterprise Funds - Continued charges designed to recover its costs, including capital costs (such as depreciation or debt service). The list below are the County s Enterprise Type Funds for Primary Government: Delinquent Tax Revolving (5160) Delinquent Real Property Tax Foreclosure (5180) Delinquent Personal & Leasehold Property Tax (5190) Royalton Township Water System No. 20 Bonds (5751) Royalton Township Water System No. 23 Bonds (5752) Buchanan Township Sewer System No. 23 / Water System No. 21 (5753) Royalton Township Sewer System No. 20 Bonds (5754) Coloma Township Sewer System No. 24 (5755) Village of Berrien Springs / Oronoko Township Water / Sewer System No. 26 (5756) Royalton Township Water System No. 25 Bonds (5757) Royalton Township Water System No. 26 Bonds (5758) New Buffalo City Water System No. 28 Bonds (5759) Benton Township Water System No. 27 Bonds (5760) Village of Berrien Springs Water / Sewer System No. 29 Bonds (5761) Coloma City Water System No. 30 Bonds (5762) Oronoko Township Water / Sewer System No. 31 Bond (5763) Village of Michiana Water System No. 32 Bonds (5764) Drain Working Capital (6390) Internal Service Funds Internal Service Funds are used to report the activity that provides goods or services to other funds, departments, or agencies of the primary government and component units, or to other governments, on a cost reimbursement basis. The internal service fund should only be used if the reporting government is the predominant participant in the activity. Otherwise the activity should be reported as an Enterprise Fund. Berrien County uses four different Internal Service Funds. They are: Workers' Compensation Insurance (6771) Healthcare Insurance (6772) Unemployment Insurance (6773) Property / Liability Insurance (6774) 26