Berrien County. Berrien County Printing

Transcription

1 Berrien County Annual Budget 2017 Berrien County Printing

2 Table of Contents Enabling Resolution... 3 Budget Overview Introduction... 5 All Funds Summary: All Funds Summary by Fund Type... 6 All Funds History of Fund Balances... 7 All Funds Budget History by Functional Area... 9 All Funds Budget History by Category All Funds Personnel History Assumptions and Analysis Assumptions and Analysis Fund Summaries Excluding Component Units Introduction to Fund Summaries Description of Funds General Fund Summary: Statement of, s, and Changes in Fund Balance Statement by Category Statement by Functional Area by Category and Account s by Function and Activity Special Funds Summary: Schedule of and s by Fund and Activity 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 Fund Health Department Base Operating Fund Health Drug Court/Treatment Fund Health Department Grant and Program Funds Berrien County Landfill Use Fund Economic Development Grants and Programs Fund Register of Deeds Automation Fund Register of Deeds Foreclosure Search Fund Homestead Audit Administration 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 Library Board Fund

3 Table of Contents Berrien Bus Program (Operational) Fund Berrien Bus Grant and Program (Capital Purchase) Funds Four Winds Local 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 and s 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 and s by Fund and Activity Workers Compensation Insurance Fund Health Insurance Fund Unemployment Insurance Fund Property / Liability Insurance Fund Enterprise Funds Summary Schedule of and s 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 Building Authority Component Unit Departmental Budgets... D Economic Development Corporation Component Unit Departmental Budgets... E Drain Commission Component Unit Departmental Budgets... F 2

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

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

6 Budget Overview Introduction The primary purpose of this document is to provide citizens with information and insight into the 2017 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 2017 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 Commission 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

7 Budget Overview 6

8 Budget Overview All Funds History of Fund Balances Schedule of Fund Balances/Net Positions Year ended December Fund Bal/Net Position Est Fund Bal/Net Pos. Sources Uses Fund Bal/Net Position General Fund 18,701,316 18,701,316 57,944,170 57,944,170 18,701,316 Special Funds Parks and Recreation 299, ,149 1,558,616 1,612, ,588 Parks Environmental Affairs 478, , , , ,497 Parks and Recreation Grants (0) (0) 30,000 30,000 (0) Parks Millage (PA 90) Fund 160, , ,696 0 Historical Association Loan Fund 150, , ,000 Berrien Community Foundation 22,594 20,094 26,157 26,157 20,094 Friend of the Court Fund 206, ,003 3,148,412 3,348, ,043 Friend of the Court Programs 150, ,934 20,000 45, ,934 Judicial Grants & Programs 185, ,901 1,347,431 1,347, ,901 Health Department 605, ,122 4,310,455 4,811, ,632 Health Drug Court Treatment 120,759 (0) 0 0 (0) Health Department Grants & Programs 444, ,477 5,401,765 5,498, ,313 Berrien County Landfill Use 1,197, , , , ,471 EDC Grants & Programs 3,392 3, , ,244 3,392 Register of Deeds Automation 84, , , Register of Deeds Tax Foreclosure Search 13,000 13, , ,500 13,000 Homestead Audit Administration 324, ,230 92, , ,673 Prosecutor Grants and Programs 74,833 72, , ,858 72, Service Millage 2,193,647 2,560,808 4,336,883 4,261,736 2,635, Service Grants 50,511 32, ,000 2,511 Concealed Pistol Licensing 20,127 49,992 65,000 18,914 96,078 Public Safety Millage 452, ,134 2,627,024 2,627, ,134 Local Law Enforcement Contracts 113, ,153 2,355,033 2,355, ,153 Sheriff's Special Teams & Programs 72,488 50,338 1,440,780 1,442,280 48,838 Sheriff's Grants 111, , , , ,436 Drug Law Enforcement 181,673 27,234 20,595 36,309 11,520 Federal Forfeiture Drug Law Enforcement 17,999 5, ,000 3,899 Narc Special Fund 965, , ,286 1,397, ,296 Emergency Management Grants and Programs 55,926 55,926 20,161 20,161 55,926 Animal Control Grants and Programs 12,407 6,642 24,000 25,700 4,942 Law Library 24,545 24,545 83,510 83,510 24,545 Senior Citizens Millage 24,648 24,648 2,251,293 2,251,293 24,648 Berrien Bus Program 477, , , , ,632 Berrien Bus Grants and Programs , ,315 0 Four Winds Local Sharing 769, , , , ,802 Three Oaks Village Land Purchase 34, Campaign Finance Administration 8,739 6, ,050 3,537 Social Services 105, ,620 21,977 21, ,620 Child Care 1,199,089 1,392,401 8,546,754 8,796,754 1,142,401 DHS Child Care 630, ,685 1,044,615 1,344, ,685 Family Division Grants and Programs 17,575 17,575 6,000 6,000 17,575 Soldier and Sailor Relief 2,156 1, Veteran's Trust 2,218 2,218 34,789 34,789 2,218 Board of Public Works 111,116 97,975 10,000 13,486 94,489 Total Special Funds 12,177,616 11,222,537 44,504,227 47,207,778 8,518,986 7

9 Budget Overview All Funds History of Fund Balances Schedule of Fund Balances/Net Positions Year ended December Fund Bal/Net Position Est Fund Bal/Net Pos. Sources Uses Fund Bal/Net Position Debt Service Funds Bridge Bond Total Debt Service Funds Capital Projects Funds Capital Improvements 3,240,677 3,662,105 6,000,000 7,440,649 2,221,456 Vehicle Equipment Replacement 278, , , ,118 Capital Reserve 403, Animal Shelter Construction 507,301 (0) 0 0 (0) Total Capital Projects Funds 4,430,570 4,053,023 6,000,000 7,688,449 2,364,574 Internal Service Funds Workers' Compensation Insurance 908, ,537 25, , ,337 Healthcare Insurance 5,434,814 3,373,121 14,618,110 16,040,541 1,950,690 Unemployment Insurance 118, , , ,487 Property / Liability Insurance 3,242,132 3,382, , ,844 3,468,844 Total Internal Service Funds 9,703,599 7,496,733 15,373,510 16,878,885 5,991,358 Proprietary Funds Delinquent Tax Revolving 36,433,962 32,047,949 1,911,809 7,510,117 26,449,641 Delinquent Real Property Tax Forclosure 917,234 38,548 1,452,645 1,323, ,166 Delinquent Personal & Leasehold Property Tax 151, ,662 24,590 24, ,572 Coloma Township Sewer System No ,278 18,278 0 Village of Berrien Springs / Oronoko Township W 0 0 6,898 6,898 0 New Buffalo City Water System No. 28 Bonds ,249 29,249 0 Benton Township Water System No. 27 Bonds , ,829 0 Village of Berrien Springs Water / Sewer System , ,984 0 Coloma City Water System No. 30 Bonds , ,263 0 Oronoko Township Water / Sewer System No ,900 72,900 0 Drain Working Capital 511, ,656 70,000 87, ,454 Total Proprietary Funds 38,014,784 32,611,815 4,542,445 10,028,427 27,125,833 Total Primary Government 83,027,885 74,085, ,364, ,747,709 62,702,067 8

10 Budget Overview All Funds Budget Summary By Category (Excluding Component Units) Year ended December Incr(Decr) vs 2016 Audited Percent Adopted Percent Adopted Percent Amount Percent s Taxes $ 46,410, % $ 47,107, % $ 47,239, % $ 132, % Licenses and permits 568, % 614, % 625, % 11, % State revenue sharing 3,636, % 3,642, % 3,642, % - 0.0% Intergovernmental revenue 16,799, % 15,520, % 16,602, % 1,082, % Charges for services 14,676, % 13,322, % 14,730, % 1,408, % Fines and forfeitures 468, % 519, % 519, % - 0.0% Interest revenue 218, % 96, % 370, % 273, % Indirect cost and adm fees revenue 3,750, % 3,987, % 5,221, % 1,233, % Other revenue 19,556, % 18,296, % 18,545, % 249, % Total revenues 106,085, % 103,106, % 107,498, % 4,391, % s Operating expenditures: Legislative 1,352, % 1,040, % 1,054, % 13, % Judicial 13,147, % 12,963, % 13,377, % 413, % General government 16,997, % 19,795, % 20,349, % 553, % Public safety 25,030, % 26,148, % 27,625, % 1,477, % Public works 4,597, % 670, % 765, % 95, % Health and welfare 19,083, % 20,993, % 23,366, % 2,372, % Recreation and cultural 1,439, % 1,535, % 1,786, % 251, % Community & economic dev 1,669, % 1,696, % 1,681, % (15,207) -0.9% Other governmental activities 13,508, % 17,427, % 18,997, % 1,570, % Total operating expenditures 96,826, % 102,270, % 109,004, % 6,733, % Debt service 1,222, % 2,452, % 1,290, % (1,162,361) -47.4% Capital outlay 4,339, % 7,009, % 8,737, % 1,727, % Total expenditures 102,388, % 111,732, % 119,031, % 7,298, % over (under) expenditures 3,697,462 (8,626,183) (11,533,357) (2,907,174) Other financing sources (uses) Proceeds from capital lease , ,000 Gain (loss) sale of assets 5, Transfers in 13,835,631 19,480,118 20,716,209 1,236,091 Transfers out (13,807,236) (19,480,118) (20,716,209) (1,236,091) Total other financing sources (uses) 33, , ,000 Net inc (dec) in fund balances $ 3,730,940 $ (8,626,183) $ (11,383,357) $ (2,757,174) 2016 Adopted Budget excluded budget for Property/Liability Insurance Internal Service Fund not historically budgeted. The budget was later amended to include $1.1 million in charges for services and $0.9 million in insurance and taxes expenditures appearing on the Other governmental activities line for a net $0.1 increase in fund balance. When including this amendment amount, overall fund balance reflected on this schedule for 2016 Adopted would be a decrease by $8,485,327. The 2017 Adopted budget includes a budget for the activities of the Property/Liability Insurance Internal Service Fund. 9

11 Budget Overview All Funds Budget Summary By Category (Excluding Component Units) Year ended December Incr(Decr) vs 2016 Audited Percent Adopted Percent Adopted Percent Amount Percent s by Category Taxes $ 46,410, % $ 47,107, % $ 47,239, % $ 132, % Licenses and permits 568, % 614, % 625, % 11, % State revenue sharing 3,636, % 3,642, % 3,642, % - 0.0% Intergovernmental revenue 16,799, % 15,520, % 16,602, % 1,082, % Charges for services 14,676, % 13,322, % 14,730, % 1,408, % Fines and forfeitures 468, % 519, % 519, % - 0.0% Interest revenue 218, % 96, % 370, % 273, % Indirect cost and adm fees revenue 3,750, % 3,987, % 5,221, % 1,233, % Other revenue 19,556, % 18,296, % 18,545, % 249, % Total revenues 106,085, % 103,106, % 107,498, % 4,391, % s by Category Current expenditures: Salaries and wages 34,457, % 36,105, % 37,691, % 1,585, % Benefit costs 18,530, % 19,069, % 21,049, % 1,979, % Supplies 2,387, % 2,762, % 2,776, % 13, % Fuel 371, % 572, % 493, % (78,620) -13.7% Contractual services 5,892, % 5,897, % 6,146, % 248, % Health services 1,749, % 1,852, % 2,150, % 298, % Legal and audit 1,848, % 1,597, % 1,277, % (320,046) -20.0% Maintenance services 114, % 141, % 117, % (23,758) -16.8% Other services 3,793, % 4,517, % 5,476, % 958, % Memberships and subscriptions 102, % 124, % 118, % (6,044) -4.9% Communications 475, % 478, % 459, % (19,156) -4.0% Travel 246, % 314, % 332, % 18, % Employee training and improv 108, % 187, % 211, % 24, % Freight and postage 270, % 390, % 387, % (2,929) -0.7% Advertising 42, % 65, % 60, % (5,041) -7.7% Utilities 1,049, % 1,314, % 1,331, % 16, % Repair and maintenance 1,827, % 2,384, % 2,435, % 51, % Bldg, equip, and software rental 214, % 238, % 234, % (3,496) -1.5% Insurance and taxes 11,971, % 13,890, % 15,194, % 1,303, % Depreciation 8, % 37, % 8, % (28,727) -77.5% Appropriations 3,870, % 4,185, % 3,872, % (312,751) -7.5% Contingency - 0.0% 1,500, % 1,300, % (200,000) -13.3% Indirect cost and admin fees 3,750, % 3,987, % 5,221, % 1,233, % Project costs 3,221, % - 0.0% - 0.0% - NA Capital outlay 4,339, % 7,009, % 8,737, % 1,727, % All other items 520, % 655, % 656, % % Debt service 1,222, % 2,452, % 1,290, % (1,162,361) -47.4% Total expenditures 102,388, % 111,732, % 119,031, % 7,298, % over (under) expenditures 3,697,462 (8,626,183) (11,533,357) (2,907,174) Other financing sources (uses) Proceeds from capital lease , ,000 Gain (loss) sale of assets 5, Transfers in 13,835,631 19,480,118 20,716,209 1,236,091 Transfers out (13,807,236) (19,480,118) (20,716,209) (1,236,091) Total other financing sources (uses) 33, , ,000 Net inc (dec) in fund balances $ 3,730,940 $ (8,626,183) $ (11,383,357) $ (2,757,174) 2016 Adopted Budget excluded budget for Property/Liability Insurance Internal Service Fund not historically budgeted. The budget was later amended to include $1.1 million in charges for services and $0.9 million in insurance and taxes expenditures appearing on the Other governmental activities line for a net $0.1 increase in fund balance. When including this amendment amount, overall fund balance reflected on this schedule for 2016 Adopted would be a decrease by $8,485,327. The 2017 Adopted budget includes a budget for the activities of the Property/Liability Insurance Internal Service Fund. 10

12 Budget Overview Full Time Equivalent Employee (FTE) by Functional Area Department Board of Commissioners Legislative Family Division Friend of the Court Judicial Grants & Prog Tri-Court Judicial Administrator Assessor/Equal Dept 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 Printing Prop Desc/Map Grants Prop Descript/Mapping Prosecuting Attorney Purchasing Records Center Register of Deeds Tele - Cntrl Sw itchbrd Treasurer General Government Ops (Com/Dispatch) Animal Control Civil Def/Homeland Sec Corrections/Jail Div Jail Maintenance Local Law Enforcement Marine Law Enforcement Public Safety Admin Public Safety Grants Public Safety Programs Special Teams Public Safety Board of Public Works Public Works Chld Care-Probate (Ct) Health Dept (Non-Grnt) Health Grants and Prog Medical Examiner Veterans Programs Health and Welfare Parks and Recreation Recreation and Cultural Econ Dev Grants & Prog Economic Development Comm & Economic Developmt Grand Total

13 Budget Overview Primary Government Assumptions and Analysis for Primary Government, excluding other financing sources such as transfers,, capital lease proceeds, gain (loss) on sale of assets, and use of fund balance, are budgeted for 2017 at $107.5 million. This is an increase of $4.44 million or 4.3% from the 2016 adopted budget. The summary below provides a view of 2017 adopted revenues by category compared to 2016 adopted budget and 2015 actual: s by Category Taxes Licenses and permits State revenue sharing Intergovern nmental revenue Charges for services Fines and forfeiture es Interest revenue Indirec ct cost and adm fees revenue Other revenue 2015 Audited $ 46,41 10, , ,636, ,79 99, ,67 76, , , ,750, ,55 56,40 01 Percent Year ended December Adopted Percent Adopted 43.7% 0.5% 3.4% 15.8% 13.8% 0.4% 0.2% 3.5% 18.4% $ 47,107 7, , ,642 2,830 15,520 0, ,322 2, , , ,987 7, ,296 6, % 0.6% 3.5% 15.1% 12.9% 0.5% 0.1% 3.9% 17.7% $ 47,239, ,850 3,642,830 16,602,098 14,730, , ,473 5,221,419 18,545,933 Percent 43.9% 0.6% 3.4% 15.4% 13.7% 0.5% 0.3% 4.9% 17.3% Incr(Decr) vs 2016 Amount Percent $ 132, % 11, % - 0.0% 1,082, % 1,408, % - 0.0% 273, % 1,233, % 249, % Total revenues 106,085, % 103,,106, % 107,498, % 4,391, % Taxes The primary source of revenue to the County is taxes.. Taxes are e comprised of real estate, personal, and leasehold d property, perty payment in lieu of, industrial and commercial, mercial delinquent, and interest and penalties received on late payment of taxes. Real estate tax makes up most of f this amount. For the 2017 budget, taxes represent approximately 43.9% % of the e County s total revenues. enues. The projection for all tax revenues totals $47.2 million and d includes the general operating,, law enforcement, nt, 911, senior citizen, and park millage, industrial l and commercial,, and other items noted above. For the year of ,, taxes are projected to increase $0..1 million or 0..3% from the 2016 adopted budget of $47.1 million. Current taxes increased $0.7 million while delinquent taxes decreased $0.5 million. State e equalized ed values increased by $201.6 million or 2.2%. Taxable values increased to $7.482 billion, an increase of 0.6%. The increase in current taxes can be primarily attributed to these increases. The charts below will provide a visual representation of these changes: 12

14 Budget Overview Current Property and PILT Only (Delinq. Not Included) 2015 Audited 2016 Adopted 2017 Adopted Change % Chg General Fund Parks Milla lage (PA 90) Fund Servic ce Millag ge Fund Public Safety Milla age Fund Senior Citizens Millage Fund Total Primar ry Government $ 34,53 32, , ,080, ,398, ,058, ,,755,765 $ 34,735 5,662 $ 718,613 3,235 5, ,518 8,231 2,159 9,428 43,367,, ,336, , ,263, ,539, ,176, ,037,927 $ 601,,095 2,,679 27,,654 21,,524 17,, , % 0.4% 0.9% 0.9% 0.8% 1.5% Land Bank Authority Fund Brownfield Redevelop Auth Fund 2,573 1,072, , , ,000 1,130, ,, ,, % 49.7% Grand Total $ 42,,755,765 $ 43,367,,9111 $ 44,037,927 $ 670, % Licensess and permits Licenses and permits s represent esent fees es charged d by the County to individuals ividua and business s for things such as marriage, food service, and dog licenses, as well as burial, pistol, septic c, well,, and other types of permits. This source of revenue amounts to $0.6 million, or 0.6% %, of total revenues for the 2017 budget. This represents an increase of 1.8% from the 2016 adopted budget. The e majority of the increase is attributed to food service licensess issued by the Health Department and pistol permits amended d in 2015 under MCL through Intergovernmental revenue Intergovernmental ernm ntal revenue e consists s of grants s from m Federal,, State,, and local units of government. nt. One of the impor ortant sources s of intergovernmental ernmenta revenue e is state revenue sharing g which is illustrated ted separately on the financial statements. Intergovernmental revenue accounts for $20.2 million or 18.8% of tota al revenues. This represents an increase of 5.6% from the 2016 adopted budget, or $1.11 million. It is worth noting that this amount includes an estimated ted $132 thousand d state reimbursement ment for a personal property tax change. 13

15 Budget Overview Charges for services Charges for Services are fees charged to individuals or business for services rendered. sources for this category divided into three groups, court related charges, fees and services, and sales. Court related costs 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 $14.7 million or 13.7% of the 2017 adopted budget revenue. For the year of 2017, charges for services are projected to increase by $1.4 million or 10.6% from the 2016 adopted budget. This increase is attributed to an amendment to include Property and Liability Internal Service Fund revenue of $0.7 million not previously budgeted, increases in landfill use fees of $0.4 million, park admission fees of $0.2 million, remonumentation fees of $0.2 million, delinquent tax recording fees of $0.1 million, trial court costs of $0.1 million, partially offset by telephone service fees of $0.2 million and 800 MHZ fees of $0.2 million. Fines and forfeitures Fines and Forfeitures are revenues charges for County ordinance and penal fines, and bond forfeitures. This source accounts for $0.5 million or 0.5% of total revenue. For the year of 2017, fines and forfeitures are projected to remain flat from the 2016 adopted budget. Interest revenue Interest revenue is revenues from investment and interest bearing accounts when allowed by law. Although historically a higher percentage of total revenue, current interest rates have relegated it to an insignificant amount at 0.3% of 2017 projected revenue. Other revenue Other revenue is used for various accounts not covered by categories not 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 $23.8 million or 22.1% of total revenues for the 2017 adopted budget. This represents an increase of $1.5 million or 6.7% from the 2016 adopted budget. This increase can be attributed to an increase in indirect costs and admin fees of $1.2 million, benefit costs to Internal Service funds from other funds of $1.8 million, private grants and donations of $0.1 million, partially offset by refund to the General Fund from MMRMA of $0.3 million ($0.4 million in 2017), special assessments decrease of $1.3 million. Other financing sources 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 $20.7 million, an increase of $1.2 million from the 2016 adopted budget. 14

16 Budget Overview Primary Government Assumptions and Analysis s for Primary Government, excluding transfers, are budgeted for 2017 at $119.0 million. This is an increase of $7.3 million or 6.5% from the 2016 adopted budget. The summary below provides a view of 2017 adopted expenditures by category compared to 2016 adopted budget and 2015 actual: Personnel costs Year ended December Incr(Decr) vs 2016 Audited Percent Adopted Percent Adopted Percent Amount Percent Salaries and wages 34,457, % 36,105, % 37,691, % 1,585, % Benefit costs 18,530, % 19,069, % 21,049, % 1,979, % Total personnel costs 52,988, % 55,175, % 58,740, % 3,565, % Supplies 2,387, % 2,762, % 2,776, % 13, % Fuel 371, % 572, % 493, % (78,620) -13.7% Contractual services 5,892, % 5,897, % 6,146, % 248, % Health services 1,749, % 1,852, % 2,150, % 298, % Legal and audit 1,848, % 1,597, % 1,277, % (320,046) -20.0% Maintenance services 114, % 141, % 117, % (23,758) -16.8% Other services 3,793, % 4,517, % 5,476, % 958, % Memberships and subscriptions 102, % 124, % 118, % (6,044) -4.9% Communications 475, % 478, % 459, % (19,156) -4.0% Travel 246, % 314, % 332, % 18, % Employee training and improv 108, % 187, % 211, % 24, % Freight and postage 270, % 390, % 387, % (2,929) -0.7% Advertising 42, % 65, % 60, % (5,041) -7.7% Utilities 1,049, % 1,314, % 1,331, % 16, % Repair and maintenance 1,827, % 2,384, % 2,435, % 51, % Bldg, equip, and software rental 214, % 238, % 234, % (3,496) -1.5% Insurance and taxes 11,971, % 13,890, % 15,194, % 1,303, % Depreciation 8, % 37, % 8, % (28,727) -77.5% Appropriations 3,870, % 4,185, % 3,872, % (312,751) -7.5% Contingency - 0.0% 1,500, % 1,300, % (200,000) -13.3% Indirect cost and admin fees 3,750, % 3,987, % 5,221, % 1,233, % Project costs 3,221, % - 0.0% - 0.0% - NA Capital outlay 4,339, % 7,009, % 8,737, % 1,727, % All other items 520, % 655, % 656, % % Debt service 1,222, % 2,452, % 1,290, % (1,162,361) -47.4% Total expenditures $ 102,388, % $ 111,732, % $ 119,031, % $ 7,298, % Note: 2015 restated for reclassification of internal service fund payments to insurance companies and State of Michigan. 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 officials, 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, unemployment, and worker s compensation insurance. These expenses account for $58.7 million or 49.3% of total expenditures for the 2017 adopted budget. This represents an increase of $3.6 million or 6.5% from the 2016 adopted budget. 15

17 Budget Overview The chart below shows personnel costss over time. Below is a summary of these costs: Salaries and Wages Per Diem Full Time e/judges Std Temporar ry Overtime Total $ 2015 Audited 74, ,66 60, ,639, ,082, ,457,404 Percent 0.1% 57.9% 3.1% 3.9% 65..0% $ 2016 Adopted 110, ,06 61,570 2,035,892 1,898,170 36,105,857 Percent 0..2% 58..1% 3..7% 3..4% 65.4% $ 2017 Adopted 89,843 33,665,559 3,665 1,949,632 9,632 1,986,339 37,691,373 Percent 0.2% 57.3% 3.3% 3.4% 64.2% Incr (Decr) vs 2016 Amount Percent $ (20,382) -18.5% 1,603, % (86,260) -4.2% 88, % 1,585, % Benefit costs Socia al Sec/Medica are Health Insurance Dental/V Vision Life Insurance Pension Worker's Compensatio ion Insurance Unemploy oyme nt Ins. Total 2,679, ,229, , , ,949, , ,530, % 17.4% 0.8% 0.3% 11.2% 0.0% 0.1% 35..0% 2,730, ,841, , , ,624, ,383 19,069, % 17..8% 1..2% 0..3% 10..2% 0..0% 0..1% 34.6% 2,849,845 10,564, , ,781 6,646,758 6, ,719 8, ,049, % 18.0% 1.1% 0.2% 11.3% 0.3% 0.0% 35.8% 119, % 723, % 13, % (35,050) -20.2% 1,022, , % NA (52,383) NA 1,979, % Grand Total $ 52,988, % $ 55,175, % $ 58,740, % $ 3,565, % Salaries and wage es Salaries and wage es are budgeted at $37.77 million, an increasee of 4..4% from the 2016 adopted budget. The 2017 proposed budget places fulll time equivalent employees at 684,, an increase of 22 from the 2016 adopted budget. Changes in personnel are shown on page 11 and are a significant portion of the overall increase. Benefit costss Benefit costs are budgeted at $21.0 million, an increase of 10.4% or $2.0 million from the 2016 adopted budget. Of this increase, $0.5 million is due e to o an n increased ed contribution tion to meet the Annual Required Contribution (ARC) to the OPEB Trust Fund. Pension contributions increased $1.0 million due to an increase in pension contribution rates created primarily by a change in actuarial assumptions. 16

18 Budget Overview The chart below shows the actuarial calculated pension contribution rates over time: The chart below shows pension funding over time. Road Commission) was 64.2% at the end of Pension, including component units (Riverwood and $ in Millions $ $ $ $ $ $ $ $ Pension Funding Trend $ $ $ $ $ $ $ $ $ $ Valuation Assets Actuarial Liability Percent Funded 85.0% 73.0% 75.0% 65.0% 55.0% 45.0% Pension Percent Fundedd Trend 71.0% 72.0% 67..4% 65.1% 64.2% 35.0% 25.0% Before Assumption Change After Assumption Change The chart below shows retireee health care funding over time. Retiree health care benefits are pre-funded by contributions from employer (County) and are considered a self-i insured program. At the end of 2015, retiree health care benefit funding was 43.2%. Like pension, this amount includes component units. $ in Millions $ $ $ $ $ $ Retireee Healthcare Funding Trend $ $ $ $ $ $ $ $ $ $ Valuation Assets Actuarial Liability Percent Funded 65.0% 60.0% 55.0% 50.0% 45.0% Retiree e Healthcare Percent Funded Trend 62..0% 60.6% 55.5% 51.7% 48.8% 43.2% 40.0% 35.0% Before Assumption Change After Assumption Change 17

19 Budget Overview Non-personnel costs Non-personnel costs are costs of items not related to payment of employees or benefits with the exception in 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, etc. These expenses are broken out into separate significant groupings for illustrative purposes. These services account for $15.2 million or 12.7% of 2017 budget expenditures. This represents an increase of $1.2 million from the 2016 adopted budget. Of this amount, boarding costs, driven by the Child Care Fund is $1.0 million, health services are $0.3 million, other contractual services of $0.3 million, partially offset by audit and legal services decreasing $0.3 million. Insurance and taxes Insurance and taxes are costs for liability 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 $15.2 million or 12.8% of expenditures for the 2017 adopted budget. This represents an increase of $1.3 million or 9.4% from the 2016 adopted budget. When factoring in an amendment to include Property and Liability Insurance Fund expenditures, the increase is $0.7 million. An increase in health insurance premium payments makes up $0.8 million of this balance. Appropriations Appropriations are expenditures to outside agencies or between primary government and component units. These expenses account for $3.9 million or 3.3% of expenditures for the 2017 adopted budget. A list of appropriations is shown on page 115 of this document. Indirect cost and administration fees Internal service cost reimbursements and administrative fees for services provided by supporting departments. These items are offset in a revenue account from which these reimbursement costs or fees are charged. Capital outlay 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 $8.7 million or 7.3% of expenditures for the 2017 adopted budget. Of this total amount, $7.7 million are expended through capital project funds, $0.1 million is related to a 911 operations, $0.4 million is Berrien Bus equipment grants, $0.3 million is from the General Fund, and $0.1 million is from the Child Care fund. Page 88 provides details for capital project funds spending of $7.7 million. Capital project funding of the $7.7 million is provided by an appropriation from the Delinquent Tax Revolving Fund of $6.0 million, year end 2016 General Fund appropriation of $1.3 million, and use of existing fund balance of $0.4 million. 18

20 Debt service Budget Overview Debt service is payment of principal and interest on long or short term debt, including capital lease items. Debt service payments for primary government account for $1.3 million or 1.1% of 2017 adopted expenditures. The debt service payments are primarily interest expenses of $1.1 million on repayment of long term debt incurred in the construction of water and sewer systems with various communities in Berrien County. Other financing uses Other financing uses consists special or extraordinary items including transfers out for inter-fund or operating purposes. Transfers amount to $20.7 million, an increase of $1.2 million from the 2016 adopted budget. 19

21 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 Funds, Debt Service Funds, Capital Projects Funds, Internal Services Funds, Proprietary Funds, and Component Unit Funds. Pages 21 through 23 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. 20

22 Fund Summaries Description of Fund Types General Fund 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 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 Funds for Primary Government: 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) Register of Deeds Automation (2560) Register of Deeds Tax Foreclosure Search (2561) Homestead Audit Administration (2590) 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) Emergency Management Grants and Programs (2665) Animal Control Grants and Programs (2675) Law Library (2690) 21

23 Fund Summaries Special Funds - Continued Senior Citizens Millage (2700) Library Board (2710) Berrien Bus Program (2810) Berrien Bus Grants and Programs (2815) Sharing Reserve (2850) Four Winds Local Sharing (2851) 3 Oaks Village Land Purchase (2860) Campaign Finance Administration (2870) Drain Commissioner Grants and Programs (2880) Community Develop Grants and Programs (2890) 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) 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 22

24 Fund Summaries Enterprise Funds - Continued activity establish fees and 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) Economic Development Corporation Small Cities (Block) Revolving Loan (5441) Economic Development Corporation Federal Revolving Loan (5442) EDC Revolving Loan Fund (5740) 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 / Dewer 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) 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 it s 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) 23

25 Fund Summaries The General Fund that follows reflects a balanced budget with revenues and expenditures at $57.9 million which is an increase of $1.4 million or 2.5% from the 2016 adopted budget. General Fund (1010) Fund Source / Use Summary by Functional Area Year ended December Audited 2015 Audited 2016 Adopted 2017 Adopted s Taxes $ 34,840, % $ 35,761, % $ 36,046, % $ 36,547, % Licenses and permits 269, % 236, % 263, % 232, % State revenue sharing 3,139, % 3,636, % 3,642, % 3,642, % Intergovernmental revenue 3,516, % 3,508, % 2,926, % 3,105, % Charges for services 6,297, % 6,663, % 6,694, % 6,729, % Fines and forfeitures 491, % 463, % 510, % 510, % Interest revenue 84, % 85, % 41, % 125, % Indirect cost and adm fees revenue 2,262, % 2,257, % 2,338, % 2,375, % Other revenue 616, % 1,008, % 1,362, % 1,062, % Total revenues 51,518, % 53,621, % 53,825, % 54,331, % Proceeds from capital lease - 0.0% - 0.0% - 0.0% 150, % Transfers in 1,374, % 1,150, % 2,729, % 3,462, % Total sources 52,892, % 54,772, % 56,554, % 57,944, % s by category Legislative 1,603, % 1,352, % 1,040, % 1,054, % Judicial 8,813, % 9,041, % 8,411, % 8,609, % General government 14,123, % 14,430, % 16,966, % 17,979, % Public safety 16,420, % 16,707, % 17,311, % 18,065, % Public works 351, % 394, % 439, % 482, % Health and welfare 695, % 640, % 659, % 670, % Community & economic dev 490, % 476, % 513, % 465, % Other governmental activities 854, % 814, % 2,344, % 2,119, % Total expenditures 43,352, % 43,857, % 47,686, % 49,445, % Transfers out 9,433, % 9,591, % 8,867, % 8,498, % Total uses 52,786, % 53,448, % 56,554, % 57,944, % Net incr (decr) in fund balance $ 106,640 $ 1,323,785 $ - $ Other revenue includes a draw of excess reserve from MMRMA resulting in a refund to the fund of $400, was budgeted at $691,361. Proceeds from capital lease are estimated funds from entering into a lease/purchase agreement related to computer upgrades. Transfers in includes annual transfer from the Delinquent Tax Revolving Fund of $1,300,000, Four Winds Sharing Fund of $732,532, and Parks Millage pass through to Parks Operating Fund of $749,

26 Fund Summaries General Fund (1010) Fund Source / Use Summary by Category Year ended December Audited 2015 Audited 2016 Adopted 2017 Adopted s Taxes $ 34,840, % $ 35,761, % $ 36,046, % $ 36,547, % Licenses and permits 269, % 236, % 263, % 232, % State revenue sharing 3,139, % 3,636, % 3,642, % 3,642, % Intergovernmental revenue 3,516, % 3,508, % 2,926, % 3,105, % Charges for services 6,297, % 6,663, % 6,694, % 6,729, % Fines and forfeitures 491, % 463, % 510, % 510, % Interest revenue 84, % 85, % 41, % 125, % Indirect cost and adm fees revenue 2,262, % 2,257, % 2,338, % 2,375, % Other revenue 616, % 1,008, % 1,362, % 1,062, % Total revenues 51,518, % 53,621, % 53,825, % 54,331, % Proceeds from capital lease - 0.0% - 0.0% - 0.0% 150, % Transfers in 1,374, % 1,150, % 2,729, % 3,462, % Total sources 52,892, % 54,772, % 56,554, % 57,944, % s by category Salaries and wages 21,061, % 21,538, % 22,440, % 23,377, % Benefit costs 10,286, % 10,767, % 10,713, % 11,745, % Supplies 1,410, % 1,384, % 1,715, % 1,687, % Fuel 307, % 184, % 255, % 235, % Contractual services 886, % 860, % 1,133, % 1,171, % Health services 1,433, % 1,454, % 1,484, % 1,766, % Legal and audit 1,247, % 1,328, % 1,500, % 1,184, % Maintenance services 127, % 91, % 114, % 89, % Other services 104, % 138, % 189, % 180, % Memberships and subscriptions 82, % 85, % 98, % 92, % Communications 203, % 241, % 237, % 199, % Travel 83, % 81, % 108, % 108, % Employee training and improv 23, % 28, % 69, % 79, % Freight and postage 244, % 207, % 312, % 308, % Advertising 16, % 9, % 20, % 15, % Insurance and taxes 920, % 889, % 932, % 910, % Utilities 956, % 925, % 1,148, % 1,161, % Repair and maintenance 1,261, % 1,321, % 1,677, % 1,599, % Bldg, equip, and software rental 116, % 96, % 108, % 105, % Capital outlay 141, % 186, % 186, % 272, % Appropriations 2,019, % 1,630, % 1,342, % 1,392, % Contingency - 0.0% - 0.0% 1,500, % 1,300, % Debt service 128, % 54, % - 0.0% 50, % All other items 289, % 351, % 395, % 411, % Total expenditures 43,352, % 43,857, % 47,686, % 49,445, % Transfers out 9,433, % 9,591, % 8,867, % 8,498, % Total uses 52,786, % 53,448, % 56,554, % 57,944, % Net incr (decr) in fund balance $ 106,640 $ 1,323,785 $ - $ Contingency budgeted at $1,300,000. Debt service is first year payments on lease/purchase agreement related to computer upgrades Appropriations detail may be found on page 115 and Transfers out may be found on page