2009 First Quarter Report

Transcription

1 Commissioner Jimmy Dimora Commissioner Timothy F. Hagan Commissioner Peter Lawson Jones 29 First Quarter Report County Administrator James McCafferty, MSSA Deputy Administrators Lee A. Trotter Rick Werner Office of Budget & Management May 19, 29

2 Table of Contents Section I - First Quarter Highlights Introduction...I-1 27 Results of Operation...I-1 General Fund Operating Funds...I-1 Health & Human Services Levy Funds...I-1 29 First Quarter Highlights...I-2 General Fund Revenue Trend...I-3 29 General Fund Revenue Performance...I-5 29 All Funds Revenue Performance...I-5 All Funds & General Fund Expenditure Trends...I-6 29 Expenditure Performance...I-7 Staffi ng Levels...I-8 Early Retirement Status...I-8 Ending Fund Cash Balance...I-9 Section II - Capital Projects Status 29 Capital Project Status...II-2 Active Capital Projects...II-3 29 Major Capital Projects...II-3 Operating Impact...II-4 Medical Mart and Exhibition Center...II-5 Section III - Departmental Summaries Alcohol & Drug Addictions Services Board...III-1 Auditor...III-2 Board of County Commissioners...III-4 Board of Elections...III-5 Board of Mental Retardation...III-7 Board of Revision...III-9 Central Services... III-11 Children & Family Serivces...III-14 Clerk of Courts...III-16 Clerk of the Board...III-19 Common Pleas...III-21 Community Mental Health Board...III-23 Coroner...III-24 County Administrator...III-26 County Planning Commission...III-28 Court of Appeals...III-3 Cuyahoga Support Enforcement Agency...III-32 Development...III-34 Domestic Relations Court...III-36 Early Childhood/Invest in Children...III-39 Employment & Family Services...III-41 Engineer...III-43 Executive Offi ce of Health & Human Services...III-46 Family & Children First Council...III-48 Hospitalization Self-Insurance...III-5 Human Resources...III-52 Information Services Center...III-54 Justice Affairs...III-57 Juvenile Court...III-61 MetroHealth System...III-64 Offi ce of Budget & Management...III-65 Offi ce of Procurement & Diversity...III-67 Probate Court...III-69 Prosecutor...III-71 Public Defender...III-74 Recorder...III-76 Sanitary Engineer...III-78 Senior & Adult Services...III-8 Sheriff...III-83 Soil & Water Conservation...III-85 Soldiers and Sailors Monument...III-87 Solid Waste Management District...III-89 Treasurer...III-91 Veterans Service Commission...III-94 Workforce Development...III-96 Section IV - Schedules General Fund Analysis by Type...IV-1 HHS Levies Fund Analysis by Type...IV-2 General Fund Subsidies To Other County Funds...IV-3 All Funds Analysis w/encumbrances...iv-4 All Funds Analysis w/o Encumbrances...IV-5 General Fund Expenditure Forecast...IV-6 All Funds Expenditure Forecast...IV-8 Health & Human Services Levies...IV-1 Departmental FTE Comparison...IV-11 Appendix A - Personnel Cost Analysis Appendix B - Revenue by Subfund

3 Section I First Quarter Highlights

4 Introduction The 1 st Quarter Report describes the budget performance of the appropriated funds and agencies of county government through March 31, 29. Salary and fringe benefit projections are through April 17, 29. Projections are based on current spending trends. The primary focus is changes in revenue and expenditure trends that indicate potential deviations from the appropriations approved by the Board of County Commissioners. Actions identified by agencies to address negative budget variances are not incorporated unless implementation has been achieved 28 Results of Operation General Fund The County s General Fund ended the year with an operating deficit of $7.4 million excluding the sales tax revenue set aside for the medical mart project and a cash balance of $18.8 million. This is $14.2 million higher than the projected ending balance of $166.6 million. Although the county ended the year with a better cash position than anticipated; $19.2 million is needed to cover contracts and purchase orders carried into 29 and $42.2 million is set aside in for the future exhibition hall. Provided is a comparison of the General Fund 28 estimate to the 28 actual figures. General Fund: 28 Estimate vs Actual (millions) % Over/ Estimate Actual Variance Under Revenue $391. $395.6 $ % Expenditures $37.5 $36.8 ($9.7) -2.6% Exhibition Hall Reserve $42.1 $42.2 $.1.2% Operating Suplus/Deficit ($21.6) ($7.4) $ % Ending Cash Balance $166.6 $18.8 $ % Adjustment to Balance Carryover Encumbrances $13.8 $19.2 $ % Gateway Bond Guaranty % Shaker Square Bond Guaranty % Myers University Loan Guaranty % Whiskey Island Purchase Reserve % 27th Payroll Reserve % Automation Reserve % Settlement Order Reserve % Exhibition Hall Reserve % Total Adjustment to Balance $ 75.3 $ 8.8 $ % Total Obligations $ $ $ % Available Ending Balance $ 91.4 $ 1. $ % General Fund revenue came in $4.6 million or 1.2% higher than projected. Expenditures were $9.7 million or 2.6% lower than projected. This variance is directly related to the outstanding purchase order and contract encumbrances at the end of 27. OBM had projected the carryover encumbrance balance to be $13.8 million at year end. However, the actual carryover balance was $19.2 million which was $5.4 million higher than anticipated. OBM is in the process of conducting an examination of all carryover encumbrances to verify their validity and anticipated payment date. The goal is to have all aged encumbrances decertified and the related carryover appropriations removed by mid June. If expenditures and outstanding encumbrances are combined, 28 total obligations came in $5.6 million or 1.3% lower than projected. Industry standards allows for an accuracy rate of 5.%. Also, if the expenditures for these additional encumbrances had occurred in 28, the County would have ended the year with an operating deficit of $12.8 million. Balance to Expenditure % 25% 28% Health & Human Services Levy Funds The HHS Levy Funds ended the year with an operating surplus of $2.7million and an ending cash balance of $35.3 million. The 28 estimate for these funds were right on target with revenues coming in.1% higher and expenditures.6% higher than anticipated. I-1

5 29 1 st Quarter Highlights At first quarter, the General Fund ending balance is projected at $115.8 million which is $18.9 million lower than budget. Balancing General Fund operations continues to be the challenge. Based on current revenue and expenditure trends, a $21.3 million operating deficit is projected in the General Fund Operating and a $6. million deficit in the HHS Levy Funds for a total deficit of $27.3 million, excluding the exhibition hall reserve of $4.5 million 29 1st Quarter Estimate General Fund and All Funds Summary General Fund Health & Human Total All Operating Service Funds General Fund Funds Revenue Estimate $ million $ million $ 66. million $ 1.55 billion Operating Expenditures $ million $ million $ million $ billion Surplus (Deficit) $ 19.2 million $ (6.) million $ 13.2 million $ 45.2 million Exhibition Hall Reserve $ 4.5 million $ - million $ 4.5 million $ 4.5 million Surplus (Deficit) $ (21.3) million $ (6.) million $ (27.3) million $ 4.7 million Ending Balance $ 86.5 million $ 29.3 million $ million $ 344. million Balance to Expenditure % 25% 12% 2% 24% General Operating Fund revenue is $32.5 million lower than 28 and the 29 estimate is $18.8 million lower than the original budget. Expenditures, estimated at $343.9 million, are $16.9 million lower than 28 and are $2.1 million lower than budget. General Operating Fund 1st Quarter Budget Performance Budget Actual Budget Estimate Variance 28 Actual vs 29 Estimate Revenue Estimate $ million $ million $ million $ (18.8) million $ (32.5) million Operating Expenditures $ 36.8 million $ 346. million $ million $ 2.1 million $ (16.9) million Exhibition Hall Reserve $ 42.2 million $ 41.4 million $ 4.5 million $ (.9) million $ (1.7) million Surplus (Deficit) $ (7.4) million $ (5.5) million $ (21.3) million Health & Human Services Levy Funds revenue is $19.5 million higher than 28 due to the passage of the 2.9 mill replacement levy in 28. Expenditures are $27.8 million higher than 28 and are $3.1 million over budget. HHS Levy Funds 1st Quarter Budget Performance 28 Actual Budget Budget Estimate Variance 28 Actual vs 29 Estimate Revenue Estimate $ million $ million $ 243. million $.2 million $ 19.5 million Operating Expenditures $ million $ million $ million $ (3.1) million $ 27.8 million Surplus (Deficit) 2.4 million $ (3.) million $ (5.9) million I-2

6 On an All Funds basis, operating revenue is $22. lower than 28 and the 29 estimate is $14.7 million lower than the original budget. Expenditures are $19.9 million lower than 28 and $37.7 million under budget. All Funds 1st Quarter Budget Performance 28 Budget Budget Budget Estimate Variance 28 Actual vs 29 Estimate Revenue Estimate $ 1,526.6 million $ 1,519.3 million $ 1,54.6 million $ (14.7) million $ (22.) million Operating Expenditures $ 1,479.3 million $ 1,497.1 million $ 1,459.4 million $ 37.7 million $ (19.9) million Exhibition Hall Reserve $ 42.2 million $ 41.4 million $ 4.5 million $ (.9) million $ (1.7) million Surplus (Deficit) $ 5.1 million $ (19.2) million $ 4.7 million General Fund Operating Revenue Trend Analysis General Fund operating revenue will be $3.9 million lower than 28 actual. The 8.7% decrease in revenue excludes the $4.5 million in collections derived from the additional.25% sales tax increase. The revenue that supports General Fund operations is $17.4 million lower in nominal dollars than 21 levels of $34.2 million. Adjusted for inflation, the General Fund revenue is $65.5 million lower than 21. The decline in General Fund revenue is due mainly to the contraction of the tax base resulting from a variety of negative factors. A loss of manufacturing and service sector jobs, decrease in property values and flattening of sales tax collections have all contributed the recent downward trends in revenue. $375. $35. $325. $3. $34. $324.3 $323.9 $ $325.5 * $331.6 Revenues GF Major Revenue Sources Property Taxes $22.6 $21. $19.6 $21.2 $21.8 $19.7 $2.2 $19.4 $19.1 $28.6 Sales Tax *** Intergovernmental Revenue Charges for Services Investment Earnings Other Revenue Sources Total GF Revenue $34. $324.3 $323.9 $334.7 $331.6 $335.3 $363.2 $353.4 $322.6 $325.5 % Change -4.6% -.1% 3.3% -.9% 1.1% 8.3% -2.7% -8.7% -7.9% HHS Levy Revenue $133.6 $136.2 $135.1 $194.5 $192.9 $196.8 $225.7 $223.9 $243. $232.8 Total GF & Levy Revenue $473.6 $46.5 $459. $529.2 $524.5 $532.1 $588.9 $577.3 $565.6 $558.3 * 24 Revenue less one time settlement of $9.2 million. ** 27 Revenue less one time property sale of $11. million *** Revenue does not include sales tax increase for proposed Exhibition Hall for the Medical Mart. $335.3 $ ** $353.4 $ $325.5 Property Taxes, from the 1.45 inside millage is expected to generate $19.1 million. Decreases result from the complete phase out of tangible personal property tax and the expansion of the homestead exemption for senior citizens. The decreases are offset by increases in intergovernmental revenue. Property Taxes directed to the General Fund will increase to $28.5 million in 21 in order to spend down the excess cash reserve that has accumulated in the debt service fund. The planned issuance of $16 million in general obligation bonds will require a shift of approximately $1 million to the debt service fund by 211 to fund debt payments for the additional bonds. Declining residential property values will begin to impact the tax collected on the inside millage beginning in 21. An expected 7.6% drop in assessed valuation for 21 will impact the collection from inside millage by approximately $ 2.4 million. I-3

7 General Fund Revenue Adjusted for Inflation ($ in millions) $4. $38. $36. $34. $32. $3. 22 $ $378.9 $381.5 $ $358.1 Revenue in 28 $'s * Total General Fund Revenue $388.1 $378.9 $381.5 $365.6 $358.1 $377.2 $353.4 $322.6 % Change -2.4%.7% -4.2% -2.% 5.3% -6.3% -8.7% 26 Annual Revenue in 28 dollars based on Consumer Price Index * Excludes $82.8 million sales tax increase for proposed Exhibition Hall. $ $353.4 $ * Sales tax has remained relatively flat over the last five years. Growth in 24 is primarily due to the expansion of the sales tax on telecommunication and other services which were previously not taxed. In 27 some internet vendors also started collecting sales tax. The recessionary down turn that has impacted the region has increased the downward trend of sales tax collections to the lowest level in five years (nominal dollars). Based on collections through April 29, sales tax is projected to be 7.8% lower than last year. When inflation is factored into the 29 revenue estimate is down 14.5% from the 22 collection. Intergovernmental revenue is lower even with the CAT reimbursement from the phase out of tangible personal property tax and the expansion of the homestead exemption for senior citizens. These increases are offset by a reduction in Local Government Fund revenue by approximately $4 million from 28. As the State is forced to reduce tax revenue projections the ability to fund local governments such as Cuyahoga County will be diminished such that the estimated revenue from this source will have to be revised downward in future forecasts. Investment earnings have dropped since 28 and the current estimate of $24.25 million is $2.9 million or 1.7% lower than the budget estimate. The decrease in interest earnings has been preceded by record low short term interest rates and declining cash balances available for investment in the portfolio. Charges for Services dropped $5.2 million, primarily due to projected 15-25% decreases in various real estate transaction fees including conveyance fees ($11.3 million) and title transfer fees ($2.3 million). Other charges collected in the General Fund showing declines in the 29 projection include Sheriff Fees ($1.9 million ) and the Board of Elections reimbursement ($2.8 million). The latter is expected to be 5% lower than 28 which was a presidential election year. Fines collected by the Clerk of Courts for various court fees and charges ($9.3 million) are projected to be 13.2% lower than 28 based on the first quarter of actual collections. I-4

8 29 General Fund Revenue Performance 29 Estimate - General Fund Revenue (millions) Miscellaneous 1.2% Investment Earnings 4.% Property Tax 35.8% Other Tax.% Charges for Services 9.% Sales & Use Tax 33.1% Intergovernmental 15.2% Licenses & Permits.% Fines & Forfeitures 1.5% '9 Budget Revenue Source Actual Budget Estimate Change Variance Property Tax $25.7 $217.9 $217.2 $11.5 -$.7 Sales & Use Tax $15.1 -$1.2 Licenses & Permits $. $. Fines & Forfeitures $1.5 -$1.4 Intergovernmental $4.2 -$1.7 Charges for Services $5.3 $.8 Other Tax... $. $. Investment Earnings $5.5 -$3. Miscellaneous $1.8 -$2.5 Total Revenue $619.5 $624.7 $66. -$13.5 -$18.7 General Fund revenue estimate totals $66. million and is $18.7 million lower than originally budgeted. Property Tax, Sales Tax, Investment Earnings and Miscellaneous revenues are $16.4 million lower than anticipated. Fines & Forfeitures, Intergovernmental and Charges for Services estimates make up the rest of the revenue shortfall. The budget estimate for 29 anticipated a decline in revenue sources. The experience of first quarter actual revenue indicates that the projected decrease in revenue will surpass the decrease built into the revenue budget by almost $14 million. Year-to-date sales tax collections are $42.7 million or 11.% lower than last year. The 28 first quarter collection included $2 million of one-time payments and when these are factored out sales tax is down about 6.5% The.25% increase in the sales tax rate to finance the construction of a new convention center/medical mart facility are not included in this decrease. The taxes generated by this increase are being held in reserve and are not available for operations. Overall, General Fund revenue is $13.5 million lower than 28. If the revenue generated from the additional sales tax is factored out the decrease from the prior year is $11.7 million. The increase in levy dollars resulting from the replacement of one of the Human Services levies resulted in an additional $19.1 million in property tax revenue. 29 All Funds Revenue Performance Overall, 29 revenue is $1.6 million higher than 28 including the increases in sales tax and property taxes related to the Human Service levy. The 29 estimate is off the budgeted amount by $2.7 million (.7%) primarily due to an overstatement of the CAT reimbursement included in the budget for the Auditor Assessment Fund. Charges for service is lower by $31.1 million than 28 due to further declines in real estate fees charged by the Recorder and fee charged by Central Services and the Information Service Center for the services they provide to county departments. This includes security, facility management, printing, vehicle maintenance, telecommunication and computer systems maintenance. Some of the decrease is offset by increases in Intergovernmental revenue including additional Federal dollars ($13.8 million) being provided to Workforce Development through the American Reinvestment and Recovery Act of 29. The impact of future ARRA dollars or additional revenue cuts by the State of Ohio are not yet reflected in the first quarter all funds revenue estimate. 29 Estimate - All Funds Revenue (millions) Intergovernmental 38.7% Fines & Forfeitures.7% Charges for Services 15.9% Licenses & Permits.1% Other Tax 2.2% Sales & Use Tax 13.% Investment Earnings 1.9% Miscellaneous 4.8% Property Tax 22.7% Budget Revenue Source Actual Budget Estimate Change Variance Property Tax $344.3 $354.6 $351.9 $7.6 -$2.7 Sales & Use Tax $ $15.1 -$1.2 Licenses & Permits $ $.3 -$.1 Fines & Forfeitures $ $2.3 -$2.3 Intergovernmental $ $15.2 $28.9 Charges for Services $ $31.1 -$32.1 Other Tax $ $5.6 $5.2 Investment Earnings $ $4. -$.1 Miscellaneous $ $25.4 $14. Total Revenue $1,548.1 $1,549.1 $1,549.7 $1.6 $.6 I-5

9 All Funds, General Fund & HHS Levy Expenditure Trends Due to significant reductions in revenue, the County reduced All Funds expenditures $38 million or 3.3% between 22 and 23. In 23, General Fund expenditures decreased $29 million or 8.3%. In 24, All Funds expenditures grew $66 million or 5.9%. General Fund expenditures increased 3.1% or $1 million. Health & Human Services grew $42 million and was supported by the property tax increase generated by the 4.9 mill Health & Human Service Levy. In 25, General Fund expenditures fell $13 million or 3.9% and Health & Human Services $8 million for a total reduction of $21 million. These reductions were primarily due to decreased subsidy needs for Children and Family Services and Employment and Family Services. In 26, General Fund expenditures grew $31 million or 9.8% primarily in the judicial area and Board of Elections. Between 25 and 27, Health & Human Services expenditures grew $6 million or 35%. Most of the growth was financed with increases in the HHS Levies. In 28, General Fund operations grew $2 million or 5.9% during this time period primarily in the judicial area and board of elections. Subsidies paid from the HHS Levy Funds decreased $9 million or 3.9% due to the use of $2 million in one-time State reconciliation funds to offset 28 subsidy requirements. For 29, All Fund expenditures are projected to decrease $2 million or by 1.4% and General Fund operations $16 million or by 4.4%. HHS Levy expenditures are expected to increase $28 million due to a tax increase generated by the HHS 4.8 mill levy. Also, one-time funds are not available to offset Human Services subsidy requirements this year that were available in 28. Expenditure Percentage Change 23 to 29 All Funds Expenditure % Change (billions) 2.% 15.% 1.% 5.%.% -5.% -1.% -3.3% 5.9% 1.9% 13.5% $1.12 $1.186 $1.28 $1.371 $1.419 $1.479 $1.459 % Change -3.3% 5.9% 1.9% 13.5% 3.5% 4.2% -1.4% General Fund Expenditure % Change (millions) 15.% 1.% 1.% 5.% 5.%.% % % -1.4% $32 $33 $317 $348 $34 $36 $344 % Change -8.3% 3.1% -3.9% 9.8% -2.3% 5.9% -4.4% 3.5% 4.2% %.68 HHS Levy Funds Expenditure % Change (millions) -5.%.% -2.3% -3.9% -4.4% % -5.% -8.3% % % 15.% 3.9% % 1.% 17.1% 2.% 15.6% % 15.% 5.%.36 1.% 5.%.%.%.% % % -3.9% % $136 $178 $17 $199 $23 $221 $249 % Change.% 3.9% -4.5% 17.1% 15.6% -3.9% 12.7% I-6

10 29 Expenditure Performance First quarter estimates are based on current expenditure trends and staffing levels. Based on this review and discussions with county agencies, General Fund and HHS Levy expenditures are projected to be $1. million over budget. General Government expenditures are $1.7 million or 2.6% under budget. Most of the savings is the lower cost of Board of Election s optical voting equipment purchase due to a reduction in the number of precincts. Judicial expenditures are over budget by $5.1 million. Expenditures are exceeding budget in Sheriff, Clerk of Courts, Juvenile Court, Probate Court, Domestic Relations Court and Public Defender. HHS Levy Subsidies for social services are $5.6 million higher than budget. These overages are primarily in and Employment & Training, Senior & Adult, Early Childhood-Invest in Children, System of Care and HHS Executive Office subsidies. Employment & Family Services, Senior & Adult Services and Early Childhood are within their current budget, but an increase subsidy is projected due to revenue loss, expenditures linked to prior year encumbrances and\or increase in their current year budget General Fund, HHS Levy and All Fund Expenditure Analysis (millions) '8 Budget Expenditures Actual Budget Estimate Change Variance General Fund Expenditure Performance General Government $69. $65.2 $63.5 -$5.5 $1.7 Judicial $246.4 $ $15.9 -$5.1 Development 7.8 $1.1 $1.4 $2.6 -$.3 Social Services 6.4 $7.9 $7.5 $1.1 $.4 Health & Safety 1.7 $1.1 $1. -$.7 $.1 Public Works 1.6 $1.6 $1.6 $. $. Debt Service 4.3 $6.1 $4.8 $.5 $1.3 Miscellaneous 2.6 $7.6 $3.6 $1. $4. Total GF Operating $36.8 $346. $ $16.9 $2.1 HHS Levies Judicial $18.9 $23. $23. $4.1 $. Social Services $25.7 -$5.6 Health & Safety $2. $2.5 Total HHS Levies $221.1 $245.8 $248.9 $27.8 -$3.1 Total GF & HHS Levies $581.9 $591.8 $592.8 $1.9 -$1. All Funds Expenditures General Government $17. $162.2 $ $3.3 -$4.5 Judicial 336. $325.5 $ $9.9 -$.6 Development 25.6 $27.4 $27.3 $1.7 $.1 Social Services 681. $68. $ $14.4 $13.4 Health & Safety 86.3 $87.2 $86.2 -$.1 $1. Public Works 54.4 $58. $57.6 $3.2 $.4 Debt Service 34.1 $46. $37.7 $3.6 $8.3 Miscellaneous 91.9 $11.7 $91.2 -$.7 $19.5 Total All Funds $1,479.3 $1,497. $1, $19.9 $37.6 All Funds expenditures are $37.6 million under budget. Social Services surplus of $13.4 is due to under spending by the Board of Mental Retardation. General Government and Judicial are over budget. A summary that provides a brief explanation for projected appropriation surplus and budget deficits by department is provided later in this report. Summary of Budget Deficits 29 Deficit % Over Budget 29 Deficit % Over Budget General Fund Operating HHS Levy Subsidy Impact Board of County Comissioners $ 13,28.8% BOCC Administrative Divisions 173, % HHS Executive Office $ 297, % Central Services 4,984, % Tapestry System of Care 619, % Clerk of Courts 82, % Employment & Family Services 6,73, % County Auditor 72,82.7% Senior & Adult Services 677, % County Recorder 334, % Early Childhood 274, % Domestic Relations Court 24, % Juvenile Court Detention & Probation 346,27 3.5% Emergency Management Subsidy 22, % Information Services Center 586, % Juvenile Court 1,427, % Probate Court 76, % Public Defender 181, % Self-Insurance Fund 173, % Sheriff 3,699,454 5.% Soldiers & Sailors Monument 8,882 5.% Total General Fund $ 12,77,26 Total HHS Levy $ 8,289,221 Total GF & HHS Levy $ 2,366,427 I-7

11 Staffing Levels Staffing levels are projected at 8,924 FTEs and are 588 FTEs or 6% lower than the 28 FTE level of 9,512. These reductions include 354 ERIP participants and 234 positions lost from attrition. The 28 estimated FTE level is 1,464 FTEs or 14% lower than the 1,388 FTE level of , 1,388 1, 9, 9,479 8,99 9,25 9,45 9,267 9,494 9,512 8,924 8,839 8,829 8, 7, Total FTEs 1,388 9,479 8,99 9,25 9,45 9,267 9,494 9,512 8,924 8,839 8,829 Early Retirement Program Status Early Retirement Status as of April 29 Estimated Savings: Budget - 85 Employees Participating (5% participation by July 29) Annual Personnel Cost $ 27,78,756 $ 55,417,511 $ 55,417,511 $ 55,417,511 ERIP Payments 6,541,224 17,365,54 17,48,622 1,769,328 Sick/Vacation Payout 3,925,597 3,925,597 Net Annual Savings $ 17,241,935 $ 34,126,86 $ 38,368,889 $ 44,648,184 Savings: 1st Quarter- 354 Employees Participating (41% participation as of April 29) Annual Personnel Cost $ 16,629,925 $ 22,47,723 $ 22,47,723 $ 22,47,723 ERIP Payments 6,995,991 7,587,46 7,452, ,415 Sick/Vacation Payout 3,371,66 - Net Annual Savings $ 6,262,274 $ 14,46,317 $ 14,595,359 $ 21,456,38 Potential Additional Savings Employees Particpate by December 29 (1% participation by December 29) Annual Personnel Cost $ 2,782,482 $ 33,369,788 $ 33,369,788 $ 33,369,788 ERIP Payments $ 1,635,36 $ 9,777,648 $ 9,596,258 8,142,342 Sick/Vacation Payout $ 553,937 $ 3,925,597 Net Annual Savings $ 593,239 $ 19,666,543 $ 23,773,53 $ 25,227,446 The 29 budget anticipated that 5% of the 85 employees who showed an interest in the Early Retirement Program would retire by July 1, 29 and result in $17.3 million savings in 29 and a $34.1 million savings in 21. As of first quarter, 354 employees or 41% have retired or completed the necessary paperwork and are in the process of retiring. The estimated savings achieved by the 354 employees is $6.3 million with at total savings of $14.5 million in 21. If the remaining 496 employees retire by December 29, an additional $593, savings will be achieved this year and $19.7 million in 21. This potential savings is not included in the first quarter estimate as the employees have not completed the necessary paperwork. I-8

12 Ending Fund Balance Analysis As of first quarter, the Combined General Fund and HHS Levy Funds unencumbered ending fund balance is estimated at $115.8 million and is $18.9 million or 14% lower than originally budgeted. A $27.2 million operating deficit is projected; $21.3 million in the General Operating Fund and $5.9 million in the HHS Levy Funds. The $115.8 million balance is broken down between the General Fund at $86.5 million and the Health & Human Services Levy at $29.3 million. The $86.5 million General Fund ending balance is 25.2% of forecasted expenditures and is slightly higher than the desired goal of maintaining a minimum balance of 2% - 25%. The HHS Levy Fund ending balance of $29.3 million is 11.8% of forecasted expenditures and is slightly below the BOCC goal to maintain a minimum balance of at least 15% in the levy funds. Presented is the General Fund and HHS Levy Funds future year forecast based on current financial activity. No provision is included to expand programs or services in 29 and 21. The forecast does include a 3% inflationary growth in operating expenditures and a 5% hospitalization increase. No salary adjustments are provided in 29, 21 or 211. If current revenue and expenditure trends continue, operating deficits and a draw down on cash reserves is forecasted. General Fund and Health & Human Service Levies Forecast General Fund Operating 29 Estimate 21 Estimate 211 Estimate Revenue $ million $ million $ 31.1 million Expenditures $ million $ million $ million Operating Surplus/(Deficit) $ (21.3) million $ (13.3) million $ (27.2) million Ending Balance $ 86.5 million $ 7.8 million $ 41.2 million Balance to Expenditure % 25.2% 2.9% 12.2% Health & Human Service Levies 29 Estimate 21 Estimate 211 Estimate Revenue $ 243. million $ million $ million Expenditures $ million $ million $ million Operating Surplus/(Deficit) $ (5.9) million $ (1.3) million $ (14.8) million Ending Balance $ 29.3 million $ 18.9 million $ 4.1 million Balance to Expenditure % 11.8% 7.8% 1.7% Combined General and HHS Levy Funds 29 Estimate 21 Estimate 211 Estimate Revenue $ million $ million $ million Expenditures * $ million $ million $ million Operating Surplus/(Deficit) $ (27.2) million $ (23.6) million $ (42.) million Ending Balance $ million $ 89.7 million $ 45.3 million Balance to Expenditure % 19.5% 15.4% 7.7% Excludes.25% sales tax increase for Medical Mart and Exhibition Hall No salary increases in 29, 21 and 211 If the goal is to maintain a financially stable government and sustain the most critical services in the future, additional budget cuts will be required to bring expenses in line with revenues. The County will have to closely monitor both revenue and expenditure activity along with State and Federal budgets to determine the implication on county finances. I-9

13 Section II Capital Projects

14 29 Priority Capital Projects o o o o II-2

15 II-3

16 II-4

17 II-5

18 Section III First Quarter Departmental Summaries

19 Alcohol & Drug Addiction Services Board Budget % (Over)/Under % Actual Actual Budget Projection Variance Change Change All Funds $1,384,164 $1,72,639 $9,718,644 $9,718,644 $ -3.5% HHS Levy Impact $1,384,164 $1,72,639 $9,718,644 $9,718,644 $ -3.5% FTEs.% Revenue Highlights The Alcohol and Drug Addiction Services Board is funded by the Health & Human Services levies. Expense Summary $11. Millions $1. $9. $1.1 $9.7 $9.7 Other Operating 28 Actual 29 Budget 29 Projection Expense Highlights The Alcohol and Drug Addiction Services Board is operating within the parameters of its subsidy. Key Performance Measures Measure 27 Actual 28 Actual 29 Target Clients enrolled in treatment 1,56 9,979 8, Adults 9,171 8,725 7, Adolescents 885 1,254 1, Percent Successful Completion/Adults 65% 69% 6% Percent Successful Completion/Adolescents 64% 68% 6% III-1

20 County Auditor Budget % (Over)/Under % Actual Actual Budget Projection Variance Change Change All Funds $25,579,7 $25,756,538 $24,634,641 $24,221,571 $413,7 1.7% -6.% General Fund Impact $9,234,34 $9,924,54 $9,644,788 $9,716,87 ($72,82) -.7% -2.1% Assessment Fund $16,345,666 $15,832,34 $14,989,853 $14,54,71 $485, % -8.4% General Fund FTEs % -1.3% All Funds FTEs (4) -1.7% -11.% Revenue Summary $15. $14. $14. $13. $12.5 $1. $7.5 $5. 28 Actual 29 Budget 29 Projection $2.5 $1. $1.1 $1.3 $. Property Taxes Commercial Activity Tax Revenue Highlights The Assessment Fund receives a small percentage of property taxes for administration of appraisals. Per the state biennial budget bill from 25, revenues from the tangible personal property tax has been phased out completely in 29. The tax was phased out over a four year period and it generated $872, in 28. The decrease in tangible personal property is partially offset by an increase of $3, to $1.3 million in the commercial activity tax. The economic downturn has caused the assessed home values to decline in 29; however, the income will not decrease proportionately. The County as a whole will see a decrease of about 3.5% in property taxes because commercial tax valuations may be up 1% and will affect the residential decrease. The net effect, however, is projected to be a decrease. Expense Summary (millions) $2. $17.4 $16.8 $ Actual $4.5 $4.1 $ Budget $1. Personal Services 29 Projection $3. $3.2 $3.3 Other Operating III-2

21 Expense Highlights The Auditor has mission critical technical staff leaving the department. The employees will be replaced by contract workers, which will result in a savings compared to the salaries. The Auditor will be shifting employees from the General Fund to Assessment due to the elimination of personal property taxes and to stay in line with the department s budget reduction plan. The current surplus is primarily due to the positive salary variance in the Assessment Fund of $578,253. The variance may decrease significantly when General Fund employees are moved to the Assessment Fund and when temporary staffing is hired to perform the triennial assessment. The 29 triennial property tax assessment update is expected to increase the Assessment Fund spending by about 6.5% over 28. The Auditor and the Treasurer will be sharing the cost of a new real property system. The estimated cost of the system is $6 million. The Auditor plans to pay $6, per year to cover the Auditor s portion of the costs. Expenditure and Staffing History $28,, $26,, $24,, $22,, $2,, FTEs Expend. FTE Subsidy Highlights The Auditor receives 37% of its revenues from the General Fund and 63% from the Assessment; no subsidy is provided. Key Performance Measures Measure 28 Actual 29 Budget 29 Target Dog licenses registered via internet 12,924 13, 13, Properties reappraised 18, 538, 538, Scales and gas pumps inspected 9,681 9,5 9,5 Warrants/direct deposits generated 531, , 525, III-3

22 County Commissioners Office Budget % (Over)/Under % Actual Actual Budget Projection Variance Change Change All Funds $1,912,976 $2,28,934 $1,673,684 $1,687,892 ($14,28) -.8% -16.8% General Fund Impact $1,912,976 $2,28,934 $1,673,684 $1,687,892 ($14,28) -.8% -16.8% FTEs (2) -14.3% -15.8% Revenue Summary The department is funded by the General Fund and does not generate revenue for its services Millions $2. $1. $1.4 $1.3 $1.3 Thousands $7. $45. $2. $61.6 $47.7 $394.4 $. Salaries and Benefits -$5. Other Operating Thousands $5 $4 $3 $2 $1 $ $2.9 $1.5 $ Actual 29 Budget 29 Projection Capital Outlays Expense Highlights Salaries and benefits represent 77% of the Board of County Commissioners (BOCC) budget. The BOCC has a deficit of ($63,84) in salaries and benefits as budget reductions through the Early Retirement Incentive Plan (ERIP) have not yet been achieved. This deficit is slightly offset by a surplus of $1,84 in other operating expenses. Budget reductions such as eliminating assigned cars and eliminating or reducing subscription dues are being utilized successfully. The BOCC expects 2 full-time staff equivalents (FTE s) will participate in ERIP in 29. Expenditure and Staffing History $2,2, 25 $1,7, 2 15 $1,2, 1 $7, 5 $2, - FTEs Expend. FTE III-4

23 Board of Elections Budget % (Over)/Under % Actual Actual Budget Projection Variance Change Change All Funds $2,131,634 $3,256,956 $28,336,15 $26,85,893 $1,485, % -11.3% General Fund Impact $2,131,634 $3,256,956 $28,336,15 $26,85,893 $1,485, % -11.3% FTEs % -21.5% Revenue Summary The department charges political subdivisions and the state for its expenses that are incurred for special elections and some other elections in non-congressional election years. These revenues are reflected in the General Fund Revenue report at the beginning of this document. Expense Summary Figures are in millions of dollars. $9.6 $17. $17. $9. $8.4 $14. $7.7 $11. $9.8 $1.8 $7. $8. Personal Services Other Operating $11. $9. $7. $5. $3. $3.7 $1.1 $ Actual 29 Budget 29 Projection Capital Expense Highlights The $1.5M surplus in expenses is due to the hiring of fewer temporary workers ($52,) and using less service days from the scanner vendor, Elections Systems and Software, than previously planned ($488,). Both are the result of a decrease of 134 precincts. The digital ballot scanners that are slated for purchase this year have not been approved by the Secretary of State. The Board of Elections expects these machines to be approved by the end of the summer. If the machines are not approved by the end of the year, the Board of Elections will use the existing analog scanners at no cost, per the agreement with the vendor. If the digital scanners are not approved this year, the surplus will grow by $6.4 M. The Board has already reduced the number of precincts by 134 toward its target precinct reduction of 373. These reductions will result in 1,63 precincts down from last year s 1,436 precincts. The reduction in precincts is one of the factors behind the decrease in staffing from last year s levels; another is the high demand for staffing during last year s presidential election cycle. III-5

24 Other operating costs are much lower this year because of the lower poll worker, postage, consulting, and printing costs from last year. Although capital costs are lower than budget, they are higher than last year s costs due to the higher second year rollout costs of the digital scanners. Expenditure and Staffing History $3,, $26,, $22,, $18,, $14,, $1,, FTEs Expend. FTE FTEs increased in 28 because of the higher presidential election staffing needs. Subsidy Highlights The agency is funded by the General Fund, so it does not receive a subsidy. Mission Statement The Board of Elections exists to serve the citizens of Cuyahoga County by faithfully conducting the election process through which they choose their representatives. The Board of Elections did not submit performance measures. III-6

25 Board of Mental Retardation & Development Disabilities Budget % (Over)/Under % Actual Actual Budget Projection Variance Change Change All Funds $17,64,198 $179,777,432 $191,361,634 $181,654,866 $9,76, % 1.% General Fund Impact $ $ $ $ $.%.% FTEs 1,322 1,299 1,299 1, % -3.% Revenue Summary $97,88,37 $95,, $94,751,741 $9,1, $8,1, $7,1, $6,1, $5,1, $4,1, $3,1, $2,1, $1,1, $1, $83,453,36 $79,374,172 $79,374,172 $4,554,776 $4,89,114 $4,89,114 Property Taxes Other Intergovernmental Charges for Svcs 28 Actual 29 Budget 29 Projection Revenue Highlights The Cuyahoga County Board of Mental Retardation (MRDD) is funded through its property tax levy and other intergovernmental revenue. There is a projected decline in the property tax revenue from 28 to 29 by 2.4% or $2,336,566. Cuts in the State reimbursement revenues have contributed to a projected revenue decrease of ($4,79,188), a reduction of 4.9%. Expense Summary Millions $1 $92.21 $87.86 $86.3 Millions $1 $95 $91 $87 Millions $1 $8 $6 $4 $2 $ $5 $4 $4 Capital Outlays $75 Salaries and Benefits $5 Other Operating 28 Actual 29 Budget 29 Projection Expense Highlights The Board of MRDD s personal services budget was reduced by $5.9 million (6.4%) through staff reductions. The projected 39 FTE variance (3%) is due to continued staff reduction through attrition. There is a $9,76,768 surplus projected as the Board s expenses are consistent with previous year s expenditures; estimated total expenditures for 29 are $181.7 million. III-7

26 All contractual obligations for services are being met by the Board of MRDD, while there is a surplus of $3,69,29 for contracts and professional services. Expenditure and Staffing History $185,, 1,45 $18,, 1,4 $175,, 1,35 1,3 $17,, 1,25 $165,, ,2 FTEs Expend. FTE Key Performance Measures Measure 28 Actual 29 Budget 29 Target Maintain Flat Program Cost per Capita $22,248 $22,758 $23,38 Maintain 3% avg. Budget Growth rate -.6% 1.8% 1.8% Increase Total Individuals Served 1,37 1,355 1,355 Reduce FTE by ,299 1,299 1,26 Expand Use of I/O and Level One Waivers 1,388 1,866 2,37 III-8

27 Board of Revision Budget % (Over)/Under % Actual Actual Budget Projection Variance Change Change All Funds $976,27 $947,795 $881,34 $828,756 $52, % -12.6% General Fund Impact $976,27 $947,795 $881,34 $828,756 $52, % -12.6% FTEs (2) -25.% -9.1% Revenue Summary The department is funded by the General Fund and does not generate revenues for its services. Expense Summary $8. $6. $4. $2. $. $72 $637 $587 Personal Services, in thousands $12 $115 $118 $14. $11. $8. $5. Other Operating, in thousands 28 Actual 29 Budget 29 Projection Expense Highlights The Board of Revision is showing a surplus in salaries of $3,854 and a surplus in benefits of $18,94. The surpluses result from Employee Retirement Incentive Plan retirements that occurred earlier than budgeted, leading to a larger salary savings. The Board of Revision is expecting costs and the number of complaints to increase due to the economic climate and the loss in home values. In 27 the Board of Revision gained three additional employees that were formerly paid by the Auditor. Expenditure and Staffing History $1,, 14 $9, $8, 12 1 Expend. FTE $7, 8 $6, 6 $5, FTEs III-9

28 Subsidy Highlights The agency is funded by the General Fund, so does not receive a subsidy. Key Performance Measures Measure 28 Actual 29 Budget 29 Target Percentage of 26 tax year complaints resolved 43% 98% 98% Percentage of 27 tax year complaints resolved 3% 18% 18% Percentage of 26 tax year complaints appealed 14% 18% 18% Percentage of 27 tax year complaints appealed N/A 17% 17% Total complaints resolved 7,578 17, 17, III-1

29 Central Services Budget % (Over)/Under % Actual Actual Budget Projection Variance Change Change All Funds $7,932,4 $76,532,672 $69,129,889 $74,114, ($4,984,111) -7.2% -3.2% GF & HHS Levy Impact $63,129,484 $68,114,78 $61,647,864 $65,961,46 ($4,313,596) -7.% -3.2% FTEs (5) -8.7% -11.% Revenue Summary Figures are in the millions of dollars. $6. $5. $57.5 $52.2 $58. $4. Space Maintenance $2. $1.8 $1.9 $1.5 $1.4 $1.8 $1.7 $1.4 $1. $1.4 $1.4 $1.8 Fleet maintenance Dog licenses 28 Actual 29 Budget 29 Projection Mailroom $4.5 $3.7 $4.3 $3.5 $2.5 $3.3 $4.1 $3.6 $3.3 Parking Garage 28 Actual 29 Budget 29 Projection Printer Services III-11

30 Revenue Highlights Revenue for the custodial group of accounts will grow to $58 M in 29, $5.8 M higher than budget and $.5 M higher than 28 actual because the budget assumed reductions that have not yet been made. Revenues from Huntington Parking Garage will be lower than both budget and actual in 29. These revenues will be lower as the department anticipates fewer special events and the resulting fewer parking patrons to use the garage. Revenues at the Maintenance Garage will be lower in 29 due to a reduction in the Garage s pricing model. Rates were decreased because vehicle purchases, which are a factor in the model, were not approved in the 29 budget. Revenues in the Mailroom will be higher than both budget and actual because of a reconciliation of past expenses that will be charged in 29. Expense Summary $38 $5. $4. $3. $2. $1. $. 28 Actual, $ Budget, $35.7 Personal Services 29 Projection, $37.6 $36 $34 $32 28 Actual, $ Budget, $33.2 Other Operating 29 Projection, $36.2 $1. $.5 28 Actual, $.5 29 Budget, $.4 29 Projection, $.5 $. Capital Outlays Expense Highlights $3.6 M of the variance between 29 projected and 29 budget is primarily due to higher commodities costs at both the Justice Center and at other County-owned facilities. Electricity at the Justice Center is 38% higher than last year. Expenses for steam heat are also considerably higher in 9 than in 8. $1.9 M of the variance between 29 projected and 29 budget is due to higher salaries and benefits expenses as a result of fewer employees signing up for the early retirement incentive program (ERIP) than this office anticipated. The difference between the budgeted number of ERIP participants and actual to date is 48. Overall, contracts and other operating expenses showed slightly favorable variances to budget. Savings in these two categories occurred in minor amounts across the board. The department has implemented some cost-saving strategies, such as eliminating some non-critical contracts and services. III-12

31 Expenditure and Staffing History $8,, 7 $7,, $6,, $5,, FTEs Expend. FTE Expenses and FTEs have steadily grown since 25 because of the impact of maintaining and securing additional properties. Utility rates increased in 28 over the 27 levels as well. Subsidy Highlights There is no General Fund subsidy for Central Services. Key Performance Measures Measure 28 Actual 29 Budget 29 Target Electricity Consumption in County Buildings (Kilowatt Hours) 61,1, 58,, 58,, Overtime Costs $2,56,193 $2,3, $2,3, Custodial Staffing Protective Services Staffing Trades Staffing Number of Adopted Dogs at County Kennel 1,484 1,5 1,5 III-13

32 Department of Children & Family Services Budget % (Over)/Under % Actual Actual Budget Projection Variance Change Change All Funds $173,52,327 $178,82,667 $165,127,59 $162,976,483 $2,15, % -8.5% HHS Levy Subsidy $82,615,884 $71,242,174 $74,454,112 $72,55,99 $1,949,13 2.6% 1.8% FTEs 1,74 1, ,18 (45) -4.6% -4.9% Revenue Summary $8. $7. $74.5 $71.2 $72.5 $6. $5. 28 Actual $4. $3. $2. $1. $18.2 $18.2 $15.2 $3.9 $4.9 $4.9 $29.6 $28.3 $28.3 $16.4 $16.5 $16.5 $11.2 $8.4 $ Budget 29 Projection $. TANF Title XX - Transfer Title IV-E Training Title IV-E Maintenance State Child Welfare Allocation Other Financing Sources Revenue Highlights The Department of Children and Family Services has five major revenue sources: Temporary Aid to Needy Families at $18.2 million, Title XX/Transfer at $4.9 million, Title IV-E $44.8 million, State Child Welfare $8.4 million, and Health and Human Services Levy at $72.5 million. The Department of Children and Family Services received minimal reductions to their PA Fund Consolidated Allocations in December 28, unlike other County public assistance agencies. Comparing 29 Budget to 29 Projection, the HHS Levy subsidy decreases slightly by 2% due to the budget reduction plan submitted by the agency. Administrative expenditures and board & care of children expenditures are below anticipated levels, at 1.8% and.8%, respectively. Expense Summary Millions $8 $6 $4 $2 $67 $63 $63 Millions $115 $11 $15 $1 $111 $12 $1 Thousands $25 $2 $15 $1 $5 $ $237 $237 $1 $ Salaries and Benefits $95 $9 Other Operating Capital Outlay 28 Actual 29 Budget 29 Projection III-14

33 Expense Highlights Personnel salaries are.3% over budget based on the first quarter forecast. The agency s budget reduction plan included the loss of 97 FTEs though the Early Retirement program. As of March 3 th, DCFS has lost only 27 staff (27.8% of goal) thru the program. There are vacancies within some critical classifications that the agency has requested filling in the first 3 months of 29 but the forecast does not include any additional FTEs. A major component of the budget reduction plan was the reduction or elimination of board and care expenses, child and family focused services, adoption assistance and legal services. As a result, the client services expenses are 2.9% less than 28 actual expenses. As of March 29, the number of Children in Custody has decreased 14.3% compared to March 28, 2,369 to 2,31. The forecast includes the salary adjustments of 2% negotiated with the AFSCME bargaining unit for 29 and 21. Expenditure and Staffing History $18,, 1,2 $175,, $17,, $165,, $16,, $155,, $15,, FTEs Expend. FTE Subsidy Highlights Children and Family Services is projecting a $1.9 million surplus. In addition to the budget reduction plan that has achieved some savings in staff and board of children, the agency is eliminating $3.4 million in prior year obligations. Key Performance Measures Measure 27 Actual 28 Actual 29 Target Reduce the children placed outside Cuyahoga County Children adopted within 3 months of removal 29% 41% 32% Number of Children Reunified within 15 mos. Of removal 63% 71% 75.2% Decrease foster care re-entries 5.9% 8.4% 8.4% Decrease the recurrence of maltreatment 91.4% 93.7% 94.6% III-15

34 Clerk of Courts Budget % (Over)/Under % Actual Actual Budget Projection Variance Change Change All Funds $18,58,235 $18,19,983 $17,639,294 $17,83,877 ($191,583) -1.1% -2.% General Fund Impact $13,494,666 $14,47,883 $13,356,854 $13,439,399 ($82,545) -.6% -4.3% FTEs % -3.7% The General Fund Impact above includes the Clerk s General Fund budget and the subsidy to the Certificate of Title Fund. Revenue Summary (Special Revenue Funds) ($ in millions) $5. $3.5 $3.5 $3.7 $3. 28 Actual $1.6 $1.3 $ Budget 29 Projection $1. $.5 $.5 $.5 Computer Fund - $1. Filing Fee Title Fund - Title Fees Title Fund - General Fund Subsidy -$1. Revenue Highlights An increase in Title Fees from $2.5 to $11.5 was approved in the latest Ohio Transportation bill. This increase is effective July 1, 29. This equates to an increase in revenue to the Title Fund of $672,356 in 29 and $1,68,891 in 21. The 1 st quarter projections anticipate a $3, cash transfer into the General Fund from Court of Common Pleas Foreclosure Fund. This transfer will be used to support postage expenses associated with foreclosure cases. Expense Summary $12. $11.5 $11. $1.5 $1. $9.5 $11.8 $1.8 $11.3 Personal Services, in millions $8. $6.3 $6.8 $6.5 $6. $4. $2. $. Other Operating, in millions 28 Actual 29 Budget 29 Projection $8. $6. $4. $2. $. $58.4 $41.3 $13.1 Capital, in thousands Expense Highlights Overall, a deficit of $233,175, or 2%, is projected from the Clerk s General Fund budget of $12.1 million. A deficit of $563,261 is projected from the Clerk s All Funds salary budget of $7.4 million. This is driven by the late year retirement of individuals participating in the ERIP, as well as a reduction of approximately $35, that was applied to salaries due to the Clerk s inability to identify reductions meeting the target. III-16