The County Commission tasked staff with some very specific objectives for this budget:

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1 Jeremy Willmoth Cowley County Administrator 311 E. 9 th Ave Winfield, KS (Winfield) (Arkansas City) Fax jwillmoth@cowleycounty.org July 10, 2012 County Commissioners and Citizens of Cowley County: I am pleased to submit, for your review, the Recommended Fiscal Year 2013 Budget. This budget lowers the tax burden while maintaining our operations and reestablishing our reserves for the future. The County Commission tasked staff with some very specific objectives for this budget: Keep the mill levy flat Provide for a cost of living adjustment for the employees, if possible Continue to maintain the roads and bridges within the County Staff is proud to say that all three objectives have been accomplished. I am recommending the County reduce its operating levy back to where it was around Based on the increase in assessed valuation, the County would need to levy about $ mills to gain an equal amount of revenue that the $ mills gained in The 2013 levy is recommended to be $ or $0.38 mills less for a true reduction in taxes. Employees are the principal strength of any organization. As the County Administrator, it is my role to ensure that we take care of our biggest assets by providing the best working environment. The employees have not received a raise or a cost of living adjustment since This organization has proven itself through sacrifice and dedication to the cause and overall performance of each individual employee, and that should be acknowledged and celebrated. In this budget, we have worked to create a 5% cost of living adjustment for all full time employees. Averaged out over 3 years, this is about a 1.67% increase per year. One of the County Commission goals was to reward the employees for their dedication to the County even when the County was unable to provide an increase in compensation. I believe this accomplishes that goal. This budget also includes about a 7% increase for Road and Bridge work throughout the County. This increase is primarily used to offset increase in cost but staff wanted to make sure that we continued to maintain the roads and bridges while searching for new ways to do this in the future. A - 1

2 This budget is not without some sacrifice however. In order to ensure that the tax dollars are being spent as efficiently and effectively as possible, I am recommending some significant and hopefully improved changes to the way we currently provide for Noxious Weed control within the County. I am recommending that Noxious Weeds no longer sell chemicals, but rather that the County Commission authorize the department to issue vouchers to residents within the County when an infestation is confirmed. In this way, the County will not have to maintain any inventory, nor pay someone to keep records of the sales. We will work with local businesses to supply the chemicals needed, and then will reimburse them on a routine basis for the current cost share. I am also recommending that we restructure the department from its current format of one director and one weed sprayer, to be consolidated with public works and only have one weed supervisor as required by State statute. The weed supervisor will maintain the operations of weed abatement for all county road ways and will work with county residents when they have a need by issuing vouchers and following up to ensure the weeds have been eradicated. Whenever the Weed Supervisor cannot work on noxious weeds due to weather or other conditions, that person will then report to a Road and Bridge crew to assist them until they are able to resume their normal duties. This is a completely new concept that is working in other Counties and I believe can work here as well. We are continuing to finalize our plan. I know change can be scary, but sometimes we need to change to improve our operations, and this is one area where I believe that can happen. The other major change in this year s budget is the inclusion of consolidated dispatching for 911 services. The County has been working with both Arkansas City and Winfield to consolidate dispatching into a County-wide function. This project has been ongoing for many years but we are finally to a point where the County is set to take over operations as of June 1, There are still many details to be worked out but I am confident, with the support of both communities, we will have our plan in place before then. This is one area of the budget that we know will increase in 2014 as we will need to plan on a full year of expenses rather than a partial year as we have budgeted for in Creating a budget is never an easy task. I would like to express sincere gratitude to all County employees who have demonstrated continued dedication and professionalism. I also want to thank the Department Heads who provided enormous support in developing this budget. The success and accomplishments of this organization are achieved through the individual service and commitment of each employee regardless of his or her position. Respectfully submitted, Jeremy Willmoth County Administrator A - 2

3 Mission Statement and Board Goals Fiscal Year 2013 Mission Statement Cowley County is dedicated to improving the quality of life for its citizens by providing services to the public in an efficient, responsible, transparent and professional manner, and to providing a work environment where we respect the dignity, and recognize the merit of each individual employee. Board of County Commissioner Goals Partnerships/Community Involvement The Board of County Commissioners recognizes their vital role as a community partner. As such, the Board believes these partnerships must be cultivated and allowed to flourish. The Board is looking for ways to partner with our cities to consolidate like operations and save the tax payers in all communities money. Infrastructure The Board has requested that staff continue to search for ways to maintain the roads and bridges in Cowley County in the most economical and efficient way possible. Employees The Board recognizes the tremendous hard work and sacrifice the employees provide and are appreciative of those who have chosen to stay with the County even when salary freezes were put into place. The Board desires to reward the employees with a cost of living adjustment if it is financially feasible. Public Safety The Board desires to support the Sheriff any way possible to ensure the safety of our citizens. A - 3

4 Executive Summary Through proper planning and strong leadership, Cowley County has been able to weather the current economic recession relatively well. With no major layoffs or services cut or reduced, the County has maintained its budget by holding the line on employee compensation and keeping operating expenses from creeping up over time. Current Economic Conditions Cowley County has not been immune to the recession. However, the County has fared well through sound management and leadership and holding expenses to minimize increases in taxes. While most organizations our size were balancing their budgets by slashing jobs and services, the County was able to balance its budget with modest decreases that did not impact services or staffing in most cases. Maintaining Service Levels The 2013 budget focuses on funding programs and services that meet the expectations of residents. The most challenging aspect of this year s budget process has been maintaining high levels of service while keeping costs down. The Departments have done a tremendous job maintaining their current service levels while keeping expenses in line. Taxes The County s revenues are primarily derived from property taxes. The County s assessed valuation has increased 4.76%. The valuation increases were in all areas of property (real estate 2.1%; personal property 9.09%; State assessed 8.05%). The property tax levy has decreased by 7.15%. Year Assessed Value Mill Levy 2003 $204,379,270 $ $192,968,752 $ $204,004,662 $ $210,324,808 $ $213,555,662 $ $213,109,315 $ $211,363,574 $ $209,114,046 $ $211,272,798 $ $221,337,286 $ Budgeted Fund Balance The County keeps a very conservative fund balance in accordance with State Law. As a result, the levy is prone to annual fluctuations. The County maintains a $417,000 reserve in the property tax funds which is 2.86% of expenditures for those funds. In the nonproperty tax funds, the County maintains a 7.52% reserve of expenditures. A more complete discussion of fund balance can be found on page D Budget Priorities and Highlights Cost Of Living Adjustment (COLA) The 2012 budget includes a 5% COLA for all full time employees and elected officials. The County has not provided a COLA since 2010 so this averages out to a 1.6% increase per year since Consolidated 911 Dispatching The 2013 budget includes a plan for the County to take over dispatching of 911 calls that are currently done by Arkansas City and Winfield. The County intends to begin running the dispatching services county wide on June 1, The County is currently researching the possibility of creating a facility to house the dispatching operations currently maintained by both cities to eliminate the need to two sets of expensive equipment and data communication tools. Until this facility is approved however, the County will maintain the current operations in the two respective cities. Staffing Changes The 2013 budget includes the consolidation of operations in the Noxious Weed Department with the Public Works Department to create more streamlined relationships and work patterns between the two. There will only be one person in Noxious Weeds, and when there are no weed issues, or conditions are not conducive to treating weeds that person will assist public works with any projects as necessary. In addition, the County will add two Sheriff Deputies to assist with increasing call demands for service. A more thorough analysis of personnel can be found in the section entitled Personnel and Compensation. Maintaining Infrastructure The 2013 budget continues the current practice of three shops maintaining all of the county roads and bridges within their area. During 2013, staff will continue to research and explore the possible consolidation of shops or any other feasible method of reducing costs while maintaining the current service levels. Funding Equipment Reserves Cowley County will continue its plan of paying for major equipment in cash. The County did not budget for any transfers of fund balance to the equipment A - 4

5 Executive Summary reserves in In 2013, however; this process will be resumed as we believe it is a critical funding mechanism to assist with the aging equipment. Should the County choose not to do this, in the future we would need to raise taxes to ensure adequate funding is available to replace equipment at the end of its useful life. Additional information can be found in the appendix section of the budget book Revenue Overview More information can be found in the section titled Revenue Summary. 0% 1% 19% 17% 63% Property Licenses Interg. Fees Misc. Property Taxes The 2013 budget reduces real property taxes by 3.06%. Vehicle taxes increased slightly by 0.03% for a total property tax reduction of 2.57%. The bulk of the reduction is due to an increase in assessed valuation of 4.76%, however; reductions in operations accounted for 0.94% of the total 2.57% reduction. Sales Taxes The only sales tax the County had was to repay the debt borrowed to build the jail annex. As of September 2012, that sales tax expired as sufficient funds were available to be escrowed until the bonds are callable in The County is considering a sales tax for a new emergency communications center for the consolidated dispatching services and our emergency management departments. Staff is compiling information for the County Commissioners to consider in early 2013 a possible ballot initiative. Licenses and Permits The County does not issue many licenses or permits. Our annual revenue is projected to be $16,350 which is an increase of 40.95% over the 2012 budget but is more in line with our 2011 and 2012 revenues. Intergovernmental Approximately 19% of all revenues come from intergovernmental sources. The largest sources are from the State for inmate housing and our portion of the motor vehicle fuel taxes. In addition, there are three departments that primarily rely on state funding for their operations: Community Corrections, Juvenile Services, and Community Developmental Disability Organization. Intergovernmental revenues are down slightly (-0.47%) primarily due to what we thought our jail housing with the state would be when we planned the 2012 budget to what we have actually experienced. The State is using us more for overflow and that is keeping their numbers at our contractual minimum revenues have been adjusted accordingly. Fees and Charges for Services Approximately 17% of all revenues come from fees and charges for services. The largest sources are the transfer station fees, and the mortgage registration fee. Fees and charges for services are up 7.5% primarily due to an increase in transfer station fees to address the rising costs of maintaining that facility. The County has not raised the fees at the transfer station since 2008 in most cases and the cost have continued to rise each year. The most significant change from 2012 is that the County will no longer be selling chemicals for noxious weed treatment once our current stock runs out. We will instead be converting over to a voucher system where once an infestation has been confirmed, vouchers will be given to the property owner to be used at a local supplier of the chemical who will sell the chemical at a reduced rate to the user and then bill the County for the difference periodically. Miscellaneous This is a catch all revenue account for those items that do not fit well in any other category. The most common miscellaneous revenue items are interest earnings, rental fees, and reimbursements. Overall, these miscellaneous revenues are projected to decrease 22.51% primarily due to a change in the way revenue used to be classified. A - 5

6 Executive Summary 2013 Expense Overview Budgeted expenditures are grouped into 9 categories: Salaries, Benefits, Supplies, Utilities & Insurance, Other Contractual Services, Capital Outlay, Transfer Out, Appropriations and Debt Service. 4.12% 14.86% 8.95% 6.52% 0.11% 32.27% 3.03% 16.10% 14.05% Salaries Benefits Supplies Utilties/Ins. Contractual Capital Transfers Appropriations Debt Service Expenditure by Category The 2013 Budget of $19.98 million for all operating funds represents a 5.34% decrease from Salaries and Benefits make up 48.37% of the overall budget. Contractual Services (14.86%), Supplies (14.05%), and Operating Transfers (8.95%) round out the top five expense categories of the budget. Salaries Salaries are budgeted at $6.45 million and are 32.27% of all expenses. The 2013 budget is 8.21% higher than 2012 primarily due to three factors. 1) The County is issuing its first Cost of Living Adjustment (COLA) since 2010 at 5%. This averages to 1.6% per year since ) The County is adding two Sheriff Deputies to address increased calls and provide more coverage of the unincorporated areas and smaller communities within the County. 3) The County is planning to consolidate dispatching that is currently being performed by Arkansas City and Winfield, into one County-wide operation effective June 1, Benefits Benefits are budgeted at $3.21 million and are 16.10% of all expenses. The 2013 budget is 11.48% higher than 2012 primarily due to two factors. As mentioned above, the County is looking to add two sheriff deputies and thirteen dispatching personnel. These new employees have increased the cost of benefits. The second driver is health insurance. Premiums to both health and dental insurance for all employees increased approximately 7%. Supplies Supplies are budgeted at $2.81 million and are 14.05% of all expenses. The 2013 budget is 1.04% lower than 2012 due to each department taking a hard look at the supplies needed to run the office and trimming where possible. There were increases in fuel that were offset by decreases elsewhere. The largest change in supplies is due to the fact that the Noxious Weeds Department will no longer be buying chemicals for resale. This conversion to the voucher system is what has kept the overall supplies line items from increasing. Utilities/Insurance Utilities/Insurance are budgeted at $604 thousand and are 3.03% of all expenses. The 2013 budget is 4.94% lower than 2012 due to energy saving measures such as the new windows in the Courthouse. Other Contractual Services Other Contractual Services are budgeted at $2.97 million and are 14.86% of all expenses. The 2013 budget is 0.80% lower than This is a broad category that ranges from everything from postage to engineering services. For more information, please review individual department s budgets. Appropriations Appropriations are budgeted at $1.3 million and are 6.52% of all expenses. The 2013 budget is 2.14% higher than The County recognizes the tremendous job our outside agencies are doing for the residents of the County. While every agency serves a noble purpose, we simply cannot afford to fund them all at the level they requested, however; the County did want to continue funding all of the agencies and in some cases provided a slight increase to show their support. Soil Conservation Increased $1,800 per budget request. Extension Council - Funding was increased 5% which was less than requested. Ambulance Service Funding stayed equal to 2012 which is approximately 1.51 mills. Council on Aging - was given an additional $29,300 in 2009 to address some bookkeeping and timing issues and that practice continued in 2010, 2011, and The County returned their funding back to the 2008 level in A - 6

7 Executive Summary Cowley County Historical Society Funding is equal to County Fair Funding is equal to County Cemetery Funding was reduced to $5,000 to better reflect actual expenses. Cherokee Strip Museum Funding was increased $5,000 per their budget request. Joint Health Department Funding was increased 10% which was less than requested. Mental Health Department Funding was increased 10% which was less than requested. Reach Funding is equal to Humane Society Funding is equal to CASA Funding is equal to Big Brothers/Big Sisters Funding is equal to Operating Transfers Operating Transfers are budgeted at $1.79 million and are 8.95% of all expenses. The 2013 budget is 38.37% lower than 2012 primarily due to the Jail Sales Tax expiring and no longer needing to be transferred. In 2013, the County is resuming the practice of transferring a portion of the under spent surplus from the General Fund to the Special Equipment Reserve Fund. The County is planning on transferring $412 thousand in This will begin to replenish the account so the County will be in a position to pay with cash when equipment breaks down, rather than having to finance major replacements. in 2013 it is $232 thousand will be transferred to the General Fund to offset the cost of operating the Jail. Debt Service Debt Service is budgeted at $22 thousand and is 0.11% of all expenses. The 2013 budget is 97.11% lower than 2012 due to the Jail debt being defeased in Before this year, the County had two sources of long term debt: $200,000 the County borrowed on behalf of the Mental Health Department in 2000, and $8,500,000 the County borrowed to repay the debt associated with building the jail annex in The Mental Health Department reimburses the County for the debt service, so it is at no real cost to the tax payers of the County. The jail sales tax was robust enough to allow the County to escrow the bonds in 2012 until they are callable. As a result, the County cancelled the ½ sales tax and removed the debt service expense from its budget beginning in The County is working on a plan to request the voters to authorize the county to issue new debt relative to a center for the newly consolidated dispatching operations and the emergency management department. For now, the County only has the 2000 bond issue and that is scheduled to be fully repaid in Capital Outlay Capital Outlay is budgeted at $823 thousand and is 4.12% of all expenses. The 2013 budget is 3.52% lower than The County is working on a longterm capital replacement plan. The first step was to secure long term funding. Throughout 2013, staff will present the County Commissioners with a plan to replace equipment and machinery before the costs for maintaining the old equipment or machinery becomes prohibitive. The Road and Bridge Fund will also return to placing a portion of surplus in a special machinery replacement fund. The County is planning on transferring $240 thousand in The last major ongoing transfer beginning in 2013 is the excess revenue from the State for housing their inmates. Beginning in 2013, the County will set aside the first $200 thousand surplus revenue and a continual funding mechanism for the Capital Improvement Projects fund. Currently there is no dedicated funding source so the only projects that are accomplished are because of grants. The remainder, A - 7

8 COWLEY COUNTY, KANSAS Additional Information and Quick Reference Guide Information regarding the contents of this document can be obtained by calling County Administrator at from 8:00 am to 5:00 pm (CST) Monday through Friday. Internet Access: This document is available at the following address: Reference copies of the budget document can be viewed at: Cowley County Courthouse 311 E 9 th Ave Winfield, KS Other County Departments and Helpful Numbers Brief Description and Phone Number Cities within Cowley County Winfield Arkansas City Udall Burden Parkerfield Dexter Atlanta Geuda Springs Cambridge Boards of Education USD 462, Central USD 463, Udall USD 465, Winfield USD 470, Arkansas City USD 471, Dexter Chambers of Commerce Winfield Arkansas City A 8

9 County/City Health Department Winfield Arkansas City Emergency Medical Services Winfield Ext 238 Arkansas City County Appraiser County tax assessor County Attorney Department of Motor Vehicles County Treasurer Council on Aging Bus Service District Court Sheriff Department Public Works For prosecution of Kansas law violations Licensing of drivers, Strother Field Registration of vehicles Busses running through Cowley County Call for a scheduled pick-up or Forum for persons with disputes Winfield Arkansas City Law enforcement and jail operation Winfield Arkansas City Maintain and improve the City infrastructure Winfield Arkansas City A 9