ROUTT COUNTY 2015 BUDGET

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1 ROUTT COUNTY 2015 BUDGET The mission of Routt County is to efficiently deliver a balance of public services and infrastructure to provide a safe and healthy place to live for present and future generations th Street, Steamboat Springs, CO Web:

2 2015 Budget Overview The 2015 Routt County budget projects $57,674,000 in revenues and $63,166,000 in expenses resulting in $5,492,000 of expenses over revenues, and after removing $390,000 of noncash expenses such as depreciation, the use of reserves is $5,102,000. The 2015 budget as compared to the 2014 budget includes a $6,887,000 or 14% increase in revenues and a $3,922,000 or 7% increase in expenses. The 2015 budget is separated into governmental activities and business type activities as follows. Governmental Activities include the County s basic services such as Property Tax Administration, Public Safety, Human Services, Community Services, Road and Bridge and Administration. Revenues are anticipated to increase $1,709,000 or 4% to $39,906,000, expenses are anticipated to decrease $916,000 or 2% to $44,748,000 and results in expenses over revenues of $4,842,000. The decrease in reserves is the result of several planned Road and Bridge replacement infrastructure projects. The County s base property tax revenue, which funds governmental activities, is anticipated to increase $509,000 or 3.7% and is limited to this increase by the Taxpayers Bill of Rights (TABOR). Sales tax from all sources is anticipated to increase $372,000 or 7% based on 2014 collections. The modest growth experienced in the County s two largest revenue sources property tax and sales tax remains tentative given the continued degree of uncertainty in the economy. The County in 2015 desires to serve more of the County's low income working families by helping all eligible low income working families making less than 130% of the federal poverty level (FPL) guidelines with child care benefits. The 130% FPL guideline for a family with two adults and two children is an annual gross income of $30,612. The County anticipates to more than double the number of children in 2015 from the 28 children who participated in the program during Child Care benefits in the Human Services budget are anticipated to increase $82,000 or 26% to $394,000 from the 2014 budget, The planned replacement of Road and Bridge infrastructure includes two bridges on County Road 67, 19 miles of road will be overlaid and 22 miles of roads will be chip and sealed. The combined 41 miles of roads budgeted for overlay and chip and seal represents 25% of the total paved road system. In addition, the remaining $.6 million of the $1.5 million of improvements to CR 14 Phase IV is in the 2015 budget with the anticipation of further improvements in the future. Total infrastructure expense is $5.7 million and is primarily funded by the Road and Bridge Fund s reserves. In addition, $3.0 million of funding for the small bridge program (bridges with spans of less than twenty feet and greater than four feet) has been included in the 2015 to 2020 budgets, as compared to $.6 million in the 2014 budget. The small bridge program includes the replacement of sixteen bridges needing replacement as a result of a 2013 survey. Two of the small bridges are planned to be replaced in the 2015 budget. The 2015 compensation plan includes a 2.8% market adjustment across all pay scales and for eligible employees, a current anniversary step and two catch up steps. The County s Step Compensation Plan was partially reinstated in 2014 after being suspended during the time period The compensation plan s cost is $634,000 or 4%. The compensation increase is being funded by the increase in property and sales tax revenues. Real estate values in the County continue to trend upward for single and multi-family homes. The County anticipates an increase of 15% in assessed valuation from the 2015 reappraisal, which is based on the County s assessed valuation at June 30, 2014, for property taxes collected in An increase of 1

3 15% in assessed valuation results in gaining back approximately 50% of the total 31% decrease in assessed valuation since The increase in assessed valuation for base property tax revenue will not have an impact, other than increasing the TABOR property tax credit limit and allowing for property tax revenue increases within the TABOR revenue limitation. Voter approved property tax revenue will see the anticipated 15% increase. The recent decrease in oil prices is having a positive impact on the County s cost of asphalt. The cost of a ton of asphalt decreased 13% and represents an $115,000 annual decrease in the cost of the paved road program. The cost of a gallon of fuel has remained flat with last year s prices. Nationally, gross domestic product increased in two of the three quarters ended September 30, 2014, after four quarters of increase in Unemployment has decreased from 2013 levels by 2.2% to 3% in the County and by 1.5% to 5.8% nationally. The County however should not be overly optimistic due to a number of negative or inconsistent economic indicators. Consumer confidence has improved, but continues to fluctuate nationwide. Wage growth is relatively flat nationally. The County has an average of 564 families on food assistance for the first nine months of 2014, an increase of 12% from 2013 and has 15% of its total population or 3,548 individuals on Medicaid or public assistance for health care. Business Type Activities include the Yampa Valley Regional Airport (YVRA), the Regional Building Department, the Phippsburg Water and Sanitation System and the Milner Sanitation System. Revenues are anticipated to increase $5,172,000 or 41% to $17,768,000, expenses are anticipated to increase $4,832,000 or 36% to $18,418,000, which results in expense over revenues of $650,000. After removing noncash expenses such as depreciation, reserves decrease $260,000. The business type activities are fundamentally financially self-sufficient by charging fees for services and receiving grants from state and federal governments. The 2015 YVRA operations budget anticipates an $11,000 operating income as compared to the $.4 million operating loss in the 2014 budget. The prior year operating loss is the result of significant decreases in enplanements due to the recession adversely impacting car rental, shuttle and parking lot fees and the restaurant s continued operating loss. YVRA enplanements have decreased from a high in 2008 of 140,000 to an anticipated 96,000 in 2014, a decrease of 44,000 or 31%. The 2015 YVRA budget reflects an 8.76 decrease in full time equivalents (FTEs) totaling $.3 million, offset by a $.1 million increase in compensation, and a $.2 million decrease in operating costs. In addition, YVRA s operating expenses decreased $1.3 million for the contribution to the Town of Hayden for the construction of a Water Tank Storage System (WTSS) in The WTSS is needed to provide an adequate supply of water to hydrants and the second floor of the terminal. YVRA will utilize an interfund loan from the Road and Bridge Fund of $1.5 million, over 15 years at 3% to finance the contribution. Construction of the WTSS is anticipated to be substantially complete in YVRA capital expenditures include $12.5 million of the 2014/2015 $16.7 million runway rehabilitation and service road project. The project is 100% funded from Federal Aviation Administration Airport Improvement Grants, Passenger Facility Charges and a State Aviation System Grant. The 2015 compensation plan for business type activities also includes the 2.8% market adjustment across all pay scales, the current anniversary step and two catch up steps as discussed above in the governmental activities section. The cost of the compensation plan is $127,000 or 4%. 2

4 Conclusion The County continues to analyze the budget wherever possible to effectively increase revenues and decrease costs. Since 2009, the County has made significant changes to weather the negative impacts of a 31% decrease in assessed property values and a 37 % decrease in sales tax. In response, the County cut employee salaries 10% to 5%, implemented a reduction in the workforce, suspended the Step Compensation Plan, delayed performing a compensation market survey, cut operating expenses and extended the replacement life of equipment and infrastructure. Right now, the long-term forecast projects a balanced budget. The 2015 budget is a snapshot in time based on both known factors and certain assumptions. This financial plan will need to be revised by the County to respond to changing economic conditions. As new financial information becomes available, management will respond in an appropriate manner to maintain the County s overall financial well being. 3

5 REVENUES / INTERFUND LOAN PROCEEDS $ 1,709,000 Governmental Activities revenues are anticipated to increase $1,709,000 or 4% from $38,062,000 budgeted for 2014 to $39,771,000 budgeted for Noted below are the primary reasons for the changes in revenues. PROPERTY TAX SALES TAX 5,172,000 Business Type Activities revenues and interfund loan proceeds are anticipated to increase $5,172,000 or 41% from $12,596,000 budgeted for 2014 to $17,768,000 budgeted in Noted below are the primary reasons for the changes in revenues. GOVERNMENTAL ACTIVITIES 645,000 Property tax revenue from all sources is anticipated to increase $645,000 to $18,322,000 or 4% over the 2014 budget. The primary changes in property tax are as follows. The property tax increase, as defined in the following sentences, is split between Routt County base property taxes and voter-approved property taxes. Base property taxes provide revenue for basic services delivered by the General Fund, Road and Bridge, E-911 Communications and Human Services. Voter-approved property taxes provide revenue for the Purchase of Development Rights Program, Museums and Developmental Disabilities. 509,000 The County s base property tax revenue is anticipated to increase $509,000 or 3.7% and is limited to this increase by the Taxpayers Bill of Rights (TABOR). The TABOR property tax revenue limit increase of 3.7% is composed of a.9% increase from new construction and a 2.8% increase from inflation. (17,000) Property tax from voter-approved mill levies, which are not subject to TABOR, decreased $17,000 or 0.6%. The decrease comes from the decline in assessed valuation. Overall, Routt County s 2014 net assessed valuation decreased $6.1 million to $973 million or.6%. 145,000 Specific ownership tax is collected on vehicles and allocated to the county and each taxing entity based on the percentage allocation of property tax to each taxing entity. Based on 2014 collections, specific ownership taxes allocated to the County are anticipated to increase $145,000 or 17% for base property taxes. 372,000 Sales tax from all sources is anticipated to increase $372,000 to $5,604,000 or 7% above the 2014 budget. Sales tax is composed of a 1% sales tax, a 1% building use tax and a 1% auto use tax. 368,000 Sales tax is anticipated to increase $368,000 to $4,960,000 or 8% above the 2014 budget. This increase is based on actual 2014 sales tax collections increasing 8% from 2014 budget. There is some uncertainty with this projection given the possibility of changing economic conditions. - Building use tax is not anticipated to change from the $235,000 in the 2014 budget. The 2015 budgeted Building use tax of $235,000 is equal to 2010 actual collections. Building use tax is projected to be $522,000 in The Building use tax budget has been projected conservatively given the uncertainty of the building industry and certain Federal revenues such as Payment in Lieu of Taxes (PILT). In 2014, after approximately six month of the Federal fiscal budget year had passed, PILT was budgeted and appropriated. $ 4,000 Auto use tax is anticipated to increase $4,000 to $409,000 or 1% above the 2014 budget. The increase is based on actual auto use tax collections and County residents purchasing cars outside of the County. 4

6 STATE $ 376,000 State revenues are anticipated to increase $376,000 to $4,242,000 or 10% above the 2014 budget primarily because of the changes in the revenues noted below. FEDERAL 26,000 Public Health state revenue increases $26,000 or 60% to $69,000 due to increased funding from the State of Colorado Department of Public Health and Environment. The State provides funding to Environmental Health, and the funds are subsequently forwarded as a pass-through to the Northwest Colorado Visiting Nurses Association. 34,000 Road and Bridge Highway Users Tax Funds (HUTF) are anticipated to increase $34,000 to $2,785,000 or 1% above the 2014 budget primarily due to historical trends. 275,000 Human Services Child Welfare state funding increased $275,000 or 166% to $441,000 as a result of the shifting of program reimbursements fromfederal to state funding to reflect historical trends. 41,000 Human Services Old Age Pension has increased $41,000 or 107% to $85,000 because of increased use of the program by the aging population. 128,000 Federal revenues are anticipated to increase $128,000 to $6,820,000 or 2% above the 2014 budget primarily because of the changes in the revenues noted below. 55,000 Community Services federal revenue is anticipated to increase $55,000 or 100% above the 2014 budget. The increase is due to an anticipated federal grant to fund the purchase of a replacement Council on Aging van for the South Routt County area. 120,000 Road and Bridges Payment in Lieu of Taxes (PILT) federal revenue is expected to increase $120,000 to $1,640,000 or 8% over the 2014 budget primarily due to the end of the Federal Sequestration Program. (210,000) Human Services Child Welfare federal revenue decreased $210,000 or 49% to $219,000 as a result of shifting program reimbursements from federal to state funding to reflect historical trends. (49,000) Human Services Family Preservation federal revenue has decreased $49,000 or 80% to $12,000 as a result of the allocation not being utilized and therefore being reallocated by the State. 105,000 Human Services Temporary Assistance for Needy Families (TANF) federal revenue increased $105,000 or 70% to $254,000 to cover the increase in client benefits as a result of an increase in program utilization. Through September 2014, there were 62 households that received basic cash assistance as compared to 26 households through September 2013, an increase of 131%. 92,000 Human Services Enhanced Medicaid is a new program in the 2015 budget. The allocation was created to fund the increased workload resulting from the Affordable Care Act. $ 62,000 Human Services Child Care federal revenue increased $62,000 or 31% to $262,000, in order to serve more of the County's low-income working families. The desire is to serve all eligible low income working families making less than 130% of the federal poverty level (FPL) guidelines. For example, the 130% FPL guideline for a family with two adults and two children is annual gross income of $30,612. In September 2014, there were 28 children being served in the child care program. The County anticipates to more than doubling the number of children in the program from this change in the FPL guideline. 5

7 FEES $ (6,000) Fees are anticipated to decrease $6,000 to $4,172,000 or 0% below the 2014 budget primarily because of the changes in revenues noted below. OTHER (154,000) Clerk fees are anticipated to decrease $154,000 to $351,000 or 31% under the 2014 budget. The decrease in Clerk recording fees is due to a reduction in loan financing and oil and gas transactions. 18,000 Motor Vehicle registration and the related fees are anticipated to increase $18,000 to $328,000 or 6% over the 2014 budget. The increase in Motor Vehicle fees is due to the public continuing to purchase new vehicles. 66,000 Accounting overhead fees increased $66,000 or 5% to $1,266,000 from the 2014 budget. The increase is the result of changes in the 2013 allocation of overhead charges to various departments. Building Department overhead increased $26,000 or 15% to $205,000 as a result of an increase in Information Systems services related to the replacement of the permit software. Fair overhead increased $3,000 or 3% to $104,000. Human Service s overhead increased $70,000 or 35% to $269,000 as a result of an increase in County Attorney and Information Systems services. Planning overhead increased $5,000 or 2% to $263,000 as a result of an increase in County Attorney services. Yampa Valley Regional Airport overhead decreased $39,000 or 8% to $425,000 due to a decrease in Information System services. (58,000) Public Trustee fees are anticipated to decrease 27% or $58,000 to $157,000 primarily due to a decline in the number of foreclosures in the County. The number of foreclosures budgeted for 2014 was 150 as compared to 100 foreclosures budgeted for ,000 Treasurer fees are budgeted to increase $29,000 or 5% to $611,000 primarily due to revenue from a bank earnings allowance. The earning allowance from the bank is based on the County's' bank balances and is applied as an offset to bank charges. The associated revenue and expense have no financial impact and are reflected to provide more disclosure to the public 90,000 Road and Bridge fees are anticipated to increase $90,000 or 33% to $279,000 as a result of an agreement between Twenty Mile Mine and Routt County. The agreement is for road repairs and maintenance on County Road 27 relating to the hauling of coal and mining. 200,000 Other revenues are anticipated to increase $200,000 to $611,000 or 49% above the 2014 budget primarily because of the changes in revenues noted below. 46,000 Human Services implemented the Bridges Out of Poverty Program, which is funded by $33,000 of local support through the Routt County United Way. Also, First Impressions has budgeted an increase of $13,000 in funding from a long-time local supporter. 150,000 Heavy Equipment proceeds from the sale of equipment are projected to increase $150,000 to $160,000 or 1495% in This is due to the scheduled replacement and or sale of a sander truck, a grader, a backhoe and a bulldozer in 2015 as compared to only the replacement of a plow truck in INTERFUND LOAN RECEIPTS $ - Interfund loan receipts remain at $135,000 and consist of $125,000 in payments from Yampa Valley Regional Airport (YVRA) and $10,000 from the Milner Sanitation System to the Road and Bridge fund. YVRA's interfund loan is for $1,500,000 in 2014, to finance YVRA's capital contribution to the Town of Hayden for the construction of a water tank storage system. Debt service associated with this loan is $125,000 per year over a 15-year term with a 3% interest rate. Milner Sanitation System's interfund loan was for $120,000 in 2011 to finance costs associated with a discharge line extension. The debt service associated with this loan is $10,000 per year over a 20-year term with a 5% interest rate. 6

8 STATE $ 1,366,000 State revenues are anticipated to increase $1,366,000 to $1,967,000 or 227% above the 2014 budget because of a change in revenues for Yampa Valley Regional Airport (YVRA) noted below. FEDERAL BUSINESS TYPE ACTIVITIES Yampa Valley Regional Airport budgeted state revenue of $1,967,000 for Revenue consists of $1,791,000 in funding for the runway rehabilitation, vehicle service road and other pavement rehabilitation projects, $53,000 for the completion of the master plan update and $123,000 of State Aviation fuel tax. Budgeted 2014 state revenue included $126,000 to complete the master plan update, $356,000 toward the fire truck replacement and $119,000 of State Aviation fuel tax. 5,225,000 Federal revenues are anticipated to increase $5,225,000 to $9,842,000 or 113% above the 2014 budget because of the changes in Yampa Valley Regional Airport revenues noted below. Yampa Valley Regional Airport (YVRA) federal revenue for 2015 of $9,842,000 consists of Federal Aviation Administration (FAA) Airport Improvement Program (AIP) funding of $9,474,000. This revenue funds 90% of the construction costs related to the runway rehabilitation, vehicle service road and the other pavement rehabilitation projects. Other federal revenues for 2015 include $352,000 in Passenger Facility Charges (PFC) and $16,000 in Transportation Security Administration (TSA) revenue which partially reimburses YVRA for contracted law enforcement officers. YVRA federal revenue for 2014 of $4,617,000 consisted of $345,000 in PFC revenue and $4,272,000 of federal grant revenue. The 2014 federal grant revenue consisted of FAA AIP grant revenue for the first phase of construction for the runway rehabilitation, vehicle service road and the other pavement rehabilitation projects. FEES 157,000 Fees are anticipated to increase $157,000 to $5,811,000 or 3% above the 2014 budget. Noted below are the primary reasons. 280,000 Regional Building Department fees increase $280,000 or 31% to $1,180,000 over the 2014 budget. This increase represents the current projected levels of building activity, resulting from an improving local economy. $ (126,000) Yampa Valley Regional Airport fees decreased $126,000 or 3% to $4,481,000 below the 2014 budget. Airfield fees are anticipated to decline $25,000 or 3% to $892,000. This is primarily due to a decrease in landing fees as a result of airlines continuing to utilize smaller aircraft to maximize load factors and minimize fuel and other operating expenses. The landing fee rate of $4.28 per thousand pounds remains unchanged. 7

9 FEES - CONTINUED Restaurant fees decline by $32,000 or 5% to $632,000 due to less catering, lower priced grab and go off season menu items and lower volume due to the two-month closure of the runway. Restaurant staffing decreases are expected to offset the decreases in revenue. Terminal and passenger services square footage rental revenue is anticipated to increase $47,000 or 3% to $1,472,000 over the 2014 budget. The increase in the square footage rental revenue is primarily due to an to an increase of $1.50 or 4% to $39.94 per square foot. The terminal and passenger services budget is funded primarily with square footage rental revenue from the airlines and various landside vendors such as car rental and taxi companies. The passenger services red coat function has been discontinued in order to fund a portion of the restaurant s $195,000 operating loss. The Steamboat Ski Corporation has offered to increase the presence of their Ambassador program on busy travel days throughout the ski season to partially offset the ending of the 'red coat' program. The discontinuance of the passenger services 'red coat' function and various terminal cost savings measures allows $112,000 of square footage rental revenue to be allocated to the restaurant. The restaurants operating loss after the allocation of $112,000 of square footage rental revenue is $83,000 or a 57% reduction. Terminal concession fees decline by $40,000 or 36% to $70,000 from the 2014 budget. The decrease is due to the health club not becoming a viable program, which resulted in a decrease of $14,000 in anticipated health club membership fees. In addition, the initial start up of the ski rental concession did not perform as anticipated and resulted in a $22,000 or 88% decrease in concession fees. Gift shop revenues decrease $6,000 as a result of changes in the recently renewed contract, and advertising increased $3,000 to reflect current trends. Landside fees decreased $85,000 or 7% to $1,067,000 fromthe 2014 budget. Rentalcar fees are anticipated to decreased $101,000 or 15% to $558,000. This is the combined effects of an overly optimistic forecast in 2014, and the negative impacts associated with a two-month airport closure for the runway rehabilitation project in Parking fees partially offset the car rental decrease by $17,000 due to a rate increase from $7.00 to $9.00 per day. The parking lot fee increase is also partially diluted by the two-month airport closure. Parking lot fees are anticipated to increase to $267,000 or 7%. Security fees are anticipated to increase $9,000 or 3% to $275,000 due to higher costs, associated with compensation increases and time spent monitoring the hold room exit area. $ 3,000 Phippsburg Water and Sanitation System fees increase $3,000 or 3% to $113,000 due to a $5 or 6% increase to $90 per quarter wastewater fee. The last increase in the wastewater rate was in

10 OTHER $ (76,000) Other revenues are anticipated to decrease $76,000 to $148,000 or 34% below the 2014 budget. Noted below are the primary reasons. (70,000) Yampa Valley Regional Airport other revenue decreases $70,000 or 32% to $148,000 from the 2014 budget. Administrative revenue decreased $28,000 because the 2014 budget included $25,000 of revenue from local sources for cost sharing expenses associated with a consultants evaluation of additional air service potentials from origins other than Denver. Capital credits received from the electric cooperative decreased $3,000 based on amounts received in Interest income decreased $3,000 or 51% due to a decrease in reserves. Other capital revenues for YVRA consist of local contributions that declined $10,000 and revenue from Customer Facility Charges (CFC's) assessed to the rental car agencies. CFC revenue decreased $29,000 from $154,000 to $125,000. The CFC's are being utilized to fund the debt service payments related to the interfund loan for the capital contribution to the Town of Hayden for the water tank storage system. The decrease in CFC funding occurs because the 2015 budget reflects CFC revenue up to the amount of interfund debt service. Then the CFCs un-applied collections are recorded as deferred income and used for projects in the future. (5,000) Phippsburg Water and Sanitation System other revenue decreases $5,000 or 100% below the 2014 budget. The local revenue budgeted for 2014 consisted of a $5,000 capital contribution from the Upper Yampa Water Conservancy District as a 50% match toward the cost of the water rights study. The water rights study has been canceled indefinitely per direction of the Routt County Board of Commissioners. INTERFUND LOAN PROCEEDS $ (1,500,000) Interfund loan proceeds decreased $1,500,000 or 100% from the 2014 budget. Yampa Valley Regional Airport (YVRA) is anticipated to receive $1,500,000 of interfund loan. The loan proceeds from the Road and Bridge Fund are to finance YVRA's capital contribution to the Town of Hayden for the construction of a water tank storage system and a waterline extension. The interfund loan debt service associated with this loan is $125,000 per year over a 15-year term with a 3% interest rate. 9

11 PERSONNEL $ 1,053,000 Governmental Activities personnel expenses increased $1,053,000 to $18,883,000 or 6% above the 2014 budget. The primary changes in personnel costs are noted below in the Governmental Activities section. $ (331,000) Business Type Activities personnel expenses decreased $331,000 to $3,105,000 or 10% below the 2014 budget. The primary changes in personnel costs are noted below in the Business Type Activities section. GOVERNMENTAL ACTIVITIES $ 634,000 Compensation A current anniversary step, two 'catch up' steps to eligible employees and a 2.8% market adjustment was made across all pay scales in the 2015 budget. The steps and the market adjustment increased compensation by $634,000 or 4%. The increases in compensation are based on acceptable job performance. From 2009 to 2013 the Step Compensation Plan was suspended because of the financial impacts of the recession and resulted in a maximum of five steps (catch up steps) being missed during this time period. Two catch up steps were reinstated in both 2015 and 2014, leaving the potential for one catch up step to be reinstated in the future. The County has hired a consultant to perform a market compensation survey in ,000 Full Time Equivalents (FTEs) in Governmental activities increased 4.65 FTEs or 2% to FTEs. The primary change in FTEs is as follows. 165,000 Human Services increased 2.63 FTE's or 14% to FTEs from the 2014 budget as follows. Human Services added a 1.0 FTE as an Eligibility Tech to process eligibility requirements as a result of the increased workload related to the Affordable Care Act (ACA) and Medicaid expansion programs. In addition, a second 1.0 FTE Administrative Assistant was added at the front desk to help field the initial phone and walk in contacts related to the increased workload mentioned previously. These position are funded by Federal and State revenues at approximately 80% of the cost of the positions. Human Services added a.63 FTE for the Bridges Out of Poverty program. This position is primarily funded from local contributions. The Collaborative Management Coordinator function was previously outsourced to the State's Probation Department and funded in the Human Service's Collaborative Management operations budget. In 2014, the outsourced Collaborative Management position became a.5 FTE of the County. The impacts to the personnel and operations budget had no significant impact to the Human Services Department bottom line. The Affordable Care Act Health Coverage Guide.5 FTE who assisted citizens in navigating the health insurance marketplace and securing health insurance was not rehired and the position's duties were absorbed by existing personnel. 78,000 Human Resources during 2014, increased 1.0 FTE or 50% to 3.0 FTEs for a Human Resource Generalist to assist with recruiting and staffing, compliance with regulatory reporting, compensation and benefit administration, employee development and training and the development and administration of policies, programs and guidelines. $ 38,000 Sheriff FTEs increased.75 or 3% to FTEs for a Civil/Evidence Technician to perform the evidence duties in a timely manner and to provide a backup for the Civil Deputy. 10

12 $ 13,000 Accounting added a temporary.39 FTE in order to have an efficient and effective transition of duties for a retiring Accounting Manager. - Health Insurance The 2015 budget does not include a change in health insurance rates for the employer or the employee. There will be a change in the deductible of $100 for those employees electing the Health Savings Account as a result of the Affordable Care Act. (13,000) Overtime - Road & Bridge decreased overtime by $11,000 based on historical trends. The Sheriff's Investigations Department decreased overtime by $2,000 based on historical trends. 21,000 Workers Compensation increased $21,000 due to the 2014 increase in compensation. 112,000 Other changes in personnel include turnover in staff and related benefit costs such as health insurance and retirement. BUSINESS TYPE ACTIVITIES 127,000 Compensation A current anniversary step, two 'catch up' steps to eligible employees and a 2.8% market adjustment was made across all pay scales in the 2015 budget. The steps and the market adjustment increased compensation by $127,000 or 4%. The increases in compensation are based on acceptable job performance. From 2009 to 2013 the Step Compensation Plan was suspended because of the financial impacts of the recession and resulted in a maximum of five steps (catch up steps) being missed during this time period. Two catch up steps were reinstated in both 2015 and 2014, leaving the potential for one catch up step to be reinstated in the future. The County has hired a consultant to perform a market compensation survey in (335,000) Full Time Equivalents (FTEs) in Business Type activities decreased 9.16 FTEs or 16% to FTEs. The primary change in FTEs is as follows. (299,000) Yampa Valley Regional Airport (YVRA) decreased FTEs by 8.76 or 18% to from the 2014 budget. The decrease in YVRA FTEs is the result of the recession and the negative impacts from the decrease in enplanements to rental car contracts that expired in 2013, the operating loss from the restaurant, the negative impact to reserves from construction litigation related to the Phase II Terminal Renovation and the use of reserves to fund the Phase III Terminal Renovation. YVRA enplanements have decreased from a high in 2008 of 140,000 to an anticipated 96,000 in 2014, a decrease of 44,000 or 31%. The decreases in FTEs are primarily in the terminal, passenger services and restaurant departments. Terminal FTEs decrease mainly due to the Assistant Director retiring and the position not being filled. The passenger services program has been discontinued resulting in a decrease of 1.57 FTE. As a result, the Steamboat Ski Corporation has offered to increase the presence of their Ambassador program on busy travel days throughout the ski season. During the non ski season, the restaurant will have minimal staffing and a simpler to prepare "grab and go" type menu, which results in a 4.37 decrease in FTEs. Smaller FTE decreases totaling.76 FTE occurred in various other departments such as airfield and terminal to assist in balancing the YVRA budget. In addition, the decrease in overtime resulted in a 1.06 decrease in FTEs. See the comments below for the decrease in YVRA overtime. $ (36,000) Building Department FTEs decreased by.40 or 6% to 6.41 FTEs from the 2014 budget. The 2014 budget included the former retiring Building Official spending.18 FTE to train the new Building Official. Additionally, a.22 FTE reduction for the seasonal part time position was made to reflect historical trends. 11

13 $ - Health Insurance The 2015 budget does not include a change in health insurance rates for the employer or the employee. There will be a change in the deductible of $100 for those employees electing the Health Savings Account as a result of the Affordable Care Act. (74,000) Overtime for YVRA has been reduced by $74,000 or 84% to $13,000 from the 2014 budget. Overtime worked will not be paid out except to seasonal employees with all other overtime being carried over as compensatory time to be used during the April and May 2015 airport closure for runway rehabilitation. (2,000) Workers Compensation The decrease in workers compensation is primarily the result of the 2015 decrease in FTEs. $ (47,000) Other changes in personnel include turnover in staff and related benefit costs such as health insurance and retirement. 12

14 OPERATIONS $ 276,000 Governmental Activities operating costs are budgeted to increase from the 2014 budget by $276,000 or 2% to $16,357,000. The major changes in operating costs are noted below in the Governmental Activities section. $ (1,508,000) Business Type Activities operating costs are anticipated to decrease from the 2014 budget by $1,508,000 or 38% to $2,472,000. The major changes in operating costs are noted below in the Business Type Activities section. GOVERNMENTAL ACTIVITIES Department Change Comments Detention Center $ (214,000) The 2014 budget included $214,000 for contract housing for an inmate with special health needs that could not be met at the Routt County Detention facility. During 2014 this inmate plead guilty and was sentenced and moved to the State Department of Corrections so no costs are included in the 2015 budget. Road and Bridge 37,000 Road administration includes a $37,000 or 34% increase to $156,000. The bi-annual pavement survey will be completed in 2015 for $27,000 and the US Highway 40 Access Plan conducted by the Colorado Department of Transportation will be completed in 2015 for $10,000. (106,000) Road maintenance includes a $106,000 or 13% decrease to $729,000. Culvert costs decreased $80,000 due to the inventory being replenished and rental costs decreased $18,000 because this line item is moved to the Equipment Pool to consolidate like expenses. 253,000 Bridges less than 20 feet includes an increase of $253,000 or 71% to $608,000. This includes the replacement of Gun Creek Bridge on County Road 36 for $315,000 and the replacement of the Middle Creek Bridge on County Road 27 for $186,000. These bridge replacements costs were offset by various engineering costs in The 2014 adopted budget had a small bridge multi year program that totaled $644,000. The 2015 budget has a small bridge multi-year program totaling $2,975,000 an increase of $2,331,000 or 462%. By 2020 the County has been able to plan and fund all sixteen bridges less than twenty feet needing replacement as a result of a survey completed in ,000 Gravel increased $79,000 or 27% to $375,000. The increase is due to the need for additional gravel road maintenance. 17,000 Safety includes an increase of $17,000 or 6% to $292,000 due to pavement marking costs anticipated to increase 10%. The scope of the program did not change. Road and Bridge $ (74,000) Chip and Seal includes a decrease of $74,000 or 9% to $761,000. This decrease is a combination of a rate increase of $.03 or 2% to $1.97 per square yard based on 2014 actual costs and a decrease in miles chipped and sealed from in 2014 to in This represents 13% of the County's paved road system. 13

15 Communications $ 107,000 The 2015 budget includes an increase of $91,000 in expenditures for maintenance of the communications systems that has not been performed on a regular basis since the system was put in place in In addition, there is $12,000 in the Radio Tech operations budget for small tools, test equipment and supplies to perform maintenance, along with $4,000 for travel and training so the Radio Tech has the knowledge to maintain the system adequately. Human Services 82,000 Child Care benefits are anticipated to increase $82,000 or 26% to $394,000, in order to serve more of the County's low income working families. The desire is to serve all eligible low income working families making less than 130% of the federal poverty level (FPL) guidelines. For example, the 130% FPL guideline for a family with two adults and two children is annual gross income of $30,612. In September 2014, there were 28 children being served in the child care program. The County anticipates to more than double the 28 children in the program from this change in the FPL guideline. The increased benefits will be partially funded by the purchase of an additional child care allocation from other counties in the state that did not completely use their allocation and increased funding from the County. 72,000 Temporary Assistance to Needy Families (TANF) benefits have increased $72,000 as a result of increased demand for the program. Through September 2014, there were 62 households that received basic cash assistance as compared to 26 households through September 2013, an increase of 36 households or 131%. The increase in the TANF program expenses is partially funded by an increase in Federal revenue and the remainder from the County. 45,000 Old Age Pension benefits increased $45,000 or 29% to $80,000 due to an aging population creating increased demand for the program. The Old Age Pension Benefit program is 100% reimbursed by the State. Public Trustee (45,000) Operating costs decreased $45,000 or 28% to $113,000 primarily due to less advertising expense from fewer foreclosures, reflecting an improvement in the economy. For 2015, 100 foreclosures are budgeted compared to 2014 budgeted foreclosures of 150. BUSINESS TYPE ACTIVITIES Department Change Comments Yampa Valley Regional Airport (YVRA) $ (1,521,000) Operating costs decreased $1,521,000 or 42% to $2,123,000 from the 2014 budget. The contribution to the Town of Hayden decreased $1,340,000 for the construction of a Water Tank Storage System (WTSS). The WTSS will be owned by the Town of Hayden and is needed to provide an adequate supply of water to hydrants and the second floor of the terminal. YVRA will utilize an interfund loan from the Road and Bridge Fund of $1,500,000 over 15 years at 3% to finance the contribution. Construction of the WTSS is anticipated to be substantially complete in Overhead charges decreased $39,000 primarily due to less utilization of Information Services. 14

16 Yampa Valley Regional Airport (YVRA) Yampa Valley Regional Airport (YVRA) Depreciation expense decreased $14,000 mainly due to the write off of not fully depreciated building improvements replaced during the Phase III Terminal Renovation Project that were identified during the 2013 asset inventory process. After excluding the contribution to the Town of Hayden for the WTSS, overhead and depreciation mentioned above, the following items, discussed by department, contributed to reducing the operating loss of $351,000 budgeted in 2014 to $11,000 operating income budgeted for Administrative operating expenses decreased $65,000 primarily due to a decrease in consulting services, continuing education, travel and related costs. Consulting services for 2014 included a study to evaluate additional air service potentials from origins other than Denver. Airfield operating expenses decreased $19,000 mainly due to a $11,000 decrease in crack seal and runway painting because the 2015 Runway Rehabilitation Project includes these items, a $6,000 decrease in small equipment purchases less than $5,000 and a $2,000 decrease in continuing education. Airport Rescue and Fire Fighting operating expenses decreased $22,000 mainly due to lower continuing education, travel and related costs and no small equipment purchases less than $5,000 budgeted for Terminal operating expenses decreased $14,000 due to less continuing education, travel and lower building repairs and maintenance costs. Security operating expense decreased $12,000 reflecting cost cutting measures which represent historical trends over the last several years. Landside operating expenses decreased $21,000 due to a $8,000 decrease in landscaping and a $6,000 decrease to reflect historical trends over the last three years for paid and employee parking lot expenses. Restaurant operating expenses increased $25,000 to reflect historical trends for cost of goods sold. 15

17 CAPITAL/INFRASTRUCTURE $ (497,000) Governmental Activities capital costs are anticipated to decrease $497,000 to $2,547,000 or 16% below the 2014 budget. Changes from the 2014 budget and some of the more notable projects in 2015 are as follows. Communications Pool capital expense is $44,000 in 2015 and decreased $486,000 from The decrease is from $500,000 budgeted in 2014 to replace the communications dispatch radio consoles compared to $44,000 budgeted in 2015 to replace back up batteries at a tower site and design costs to repair a building at the Mt. Werner site scheduled for The 2015 capital budget for the Building and Plant Pool is $703,000, a decrease of $247,000 from In 2015, Building and Plant capital includes $341,500 from items not completed in 2014 for replacement of the security/fire alarm systems and two remodel projects at the Detention Center and a new yard storage facility at the Justice Center. Capital additions in 2015 for Building and Plant include a $90,000 Sheriff impound lot expansion at the Detention Center and $85,000 for the Justice Center to replace service windows in the Clerk of Court and District Attorney offices with more secure windows and exterior window treatment in the Probation Office. The decrease in capital expense for the Building and Plant Pool from the prior year is from completion of a $113,000 phone system replacement and completion of $157,000 of the total $280,000 originally budgeted to replace the Detention Center roof. The $50,000 lightening arrester system for the roof was moved to 2015 and the total cost of the roof replacement is $207,000 or $63,000 less than originally budgeted. Capital budgeted in the Motor Pool decreased $177,000 in 2015 to $301,000 from The decrease is primarily due to a reduction in the number of vehicles due for replacement based on the Pool's replacement cycle. Capital budgeted in the Heavy Equipment Pool in 2015 is $758,000 an increase of $380,000 over 2014 mainly from replacing a $328,000 grader in Heavy Equipment capital replacements also include a sander truck for $42,000 and a backhoe for $125,000 and additions for 2015 continue to include $120,000 in district shop remodels not completed in 2014 and $37,000 for a vehicle message sign and a fork lift. Information Systems capital expense increased $33,000 in 2015 from the prior year to $741,000. Capital additions for Information Systems include $180,000 to design and install conduit and fiber from the Historic Courthouse to the Justice Center and replacements include $142,000 to complete installation of the Building Department's permitting/land management software started in 2014, $137,000 to replace the Clerk's recording system and $248,000 in other equipment and software according to the Pool's replacement cycle. $ (244,000) Infrastructure costs are anticipated to decrease $244,000 to $5,725,000 or 4% below the 2014 budget. The overall decrease is comprised of a $584,000 increase in overlay costs for County Road (CR) 27, CR 35, CR 53 and CR 129, a reduction in reconstruction costs of $150,000 for CR 14 and $390,000 due to rescheduling work into the future on CR 23, CR 25 and CR 55, and a decrease of $288,000 for engineering costs completed in 2014 for major bridge replacements. The County is overlaying 18.7 miles or 11% of the paved road system. $ 6,677,000 Business Type Activities capital costs are anticipated to increase $6,677,000 to $12,682,000 or 111% below the 2014 budget. Capital costs for 2015 consist of $12,672,000 for the Yampa Valley Regional Airport (YVRA) and $10,000 for the Phippsburg Water and Sanitation System. Capital costs for 2014 consisted of $5,985,000 for YVRA and $20,000 for Phippsburg Water and Sanitation System. The $6,677,000 increase is primarily attributed to timing differences for the two-year YVRA runway rehabilitation, vehicle service road and related pavement rehabilitation construction projects. YVRA capital expenditures of $12.7 million budgeted for 2015 include completion of the runway project at a cost of $12.5 million, the completion of the master plan at $.1 million and $.1 million of other capital items. The 2015 budget reflects a $16.7 million cost for the construction project with $4.2 million spent in 2014 and $12.5 million budgeted in YVRA capital expenditures of $6.0 million budgeted for 2014 included $4.7 million for the first phase of the two year runway project, $.7 million for the fire truck purchase, $.2 million for the master plan update and $.4 million of other capital expenditures. The 2014 budget reflected a $15.3 million cost for the construction project as compared to the $16.7 million in the 2015 budget. The actual bids on the project came in substantially higher. Listed below are the 2015 major capital and infrastructure items greater than or equal to $100,000 for both Governmental and Business Type Activities. 16

18 CAPITAL/INFRASTRUCTURE Major Capital/Infrastructure Items Outside Greater than or equal to $100,000 Department Cost Funding Net Governmental Activities Upgrade and Replace Detention Center Security System Building & Plant $ 208,000 - $ 208,000 Replace Backhoe Heavy Equipment 125, ,000 Replace Grader Heavy Equipment 328, ,000 Design and Install Conduit and Fiber between Historic Courthouse and Justice Center Information Systems 180, ,000 Upgrade Regional Building Department's Permitting/Land Management Software Information Systems 142, ,000 Replace Clerk's Recording Software Information Systems 137, ,000 Replace Green Pipe Bridge CR67 Road and Bridge 1,152, , ,000 Replace Butler Creek Bridge CR67 Road and Bridge 553, , ,000 Overlay CR 27 - Oak Creek to to CR 32 Middle Creek Road and Bridge 1,016,000-1,016,000 Overlay CR 35 - From CR 41 to CR 14 Road and Bridge 293, ,000 Overlay CR 53 - Hayden City Limits to Seneca Haul Road Road and Bridge 1,028,000-1,028,000 Overlay CR State Park Office to - - end of pavement Road and Bridge 646, ,000 Pave parking lot - Steamboat Springs Shop Road and Bridge 206, ,000 40,000 Reconstruction CR 14 Phase IV Road and Bridge 600, ,000 Total Governmental Activities 6,614,000 1,529,000 5,085,000 Business Type Activities Runway Rehabilitation / Vehicle Service Road and other rehabilitation YVRA 12,523,000 12,523,000 - Complete Master Plan Update YVRA 100, ,000 - Total Business-Type Activities 12,623,000 12,623,000 - Total Major Capital/Infrastructure Items $ 19,237,000 $ 14,152,000 $ 5,085,000 17

19 DEBT SERVICE $ (4,000) Governmental Activities debt service expense decreased $4,000 to $1,236,000 or 0% from the 2014 budget. On April 5, 2012, the County issued $13,290,000 of 2012 Series Refunding Certificates of Participation (COPs) for the Justice Center Project with interest rates ranging from 2.0% to 3.25%. The debt service for the COPs is $1,236,000 in 2015 compared to $1,240,000 budgeted in The outstanding balance of the COPs at the end of 2015 is $10,555, Business Type Activities debt service expense is $24,000 and unchanged from the 2014 budget. Phippsburg Water and Sanitation System - Debt service for 2015 of $24,000 represents a full year of interest and principal payments on three loans issued to fund a portion of the upgrades to the wastewater treatment lagoons, a portion of a water filtration facility and an upgrade to the facility. Loans were issued in 2003, 2006 and 2009 for $131,000, $116,000 and $25,000, respectively with interest rates of 5% and 20 year terms. The outstanding balance of the Phippsburg Water and Sanitation System debt at the end of 2015 is $173,000. INTERFUND LOANS ISSUED/DEBT SERVICE (1,500,000) Governmental Activities interfund loan issued decreased $1,500,000 from the 2014 budget to $0 in the 2015 budget. Road and Bridge is anticipated to fund an interfund loan in 2014 to the Yampa Valley Regional Airport (YVRA) for $1.5 million. The $1.5 million interfund loan will finance YVRA s contribution to the Town of Hayden for the construction of a Water Tank Storage System. This loan has a 15 year term with 3% interest and annual debt service payments of $125,000. $ - Business Type Activities interfund loans debt service in 2015 is $135,000 and is unchanged from the 2014 budget. Yampa Valley Regional Airport s interfund loan debt service for the interfund loan from the Road and Bridge Fund totals $125,000 and is unchanged from the 2014 budget. The debt service payment on the $1.5 million interfund loan referenced in the previous governmental activities interfund loan section is $125,000. The outstanding balance of the YVRA interfund loan at the end of 2015 is $1,419,000. Milner Sanitation System s $10,000 interfund loan debt service remained unchanged in 2015 on the $120,000 interfund loan, issued in 2012 from the Road and Bridge Fund to finance sewer line discharge modifications, which has a 20 year term and a 5% interest rate. The outstanding balance of the Milner Sanitation System interfund loan at the end of 2015 is $104,

20 RESERVES Reserves are composed of the following. Restricted reserves are externally imposed by creditors, grantors, laws and regulations of other governments, constitutional provisions, etc. Committed reserves are constrained by limitations the Board of County Commissioners has imposed on various funds. For example, substantial reserves have been committed for the replacement of equipment and Road and Bridge infrastructure. The following is a summary of the County s reserves. Reserves Summary (in millions) Governmental Activities Business Type Activities Total Restricted Reserves TABOR reserve $ 0.9 $ 0.2 $ 1.1 Public Trustee Purchase of Development Rights Affordable housing down payment assistance program Inmate commissary funds Other Total restricted reserves Committed Reserves Road and Bridge operations & infrastructure replacement Equipment replacement General Fund E911 Communications Human Services Self-Funded health insurance Yampa Valley Regional Airport operations and capital replacement Regional Building Department Water and sanitation Total committed reserves Total reserves $ 30.2 $ 2.6 $ 32.8 Significant Items Affecting Reserves and Resources Governmental Activities Reserves from 2015 governmental activities are anticipated to decrease $4.8 million as a result of several planned Road and Bridge projects and the replacement of equipment. Items that could have a significant impact on future County resources include the following. Modest revenue growth is anticipated in major revenue sources such as property and sales tax. Property tax revenue is predicted to have modest growth over the next few years given some positive signs for new construction. Sales tax revenue is also predicted to have modest growth over the next several years given the 8% increase in actual sales tax in 2013 and the anticipated 8% increase in sales tax for 2014, flat or very modest growth in state and national wages, fluctuating consumer confidence and a continued degree 19

21 of uncertainty in the economy. State and Federal revenues are not predicted to increase appreciably given when or if the federal government will be able to address the significant annual, negative Federal deficit and how the elimination of this deficit will impact the County. In 2015, a market survey for the compensation system will be conducted to determine the competitiveness of the compensation system for implementation in The step compensation plan has one potential remaining catchup step from the five missed during the postponement of the step compensation plan as a result of the recession. County Road 14 Phase IV (CR 14) is an approximately 5 mile section of road that has the highest average daily traffic count of all County roads. CR 14 was not adequately engineered and therefore pavement has not performed as anticipated for numerous years. The $13 million budget has been prepared as an estimate of the potential construction costs. Two elections have been held, and both have failed to fund the improvements to CR 14. In the past few years several attempts have been made to obtain grants for CR 14, but have proven to be unsuccessful. The current financial plan is to set aside future favorable budget variances to make improvements to CR 14. The County plans to spend $900,000 in 2014 and $600,000 in 2015 for a total of $1.5 million for improvements to CR 14. Future Reserves The long term forecast projects a balanced budget as presented in the following graph Governmental Activities Committed Reserves. Committed reserves are being used in the future to fund the planned replacement of equipment and Road and Bridge infrastructure. $30,000,000 Governmental Activities Committed Reserves Combined $25,000,000 Road and Bridge Equipment Pool $20,000,000 General Dollars $15,000,000 $10,000,000 $5,000,000 $ Year 20

22 Business Activities Reserves for business type activities are anticipated to decrease in 2015 by $.3 million due to the following items. Yampa Valley Regional Airport (YVRA) reserves are budgeted to decrease $.6 million due to the runway rehabilitation project. In 2014, YVRA s budget included an operating loss of $351,000 as a result of significant decreases in enplanements due to the recession adversely impacting car rental and parking fees and the restaurant s continued operating loss. For the 2015 budget, personnel and operating expenses were significantly reduced to improve the financial condition of YVRA resulting in $11,000 of operating income. YVRA s operating income is anticipated to improve slightly to approximately $.1 million over the next few years because of the runway rehabilitation projects completion in 2015 and reserves are anticipated to increase to $1.2 million in 2017 primarily from the cash flow generated from depreciation. Regional Building Department reserves are anticipated to increase $.3 million due to the growth experienced in 2014 and anticipated to remain in If construction growth continues over the next few years, an adjustment may be considered to adjust Building Department fees down to levels before the recession. Water and Sanitation Systems reserves are anticipated to remain constant over the next few years. Conclusion The 2015 budget is a snapshot in time based on both known factors and certain assumptions. This financial plan will need to be revised by the County to respond to changing economic conditions. The recent decreases in oil prices will positively impact the County s financial condition by reducing fuel and asphalt costs. However, there is continued uncertainty with the County s revenue sources, potential impacts from the 2015 compensation market survey and the cost of health care services. As new financial information becomes available, management will respond in a manner appropriate to maintain the County s overall financial well being. 21

23 WHERE THE MONEY COMES FROM Government and Business Activities $20,000,000 $18,000, $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Property Tax Federal Fees Sales Tax State Other Interfund Loans ALLOCATION OF WHERE THE MONEY COMES FROM Government and Business Activities Sales Tax 10% State 11% Other 1% Interfund Loans 0% Property Tax 32% Fees 17% Federal 29% 22

24 WHERE THE MONEY GOES Government and Business Activities $25,000, $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Personnel Operations Capital Infrastructure Debt Service Interfund Loans ALLOCATION OF WHERE THE MONEY GOES Government and Business Activities Infrastructure 9% Debt Service 2% Interfund Loans 0% Personnel 35% Capital 24% Operations 30% 23

25 WHERE THE MONEY COMES FROM Governmental Activities $20,000,000 $18,000, $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Property Tax Federal Fees Sales Tax State Other Interfund Loans ALLOCATION OF WHERE THE MONEY COMES FROM Governmental Activities Sales Tax 14% State 11% Other 1% Interfund Loans 0% Property Tax 46% Fees 11% Federal 17% 24

26 WHERE THE MONEY GOES Governmental Activities $20,000,000 $18,000, $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Personnel Operations Capital Infrastructure Debt Service Interfund Loans ALLOCATION OF WHERE THE MONEY GOES Governmental Activities Infrastructure 13% Debt Service 3% Interfund Loans 0% Capital 6% Personnel 42% Operations 36% 25

27 WHERE THE MONEY COMES FROM Business -Type Activities $14,000,000 $12,000, $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Fees Federal State Other Interfund Loans ALLOCATION OF WHERE THE MONEY COMES FROM Business-Type Activities State 11% Other 1% Interfund Loans 0% Fees 33% Federal 55% 26

28 WHERE THE MONEY GOES Business-Type Activities $14,000,000 $12,000, $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Personnel Operations Capital Debt Service & Interfund Loans ALLOCATION OF WHERE THE MONEY GOES Business-Type Activities Debt Service & Interfund Loans 1% Personnel 17% Operations 13% Capital 69% 27