Montrose County. Presentation of the County Manager s Recommended Budget for October 12, 2016

Transcription

1 Montrose County Presentation of the County Manager s Recommended for 2017 October 12,

2 BUDGET PRESENTATION, ORDER OF DISCUSSION Methodology & Overview Methodology (3-4) Fund Balance History (5) Overview, All Funds (6) Summary by Fund (7) Highlights Property Tax (8-9) Sales & Use Tax (10-11) Operating Expense (12) Labor & Staffing (13-14) Major Capital (15-19) Comparisons Sources / Revenue (20-21) Uses / Expense (22-23) Interfund Transfers (24) What s Next (25) 2 Questions (26)

3 BUDGET METHODOLOGY Long-range financial planning continues to be the cornerstone of the budget development process. Five-year financial models were developed for each of the major operating funds. Utilization of these models allows the County to test the potential long-term impacts of current financial decisions based on a multitude of assumptions. 3

4 BUDGET METHODOLOGY: THE ENDING FUND BALANCE FOR EACH MAJOR OPERATING FUND MEETS OR EXCEEDS ITS FUND BALANCE GOAL! 4

5 FUND BALANCE HISTORY THE 2017 ENDING BALANCE FOR ALL FUNDS IS PROJECTED AT $38.9 MILLION, A DECREASE OF $2.5M FROM THE PROJECTED 2016 ENDING BALANCE OF $41.4M. THE CHANGE IS PRIMARILY ATTRIBUTED TO THE TRANSFER OF FUND BALANCE FROM THE GENERAL FUND TO THE CAPITAL IMPROVEMENTS FUND FOR CONSTRUCTION OF THE EVENT CENTER. 5

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7 2017 BUDGET SUMMARY, BY FUND 2017 CM Proposed Beginning Transfers-In Transfers-Out Net Proj. Ending Fund From Other Total To Other Total Change In Fund Balance Revenue Funds Sources Expenditures Funds Uses Fund Balance Balance GENERAL GOVERNMENT General Fund $ 20,963,132 18,563, ,000 $ 18,683,972 10,666,267 12,043,101 $ 22,709,368 $ (4,025,396) $ 16,937,736 County Clerk Technical Fund $ 25,525 9,000 - $ 9, $ - $ 9,000 $ 34,525 Conservation Trust Fund $ 98, ,500 - $ 125, ,000 $ 120,000 $ 5,500 $ 103,720 Impact Fee Fund $ 658, ,600 - $ 196, $ - $ 196,600 $ 854,621 Local Public Health Fund $ 111,883 1,363, ,000 $ 1,863,870 1,865,785 - $ 1,865,785 $ (1,915) $ 109,968 Public Safety Sales Tax Fund $ 2,152,808 5,593,139 6,543,101 $ 12,136,240 11,862,612 - $ 11,862,612 $ 273,628 $ 2,426,436 Road & Bridge Fund $ 7,932,582 12,703,556 - $ 12,703,556 11,814, ,611 $ 12,694,756 $ 8,800 $ 7,941,382 Social Services Fund $ 1,534,479 6,721,476 - $ 6,721,476 6,884,584 - $ 6,884,584 $ (163,108) $ 1,371,371 Solid Waste Fund $ 2,046, ,000 - $ 114,000 10,355 - $ 10,355 $ 103,645 $ 2,149,903 Capital Expenditures Fund $ 2,120,820 15,433,872 5,000,000 $ 20,433,872 19,925, ,482 $ 20,673,360 $ (239,488) $ 1,881,332 General Debt Service $ 338, ,628,093 $ 1,628, ,038 - $ 643,038 $ 985,105 $ 1,323,265 ENTERPRISE ACTIVITIES Sub: General Government $ 37,981,888 60,825,035 13,791,194 $ 74,616,229 63,672,665 13,791,194 $ 77,463,859 $ (2,847,630) $ 35,134,258 Airport Operations $ 1,074,871 5,392,656 - $ 5,392,656 5,152,760 - $ 5,152,760 $ 239,896 $ 1,314,767 Fleet Management $ 2,210,769 2,426,249 - $ 2,426,249 2,279,126 - $ 2,279,126 $ 147,123 $ 2,357,892 Communications Center $ 134,313 1,031,728 - $ 1,031,728 1,031,728 - $ 1,031,728 $ - $ 134,313 Sub: Enterprise Activity $ 3,419,953 8,850,633 - $ 8,850,633 8,463,614 - $ 8,463,614 $ 387,019 $ 3,806,972 7 TOTAL: MONTROSE COUNTY $ 41,401,841 69,675,668 13,791,194 $ 83,466,862 72,136,279 13,791,194 $ 85,927,473 $ (2,460,611) $ 38,941,230

8 PROPERTY TAX The 2015 Levy (for 2016 Collections) was $312K over the TABOR Limit. Consequently, there will be a refund required with the 2016 Levy. A credit levy for 2016 will be required to refund the $312K TABOR Overage. Based on the preliminary assessed values being slightly down (0.2%) combined with the refund; net property tax revenue in 2017 will decrease $265K from $12.2M to $11.9M. 8

9 PROPERTY TAX (CONTINUED) PROPERTY TAX COMPARISON "Actual" 2016 Collection Year "Preliminary" 2017 Collection Year Change % Change Assessed Value $ 517,303,322 $ 517,175,344 $ (127,978) -0.02% Gross Property Levy (@ mills) $ 12,171,113 $ 12,168,101 $ (3,011) -0.02% Less: Refund of the Prior Year TABOR Overage $ - $ (311,849) $ (311,849) n/a = NET: Property Tax Levy $ 12,171,113 $ 11,856,253 $ (314,860) -2.59% Plus: Abatement Levy $ - $ 50,113 $ 50,113 n/a = TOTAL: NET PROPERTY TAX REVENUE $ 12,171,113 $ 11,906,366 $ (264,746) -2.18% 9

10 SALES & USE TAX COLLECTIONS FOR 2017 ARE CURRENTLY PROJECTED AT $12.3M, $578K MORE THAN THE REVISED PROJECTIONS FOR

11 SALES & USE TAX (CONTINUED) THE PROJECTED GROWTH FOR 2017 IS 4.93% COMPARED TO 6.43% GROWTH IN Sales & Use Tax History Actual Actual Actual Actual Actual Actual Actual Actual Projected Projected $ 4,487,000 Public Safety Sales Tax $ 4,232,015 $ 3,938,601 $ 3,644,810 $ 3,681,005 $ 3,899,684 $ 4,031,243 $ 4,086,572 $ 4,392,331 $ 4,703,044 $ 4,952,564 Pct. Change -6.93% -7.46% 0.99% 5.94% 3.37% 1.37% 7.48% 7.07% 5.31% Road & Bridge Sales Tax $ 5,172,154 $ 4,845,307 $ 5,109,162 $ 4,909,324 $ 5,195,706 $ 5,485,657 $ 5,425,349 $ 5,820,921 $ 6,168,255 $ 6,444,300 $ 6,033,000 Pct. Change -6.32% 5.45% -3.91% 5.83% 5.58% -1.10% 7.29% 5.97% 4.48% Road & Bridge Use Tax $ 596,928 $ 471,081 $ 443,494 $ 405,032 $ 553,947 $ 575,445 $ 662,620 $ 810,757 $ 861,588 $ 914,156 Pct. Change % -5.86% -8.67% 36.77% 3.88% 15.15% 22.36% 6.27% 6.10% $ 896,500 TOTAL SALES & USE TAX $ 10,001,098 $ 9,254,988 $ 9,197,466 $ 8,995,361 $ 9,649,338 $ 10,092,345 $ 10,174,541 $ 11,024,008 $ 11,732,887 $ 12,311,020 Pct. Change -7.46% -0.62% -2.20% 7.27% 4.59% 0.81% 8.35% 6.43% 4.93% $$$ Change $ (746,109) $ (57,523) $ (202,105) $ 653,976 $ 443,007 $ 82,197 $ 849,467 $ 708,879 $ 578,133 11

12 THE TOTAL OPERATING BUDGET FOR 2017 OF $46.2M IS $186K (OR 0.4%) LOWER THAN THE REVISED BUDGET FOR

13 LABOR BUDGET 2016 Changes 5 FTE s were added mid-year 2016 to the Health & Human Services Department; 4 Eligibility Techs, and 1 grant funded position in Child Welfare Funding has been provided for performance based MERIT increases up to 3.0%. Authorized staffing has been reduced 1.75 FTE s from to There is only one new position request for 2017, that position is in Media Relations. 13

14 LABOR BUDGET (CONTINUED) DEPARTMENT DEPARTMENT STAFFING Original Staffing Changes Changes Proposed Staffing Airport Assessor Clerk & Recorder Coroner County Attorney 6.00 (1.00) 5.00 County Management BOCC County Manager Media Relations Facilities (1.65) Finance 8.00 (1.00) 7.00 Government Affairs Health & Human Services Information Technology OD & HR 5.50 (0.50) 5.00 Planning & Development 8.00 (2.00) 6.00 Road & Bridge Sheriff (1.00) Surveyor Treasurer & Trustee 4.60 (0.60) 4.00 TOTAL (2.75) Total Change (1.75) - 14

15 GENERAL FUND $ Clerk & Recorder: Plat Machine Replacement $ 17,000 IT: County Network Upgrade $ 335,000 IT: Microsoft Office Upgrade - All MS Office Users (312) $ 72,650 IT: Server for the Disaster Recovery Facility $ 12,000 Major Capital Listing (Page 1 of 2) General Fund Total $ 436,650 ROAD & BRIDGE FUND $ Heavy Equipment Purchases: (3) Snow Plow Trucks (10yd Dump, Sander & Plow) $ 636,000 Bucket Crusher for Excavator 72,000 Walk & Roll 40,000 Loader (West End) 235,000 Motor Grader 280,000 Paved Road Reconstructions: Subtotal $ 1,263, Road, Oak Grove (R1701) $ 206,780 Banner Road, to Rd. (R1703) $ 139, Road, Hwy to- Eagle Dr. (R1704) $ 116,458 Maple Grove Rd., to Rd. (R1705) $ 362,705 Spring Creek Rd., to Rd. (R1706) $ 454,962 Gravel Road Improvements: Subtotal $ 1,280,794 Peach Valley Road (R1707) $ 86,605 Rim rd., Shavano West mile (R1708) $ 23, Rd., Segment (R1709) $ 23,000 Bridge Improvements: Subtotal $ 132,611 Bridge Reconstruction: 5100 Wise Creek (R1702) $ 450,000 Road & Bridge Fund Total $ 3,126,405 15

16 Major Capital Listing (Page 2 of 2) PSST FUND $ Sheriff: Spillman Upgrade to Linux $ 25,000 PSST Fund Total $ 25,000 CIP FUND $ Admin. Bldg.: HVAC RTU#2 Replacement $ 10,000 Admin. Bldg.: Roof $ 150,000 Comm. Towers: 800 MHZ Radio Replacements $ 150,000 EOC: Generator Replacement $ 47,000 Fairgrounds: Indoor Arena / Events Center $ 9,000,000 Fairgrounds: Restroom Addition & Arena Showers $ 22,000 Road & Bridge: LaSalle Property Facility $ 10,000,000 Sheriff: Jail Pod / Reconstruction $ 100,000 CIP Fund Total $ 19,479,000 AIRPORT OPERATIONS FUND $ Montrose Master Plan (GMTMP) $ 69,375 MTJ, Taxilane Fillet Design $ 80,000 MTJ, Taxilane Fillet Construction $ 1,430,000 MTJ, Terminal Area Plan $ 250,000 AIB, Runway Rehabilitation $ 250,000 MTJ, Refrigerated Chiller $ 170,000 MTJ, Terminal Generator (Enclosed) $ 200,000 MTJ, ARFF Filtration System $ 20,000 MTJ, UPS Replacement $ 25,000 Airport Fund Total $ 2,494,375 FLEET SERVICES FUND $ Light Fleet Vehicle Replacements Health & Human Services (3) Vehicles $ 78,831 Sheriff's Office (1) Vehicle $ 23,765 Light Fleet - Capital Equipment $ 10,000 Heavy Fleet - Capital Equipment $ 10,000 BearCat (Tactical unit for the S.O.) $ 285,381 Fleet Fund Total $ 407,977 TOTAL: ALL FUNDS $ 25,969,407 16

17 EVENT CENTER The proposed budget includes funding for the construction of a new Event Center at the County Fairgrounds. Estimated construction costs of $9M will be funded by a combination of the use of fund balance ($4M), a $4M lease purchase agreement, and a $1M State grant. The term of financing is expected to be 20 years with annual debt service payments of approximately $283K. ed Expense 2017 Construction $ 9,000,000 Debt Issuance Costs $ 120,000 Debt Service Reserve $ 281,444 Semi-Annual Interest $ 70,000 Trustee Fees $ 2,000 Funding TOTAL $ 9,473,444 Debt Proceeds $ 4,000,000 General Fund Transfer (Fund Balance) $ 4,000,000 State Grant $ 1,000,000 CIP Fund (Fund Balance) $ 473,444 TOTAL $ 9,473,444 Financing Term 20 Rate 3.500% Principal $ 4,000,000 Annual Debt Service $281,444 Annual Trustee Fees $ 2,000 Total Annual Cost $ 283,444 Total Debt Service $ 5,628,886 Total Trustee Fees $ 40,000 Issuance 3% $ 120,000 TOTAL FINANCING COSTS $ 5,788,886 Plus: Upfront Cash $ 4,473,444 = TOTAL COUNTY COST $ 10,262,330 NOTE: Total Cost Excludes Annual Operating Costs for the Event Center. 17

18 ROAD & BRIDGE FACILITY Included in the proposed budget is a $10M plan to construct new facilities for the Road & Bridge Division on the LaSalle property. Total estimated costs of $10M will be funded by proceeds from a lease purchase agreement, probably in the form of certificates of participation (COP s), for which the payments will be subject to annual appropriation. The term of financing is expected to be 20 years with annual debt service payments of approximately $706K. ed Expense 2017 Construction $ 10,000,000 Debt Issuance Costs $ 300,000 Debt Service Reserve $ 703,611 Semi-Annual Interest $ 175,000 Trustee Fees $ 2,000 Funding TOTAL $ 11,180,611 Debt Proceeds $ 10,000,000 CIP Fund (Fund Balance) Road & Bridge Fund (Fund Balance) $ $ 300, ,611 TOTAL $ 11,180,611 Financing Term 20 Rate 3.500% Principal $ 10,000,000 Annual Debt Service $703,611 Annual Trustee Fees $ 2,000 Total Annual Cost $ 705,611 Total Debt Service $ 14,072,215 Total Trustee Fees $ 40,000 Issuance 3% $ 300,000 TOTAL FINANCING COSTS $ 14,412,215 Plus: Upfront Cash $ 300,000 = TOTAL COUNTY COST $ 14,712,215 18

19 2017 Proposed Total Expenditures (Excludes Transfers ) 72,136,279 Less: Event Center $ (9,473,444) Less: R&B Facility $ (11,180,611) Adjusted (Excluding Facility Construction ) $ $ 51,482, Revised $ 53,871,903 $ Change $ (2,389,679) 19 % Change -4.44%

20 Total Sources, By Fund 2016 Revised 2017 CM-Proposed $ Change % Change General Fund $ 19,374,232 $ 18,683,972 $ (690,260) -3.6% County Clerk Technical Fund $ 9,000 $ 9,000 $ - 0.0% Conservation Trust Fund $ 125,500 $ 125,500 $ - 0.0% Impact Fee Fund $ 192,400 $ 196,600 $ 4, % Local Public Health Fund $ 2,025,798 $ 1,863,870 $ (161,928) -8.0% Public Safety Sales Tax Fund (PSI) $ 11,889,635 $ 12,136,240 $ 246, % Road & Bridge Fund $ 12,289,346 $ 12,703,556 $ 414, % Social Services Fund $ 6,606,742 $ 6,721,476 $ 114, % Solid Waste Fund $ 111,500 $ 114,000 $ 2, % Capital Expenditures Fund $ 933,872 $ 20,433,872 $ 19,500, % General Debt Service $ 390,588 $ 1,628,143 $ 1,237, % Airport Operations $ 5,255,318 $ 5,392,656 $ 137, % Fleet Management Fund $ 2,833,398 $ 2,426,249 $ (407,149) -14.4% Communications Center Fund $ 1,111,080 $ 1,031,728 $ (79,352) n/a Total Sources $ 63,148,409 $ 83,466,862 $ 20,318, % 20

21 2017 COMPARABLE REVENUE ON A COMPARATIVE BASIS (EXCLUDING INTER-FUND CHARGES AND CAPITAL FINANCING); PROJECTED REVENUE FOR 2017 IS 0.5% HIGHER THAN THE REVISED PROJECTIONS FOR Revenue, By Type 2016 Revised 2017 CM-Proposed $ Change % Change County Taxes $ 25,508,508 $ 25,849,404 $ 340, % Licenses & Permits $ 611,200 $ 621,550 $ 10, % Federal Revenue $ 8,300,224 $ 8,564,241 $ 264, % State Revenue $ 8,053,285 $ 8,815,275 $ 761, % Other Governmental Revenue $ 764,525 $ 652,314 $ (112,211) -14.7% Sales & Services $ 5,367,577 $ 5,513,816 $ 146, % Interfund Service Charges $ 5,390,089 $ 4,802,742 $ (587,347) -10.9% Capital Proceeds $ 606,828 $ 14,529,626 $ 13,922, % Other Revenue $ 348,566 $ 326,700 $ (21,866) -6.3% Total Revenue $ 54,950,802 $ 69,675,668 $ 14,724, % Interfund Transfers $ 8,197,607 $ 13,791,194 $ 5,593, % Comparative Revenue Total Sources $ 63,148,409 $ 83,466,862 $ 20,318, % 2016 Revised 2017 CM-Proposed $ Change % Change Total Revenue $ 54,950,802 $ 69,675,668 $ 14,724, % Less: Interfund Service Charges 5,390,089 4,802,742 (587,347) Less: Airport Capital Grant Funding 1,928,017 1,981,906 $ 53,889 Less: DOLA Grant, Events Center - 1,000,000 $ 1,000,000 Less: Debt Proceeds, Events Center - 4,000,000 $ 4,000,000 Less: Debt Proceeds, R&B Facility Const. - 10,000,000 10,000,000 = Comparative Operating Revenue $ 47,632,696 $ 47,891,020 $ 258, % Significant Changes Property Tax $ (264,747) Sales & Use Tax $ 578,133 Water Rights Grant $ (300,000) HHS Grant Funding $ 103,612 HUTF & FASTER $ 100,000 Comm. Center, Outside User Fees $ (92,541) Airport Services $ 100,700 All Other Revenue $ 33,167 21

22 Total Uses Total Uses for 2017 of $86 Million are $24M (or 38%) more than the Revised for Total Uses, By Fund 2016 Revised 2017 CM-Proposed $ Change % Change General Fund $ 18,848,706 $ 22,709,368 $ 3,860, % County Clerk Technical Fund $ - $ - $ - Conservation Trust Fund $ 120,000 $ 120,000 $ - 0.0% Impact Fee Fund $ - $ - Local Public Health Fund $ 2,008,985 $ 1,865,785 $ (143,200) -7.1% Public Safety Sales Tax Fund (PSI) $ 11,957,230 $ 11,862,612 $ (94,618) -0.8% Road & Bridge Fund $ 12,047,203 $ 12,694,756 $ 647, % Social Services Fund $ 6,390,258 $ 6,884,584 $ 494, % Solid Waste Fund $ 21,668 $ 10,355 $ (11,313) -52.2% * Capital Expenditures Fund $ 1,249,934 $ 20,673,360 $ 19,423, % ** General Debt Service $ 390,538 $ 643,038 $ 252, % Airport Operations $ 5,141,995 $ 5,152,760 $ 10, % Fleet Management Fund $ 2,663,739 $ 2,279,126 $ (384,613) -14.4% Communications Center Fund $ 1,229,254 $ 1,031,728 $ (197,526) -16.1% Total Uses $ 62,069,510 $ 85,927,473 $ 23,857, % 22 * Change attributed to the Events Center ($9M) and the Road & Bridge Facility ($10M) projects. ** Change attributed to financing the Events Center ($4M) and the Road & Bridge Facility ($10M) projects.

23 Expense Comparison, By Type 2016 Revised 2017 CM-Proposed $ Change % Change Operating Expense Personnel Costs $ 25,639,226 $ 26,157,536 $ 518, % Non-Personnel Operating 20,713,408 20,009,335 (704,073) -3.4% Subtotal: Operating Expense $ 46,352,634 $ 46,166,871 $ (185,763) -0.4% Major Capital 7,519,269 25,969,407 18,450, % Total Expenditures 53,871,903 72,136,279 $ 18,264, % Operating Expenditures for 2017 (which excludes Major Capital and Interfund Transfers, are $186K (or 0.4%) less than the Revised for The most significant changes are identified on the adjacent table. Interfund Transfers 8,197,607 13,791,194 5,593, % TOTAL USES $ 62,069,510 $ 85,927,473 $ 23,857, % Comparative Expenditures 2016 Revised 2017 CM-Proposed $ Change % Change Operating Expense $ 46,352,634 $ 46,166,871 $ (185,763) -0.4% Significant Changes to the Operating Total Labor Costs, All Funds $ 25,639,226 $ 26,157,536 $ 518, % Interfund Service Charges, All Funds $ 5,394,002 $ 4,830,576 $ (563,426) -10.4% Property & Liability Insurance, All Funds $ 405,325 $ 262,017 $ (143,308) -35.4% General Fund: Outside Legal Expense $ 352,500 $ 55,000 $ (297,500) -84.4% General Fund: Aerial Pictometry Project $ 66,000 $ - $ (66,000) % General Fund: Pass-thru Grants $ 249,223 $ 127,025 $ (122,198) -49.0% R&B Fund: Paving Materials $ 500,000 $ 695,000 $ 195, % R&B Fund: Outside Services (Guardrail Repair) $ 101,000 $ - $ (101,000) % Fleet Fund: Diesel Fuel $ 400,000 $ 260,000 $ (140,000) -35.0% CIP Fund: Debt Issuance Costs $ - $ 420,000 $ 420,000 n/a Debt Service Fund: Interest Expense $ 64,038 $ 302,538 $ 238, % All Other Non-Personnel Oper. Expense $ 13,181,320 $ 13,057,179 $ (124,141) -0.9% 23

24 Interfund Transfers Interfund Transfers (the transfer of available fund balance from one accounting fund to another) represent the reallocation of available resources. These transactions are equity transfers; although they are accounted for as revenue and expense in the appropriate funds - they do not increase the total resources available or the actual total use of resources for the County as a whole. Interfund Transfers 2016 Revised 2017 CM-Proposed $ Change % Change General Fund -to- Public Health Fund $ 600,000 $ 500,000 $ (100,000) -16.7% General Fund -to- Public Safety Fund $ 6,541,536 $ 6,543,101 $ 1, % General Fund -to- Social Services Fund $ 45,533 $ - $ (45,533) % General Fund -to- CIP Fund $ 500,000 $ 5,000,000 $ 4,500, % Conservation Trust Fund -to- General Fund $ 120,000 $ 120,000 $ - 0.0% Road & Bridge Fund -to- Debt Service Fund $ - $ 880,611 $ 880,611 n/a CIP Fund -to- Debt Service Fund $ 390,538 $ 747,482 $ 356, % Total Interfund Transfers $ 8,197,607 $ 13,791,194 $ 5,593, % Total Uses $ 85,927,473 Less: Interfund Transfers (13,791,194) = Total Expenditures $ 72,136,279 24

25 NEXT STEPS BOCC BUDGET MEETING (Intergovernmental, Major Capital, Staffing) Oct. 20th DEPARTMENTAL BUDGET MEETINGS w/ BOCC... Oct APPROVAL OF MILL LEVIES Dec. 14 (Tentative) APPROVAL OF 2017 BUDGET Dec. 14 (Tentative) APPROVAL OF 2016 SUPPLEMENTAL BUDGET.. Dec. 19 (Tentative) 25

26 QUESTIONS 26