Berrien County Annual Budget 2018

Transcription

1 Berrien County Annual Budget 2018

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3 Table of Contents Enabling Resolution... 3 Budget Overview Introduction... 5 All Funds Summary: All Funds Summary by Fund Type... 6 All Funds History of Fund Balances... 7 All Funds Budget History by Functional Area... 9 All Funds Budget History by Category All Funds Personnel History Revenue Assumptions and Analysis Expenditure Assumptions and Analysis Fund Summaries Excluding Component Units Introduction to Fund Summaries Description of Funds General Fund Summary: Statement of Revenue, Expenditures, and Changes in Fund Balance Statement by Category Statement by Functional Area Revenue by Category and Account Expenditures by Function and Activity Special Revenue Funds Summary: Schedule of Revenue and Expenditures by Fund and Activity Parks and Recreation Fund Parks and Recreation Environmental Fund Parks and Recreation Grants and Projects Funds Parks and Recreation Millage (PA90) Fund Historical Association Loan Fund Berrien Community Foundation Fund Friend of the Court Fund Friend of the Court Programs Fund Judicial Grants Fund Health Department Base Operating Fund Health Drug Court/Treatment Fund Health Department Grant and Program Funds Berrien County Landfill Use Fund Economic Development Grants and Programs Fund Register of Deeds Automation Fund Register of Deeds Foreclosure Search Fund Homestead Audit Administration Fund Prosecutor Programs and Grants Fund Service Millage (Incl. Operations) Fund Service Grants Fund Concealed Pistol Licensing Fund Public Safety Millage Fund Local Law Enforcement Contracts Fund Sheriff s Special Teams and Programs Fund Sheriff s Grants Fund Drug Law Enforcement Fund Federal Forfeiture Drug Law Enforcement Fund NARC Special Fund Emergency Management Grants and Programs Fund Animal Control Grants and Programs Fund Law Library Fund Senior Citizens Millage Fund

4 Table of Contents Berrien Bus Program (Operational) Fund Berrien Bus Grant and Program (Capital Purchase) Funds Four Winds Local Revenue Sharing Fund Three Oaks Village Land Purchase Fund Campaign Finance Administration Fund Social Services Fund Child Care Fund DHS Child Care Fund Family Division Grants and Programs Fund Soldiers and Sailors Relief Fund Veterans Trust Fund Board of Public Works Fund Capital Projects Funds Summary: Schedule of Revenue and Expenditures by Fund and Activity Capital Projects Fund Vehicle Capital Fund Capital Reserve Fund Animal Shelter Construction Fund Schedule of Capital Spending Requests by Project Internal Services Funds Summary: Schedule of Revenue and Expenditures by Fund and Activity Workers Compensation Insurance Fund Health Insurance Fund Unemployment Insurance Fund Property / Liability Insurance Fund Enterprise Funds Summary Schedule of Revenue and Expenditures by Fund and Activity Delinquent Tax Revolving Fund Delinquent Tax Foreclosure Fund Delinquent Personal and Lease Tax Fund Drain Equipment Revolving Fund Water and Sewer Project Funds Fund Summaries for Component Units Land Bank Authority Component Unit Brownfield Authority Component Unit Building Authority Component Unit Economic Development Corporation Component Unit Drain Commission Component Unit Other Schedules Transfers Indirect Cost Transfers Administration Fee Transfers Appropriations Appendix Primary Government Departmental Budgets... A Land Bank Authority Component Unit Departmental Budgets... B Brownfield Authority Component Unit Departmental Budgets... C Economic Development Corporation Component Unit Departmental Budgets... D Drain Commission Component Unit Departmental Budgets... E 2

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

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

7 Budget Overview Introduction The primary purpose of this document is to provide citizens with information and insight into the 2018 Adopted Budget. This document is divided into five major sections: 1. The BUDGET OVERVIEW provides a comprehensive view of the adopted budget for primary government (excluding component units) for the 2018 Berrien County Budget. This section provides assumption and analysis information regarding the budget and breakdowns of revenue and expenditure groupings across funds. 2. The FUND SUMMARIES section provides a description of fund types, history of expenditures by fund within each type, and individual fund statements with revenues and expenditures broken down by type. 3. The FUND SUMMARIES FOR COMPONENT UNITS section provides individual fund statements with revenues and expenditures broken down by type. The Land Bank Authority, Brownfield Authority, Building Authority, Economic Development Corporation, and Drain Commission are included here. The Road Department and Mental Health Authority are not contained herein. 4. The OTHER SCHEDULES section provides detailed information regarding transfers, indirect cost transfers, administration fee transfers, and appropriations. This information is provided as support for the Budget Overview and Fund Summaries. 5. The APPENDIX section provides individual department level budgets by account and is base level information for budget. 5

8 Budget Overview 6

9 Budget Overview All Funds History of Fund Balances Schedule of Fund Balances/Net Positions Year ended December Fund Bal/Net Est. Fund Fund Bal/Net Position Bal/Net Pos. Sources Uses Net Change Position General Fund (1010) 20,449,130 20,449,130 62,029,527 (62,029,527) 0 20,449,130 Special Revenue Funds Parks and Recreation (2080) 416, ,365 1,593,933 (1,719,037) (125,104) 209,261 Parks Environmental Affairs (2082) 198,304 3, ,000 (176,966) 34 3,988 Parks and Recreation Grants (2085) ,105 (800,105) 0 0 Parks Millage (PA 90) Fund (2087) 12,450 11, ,798 (764,798) 0 11,838 Berrien Community Foundation (2130) 50,932 50,932 31,258 (31,258) 0 50,932 Friend of the Court Fund (2150) 260,834 64,834 3,557,555 (3,559,602) (2,047) 62,787 Friend of the Court Programs (2155) 138,230 98,230 20,000 (45,000) (25,000) 73,230 Judicial Grants & Programs (2175) 185, , ,502 (965,502) 0 150,472 Health Department (2210) 717, ,495 4,979,777 (5,279,777) (300,000) 286,495 Health Department Grants & Programs (2215) 547, ,986 5,829,914 (6,056,176) (226,262) 299,724 Berrien County Landfill Use (2270) 315, , ,000 (213,250) 41, ,821 EDC Grants & Programs (2445) 13,138 13, ,138 Register of Deeds Automation (2560) 56,973 13, ,000 (160,000) 0 13,133 Register of Deeds Tax Foreclosure Search (2561) 13,000 13, ,500 (192,500) 0 13,000 Homestead Audit Administration (2590) 310, ,031 64,200 (63,018) 1, ,213 Prosecutor Grants and Programs (2605) 70,012 73, ,435 (774,435) 0 73, Service Millage (2610) 2,448,408 2,529,202 5,124,438 (5,742,490) (618,052) 1,911, Service Grants (2615) 36,077 6,077 40,000 (40,000) 0 6,077 Concealed Pistol Licensing (2630) 73, ,829 63,000 (6,094) 56, ,735 Public Safety Millage (2640) 248, ,876 2,674,375 (2,839,810) (165,435) 70,441 Local Law Enforcement Contracts (2642) 162, ,923 2,439,230 (2,439,230) 0 140,923 Sheriff's Special Teams & Programs (2644) 172, ,117 1,372,649 (1,373,149) (500) 138,617 Sheriff's Grants (2645) 139, , ,940 (320,940) 0 140,424 Drug Law Enforcement (2650) 108,651 94,487 27,300 (43,744) (16,444) 78,043 Federal Forfeiture Drug law Enforcement (2651) 13,495 8,495 - (2,000) (2,000) 6,495 Narc Special Fund (2653) 1,081, ,007 1,449,528 (1,449,528) 0 418,007 Emergency Management Grants and Programs (2665) 65,925 50,925 27,300 (27,300) 0 50,925 Animal Control Grants and Programs (2675) 20,703 18,186 26,700 (26,000) ,886 Law Library (2690) 42,530 42,530 83,510 (83,510) 0 42,530 Senior Citizens Millage (2700) 20,677 20,677 2,292,591 (2,292,591) 0 20,677 Berrien Bus Program (2810) 375, , ,736 (979,290) (88,554) 167,666 Berrien Bus Grants and Programs (2815) ,815 (507,815) 0 0 Four Winds Local Revenue Sharing (2851) 980, ,802 80,000 (364,432) (284,432) 177,370 Campaign Finance Administration (2870) 10,082 7, (3,050) (2,550) 4,982 Social Services (2900) 111, ,094 - (21,977) (21,977) 89,117 Child Care (2920) 1,067, ,095 9,203,186 (9,403,186) (200,000) 218,095 DHS Child Care (2921) 886, , ,615 (1,344,615) (350,000) 236,624 Family Division Grants and Programs (2925) 25,397 25,397 6,000 (6,000) 0 25,397 Soldier and Sailor Relief (2930) 1, ,000 (2,000) Veteran's Trust (2940) 2, Board of Public Works (2960) 97,806 94,320 - (14,029) (14,029) 80,291 Total Special Revenue Funds 11,500,026 8,327,216 47,792,390 (50,134,204) (2,341,814) 5,985,402 Capital Projects Funds Capital Improvements (4010) 5,632,352 3,562,796 5,875,000 (7,289,465) (1,414,465) 2,148,331 Vehicle Equipment Replacement (4020) 525, , ,000 (228,750) 1, ,274 Total Capital Projects Funds 6,158,066 3,760,820 6,105,000 (7,518,215) (1,413,215) 2,347,605 7

10 Budget Overview All Funds History of Fund Balances Schedule of Fund Balances/Net Positions Year ended December Fund Bal/Net Est. Fund Fund Bal/Net Position Bal/Net Pos. Sources Uses Net Change Position Internal Service Funds Workers' Compensation Insurance (6771) 492, , ,999 (276,200) 20, ,067 Healthcare Insurance (6772) 3,241,180 2,114,808 14,015,039 (13,063,080) 951,959 3,066,767 Unemployment Insurance (6773) 154, ,462 - (21,600) (21,600) 114,862 Property / Liability Insurance (6774) 3,542,732 3,628,588 1,043,044 (949,499) 93,545 3,722,133 Total Internal Service Funds 7,430,795 6,172,125 15,355,082 (14,310,379) 1,044,703 7,216,828 Proprietary Funds Delinquent Tax Revolving (5160) 34,825,638 32,887,741 2,222,418 (9,958,657) (7,736,239) 25,151,502 Delinquent Real Property Tax Foreclosure (5180) 71,327 45,338 1,332,700 (1,024,489) 308, ,549 Delinquent Personal & Leasehold Property Tax (5190) 143, ,622 35,800 (36,065) (265) 143,357 Buchanan Township Sewer System No. 23 / Water Sys Coloma Township Sewer System No. 24 Bonds (5755) ,153 (11,153) 0 0 Village of Berrien Springs / Oronoko Township Water / - - 5,240 (5,240) 0 0 New Buffalo City Water System No. 28 Bonds (5759) ,499 (27,499) 0 0 Benton Township Water System No. 27 Bonds (5760) ,238 (660,238) 0 0 Village of Berrien Springs Water / Sewer System No ,955 (133,955) 0 0 Coloma City Water System No. 30 Bonds (5762) ,913 (125,913) 0 0 Oronoko Township Water / Sewer System No. 31 Bond ,360 (72,360) 0 0 Village of Michiana Water System No. 32 Bonds ( ,850 (36,850) 0 0 Drain Working Capital (6390) 446, ,709 70,000 (181,287) (111,287) 295,422 Total Proprietary Funds 35,487,054 33,483,409 4,734,126 (12,273,706) (7,539,580) 25,943,829 Total Primary Government 81,025,072 72,192, ,016,125 (146,266,031) (10,249,906) 61,942,795 8

11 Budget Overview All Funds Budget Summary By Function (Excluding Component Units and GASB Adjustments) Year ended December Incr (Decr) vs 2017 Audited Percent Adopted Percent Adopted Percent Amount Percent Revenues Property taxes $ 46,844, % $ 47,239, % $ 48,626, % $ 1,387, % Licenses and permits 594, % 625, % 603, % (22,200) -3.5% State revenue sharing 3,653, % 3,642, % 3,678, % 35, % Intergovernmental revenue 16,344, % 16,602, % 17,427, % 825, % Charges for services 15,499, % 14,730, % 14,833, % 102, % Fines and forfeitures 446, % 519, % 519, % - 0.0% Interest revenue 210, % 370, % 216, % (153,917) -41.5% Indirect cost and admin fees revenue 4,813, % 5,221, % 6,694, % 1,472, % Other revenue 17,419, % 18,545, % 18,209, % (336,750) -1.8% Total revenues 105,826, % 107,498, % 110,809, % 3,311, % Expenditures Operating expenditures: Legislative 1,816, % 1,054, % 1,067, % 13, % Judicial 11,813, % 13,377, % 13,167, % (209,446) -1.6% General government 19,978, % 20,447, % 20,884, % 436, % Public safety 25,007, % 27,625, % 29,482, % 1,857, % Public works 1,127, % 772, % 598, % (174,396) -22.6% Health and welfare 21,033, % 23,366, % 25,336, % 1,970, % Recreation and cultural 1,515, % 1,786, % 1,784, % (1,956) -0.1% Comm and economic development 1,932, % 1,681, % 1,466, % (215,180) -12.8% Other governmental activities 16,763, % 18,997, % 16,576, % (2,421,876) -12.7% Total operating expenditures 100,987, % 109,110, % 110,365, % 1,255, % Debt service 1,101, % 1,184, % 1,167, % (16,966) -1.4% Capital outlay 5,620, % 8,737, % 9,676, % 939, % Total expenditures 107,709, % 119,031, % 121,209, % 2,177, % Revenue over (under) expenditures (1,883,290) (11,533,357) (10,399,906) 1,133,451 Other financing sources (uses) Issuance of long-term debt 30, , ,000 - Transfers in 22,556,051 20,716,209 25,056,962 4,340,753 Transfers out (22,556,051) (20,716,209) (25,056,962) (4,340,753) Total other financing sources (uses) 30, , ,000 - Net incr (decr) in fund balance $ (1,852,806) $ (11,383,357) $ (10,249,906) $ 1,133,451 9

12 Budget Overview All Funds Budget Summary By Category (Excluding Component Units and GASB Adjustments) Year ended December Incr (Decr) vs 2017 Audited Percent Adopted Percent Adopted Percent Amount Percent Revenues Property taxes $ 46,844, % $ 47,239, % $ 48,626, % $ 1,387, % Licenses and permits 594, % 625, % 603, % (22,200) -3.5% State revenue sharing 3,653, % 3,642, % 3,678, % 35, % Intergovernmental revenue 16,344, % 16,602, % 17,427, % 825, % Charges for services 15,499, % 14,730, % 14,833, % 102, % Fines and forfeitures 446, % 519, % 519, % - 0.0% Interest revenue 210, % 370, % 216, % (153,917) -41.5% Indirect cost and admin fees revenue 4,813, % 5,221, % 6,694, % 1,472, % Other revenue 17,419, % 18,545, % 18,209, % (336,750) -1.8% Total revenues 105,826, % 107,498, % 110,809, % 3,311, % Expenditures Salaries and wages 35,008, % 37,691, % 38,427, % 736, % Benefit costs 19,194, % 21,049, % 21,038, % (10,162) 0.0% Supplies 2,619, % 2,724, % 2,752, % 27, % Fuel 315, % 493, % 437, % (56,187) -11.4% Contractual services 5,486, % 6,136, % 4,956, % (1,179,283) -19.2% Engineering services 85, % - 0.0% - 0.0% - Consulting services 29, % 9, % 8, % (1,422) -14.3% Legal services 1,392, % 1,181, % 1,138, % (43,668) -3.7% Health services 1,719, % 2,150, % 2,519, % 368, % Boarding services 3,033, % 3,813, % 3,793, % (19,960) -0.5% Other services 1,577, % 1,859, % 1,832, % (26,590) -1.4% Recreation and incentive program 18, % 14, % 23, % 8, % Memberships and subscriptions 109, % 118, % 122, % 3, % Communications 418, % 459, % 454, % (4,974) -1.1% Travel 268, % 332, % 364, % 31, % Employee training and improv 126, % 211, % 223, % 11, % Freight and postage 298, % 387, % 363, % (24,301) -6.3% Advertising 110, % 60, % 70, % 10, % Copier charges 47, % 51, % 57, % 5, % Insurance 14,577, % 15,180, % 15,069, % (110,587) -0.7% Property tax expenses 2, % 14, % 5, % (9,244) -63.1% Utilities 1,099, % 1,331, % 1,322, % (9,314) -0.7% Repair and maintenance 2,027, % 2,435, % 2,588, % 153, % Usage fees % % % - 0.0% Bldg, equip, and software rental 197, % 234, % 223, % (11,311) -4.8% Education expenses % 2, % 2, % - 0.0% Witness and jury compensation 130, % 212, % 183, % (29,700) -14.0% Depreciation 8, % 8, % 5, % (2,385) -28.6% Contingency - 0.0% 1,300, % 1,500, % 200, % Appropriations 5,348, % 3,872, % 3,712, % (160,210) -4.1% Indirect cost and admin fees 4,813, % 5,221, % 6,694, % 1,472, % Project costs 305, % - 0.0% - 0.0% - Capital outlay 5,620, % 8,737, % 9,676, % 939, % Debt service 1,101, % 1,184, % 1,167, % (16,966) -1.4% All other items 615, % 549, % 472, % (76,812) -14.0% Total expenditures 107,709, % 119,031, % 121,209, % 2,177, % Revenue over (under) expenditures (1,883,290) (11,533,357) (10,399,906) 1,133,451 Other financing sources (uses) Issuance of long-term debt 30, , ,000 - Transfers in 22,556,051 20,716,209 25,056,962 4,340,753 Transfers out (22,556,051) (20,716,209) (25,056,962) (4,340,753) Total other financing sources (uses) 30, , ,000 - Net incr (decr) in fund balance (1,852,806) (11,383,357) (10,249,906) 1,133,451 10

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

14 Budget Overview Primary Government Revenue Assumptions and Analysis Revenue for Primary Government, excluding other financing sourcess such as transfers, capital lease proceeds, gain (loss) on sale of assets, and use of fund balance, are budgeted for 2018 at $ million. This is an increase of $3.311 million or 3.1% from the 2017 adopted budget. The summary below provides a view of 2018 adopted revenues by category compared to 2017 adopted budget and 2016 actual: Revenues Property taxes Licenses and permits State revenue sharing Intergovernmental revenue Charges for service s Fines and forfeitures Interest revenue Indirect cost and admin fees revenue Other revenue $ 2016 Audited Percent 46,844, % $ 594, % 3,653, % 16,344, % 15,499, % 446, % 210, % 4,813, % 17,419, % Year ended December Adopted Percent 2018 Adopted 47,239, ,850 3,642,830 16,602,098 14,730, , ,473 5,221,419 18,545,933 Percent Incr (Decr) vs 2017 Amount Percent 43.9% $ 48,626, % $ 1,387,, % 0.6% 3.4% 15.4% 603,650 3,678,384 17,427, % 3.3% 15.7% (22,200) 35,, ,, % 1.0% 5.0% 13.7% 14,833, % 102,, % 0.5% 0.3% 4.9% 17.3% 519, ,556 6,694,370 18,209, % 0.2% 6.0% 16.4% - (153,917) 1,472,,951 (336,750) 0.0% -41.5% 28.2% -1.8% Total revenues $ 105,826, % $ 107,498, % $ 110,809, % $ 3,311, % Taxes The primary source of revenue to the County is taxes. Taxes are comprised of real estate, personal, and leasehold property, payment in lieu of, industrial and commercial, delinquent, and interest and penalties received on late payment of taxes. Real estate tax makes up most of this amount. For the 2018 budget, taxes represent approximately 43.9% of the County s total revenues. The projection for all tax revenues totals $ million and includes the general operating, law enforcement, 911, senior citizen, and park millage, industrial and commercial, and other items noted above. For the year of 2018, taxes are projected to increase $ million or 2.9% from the 2017 adopted budget of $ million. Current taxes increased $859 thousand while delinquent taxes increased $528 thousand. State equalized values increased by $ million or 1.3% %. Taxable values increased to $ billion, an increasee of 2.5%. The increasee in current taxes can be primarily attributed to these increases. The charts below will provide a visual representation of these changes: 12

15 Budget Overview Year ended December Incr (Decr) vs 2017 Audited Percent Adopted Percent Adopted Percent Amount Percent Current Property, PILT, and TIFA General Fund (1010) $ 34,918, % $ 35,336, % $ 36,057, % $ 720, % Parks Millage (PA 90) Fund (2087) 716, % 721, % 737, % 16, % 911 Service Millage (2610) 3,197, % 3,263, % 3,313, % 50, % Public Safety Millage (2640) 2,493, % 2,539, % 2,578, % 38, % Senior Citizens Millage (2700) 2,130, % 2,176, % 2,210, % 33, % Total 43,455, % 44,037, % 44,897, % 859, % Delinq Taxes, Int, and Penalties 3,388, % 3,201, % 3,729, % 527, % Total Primary Government 46,844, % 47,239, % 48,626, % 1,387, % Component Units Land Bank Authority (2410) 22,854 13,000 15,580 2, % Brownfield Redevelopment Authority 995,112 1,130,000 1,255, , % Grand Total $ 47,862,726 $ 48,382,158 $ 49,896,949 $ 1,514, % Licenses and permits Licenses and permits represent fees charged by the County to individuals and business for things such as marriage, food service, and dog licenses, as well as burial, pistol, septic, well, and other types of permits. This source of revenue amounts to $604 thousand, or 0.5%, of total revenues for the 2018 budget. This represents a decrease of 3.5% from the 2017 adopted budget. This decrease is primarily driven by a dog license revenue decline of $24 thousand. Intergovernmental revenue Intergovernmental revenue consists of grants and reimbursements from Federal, State, and local units of government. One of the important sources of intergovernmental revenue is state revenue sharing which is illustrated separately on the financial statements. Intergovernmental revenue accounts for $ million or 19.0% of total revenues. This represents an increase of 4.3% from the 2017 adopted budget, or $861 thousand. It is worth noting that the budget includes an estimated $301 thousand state reimbursement for a personal property tax change instituted in Year ended December Incr (Decr) vs 2017 Audited Percent Adopted Percent Adopted Percent Amount Percent Primary Government Federal grants $ 5,103, % $ 5,643, % $ 5,564, % $ (79,706) -1.4% State revenue sharing 3,653, % 3,642, % 3,678, % 35, % State revenue sharing - Cobo Hall 767, % 749, % 748, % (928) -0.1% State reimbursement - Personal Prop 738, % 132, % 301, % 169, % State grants, funding, and reimburse 9,727, % 10,068, % 10,806, % 737, % Local contributions 6, % 7, % 7, % (600) -7.9% Total Primary Government 19,998, % 20,244, % 21,106, % 861, % Component Units Federal grants - 0.0% 3, % - 0.0% (3,500) % State grants - 0.0% - 0.0% - 0.0% - Grand Total $ 19,998, % $ 20,248, % $ 21,106, % $ 857, % $ in Millions State Revenue Sharing Trend Actual 2014 Actual 2015 Actual 2016 Actual 2017 Adopted 2018 Adopted State Revenue Sharing 13

16 Budget Overview Charges for services Charges for Services are fees charged to individuals or business for services rendered. Revenue sources for this category divided into three groups, court related charges, fees and services, and sales. Court related charges are comprised of court costs, bond costs, and other court type fees. Fees and services are charges primarily set by statute, charter, or ordinance such as real estate transfer, tax, recording, filing, and certified copy fees, health clinic fees, booking or boarding fees, landfill use fees, etc. Sales are auction sales, scrap and salvage, printed materials, etc. This source accounts for $ million or 13.4% of the 2018 adopted budget revenue. For the year of 2018, charges for services are projected to increase by $103 thousand or 0.7% from the 2017 adopted budget. This increase is attributed to numerous items including increases in delinquent tax recording fees of $173 thousand, MMRMA service fees of $313 thousand, and real estate transfer fees of $110 thousand, offset by declines in landfill use fees of $365 thousand, remonumentation fees of $160 thousand, title search fees of $125 thousand, and numerous other increases and decreases netting to a decline of $49 thousand. Fines and forfeitures Fines and Forfeitures are revenues charges for County ordinance and penal fines, and bond forfeitures. This source accounts for $520 thousand or 0.5% of total revenue. For the year of 2018, fines and forfeitures are projected to remain flat from the 2017 adopted budget. Interest revenue Interest revenue is revenues from investment and interest bearing accounts when allowed by law. Although historically a higher percentage of total revenue, current interest rates have relegated it to an insignificant amount at 0.2% of 2018 projected revenue. Other revenue Other revenue is used for various accounts not covered by categories previously discussed with the exception of other financing sources. These sources are made up of benefit reimbursements to the Internal Service funds from various funds, casino cost reimbursements, contributions and grants from private sources, rents, special assessments which are levied much like a tax for governmental services such as water and sewer or drains, refunds, and other reimbursements. Internal service cost reimbursements and administrative fees are included, however broken out for illustrative purposes on the financial statements. Other revenue category accounts for $ million or 22.5% of total revenues for the 2018 adopted budget. This represents an increase of $1.136 million or 4.8% from the 2017 adopted budget. This increase can be attributed to an increase in indirect costs and admin fees of $1.473 million, additional refund to the General Fund from MMRMA $274 thousand, reimbursements to the Healthcare Internal Service Fund of $396 thousand, reimbursements to Worker s Compensation Internal Service Fund of $271 thousand, partially offset by reduction in casino cost reimbursements of $202 thousand, benefit cost reimbursements to Internal Service funds from other funds of $999 thousand and a small decrease in private grants of $128 thousand. Other financing sources Other financing sources consists special or extraordinary items such as bond or insurance recoveries, gain on sale of fixed assets, bond, note, and capital lease proceeds, and transfers in for inter-fund or operating purposes. Transfers amount to $ million, an increase of $4.341 million from the 2017 adopted budget. 14

17 Budget Overview Primary Government Expenditure Assumptions and Analysis Expenditures for Primary Government, excluding transfers, are budgeted for 2018 at $ million. This is an increase of $2.178 million or 1.8% from the 2017 adopted budget. The summary below provides a view of 2018 adopted expenditures by category compared to 2017 adopted budget and 2016 actual: Year ended December Incr (Decr) vs 2017 Audited Percent Adopted Percent Adopted Percent Amount Percent Expenditures Salaries and wages $ 35,008, % 37,691, % 38,427, % 736, % Benefit costs 19,194, % 21,049, % 21,038, % (10,162) 0.0% Total personnel costs 54,202, % 58,740, % 59,466, % 726, % Supplies 2,619, % 2,724, % 2,752, % 27, % Fuel 315, % 493, % 437, % (56,187) -11.4% Contractual services 5,486, % 6,136, % 4,956, % (1,179,283) -19.2% Engineering services 85, % - 0.0% - 0.0% - Consulting services 29, % 9, % 8, % (1,422) -14.3% Legal services 1,392, % 1,181, % 1,138, % (43,668) -3.7% Health services 1,719, % 2,150, % 2,519, % 368, % Boarding services 3,033, % 3,813, % 3,793, % (19,960) -0.5% Other services 1,577, % 1,859, % 1,832, % (26,590) -1.4% Recreation and incentive program 18, % 14, % 23, % 8, % Memberships and subscriptions 109, % 118, % 122, % 3, % Communications 418, % 459, % 454, % (4,974) -1.1% Travel 268, % 332, % 364, % 31, % Employee training and improv 126, % 211, % 223, % 11, % Freight and postage 298, % 387, % 363, % (24,301) -6.3% Advertising 110, % 60, % 70, % 10, % Copier charges 47, % 51, % 57, % 5, % Insurance 14,577, % 15,180, % 15,069, % (110,587) -0.7% Property tax expenses 2, % 14, % 5, % (9,244) -63.1% Utilities 1,099, % 1,331, % 1,322, % (9,314) -0.7% Repair and maintenance 2,027, % 2,435, % 2,588, % 153, % Usage fees % % % - 0.0% Bldg, equip, and software rental 197, % 234, % 223, % (11,311) -4.8% Education expenses % 2, % 2, % - 0.0% Witness and jury compensation 130, % 212, % 183, % (29,700) -14.0% Depreciation 8, % 8, % 5, % (2,385) -28.6% Contingency - 0.0% 1,300, % 1,500, % 200, % Appropriations 5,348, % 3,872, % 3,712, % (160,210) -4.1% Indirect cost and admin fees 4,813, % 5,221, % 6,694, % 1,472, % Project costs 305, % - 0.0% - 0.0% - Capital outlay 5,620, % 8,737, % 9,676, % 939, % Debt service 1,101, % 1,184, % 1,167, % (16,966) -1.4% All other items 615, % 549, % 472, % (76,812) -14.0% Total expenditures $ 107,709, % $ 119,031, % $ 121,209, % $ 2,177, % Personnel costs Personnel costs are costs of salaries and wages, and employer portion of benefits for employees. Included in this category are salaries and wages of elected officials, appointed officials, deputies, supervisory employees, permanent and temporary employees, overtime, and per diems. Benefits include employer portion of social security, medicare, health insurance, life insurance, pension, OPEB, unemployment, and worker s compensation insurance. These expenses account for $ million or 49.1% of total expenditures for the 2018 adopted budget. This represents an increase of $726 thousand or 1.2% from the 2017 adopted budget. 15

18 Budget Overview The chart below shows personnel costss over time. Below is a summary of these costs: r Diem Salaries and wages Board and per diem Full Time/Judges Std Temporary Overtime Comp Time Total 2016 Audited Percent $ 193, % $ 211,374 31,273,094 1,509,6055 1,850, ,693 35,008, % 2.8% 3.4% 0.3% 64.6% 33,344,146 1,949,632 1,986, ,882 37,691,373 Year ended December Adopted Percent 2018 Adopted Percent Incr (Decr) vs 2017 Amount Percent 0.4% $ 222, % $ 11, % 56.8% 34,059, % 715, % 3.3% 3.4% 1,928,569 2,016, % 3.4% (21,063) 30, % 1.5% 0.3% 64.2% 200,115 38,,427, % 64.6% , % 2.0% Benefit costs Social Sec/Medicare Health Insurance Dental/Vision Life Insurance Pension OPEB Healthcare Worker's Comp Insurance Unemployment Insurance Payroll accrual Total 2,532, % 7,464, % 444, % 169, % 5,650, % 2,880, % 161, % 50, % (157,960) -0.3% 19,194, % 2,848,735 7,991, , ,781 6,646,758 2,572, ,719-1,110 21,049, % 2,908, % 60, % 13.6% 1.1% 0.2% 11.3% 4.4% 8,033, , ,602 6,637,197 2,389, % 1.1% 0.2% 11.2% 4.0% 41,726 (192) 1,821 (9,561) (183,290) 0.5% 0.0% 1.3% -0.1% -7.1% 0.3% 0.0% 0.0% 35.8% 269, ,,038, % 0.0% 0.0% 35.4% 80,434 - (1,110) (10,162) 42.6% % 0.0% Grand Total $ 54,202, % $ 58,740, % $ 59,,466, % $ 726, % Salaries and wages Salaries and wages are budgeted at $ million, an increase of 2.0% from the 2017 adopted budget. The 2018 proposed budget places full time equivalent employees at an increase of 0.8 from the 2017 adopted budget. Changes in personnel are shown on page 11. Benefit costs Benefit costs are budgetedd at $ million, a decrease of 0.0% or $10 thousand from the 2017 adopted budget. Of this decrease, $182 thousand is due to a decreased contribution to meet the Annual Required Contribution (ARC) to the OPEB Trust Fund. Pension contributions remained flat due to a slight decrease in the pension contribution rates offset by changes in compensation. 16

19 Budget Overview The chart below shows the actuarial calculated pension contribution rates over time: The chart below shows pension funding over time. Pension, including Road Department) was 67. 3% at the end of component units (Riverwood and $ in Millions $ $ $ $ $ $ $ $ $ Pension Funding Trend $ $ $ $ $ $ $ $ $ $ Valuation Assets Actuarial Liability Percent Funded Pension Percent Funded Trend 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 71. 0% 72.0% 67.4% 67.3% 65.1% 64.2% 55.0% 50.0% Before Assumption Change After Assumption Change The chart below shows retiree health care funding over time. Retiree health care benefits are pre-funded by contributions from employer (County) and are considered a self-insured program. At the end of 2016, retiree health care benefit funding was 46.3%.. Like pension, this amount includes component units. $ in Millions $ $ $ $ $ $ $ Retiree Healthcaree Funding Trend $ $ $ $ $ $ $ $ $ $ Valuation Assets Actuarial Liability Percent Funded Retiree Healthcare Percent Funded Trend 70.0% 65.0% 60.6% 60.0% 55.0% 62.0% 55. 5% 48.8% 50.0% 43.2% 45.0% 46.3% 40.0% 35.0% Before Assumption Change After Assumption Change 17

20 Budget Overview Non-personnel costs Non-personnel costs are costs of items not related to payment of employees or benefits with the exception in payments to the insurer or governmental agency from the Internal Service Funds. Included in this category are supplies, fuel, professional and contractual services, communications, repair and maintenance of facilities or equipment, indirect costs, capital outlay, etc. The items listed below are a few highlights. Professional and contractual services Professional and contractual services are comprise of payments to third party service providers for services performed and include jail health services, building and grounds maintenance services, legal and audit services, child boarding costs, memberships and subscriptions, etc. These expenses are broken out into separate significant groupings for illustrative purposes. These services account for $ million or 11.9% of 2018 budget expenditures. This represents a decrease of $890 thousand from the 2017 adopted budget. Of this amount, economic development grants and programs decreased $256 thousand, delinquent tax foreclosure activities $261 thousand, judicial grants and programs $261 thousand, child care fund $134 thousand, landfill use fund activities of $57 thousand, partially offset by jail medical increases of $63 thousand, and all other items for a net increase of $16 thousand. Insurance and taxes Insurance and taxes are costs for liability insurance, payments for benefit insurance to insurers or governmental agencies from Internal Service Funds, or taxes on non-exempt properties owned by the County. These expenses account for $ million or 12.4% of expenditures for the 2018 adopted budget. This represents a decrease of $120 thousand or 0.8% from the 2017 adopted budget. A decrease is made up of decreases in health insurance premium payments $481 thousand and liability insurance of $49 thousand, partially offset by MMRMA increase of $306 thousand and workman s compensation of $103 thousand. Appropriations Appropriations are expenditures to outside agencies or between primary government and component units. These expenses account for $3.713 million or 3.1% of expenditures for the 2018 adopted budget. A list of appropriations is shown on page 115 of this document. Indirect cost and administration fees Internal service cost reimbursements and administrative fees are for services provided by supporting departments. The increase from 2017 adopted budget is $1.473 million. These items are offset in a revenue account from which these reimbursement costs or fees are charged. Capital outlay Capital outlay is expenditures that result in the acquisition of or addition to capital assets. These may be large or small in nature depending on type. These expenses account for $9.677 million or 8.0% of expenditures for the 2018 adopted budget. Of this total amount, $7.368 million are expended through capital project funds, $685 thousand is related to a 911 operations, $508 thousand is Berrien Bus equipment grants, $269 thousand is from the General Fund, and $685 thousand is from the Parks and Recreations grants. Page 88 provides details for capital project funds spending of $7.368 million. Capital project funding of the $7.368 million is provided by an appropriation from the Delinquent Tax Revolving Fund of $6.105 million and use of existing fund balance of $1.263 million. 18

21 Budget Overview Debt service Debt service is payment of principal and interest on long or short term debt, including capital lease items. Debt service payments for primary government account for $1.167 million or 1.0% of 2018 adopted expenditures. The debt service payments are primarily interest expenses of $1.066 million on repayment of long term debt incurred in the construction of water and sewer systems with various communities in Berrien County. Other financing uses Other financing uses consists special or extraordinary items including transfers out for inter-fund or operating purposes. Transfers amount to $ million, an increase of $4.341 million from the 2017 adopted budget. 19

22 Fund Summaries Introduction to Fund Summaries The following section of this publication provides the Berrien County budget by fund. Funds are classified by seven types: General Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, Internal Services Funds, Proprietary Funds, and Component Unit Funds. Pages 21 through 23 provide you with a brief description of each fund type and a list of funds categorized within each type. A consolidated summary by fund type as well as financial summary for each fund follows. See table of contents for summary and fund page numbering. 20

23 Fund Summaries General Fund Description of Fund Types The General Fund is the primary operating fund and accounts for the basic services provided by the County. The Courts, Prosecutor, Sheriff/Jail, County Clerk, Treasurer, Register of Deeds, Drain Commissioner, Administration, and Animal Control all are primarily funded through the General Fund. The General Fund receives funding from property taxes, state revenue, charges for services, and other sources. The General Fund also makes transfers to other funds (i.e. Health Department, Child Care Fund, etc.) to pay for a portion of these services. Special Revenue Funds Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specific purposes other than debt service or capital projects. The list below are the County s Special Revenue Funds for Primary Government: Parks and Recreation (2080) Parks Environmental Affairs (2082) Parks and Recreation Grants (2085) Parks Millage (PA 90) Fund (2087) Historical Association Loan Fund (2110) Berrien Community Foundation (2130) Friend of the Court Fund (2150) Friend of the Court Programs (2155) Judicial Grants & Programs (2175) Health Department (2210) Health Drug Court Treatment (2211) Health Department Grants & Programs (2215) Berrien County Landfill Use (2270) EDC Grants and Programs (2245) Register of Deeds Automation (2560) Register of Deeds Tax Foreclosure Search (2561) Homestead Audit Administration (2590) Prosecutor Grants and Programs (2605) 911 Service Millage (2610) 911 Service Grants (2615) Concealed Pistol Licensing (2630) Public Safety Millage (2640) Local Law Enforcement Contracts (2642) Sheriff's Special Teams & Programs (2644) Sheriff's Grants (2645) Drug Law Enforcement (2650) Federal Forfeiture Drug Law Enforcement (2651) Narc Special Fund (2653) Emergency Management Grants and Programs (2665) Animal Control Grants and Programs (2675) Law Library (2690) 21

24 Fund Summaries Special Revenue Funds - Continued Senior Citizens Millage (2700) Library Board (2710) Berrien Bus Program (2810) Berrien Bus Grants and Programs (2815) Revenue Sharing Reserve (2850) Four Winds Local Revenue Sharing (2851) 3 Oaks Village Land Purchase (2860) Campaign Finance Administration (2870) Drain Commissioner Grants and Programs (2880) Community Develop Grants and Programs (2890) Social Services (2900) Child Care (2920) DHS Child Care (2921) Family Division Grants and Programs (2925) Soldier and Sailor Relief (2930) Veteran's Trust (2940) Board of Public Works (2960) Debt Service Funds Debt service funds are used to account for all financial resources restricted, committed, or assigned to expenditure for principal and interest. Berrien County has two funds for this purpose: Bridge Bond (3010) Building Authority (4500) included in Component Unit Section Capital Project Funds Capital project funds are used to account for all financial resources restricted, committed, or assigned to expenditures for the acquisition or construction of capital assets. Berrien County has five active capital project funds. They are: Capital Improvements (4010) Vehicle Equipment Replacement (4020) Capital Reserve (4030) Animal Shelter Construction (4130) Building Authority Capital Fund (4500) (Not included in primary government here) Enterprise Funds Enterprise type funds are used to report any activity for which a fee is charged to external users for goods or services where the principal revenue source is from (a) activity financed by debt that is secured solely by a pledge of the net revenues from fees charged for activity, (b) laws or regulations require that the activity s costs of providing services, including capital costs (such as depreciation or debt service), be recovered with fees or charges, rather than with taxes or similar revenues, or (c) the pricing policies of the 22

25 Fund Summaries Enterprise Funds - Continued activity establish fees and charges designed to recover its costs, including capital costs (such as depreciation or debt service). The list below are the County s Enterprise Type Funds for Primary Government: Delinquent Tax Revolving (5160) Delinquent Real Property Tax Foreclosure (5180) Delinquent Personal & Leasehold Property Tax (5190) Economic Development Corporation Federal Revolving Loan (5442) EDC Revolving Loan Fund (5740) Royalton Township Water System No. 20 Bonds (5751) Royalton Township Water System No. 23 Bonds (5752) Buchanan Township Sewer System No. 23 / Water System No. 21 (5753) Royalton Township Sewer System No. 20 Bonds (5754) Coloma Township Sewer System No. 24 (5755) Village of Berrien Springs / Oronoko Township Water / Sewer System No. 26 (5756) Royalton Township Water System No. 25 Bonds (5757) Royalton Township Water System No. 26 Bonds (5758) New Buffalo City Water System No. 28 Bonds (5759) Benton Township Water System No. 27 Bonds (5760) Village of Berrien Springs Water / Sewer System No. 29 Bonds (5761) Coloma City Water System No. 30 Bonds (5762) Oronoko Township Water / Sewer System No. 31 Bond (5763) Village of Michiana Water System No. 32 Bonds (5764) Drain Working Capital (6390) Internal Service Funds Internal Service Funds are used to report the activity that provides goods or services to other funds, departments, or agencies of the primary government and it s component units, or to other governments, on a cost reimbursement basis. The internal service fund should only be used if the reporting government is the predominant participant in the activity. Otherwise the activity should be reported as an Enterprise Fund. Berrien County uses four different Internal Service Funds. They are: Workers' Compensation Insurance (6771) Healthcare Insurance (6772) Unemployment Insurance (6773) Property / Liability Insurance (6774) 23

26 Fund Summaries The General Fund that follows reflects a balanced budget with revenues and expenditures at $ million which is an increase of $4.076 million or 7.0% from the 2017 adopted budget. General Fund (1010) Fund Source / Use by Category Year ended December Audited Percent Audited Percent Adopted Percent Adopted Percent Revenues Property taxes $ 35,761, % $ 35,953, % $ 36,547, % $ 37,222, % Licenses and permits 236, % 208, % 232, % 208, % State revenue sharing 3,636, % 3,653, % 3,642, % 3,678, % Intergovernmental revenue 3,508, % 3,794, % 3,105, % 3,257, % Charges for services 6,663, % 6,917, % 6,729, % 6,972, % Fines and forfeitures 463, % 441, % 510, % 510, % Interest revenue 85, % 81, % 125, % 171, % Indirect cost and admin fees revenue 2,257, % 2,406, % 2,375, % 3,331, % Other revenue 1,008, % 1,552, % 1,062, % 1,374, % Total revenues 53,621, % 55,009, % 54,331, % 56,726, % Other financing sources Issuance of long-term debt - 0.0% - 0.0% 150, % 150, % Transfers in 1,150, % 1,587, % 3,462, % 5,152, % Total sources 54,772, % 56,597, % 57,944, % 62,029, % Expenditures Legislative 1,352, % 1,816, % 1,054, % 1,067, % Judicial 9,041, % 7,892, % 8,609, % 8,547, % General government 14,375, % 15,811, % 17,929, % 18,650, % Public safety 16,707, % 16,510, % 18,065, % 19,551, % Public works 394, % 439, % 482, % 538, % Health and welfare 640, % 642, % 670, % 942, % Comm and economic development 476, % 447, % 465, % 487, % Other governmental activities 814, % 752, % 2,119, % 2,265, % Operating expenditures 43,803, % 44,311, % 49,395, % 52,050, % Debt service 54, % - 0.0% 50, % 69, % Total expenditures 43,857, % 44,311, % 49,445, % 52,120, % Other financing uses Transfers out 9,591, % 10,537, % 8,498, % 9,909, % Total uses 53,448, % 54,849, % 57,944, % 62,029, % Net incr (decr) in fund balance $ 1,323,785 $ 1,747,814 $ - $ Other revenue includes a draw of excess reserve from MMRMA resulting in a refund to the fund of $674, was budgeted at $400,000. Proceeds from capital lease are estimated funds from entering into a lease/purchase agreement related to computer upgrades transfers in includes transfer from the Delinquent Tax Revolving Fund of $3,700,000 (typically budgeted at $1,300,000), Four Winds Revenue Sharing Fund of $364,432, and Parks Millage pass through to Parks Operating Fund of $764,