berrien county annual budget Photo courtesty of: Clyde Brazie Jr. Photo courtesty of: Rick Goltowski Photography Galien River

Transcription

1 berrien county Galien River Photo courtesty of: Clyde Brazie Jr Photo courtesty of: Rick Goltowski Photography annual budget

2 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 Assumptions and Analysis Assumptions and Analysis Fund Summaries Excluding Component Units Introduction to Fund Summaries Description of Funds General Fund Summary: Statement of, s, and Changes in Fund Balance Statement by Category Statement by Functional Area by Category and Account s by Function and Activity Special Funds Summary: Schedule of and s 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 Library Board Fund

3 Table of Contents Berrien Bus Program (Operational) Fund Berrien Bus Grant and Program (Capital Purchase) Funds Four Winds Local 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 and s 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 and s by Fund and Activity Workers Compensation Insurance Fund Health Insurance Fund Unemployment Insurance Fund Property / Liability Insurance Fund Enterprise Funds Summary: Schedule of and s 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 Building Authority Component Unit Departmental Budgets... D Economic Development Corporation Component Unit Departmental Budgets...E Drain Commission Component Unit Departmental Budgets... F 2

4 Enabling Resolution 3

5 Enabling Resolution 4

6 Budget Overview Introduction The primary purpose of this document is to provide citizens with information and insight into the 2016 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 2016 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 Commission 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

7 Budget Overview 6

8 Budget Overview All Funds History of Fund Balances Schedule of Fund Balances/Net Positions Fund Year ended December Fund Bal/Net Est Fund Position Bal/Net Pos. Sources Uses Fund Bal/Net Position General Fund 17,377,531 17,377,531 56,554,521 56,554,521 17,377,531 Special Funds Parks and Recreation 288, ,440 1,451,112 1,581,812 97,740 Parks Environmental Affairs 761, ,833 4, , ,324 Parks and Rereation Grants , ,000 - Parks Millage (PA 90) Fund 61,518 87, , ,573 - Historical Association Loan Fund 150, , ,000 Berrien Community Foundation 14,810 12,310 26,358 26,358 12,310 Friend of the Court Fund 190, ,237 3,291,758 3,291, ,237 Friend of the Court Programs 148, ,899 20,000 45,000 98,899 Judicial Grants & Programs 185, ,901 1,179,675 1,179, ,901 Health Department 429, ,938 3,437,185 3,661, ,013 Health Drug Court Treatment 120, Health Department Grants & Programs 416, ,955 5,015,419 5,015, ,955 Berrien County Landfill Use 667, , , , ,856 EDC Grants & Programs 15,710 4,710 9,700 9,700 4,710 Register of Deeds Automation 122,463 70, , ,000 70,463 Register of Deeds Tax Foreclosure Search 12,782 32, , ,000 32,782 Homestead Audit Administration 282, ,867 89,150 67, ,868 Prosecutor Grants and Programs 75,929 75, , ,974 75, Service Millage 1,348,659 1,729,404 4,611,691 3,697,431 2,643, Service Grants 63,471 37,471-18,000 19,471 Concealed Pistol Licensing ,000 4,050 34,950 Public Safety Millage 833, ,141 2,616,417 3,068, ,942 Local Law Enforcement Contracts 127, ,106 2,161,275 2,161, ,106 Sheriff's Special Teams & Programs 84, ,835 1,399,193 1,403, ,635 Sheriff's Grants 91,263 91, , ,571 91,263 Drug Law Enforcement 272, ,782 20, ,289 24,343 Federal Forfeiture Drug Law Enforcement 2,123 15,999-2,000 13,999 Narc Special Fund 903, ,287 1,294,276 1,294, ,287 Emergency Management Grants and Programs 45,925 8,190 12,642 12,642 8,190 Animal Control Grants and Programs 27,446 6,296 9,000 10,200 5,096 Law Library 58,224 19,784 83,510 83,510 19,784 Senior Citizens Millage 30,168-2,243,587 2,243,587 - Library Board Berrien Bus Program 517, , ,479 1,173, ,768 Berrien Bus Grants and Programs Four Winds Local Sharing 593, , , ,871 Three Oaks Village Land Purchase 26,203 28, ,851 Campaign Finance Administration 4,099 7, ,050 5,299 Social Services 114, ,701 22,055 22, ,701 Child Care 1,009, ,776 7,953,935 8,112, ,226 DHS Child Care 379, ,875 1,344,615 1,344, ,875 Family Division Grants and Programs 9,800 9,800 6,000 6,000 9,800 Soldier and Sailor Relief 2,156 2,156-1,000 1,156 Veteran's Trust 2,453 2,453 35,327 35,327 2,453 Board of Public Works 103,666 90,037-13,141 76,896 Total Special Funds 10,597,828 9,968,233 42,548,620 43,104,240 9,412,613 7

9 Budget Overview All Funds History of Fund Balances Schedule of Fund Balances/Net Positions Fund Year ended December Fund Bal/Net Position Est Fund Bal/Net Pos. Sources Uses Fund Bal/Net Position Debt Service Funds Bridge Bond Total Debt Service Funds Capital Project Funds Capital Improvements 4,592,945 2,763,626 4,803,500 5,694,297 1,872,829 Vehicle Equipment Replacement 324, , ,600 85,603 Capital Reserve 403, , ,151 Animal Shelter Construction 488, , ,500 - Total Capital Project Funds 5,808,904 4,579,480 4,803,500 6,536,397 2,846,583 Internal Service Funds Workers' Compensation Insurance 963, ,986 14, , ,021 Healthcare Insurance 5,173,289 2,943,274 12,748,315 14,810, ,581 Unemployment Insurance 85, ,753 52,413 50, ,689 Property / Liability Insurance 2,948,423 2,948, ,948,423 Total Internal Service Funds 9,170,743 6,689,436 12,814,920 15,082,642 4,421,714 Proprietary Funds Delinquent Tax Revolving 34,588,449 34,958,449 2,028,987 5,751,000 31,236,436 Delinquent Real Property Tax Forclosure 1,130, ,525 1,366,525 1,646, ,713 Delinquent Personal & Leasehold Property Tax 158, ,167 25,641 25, ,167 Buchanan Township Sewer System No. 23 / Water System No. 21 Coloma Township Sewer System No , ,340 - Village of Berrien Springs / Oronoko Township ,404 33,404 - Water / Sewer System No. 26 New Buffalo City Water System No. 28 Bonds , ,999 - Benton Township Water System No. 27 Bonds - - 1,524,113 1,524,113 - Village of Berrien Springs Water / Sewer System , ,607 - No. 29 Bonds Coloma City Water System No. 30 Bonds , ,895 - Oronoko Township Water / Sewer System No ,020 35, Bond Drain Working Capital 463, ,054 71, , ,935 Total Proprietary Funds 36,341,936 36,261,194 5,865,326 9,935,270 32,191,250 Total Primary Government 79,297,202 74,876, ,586, ,213,070 66,249,951 8

10 Budget Overview All Funds Budget History By Functional Area (Excluding Component Units) Year ended December Incr(Decr) vs 2015 Audited Percent Adopted Percent Adopted Percent Amount Percent s by Category Taxes $ 45,223, % $ 44,211, % $ 47,107, % $ 2,896, % Licenses and permits 560, % 593, % 614, % 20, % State revenue sharing 3,139, % 3,642, % 3,642, % - 0.0% Intergovernmental revenue 14,970, % 15,670, % 15,520, % (150,884) -1.0% Charges for services 13,607, % 13,666, % 13,322, % (344,074) -2.5% Fines and forfeitures 498, % 2,203, % 519, % (1,684,314) -76.4% Interest revenue 3,786, % 88, % 96, % 8, % Indirect cost and adm fees revenue 3,739, % 3,755, % 3,987, % 232, % Other revenue 25,749, % 16,287, % 18,296, % 2,008, % Total revenues 111,274, % 100,120, % 103,106, % 2,986, % s Legislative 1,603, % 1,268, % 1,040, % (227,809) -18.0% Judicial 12,929, % 13,822, % 12,963, % (859,654) -6.2% General government 15,682, % 20,128, % 19,795, % (332,585) -1.7% Public safety 24,832, % 25,535, % 26,148, % 612, % Public works 1,138, % 574, % 670, % 96, % Health and welfare 18,501, % 20,464, % 20,993, % 529, % Recreation and cultural 1,364, % 1,589, % 1,535, % (53,821) -3.4% Community & economic dev 1,972, % 1,941, % 1,696, % (245,222) -12.6% Other governmental activities 14,947, % 15,109, % 17,427, % 2,318, % Operating expenditures 92,973, % 100,434, % 102,270, % 1,836, % Debt service 1,309, % 2,474, % 2,452, % (22,525) -0.9% Capital outlay 5,355, % 7,568, % 7,009, % (558,885) -7.4% Total expenditures 99,638, % 110,477, % 111,732, % 1,255, % over (under) expenditures 11,636,283 (10,357,753) (8,626,183) 1,731,570 Other financing sources (uses) Debt issuance proceeds Gain (loss) sale of assets 12, Transfers in 19,156,042 17,996,402 19,480,118 1,483,716 Transfers out (19,403,492) (17,996,402) (19,480,118) (1,483,716) Total other financing sources (uses) (235,219) Net inc (dec) in fund balances $ 11,401,063 $ (10,357,753) $ (8,626,183) $ 1,731, Adopted Budget excluded budget for Delinquent Tax Revolving Fund not historically budgeted. The budget was later amended to include $2.0 million in taxes and other revenues and expenditures for a net $2.1 increase in fund balance. When including this amendment amount, overall fund balance reflected on this schedule for 2015 would decrease by $8,287,070. The 2016 Adopted budget includes a budget for the activities of the Delinquent Tax Revolving Fund. 9

11 Budget Overview All Funds Budget History By Category (Excluding Component Units) Year ended December Incr(Decr) vs 2015 Audited Percent Adopted Percent Adopted Percent Amount Percent s by Category Taxes $ 45,223, % $ 44,211, % $ 47,107, % $ 2,896, % Licenses and permits 560, % 593, % 614, % 20, % State revenue sharing 3,139, % 3,642, % 3,642, % - 0.0% Intergovernmental revenue 14,970, % 15,670, % 15,520, % (150,884) -1.0% Charges for services 13,607, % 13,666, % 13,322, % (344,074) -2.5% Fines and forfeitures 498, % 2,203, % 519, % (1,684,314) -76.4% Interest revenue 3,786, % 88, % 96, % 8, % Indirect cost and adm fees revenue 3,739, % 3,755, % 3,987, % 232, % Other revenue 25,749, % 16,287, % 18,296, % 2,008, % Total revenues 111,274, % 100,120, % 103,106, % 2,986, % s by Category Current expenditures: Salaries and wages 33,896, % 35,189, % 36,105, % 915, % Benefit costs 17,973, % 18,708, % 19,069, % 361, % Supplies 2,292, % 2,483, % 2,762, % 279, % Fuel 661, % 753, % 572, % (180,738) -24.0% Contractual services 4,789, % 6,555, % 5,897, % (657,887) -10.0% Health services 1,705, % 1,798, % 1,852, % 53, % Legal and audit 1,386, % 1,500, % 1,597, % 97, % Maintenance services 152, % 145, % 141, % (3,740) -2.6% Other services 4,056, % 4,841, % 4,517, % (324,144) -6.7% Memberships and subscriptions 108, % 121, % 124, % 3, % Communications 432, % 473, % 478, % 4, % Travel 229, % 289, % 314, % 25, % Employee training and improv 96, % 149, % 187, % 38, % Freight and postage 318, % 403, % 390, % (12,371) -3.1% Advertising 81, % 60, % 65, % 4, % Utilities 1,084, % 1,286, % 1,314, % 27, % Repair and maintenance 1,734, % 2,316, % 2,384, % 67, % Bldg, equip, and software rental 217, % 249, % 238, % (11,232) -4.5% Insurance and taxes 12,680, % 11,820, % 13,890, % 2,070,398 NA Depreciation 52, % - 0.0% 37, % 37,079 NA Appropriations 4,304, % 3,867, % 4,185, % 318, % Contingency - 0.0% 1,500, % 1,500, % - 0.0% Indirect cost and admin fees 3,739, % 3,755, % 3,987, % 232, % Project costs 433, % - 0.0% - 0.0% - NA Capital outlay 5,355, % 7,568, % 7,009, % (558,885) -7.4% All other items 545, % 2,164, % 655, % (1,508,949) -69.7% Debt service 1,309, % 2,474, % 2,452, % (22,525) -0.9% Total expenditures 99,638, % 110,477, % 111,732, % 1,255, % over (under) expenditures 11,636,283 (10,357,753) (8,626,183) 1,731,570 Other financing sources (uses) Debt issuance proceeds Gain (loss) sale of assets 12, Transfers in 19,156,042 17,996,402 19,480,118 1,483,716 Transfers out (19,403,492) (17,996,402) (19,480,118) (1,483,716) Total other financing sources (uses) (235,219) Net inc (dec) in fund balances $ 11,401,063 $ (10,357,753) $ (8,626,183) $ 1,731, Adopted Budget excluded budget for Delinquent Tax Revolving Fund not historically budgeted. The budget was later amended to include $2.0 million in taxes and other revenues and expenditures for a net $2.1 increase in fund balance. When including this amendment amount, overall fund balance reflected on this schedule for 2015 would decrease by $8,287,070. The 2016 Adopted budget includes a budget for the activities of the Delinquent Tax Revolving Fund. 10

12 Budget Overview Full Time Equivalent Employee (FTE) by Functional Area Department Board of Commissioners Legislative Family Division Friend of the Court Judicial Grants & Prog Tri-Court Judicial 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 Switchbrd Treasurer General Government 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 Chld Care-Probate (Ct) Health Dept (Non-Grnt) Health Grants and Prog Veterans Programs Health and Welfare Parks and Recreation Recreation and Cultural Econ Dev Grants & Prog Economic Development Comm & Economic Development Grand Total

13 Budget Overview Primary Government Assumptions and Analysis for Primary Government, excluding transfers and use of fund balance, are budgeted for 2016 at $103.1 million. This is an increase of $3.0 million or 3.0% from the 2015 adopted budget. When factoring in an amendment to include Delinquent Tax Revolving revenue for 2015, this amount is becomes an increase of $0.8 million or 0.8%. The summary below provides a view of 2016 adopted revenues by category compared to 2015 adopted budget and 2014 actual: Year ended December Incr(Decr) vs 2015 Audited Percent Adopted Percent Adopted Percent Amount Percent s by Category Taxes $ 45,223, % $ 44,211, % $ 47,107, % $ 2,896, % Licenses and permits 560, % 593, % 614, % 20, % State revenue sharing 3,139, % 3,642, % 3,642, % - 0.0% Intergovernmental revenue 14,970, % 15,670, % 15,520, % (150,884) -1.0% Charges for services 13,607, % 13,666, % 13,322, % (344,074) -2.5% Fines and forfeitures 498, % 2,203, % 519, % (1,684,314) -76.4% Interest revenue 3,786, % 88, % 96, % 8, % Indirect cost and adm fees revenue 3,739, % 3,755, % 3,987, % 232, % Other revenue 25,749, % 16,287, % 18,296, % 2,008, % Taxes Total revenues 111,274, % 100,120, % 103,106, % 2,986, % The primary source of revenue to the County are 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 2016 budget, taxes represent approximately 45.7% of the County s total revenues. The projection for all tax revenues totals $47.1 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 2016, taxes are projected to increase $0.9 million or 1.9% from the 2015 adopted budget of $44.2 million plus an amendment to include Delinquent Tax Revolving revenue of $2.0 million not previously budgeted. State equalized values increased by $248 million or 2.8%. Taxable values increased to $7.437 billion, an increase of 2.3%. The increase in taxes can be primarily attributed to these increases. The charts below will provide a visual representation of these changes: 12

14 Budget Overview 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 $0.6 million, or 0.6%, of total revenues for the 2016 budget. This represents an increase of 3.5% from the 2015 adopted budget. The majority of the increase is attributed to food service licenses issued by the Health Department and pistol permits amended in 2015 under MCL through Intergovernmental revenue Current Property and PILT Only (Delinq. Not Included) Audited Adopted Adopted Change % Chg General Fund $ 33,725,848 $ 33,984,386 $ 34,735,662 $ 751, % Parks Millage (PA 90) Fund 667, , ,613 22, % Land Bank Authority Fund 13,423 4,500 11,500 7, % Brownfield Redevelop Auth Fund 643, , , , % Service Millage Fund 3,002,551 3,115,993 3,235, , % Public Safety Millage Fund 2,340,526 2,442,013 2,518,231 76, % Senior Citizens Millage Fund 2,008,079 2,090,746 2,159,428 68, % Grand Total $ 42,401,701 $ 42,869,799 $ 44,134,411 $ 1,264, % Intergovernmental revenue consists of grants 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 $15.9 million or 18.6% of total revenues. This represents a slight decrease of 1.0%, from the 2015 adopted budget. Although intergovernmental revenue is basically flat overall, Liquor Tax in the General Fund is projected to decrease $0.6 million from 2015 adopted while Federal Grants increase $0.3 million and State Grants increase $0.2 million. 13

15 Budget Overview Charges for services Charges for Services are fees charged to individuals or business for services rendered. sources for this category divided into three groups, court related charges, fees and services, and sales. Court related costs 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 $13.3 million or 12.9% of the 2016 adopted budget revenue. For the year of 2016, charges for services are projected to decrease by $0.3 million or 2.5% from the 2015 adopted budget. This decrease is attributed to a decrease in Berrien Bus fare box fees of $0.1 million, landfill use fees of $0.3 million, work crew services of $0.1 million, partially offset by an increase in real estate recording fees of $0.1 million and tether fees of $0.1 million. Fines and forfeitures Fines and Forfeitures are revenues charges for County ordinance and penal fines, and bond forfeitures. This source accounts for $0.5 million or 0.5% of total revenue. For the year of 2016, fines and forfeitures are projected to relatively remain flat from the 2015 adopted budget when factoring out an accounting change for penal fines. 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 0.1% of 2016 projected revenue. Other revenue Other revenue is used for various accounts not covered by categories not 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 $22.3 million or 21.6% of total revenues for the 2016 adopted budget. This represents an increase of $2.2 million or 11.2% from the 2015 adopted budget. This increase can be attributed to an increase in benefit costs to Internal Service funds from other funds of $1.3 million, private grants and donations of $0.2 million, indirect cost and administration charges from other funds of $0.2 million, refund to the General Fund from MMRMA of $0.3 million ($0.7 million in 2016), other reimbursements of $0.3 million, partially offset by decreases in PA2 funds of $0.1M, and special assessments of $0.1 million. Other financing sources Other financing sources consists special or extraordinary items such as bond or insurance recoveries, gain on sale of fixed assets, bond and note proceeds, and transfers in for interfund or operating purposes. Transfers amount to $19.5 million, an increase of $1.5 million from the 2015 adopted budget. 14

16 Budget Overview Primary Government Assumptions and Analysis s for Primary Government, excluding transfers, are budgeted for 2016 at $111.7 million. This is an increase of $1.3 million or 1.1% from the 2015 adopted budget. The summary below provides a view of 2016 adopted expenditures by category compared to 2015 adopted budget and 2014 actual: Year ended December Incr(Decr) vs 2015 Audited Percent Adopted Percent Adopted Percent Amount Percent Salaries and wages 33,896, % 35,189, % 36,105, % 915, % Benefit costs 17,973, % 18,708, % 19,069, % 361, % Total personnel costs 51,870, % 53,898, % 55,175, % 1,276, % Supplies 2,292, % 2,483, % 2,762, % 279, % Fuel 661, % 753, % 572, % (180,738) -24.0% Contractual services 4,789, % 6,555, % 5,897, % (657,887) -10.0% Health services 1,705, % 1,798, % 1,852, % 53, % Legal and audit 1,386, % 1,500, % 1,597, % 97, % Maintenance services 152, % 145, % 141, % (3,740) -2.6% Other services 4,056, % 4,841, % 4,517, % (324,144) -6.7% Memberships and subscriptions 108, % 121, % 124, % 3, % Communications 432, % 473, % 478, % 4, % Travel 229, % 289, % 314, % 25, % Employee training and improv 96, % 149, % 187, % 38, % Freight and postage 318, % 403, % 390, % (12,371) -3.1% Advertising 81, % 60, % 65, % 4, % Utilities 1,084, % 1,286, % 1,314, % 27, % Repair and maintenance 1,734, % 2,316, % 2,384, % 67, % Bldg, equip, and software rental 217, % 249, % 238, % (11,232) -4.5% Insurance and taxes 12,680, % 11,820, % 13,890, % 2,070,398 NA Depreciation 52, % - 0.0% 37, % 37,079 NA Appropriations 4,304, % 3,867, % 4,185, % 318, % Contingency - 0.0% 1,500, % 1,500, % - 0.0% Indirect cost and admin fees 3,739, % 3,755, % 3,987, % 232, % Project costs 433, % - 0.0% - 0.0% - NA Capital outlay 5,355, % 7,568, % 7,009, % (558,885) -7.4% All other items 545, % 2,164, % 655, % (1,508,949) -69.7% Debt service 1,309, % 2,474, % 2,452, % (22,525) -0.9% Total expenditures $ 99,638, % $ 110,477, % $ 111,732, % $ 1,255, % Note: 2014 and 2015 restated for reclassification of internal service fund payments to insurance companies and State of Michigan. 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, unemployment, and worker s compensation insurance. These expenses account for $55.2 million or 49.4% of total expenditures for the 2016 adopted budget. This represents an increase of $1.3 million or 2.4% from the 2015 adopted budget. 15

17 Budget Overview The chart below shows personnel costs over time. Below is a summary of these costs: Salaries and wages Salaries and wages are budgeted at $36.1 million, an increase of 2.6% from the 2015 adopted budget. The 2016 proposed budget places full time equivalent employees at 662, an increase of 5.5 from the 2015 adopted budget. Changes in personnel are shown on page 11 and are a portion of the overall increase. Benefit costs Benefit costs are budgeted at $19.1 million, an increase of 1.9% or $0.4 million from the 2015 adopted budget. Of this increase, $0.4 million is due to an increased contribution to meet the Annual Required Contribution (ARC) to the OPEB Trust Fund. Pension contributions decreased by $0.2 million due to a decrease in pension contribution rates for the second straight year Incr(Decr) vs 2015 Audited Percent Adopted Percent Adopted Percent Amount Percent Salaries and Wages Per Diem 86, % 101, % 110, % 8, % Full Time/Judges Std 30,418, % 31,425, % 32,061, % 635, % Temporary 1,552, % 1,880, % 2,035, % 155, % Overtime 1,839, % 1,782, % 1,898, % 115, % Total 33,896, % 35,189, % 36,105, % 915, % Benefit costs Social Sec/Medicare 2,413, % 2,659, % 2,730, % 71, % Health Insurance 8,917, % 9,360, % 9,841, % 480, % Dental/Vision 459, % 636, % 646, % 10, % Life Insurance 164, % 169, % 173, % 3, % Pension 5,970, % 5,831, % 5,624, % (206,886) -3.5% Unemployment Ins. 48, % 50, % 52, % 1, % Total 17,973, % 18,708, % 19,069, % 361, % Grand Total $ 51,870, % $ 53,898, % $ 55,175, % $ 1,276, %

18 Budget Overview The chart below shows the actuarial calculated pension contribution rates over time: The chart below shows pension funding over time. Pension, including component units (Riverwood and Road Commission) was 71.0% at the end of 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 2014, retiree health care benefit funding was 55.5%. Like pension, this amount includes component units. 17

19 Budget Overview Non-personnel costs Non-personnel costs are costs of 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, etc. These expenses are broken out into separate significant groupings for illustrative purposes. These services account for $14.0 million or 12.5% of 2016 budget expenditures. This represents a decrease of $0.8 million from the 2015 adopted budget. 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 $13.9 million or 12.4% of expenditures for the 2016 adopted budget. This represents an increase of $2.1 million or 17.5% from the 2015 adopted budget. Of this increase, $2.2 million is attributed to increase health insurance premium payments. Appropriations Appropriations are expenditures to outside agencies or between primary government and component units. These expenses account for $4.2 million or 3.7% of expenditures for the 2016 adopted budget. A list of appropriations is shown on page 114 of this document. Indirect cost and administration fees Internal service cost reimbursements and administrative fees for services provided by supporting departments. 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 $7.0 million or 6.3% of expenditures for the 2016 adopted budget. Of this total amount, $6.0 million are expended through capital project funds, $0.6 million is related to a parks grant, and $0.2 million is from the General Fund. Page 87 provides details for capital project funds spending of $6.0 million. 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 $2.5 million or 2.2% of 2016 adopted expenditures. These debt service payments are largely due to the 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 interfund or operating purposes. Transfers amount to $19.5 million, an increase of $1.5 million from the 2015 adopted budget. 18

20 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 Funds, Debt Service Funds, Capital Projects Funds, Internal Services Funds, Proprietary Funds, and Component Unit Funds. Pages 20 through 22 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. 19

21 Fund Summaries Description of Fund Types General Fund 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 tranfers to other funds (i.e. Health Department, Child Care Fund, etc.) to pay for a portion of these services. Special 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 Funds for Primary Government: 20 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) 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)

22 Fund Summaries Special Funds - Continued Senior Citizens Millage (2700) Library Board (2710) Berrien Bus Program (2810) Berrien Bus Grants and Programs (2815) Sharing Reserve (2850) Four Winds Local Sharing (2851) 3 Oaks Village Land Purchase (2860) Campaign Finance Administration (2870) Drain Commissioner Grants and Programs (2880) Community Develop Grants and Progams (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) 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 21

23 Fund Summaries Enterprise Funds - Continued pricing policies of the 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 Small Cities (Block) Revolving Loan (5441) 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 / Dewer 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) 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) 22

24 Fund Summaries The General Fund that follows reflects a balanced budget with revenues and expenditures at $56.6 million which is an increase of $1.1 million or 2.1%. General Fund (1010) Fund Source / Use Summary by Functional Area Year ended December Audited Audited Adopted Adopted s by category Taxes $ 33,972, % $ 34,840, % $ 35,347, % $ 36,046, % Licenses and permits 278, % 269, % 290, % 263, % State revenue sharing 2,820, % 3,139, % 3,642, % 3,642, % Intergovernmental revenue 3,344, % 3,516, % 3,506, % 2,926, % Charges for services 6,769, % 6,297, % 6,391, % 6,694, % Fines and forfeitures 516, % 491, % 560, % 510, % Interest revenue 19, % 84, % 78, % 41, % Indirect cost and adm fees revenue 2,463, % 2,262, % 2,230, % 2,338, % Other revenue 625, % 616, % 903, % 1,362, % Total revenues 50,810, % 51,518, % 52,951, % 53,825, % Proceeds from capital lease 160, % - 0.0% - 0.0% - 0.0% Transfers in 864, % 1,374, % 2,464, % 2,729, % Total sources 51,836, % 52,892, % 55,416, % 56,554, % s by function Legislative 1,634, % 1,603, % 1,268, % 1,040, % Judicial 9,271, % 8,813, % 9,468, % 8,411, % General government 13,230, % 14,123, % 15,071, % 16,966, % Public safety 15,498, % 16,420, % 16,924, % 17,311, % Public works 282, % 351, % 394, % 439, % Health and welfare 817, % 695, % 672, % 659, % Recreation and cultural 101, % - 0.0% - 0.0% - 0.0% Community & economic dev 582, % 490, % 504, % 513, % Other governmental activities 836, % 854, % 2,640, % 2,344, % Total expenditures 42,256, % 43,352, % 46,945, % 47,686, % Transfers out 8,696, % 9,433, % 8,470, % 8,867, % Total uses 50,952, % 52,786, % 55,416, % 56,554, % Net incr (decr) in fund balance $ 883,345 $ 106,640 $ - $ - 23

25 Fund Summaries General Fund (1010) Fund Source / Use Summary by Category Year ended December Audited Audited Adopted Adopted s by category Taxes $ 33,972, % $ 34,840, % $ 35,347, % $ 36,046, % Licenses and permits 278, % 269, % 290, % 263, % State revenue sharing 2,820, % 3,139, % 3,642, % 3,642, % Intergovernmental revenue 3,344, % 3,516, % 3,506, % 2,926, % Charges for services 6,769, % 6,297, % 6,391, % 6,694, % Fines and forfeitures 516, % 491, % 560, % 510, % Interest revenue 19, % 84, % 78, % 41, % Indirect cost and adm fees revenue 2,463, % 2,262, % 2,230, % 2,338, % Other revenue 625, % 616, % 903, % 1,362, % Total revenues 50,810, % 51,518, % 52,951, % 53,825, % Proceeds from capital lease 160, % - 0.0% - 0.0% - 0.0% Transfers in 864, % 1,374, % 2,464, % 2,729, % Total sources 51,836, % 52,892, % 55,416, % 56,554, % s by category Salaries and wages 20,752, % 21,061, % 21,856, % 22,440, % Benefit costs 9,423, % 10,286, % 10,688, % 10,713, % Supplies 1,399, % 1,410, % 1,546, % 1,715, % Fuel 299, % 307, % 345, % 255, % Contractual services 1,012, % 886, % 935, % 1,133, % Health services 1,326, % 1,433, % 1,446, % 1,484, % Legal and audit 1,209, % 1,247, % 1,334, % 1,500, % Maintenance services 116, % 127, % 121, % 114, % Other services 103, % 104, % 170, % 189, % Memberships and subscriptions 84, % 82, % 94, % 98, % Communications 195, % 203, % 218, % 237, % Travel 76, % 83, % 98, % 108, % Employee training and improv 24, % 23, % 48, % 69, % Freight and postage 229, % 244, % 312, % 312, % Advertising 13, % 16, % 12, % 20, % Insurance and taxes 899, % 920, % 944, % 932, % Utilities 890, % 956, % 1,120, % 1,148, % Repair and maintenance 1,131, % 1,261, % 1,674, % 1,677, % Bldg, equip, and software rental 108, % 116, % 122, % 108, % Capital outlay 384, % 141, % 305, % 186, % Appropriations 2,125, % 2,019, % 1,608, % 1,342, % Contingency - 0.0% - 0.0% 1,500, % 1,500, % Debt service 151, % 128, % 53, % - 0.0% All other items 297, % 289, % 383, % 395, % Total expenditures 42,256, % 43,352, % 46,945, % 47,686, % Transfers out 8,696, % 9,433, % 8,470, % 8,867, % Total uses 50,952, % 52,786, % 55,416, % 56,554, % Net incr (decr) in fund balance $ 883,345 $ 106,640 $ - $ - 24

26 Fund Summaries General Fund (1010) Fund Statement by Functional Area Year ended December Audited Audited Amended (9/30) Estimated Adopted s Taxes $ 33,972,349 $ 34,840,845 $ 35,347,602 $ 35,347,602 $ 36,046,731 Licenses and permits 278, , , , ,200 State revenue sharing 2,820,492 3,139,635 3,642,830 3,642,830 3,642,830 Intergovernmental revenue 3,344,059 3,516,381 3,506,248 3,506,248 2,926,905 Charges for services 6,769,978 6,297,796 6,391,782 6,391,782 6,694,603 Fines and forfeitures 516, , , , ,000 Interest revenue 19,731 84,056 78,725 78,725 41,000 Indirect cost and adm fees revenue 2,463,700 2,262,117 2,230,414 2,230,414 2,338,028 Other revenue 625, , , ,892 1,362,155 Total revenues 50,810,767 51,518,667 52,951,943 52,951,943 53,825,452 s Legislative 1,634,372 1,603,208 1,352,690 1,352,690 1,040,637 Judicial 9,221,557 8,799,923 9,471,712 9,471,712 8,404,889 General government 12,785,049 13,913,063 15,078,548 15,078,548 16,815,236 Public safety 15,459,365 16,373,639 16,893,577 16,893,577 17,282,035 Public works 282, , , , ,399 Health and welfare 816, , , , ,227 Recreation and cultural 101, Community & economic dev 582, , , , ,492 Other governmental activities 836, ,500 2,228,022 1,228,022 2,344,943 Operating expenditures 41,720,313 43,082,724 46,596,156 45,596,156 47,499,858 Debt service 151, ,601 53,656 53,656 - Capital outlay 384, , , , ,765 Total expenditures 42,256,024 43,352,799 46,945,810 45,945,810 47,686,623 over (under) expenditures 8,554,743 8,165,868 6,006,133 7,006,133 6,138,829 Other financing sources (uses) Proceeds from capital lease 160, Transfers in 864,286 1,374,103 2,464,839 2,464,839 2,729,069 Transfers out (8,696,649) (9,433,330) (8,470,972) (9,470,972) (8,867,898) Total other financing sources (uses) (7,671,398) (8,059,227) (6,006,133) (7,006,133) (6,138,829) Net incr (decr) in fund balance 883, , Fund balance, beginning of year 16,387,544 17,270,889 17,377,531 17,377,531 17,377,531 Fund balance, end of year $ 17,270,889 $ 17,377,531 $ 17,377,531 $ 17,377,531 $ 17,377,531 25