County of Chester, Pennsylvania 2013 Budget in Brief Board of Commissioners: Terence Farrell Kathi Cozzone Ryan A. Costello
A message from the Chester County Board of Commissioners Chester County government officials and staff have worked hard to keep taxes as low as possible over the past five years, during a time of difficult economic conditions. The challenges we faced in preparing our 2013 budget included decreasing revenues and increased funding required for emergency services. Chester County continues to exercise tight control over expenditures, streamline operations and seek new, cost-effective methods to deliver services all of which helps us to maintain one of the lowest tax rates in southeast Pennsylvania. The year ahead will remain challenging. But through continued implementation of our strategic planning initiative, Managing for Results, we will be fiscally responsible, with increased accountability, transparency and performance in Chester County Government. Chester County Commissioners Terence Farrell, Kathi Cozzone, Ryan Costello 1 2
Introduction Chester County continues to be an economic driver in the Commonwealth, due, in part, to its diverse and expanding economy with a presence in areas such as retail and wholesale trade; professional, scientific and technical services; construction; manufacturing and healthcare. Transportation plays a major role in maintaining economic vitality in Chester County and the 2013 budget reflects the County s continued support for transportation projects. Chester County also has one of the lowest unemployment rates among the Commonwealth s 67 counties. The operating budget is $424.1 million - an increase of 0.6 percent. The capital budget is $95.9 million and is part of a five year plan. In 2009 the three major bond rating agencies (Moody s Investors Service, Standard and Poor s and Fitch Ratings) gave Chester County their highest bond ratings of Aaa and AAA, and all three agencies reaffirmed these ratings in August 2012. This enables the County to fund its capital program at a lower cost to the taxpayer. Budget Summary The adopted 2013 Operating Budget for Chester County is $424.1 million as shown below. 2013 Operating Budget Appropriated Fund Balances $ 9,145,694 Revenues Real Estate Taxes $ 150,912,526 Federal & State Grants 170,220,547 Departmental Earnings 55,581,371 Cost Recovery 9,881,326 Interfund Transfers 21,741,296 Other 6,603,991 Total Revenues $ 414,941,057 This document briefly explains Chester County s 2013 budget. If you would like more detailed information, please contact the Finance Department at (610) 344-6190. The budget can be viewed on the County s website, www.chesco.org. Expenditures Total $ 424,086,751 Regular meetings of the Chester County Board of Commissioners are open to the public. Meetings are generally held at 10:00 a.m. every other Thursday in the Commissioners Board Room in West Chester, PA. Some meetings may be held on other days. A complete schedule of meetings is available on the County s website at www.chesco.org. Personnel $ 161,224,701 Operating 62,027,352 Provider Payments 116,224,723 Grants to Others 8,382,303 Interfund Transfers 21,404,721 Allocated Costs 10,478,999 Debt Service 35,760,308 Other 8,583,644 Total $ 424,086,751 3 4
Departmental Earnings $ 55,581,371 41% 13% 2013 Operating Revenues Cost Recovery $ 9,881,326 Interfund Transfers $ 21,741,296 3% 5% 2% Other Revenues $ 6,603,991 36% 2013 Operating Revenues Federal & State Grants $170,220,547 Federal and state grants are the main funding source for County services, especially health and welfare programs such as Public Health, Mental Health, Intellectual and Developmental Disabilities services, and programs for children and families. Real Estate Taxes $150,912,526 Taxes on real estate pay for the cost of County programs not covered by all other sources of revenue. Taxes are used to pay for mandated matches to state and federal funding for health and welfare programs, the County s share of nursing home costs, and other mandated or essential programs such as the courts, corrections, and public safety. The total millage rate for 2013 is 4.163. Taxes are also used to pay for the debt service related to financing capital projects. Departmental Earnings $55,581,371 Departmental earnings include user fees, fines, court-related cost reimbursements, licenses and permits. The category also includes commissions paid by the Commonwealth to elected row officers for collecting various fees and charges. Cost Recovery $9,881,326 Cost recovery represents administrative, space, and depreciation charges to programs funded by state and federal grants. Cost allocations are allowable and determined in accordance with the federal Office of Management and Budget (OMB) Circular A-87. Federal & State Grants $ 170,220,547 Real Estate Taxes $ 150,912,526 Interfund Transfers $21,741,296 Interfund transfers represent revenue received from another County fund with the purpose of matching intergovernmental revenues or purchasing specialized services. Other Revenues $6,603,991 Investment earnings, facilities rentals, and reimbursements are classified as other revenues or miscellaneous. 5 6
2013 Operating Budget Expenditures by Function Debt Service $41,339,437 Conservation & Development $5,256,144 1% 3% Miscellaneous $25,302,285 10% 6% General Government $38,578,540 9% Judicial $42,645,881 10% Public Safety $16,280,274 4% Corrections $38,412,336 9% <1% 2013 Operating Budget Expenditures by Function General Government $38,578,540 Services provided by the County for the benefit of the public and the governmental body as a whole, including administrative departments, Office of the Controller, Treasurer, and Recorder of Deeds. Judicial $42,645,881 Expenditures used to support the courts including the Court of Common Pleas and the following row offices: District Attorney, Clerk of Courts, Register of Wills, Prothonotary, and Sheriff. Public Safety $16,280,274 Services provided by the County for the safety and security of the public including emergency management, the 9-1-1 communications system, hazardous materials response, and emergency medical services. Corrections $38,412,336 Expenditures used to support the prison, adult and juvenile probation services, and other correctional programs. Public Works $968,306 Expenditures for maintaining and rehabilitating the 97 county owned bridges. Human Services $202,880,217 Expenditures with the purpose of promoting the general health and wellbeing of the community as a whole, including Public Health, the human service funds, and Pocopson Home, the long-term care facility. Culture & Recreation $12,423,331 48% Public Works $968,306 Culture & Recreation $12,423,331 Expenditures to provide County residents opportunities and facilities for cultural and recreational programs including libraries and parks and recreation. Conservation & Development $5,256,144 Programs provided to achieve a satisfactory living environment for the community as a whole, including planning, water resources, agricultural development, and soil conservation. Human Services $202,880,217 Debt Service $41,339,437 Payment of principal and interest obligations resulting from the issuance of bonds and notes to fund the capital investment program. 7 Miscellaneous $25,302,285 Non-departmental general governmental expenditures, appropriations to non-profit organizations, and General Fund mandated support to the human service funds, public safety, and Pocopson Home. 8
2013 Operating Budget Expenditures by Category Interfund Transfers $21,404,721 Grants to Others $8,382,303 2% 5% Allocated Costs $10,478,999 3% 8% Debt Service $35,760,308 2% Other Expenditures $8,583,644 2013 Operating Budget Expenditures by Category Personnel $161,224,701 Personnel costs include salaries, wages, workers compensation, employer s share of FICA contributions, pension costs, and benefits. Operating $62,027,352 Operating as a category of expenditures includes purchased professional, maintenance, and other contracted services, utilities, rentals, and supplies. Provider Payments $116,224,723 Provider payments represent the purchase of specialized services for the human services programs. Services are provided by the following departments: Office of Human Services; Mental Health and Intellectual and Developmental Disabilities; Managed Behavioral Healthcare; Aging Services; Drug & Alcohol Services; Children, Youth & Families; Child Care Information Services. 38% Grants to Others $8,382,303 Appropriations or subsidies are made to other governments or to non-profit organizations that provide services to the community. Includes organizations such as SEPTA and the Chester County Food Bank. 27% Provider Payments $116,224,723 15% Operating $62,027,352 Personnel $161,224,701 Interfund Transfers $21,404,721 Interfund transfers are amounts transferred from one fund to another fund to assist in financing the services provided by the recipient fund. The transfers may be contributory, payment for specialized services, or mandated as a condition of receiving state or federal funding. Allocated Costs $10,478,999 Allocated costs represent expenditures by departments receiving federal and state grants to reimburse the General Fund for administrative, space, and depreciation charges as justified by the cost plan. Debt Service $35,760,308 A debt service fund is maintained for the accumulation of resources for the payment of principal and interest on general obligation long-term debt, and used to finance the County s capital investment program. Other Expenditures $8,583,644 This category is comprised of unappropriated, contingency funds, and operating capital. 9 10
Expenditures by Function & Department Expenditures General Government Commissioners $ 946,903 Finance 861,157 Human Resources 991,668 Procurement & General Services 1,511,920 Public Information 111,567 Voter Services 2,052,737 Assessment/Tax Claim 2,791,050 Treasurer 796,022 Controller 1,611,267 Solicitor 341,468 Public Defender 3,774,717 Recorder of Deeds 1,614,745 Facilites Management 10,587,202 Computing & Information Services 9,911,253 Archives & Record Services 382,460 Veterans Affairs 292,404 Total General Government $ 38,578,540 Judicial Courts Administration $ 5,833,486 Court Reporters 1,634,654 District Justices 7,496,903 Law Library 217,873 Clerk of Courts 1,300,092 Constables 1,700,000 Coroner 729,042 District Attorney 9,695,126 Prothonotary 1,355,246 Register of Wills/Clerk of Orphans Court 784,803 Sheriff 5,449,342 Domestic Relations Fund 6,449,314 Total Judicial $ 42,645,881 Expenditures by Function & Department Expenditures Corrections Prison $ 26,820,185 Adult Probation 7,357,053 Juvenile Probation 4,235,098 Total Corrections $ 38,412,336 Public Works Bridge Program $ 968,306 Total Public Works $ 968,306 Human Services Public Health $ 9,722,605 Community Development 16,874,299 Human Services Fund 1,090,952 MH/IDD Fund 30,007,748 Managed Behavioral Health Care Fund 62,959,313 Office of Aging Fund 5,884,982 Drug and Alcohol Fund 5,736,531 Children Youth & Families Fund 31,048,666 Child Care Information Services Fund 14,515,655 Pocopson Home 25,039,466 Total Human Services $ 202,880,217 Culture & Recreation Library Fund $ 6,842,245 Parks and Recreation 5,581,086 Total Culture & Recreation $ 12,423,331 Conservation & Development Planning $ 3,105,080 Water Resources 428,339 Open Space Preservation 604,569 Conservation District 1,118,156 Total Conservation & Development $ 5,256,144 Public Safety Debt Service $ 41,339,437 Emergency Services $ 3,103,770 Miscellaneous $ 25,302,285 Public Safety Communications Fund 13,176,504 2013 Operating Budget $ 424,086,751 Total Public Safety $ 16,280,274 11 12
Capital Investment Program Capital Improvement Fund Projects in 2013 The Capital Investment Program (CIP) identifies the County s planned capital projects over the next five years and the funding sources for the projected projects. The CIP is comprised of projects funded in the Capital Reserve Fund and Capital Improvement Fund. Pay-as-you-go projects are funded in the Capital Reserve Fund. The 2013 Capital Reserve Fund budget totals $16.8 million. These projects will be funded with County funds in addition to grant funding of approximately $3.9 million and $12.7 million in fund balance from 2012. Projects for the acquisition and/or construction of assets with an extended useful life are budgeted in the Capital Improvement Fund. These projects are financed through the issuance of general obligation notes and bonds. Also, from time to time, grant funding may be available to support the projects. The 2013 Capital Improvement Fund budget totals $79.1 million. Revenues 2013 Budget Federal & State Grants $ 9,197,146 Bond / Note Proceeds 30,000,000 Other Revenues 780,000 Carry Forward 39,114,323 Expenditures Total $ 79,091,469 Open Space & Community Revitilization $ 25,672,278 County Parks & Trails Development 7,944,274 Infrastucture 666,520 Facilities 2,932,606 Public Safety 33,904,273 Transfers 30,000 Contingency 7,941,518 Total $ 79,091,469 Public Safety $33,904,273 Provides funds for projects including the Public Safety Training Campus, continued enhancement of the 9-1-1 communication system, and the upgrade of data transmission infrastructure. Open Space & $25,672,278 Community Revitalization Provides funds for municipal park and conservancy grants, acquisition of land for County parks and trails, farmland preservation easement purchases, and community revitalization grants. Since 1989, $255 million has been committed to open space and community revitalization programs, with an additional $10 million committed for 2013. County Parks & $7,944,274 Trails Development Provides funds for the development of, and major improvements to, County parks and trails, including the Chester Valley Trail and the Schuylkill River Trail. Infrastructure $666,520 Provides funds for projects such as repairs and improvements to existing flood-control dams, design and construction of wetlands mitigation, and SEPTA transportation projects. Facilities $2,932,606 Provides funds for improvements at the Government Services Center, Historic Courthouse, Pocopson Home, Prison, and Exton Library. 13 14
Chester County Managing for Results Chester County Strategic Plan Priority Areas In 2008 the Chester County Board of Commissioners made a commitment to develop a strategic plan to establish the government s priorities for the future, and to increase accountability, transparency, and performance in Chester County Government. The priorities established as part of the strategic plan process are outlined on page 16. Within these six priority areas, a number of goals have been set, helping to track the County s focus on these priorities. In addition Managing for Results (MFR) was introduced - a customer-oriented, results-focused, and data-driven performance management system which gives measurable outcomes to the public on the services provided by Chester County. The 2009-2014 County of Chester Strategic Plan is a roadmap of what the County aspires to achieve over five years. More information, and a full list of the County s goals, can be found on www.chesco.org/strategicplan. Health And Environment Public Safety Economy Transportation Promote and protect the public health and environment of the community Ensure safe and secure communities Support the growth and development of a strong and vibrant economy for all residents Enhance access to and use of transportation systems to reduce traffic congestion Growth Manage growth and land use to preserve and optimize the quality of life in the community Smart Financial Management Continue to exercise smart financial management and maintain the County s financial strength while minimizing the property tax burden 15 16
Did you know? Triple A Bond Rating In 2012 the three major bond rating agencies (Moody s, S&P, and Fitch) reaffirmed Chester County s ratings of Aaa and AAA, making it the only county in Pennsylvania - and one of only 38 in the nation - to have a triple-a rating from all three agencies. Standard and Poor s cited the County s diverse and growing local economy, broad property tax base, strong wealth and income levels, strong financial position and management team, and moderate debt burden as factors in reaffirming the rating. Chester County Population Growth The population of Chester County has increased by 59 percent since 1980. During this period, the rate of growth has been substantially higher than that of Pennsylvania and the nation. Most of the growth has occurred in the eastern half of the County and along the major highway corridors. The population according to the 2011 American Community Survey (Census) is 503,897. The median age is 39.6 years. Population Trends 1980 1990 2000 2010 2011 Chester County 316,660 376,396 433,501 498,886 503,897 Pennsylvania 11,866,728 11,881,643 12,281,054 12,702,379 12,742,886 United States 226,545,805 248,709,873 281,421,906 308,745,538 311,591,917 Source: U.S. Census Bureau, 2011 Estimate. Education in Chester County Chester County has the most educated population among all Pennsylvania counties according to the U.S. Census Bureau s 2011 American Community Survey. Significantly higher proportions of the County s residents are high school and college graduates. Chester County Pennsylvania United States The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the County of Chester, Pennsylvania for its annual budget for the fiscal year beginning January 1, 2012. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. Persons with 12+ years of education (25 years or older) 93% 89% 86% The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibilty for another award. Persons with 16+ years of 47% 27% 29% education (25 years or older) Chester County has received this award for the past 20 years. Source: U.S. Census Bureau, 2011 American Community Survey 17 18