County of Chester, Pennsylvania 2011 Budget in Brief Board of Commissioners: Carol Aichele Terence Farrell Kathi Cozzone
A message from the Chester County Board of Commissioners Chester County passed a budget for 2011 that resulted in a zero tax increase for County residents. By implementing and upholding sound fiscal policies we were able to weather the tough economic storm - despite a significant reduction in state and federal funding. The year ahead may be even more challenging. But through the development and implementation of our strategic planning initiative Managing for Results, we will continue to be fiscally responsible, with increased accountability, transparency, and performance in Chester County Government. Chester County Commissioners Carol Aichele, Terence Farrell, Kathi Cozzone 1 2
Introduction Budget Summary Chester County continues to grow and prosper. Regionally, we have the greatest increase in population, the lowest unemployment rate, and the highest median family and per capita income. But with a growing population comes the need for greater services, balanced with the need to preserve open space areas, and the need to ensure efficiencies in meeting these demands. The operating budget is nearly $423.2 million - a decrease of 1.8 percent. The capital budget is $78.4 million and is part of a five year plan. In 2009 the three major bond rating agencies (Moody s, S & P, and Fitch) gave Chester County their highest bond ratings of Aaa and AAA. This enables the County to fund its capital program at a lower cost to the taxpayer. This document briefly explains Chester County s 2011 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. Regular meetings of the Chester County Board of Commissioners are open to the public. Meetings are generally held at 10:00 am 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. The adopted 2011 Operating Budget for Chester County is $423.2 million as shown below. 2011 Operating Budget Appropriated Fund Balances $ 9,792,205 Revenues Real Estate Taxes $ 144,362,750 Federal & State Grants 174,879,432 Departmental Earnings 55,367,695 Cost Recovery 12,787,818 Interfund Transfers 20,291,398 Other 5,705,833 Expenditures Total Revenues $ 413,394,926 Total $ 423,187,131 Personnel $ 164,792,759 Operating 60,760,122 Provider Payments 118,679,772 Grants to Others 8,573,050 Interfund Transfers 22,901,917 Allocated Costs 13,295,527 Debt Service 31,649,771 Other 2,534,213 Total $ 423,187,131 3 4
2011 Operating Revenues 2011 Operating Revenues Cost Recovery $ 12,787,818 Departmental Earnings $ 55,367,695 13% 3% Interfund Transfers $ 20,291,398 5% 1% Other Revenues $ 5,705,833 Federal & State Grants $174,879,432 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 $144,362,750 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 2011 is 3.965. Taxes are also used to pay for the debt service related to financing capital projects. Departmental Earnings $55,367,695 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. 42% 35% Cost Recovery $12,787,818 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 $ 174,879,432 Real Estate Taxes $ 144,362,750 Interfund Transfers $20,291,398 Interfund transfers represent revenue received from another County fund with the purpose of matching intergovernmental revenues or purchasing specialized services. Other Revenues $5,705,833 Investment earnings, facilities rentals, and reimbursements are classified as other revenues or miscellaneous. 5 6
2011 Operating Budget Expenditures by Function 2011 Operating Budget Expenditures by Function General Government $39,082,317 Services provided by the County for the benefit of the public and the governmental body as a whole, including the administrative departments, the Office of the Controller, Treasurer, and the Recorder of Deeds. 1% Miscellaneous $23,997,534 Debt Service $34,733,861 Conservation & Development $5,190,659 3% 9% 6% General Government $39,082,317 9% 10% Judicial $42,362,690 Public Safety $17,724,069 4% Corrections $39,842,213 9% <1% Judicial $42,362,690 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 $17,724,069 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 $39,842,213 Expenditures used to support the prison, adult and juvenile probation services, central booking, and other correctional programs. Public Works $1,029,395 Expenditures for maintaining and rehabilitating the 97 county owned bridges. Human Services $205,987,603 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 $13,236,790 49% Human Services $205,987,603 Public Works $1,029,395 Culture & Recreation $13,236,790 Expenditures to provide County residents opportunities and facilities for cultural and recreational programs including libraries and parks and recreation. Conservation & Development $5,190,659 Programs provided to achieve a satisfactory living environment for the community as a whole, including planning, water resources, agricultural development, and soil conservation. Debt Service $34,733,861 Payment of principal and interest obligations resulting from the issuance of bonds and notes to fund the capital investment program. 7 Miscellaneous $23,997,534 Non-departmental general governmental expenditures, appropriations to non-profit organizations, and General Fund mandated support to the human service funds, public safety, and the nursing home. 8
2011 Operating Budget Expenditures by Category 2011 Operating Budget Expenditures by Category Personnel $164,792,759 Personnel costs include salaries, wages, workers compensation, employer s share of FICA contributions, pension costs, and benefits. Interfund Transfers $22,901,917 Grants to Others $8,573,050 2% 5% Allocated Costs $13,295,527 3% 7% Debt Service $31,649,771 1% Other Expenditures $2,534,213 Operating $60,760,122 Operating as a category of expenditures includes purchased professional, maintenance, and other contracted services, utilities, rentals, and supplies. Provider Payments $118,679,772 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. Grants to Others $8,573,050 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. 28% 40% Interfund Transfers $22,901,917 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. Provider Payments $118,679,772 14% Personnel $164,792,759 Allocated Costs $13,295,527 Allocated costs represent expenditures by the Public Health Department to reimburse the General Fund for administrative, space, and depreciation charges as justified by the cost plan. Debt Service $31,649,771 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. Operating Other Expenditures $2,534,213 $60,760,122 This category is comprised of unappropriated, contingency funds, and operating capital. 9 10
Expenditures by Function & Department Expenditures by Function & Department Expenditures Expenditures General Government Corrections Commissioners $ 1,022,235 Prison $ 28,153,751 Finance 930,672 Adult Probation 7,334,906 Human Resources 1,017,189 Juvenile Probation 4,353,556 Procurement & General Services 1,233,067 Total Corrections $ 39,842,213 Public Information 116,751 Public Works Voter Services 2,039,171 Bridge Program $ 1,029,395 Assessment 2,132,800 Tax Claim 700,594 Total Public Works $ 1,029,395 Treasurer 795,236 Human Services Controller 1,691,922 Public Health $ 10,592,919 Solicitor 335,838 Community Development 17,000,447 Public Defender 3,668,051 Human Services Fund 1,429,092 Recorder of Deeds 1,555,703 MH/IDD Fund 32,460,411 Facilites Management 10,706,770 Managed Behavioral Health Care Fund 61,865,532 Computing & Information Services 10,424,119 Office of Aging Fund 6,175,422 Archives & Record Services 401,198 Drug and Alcohol Fund 6,280,479 Veterans Affairs 311,001 Children Youth & Families Fund 30,926,628 Total General Government $ 39,082,317 Child Care Information Services Fund 14,814,723 Pocopson Home 24,441,950 Judicial Courts Administration $ 5,871,989 Total Human Services $ 205,987,603 Court Reporters 1,627,601 Culture & Recreation District Justices 7,642,460 Library Fund $ 7,120,490 Law Library 229,446 Parks and Recreation 6,116,300 Clerk of Courts 1,301,102 Total Culture & Recreation $ 13,236,790 Constables 2,000,000 Coroner 625,220 Conservation & Development District Attorney 9,151,787 Planning $ 3,019,721 Prothonotary 1,415,617 Water Resources 421,629 Register of Wills/Clerk of Orphans Court 785,272 Open Space Preservation 683,235 Sheriff 5,484,830 Conservation District 1,066,074 Domestic Relations Fund 6,227,366 Total Conservation & Development $ 5,190,659 Total Judicial $ 42,362,690 Debt Service $ 34,733,861 Public Safety Miscellaneous $ 23,997,534 Emergency Services $ 3,081,100 Public Safety Communications Fund 14,642,969 2010 Operating Budget $ 423,187,131 11 Total Public Safety $ 17,724,069 12
Capital Investment Program 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, Capital Improvement Fund, and Build America Bonds Fund. Pay-as-you-go projects are funded in the Capital Reserve Fund. The 2011 Capital Reserve Fund budget totals $18.9 million. These projects will be funded by a $3.0 million transfer from the Debt Service Fund in addition to grant funding of approximately $6.7 million and $9.0 million in fund balance from 2010. Projects for the acquisition and/or construction of assets with an extended useful life are budgeted in the Build America Bonds 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 2011 Build America Bonds Fund budget totals $53.7 million. The Capital Improvement Fund contains $5.7 million for the construction of the Public Safety Training Center. Revenues 2011 Budget Federal & State Grants $ 4,387,444 Bond / Note Proceeds 30,000,000 Other Revenues 80,000 Carry Forward 19,269,367 Expenditures Total $ 53,736,811 Open Space & Community Revitilization $ 20,353,593 County Parks & Trails Development 8,289,500 Infrastucture 798,900 Facilities 6,888,316 Technology 293,528 Public Safety 10,194,407 Transfers 50,000 Contingency 6,868,567 Total $ 53,736,811 Build America Bonds Fund Projects in 2011 Open Space & $20,353,593 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, over $235 million has been invested in open space programs, with an additional $10 million committed for 2011. County Parks & $8,289,500 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 $798,900 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 $6,888,316 Provides funds for the new data center at the Prison, relocation-related costs for the move to 313 W. Market St., and improvements at the Government Services Center, Justice Center, and Exton Library. Public Safety $10,194,407 Provides funds for projects including the continued enhancement of the 9-1-1 communication system and the upgrade of data transmission infrastructure. 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 date-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 the next 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 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 TRANSPORTATION 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 2009 the three major bond rating agencies (Moody s, S&P, and Fitch) gave Chester County their highest ratings of Aaa and AAA. Only twenty three other counties out of approximately 3,000 in the country have a triple A rating from all three agencies. Standard and Poors 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 low debt burden as factors in assigning the rating. Millions Growth in Total Market Value of Property $100,000 $80,000 $55,400 $63,028 $68,352 $69,814 $68,918 $60,000 $40,000 $20,000 $0 2005 2006 2007 2008 2009 The market value of taxable property in Chester County has not grown as a result of the recent economic slowdown. Chester County Relative to S&P AAA Counties ¾ Annual Household Income - ranked 9th highest at $82,989 ¾ Housing Affordability Index - ranked 21st highest at 83.3 Data on 62 Counties Livable Community ¾One of America s best places to raise a family based on Forbes criteria such as cost of living, home price, per-capita income, air quality, and crime rate. 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, 2010. 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. 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. Healthy Community ¾Chester County has been ranked the healthiest county in Pennsylvania Chester County has received this award for the past 18 years. by a University of Wisconson study published in February 2010. 17 18