F Y 2015 OPE RAT ING BUDGE T KICKOF F De c e mb e r 10, 2013 - PowerPoint PPT Presentation

F Y 2015 OPE RAT ING BUDGE T KICKOF F De c e mb e r 10, 2013

Pr e se ntation T opic s  I ntro duc tio n o f Budg e t Sta ff  F Y13 Re sults  Histo ry a nd T re nds  F Y 2015 T a rg e t Ba se De ve lo pme nt 2

Budge t Staff  Cha d Ba lke  Me a g a n Ho nno ld  Andre a Ca in  Ma rk Ma tthe ws  Re b e c c a Cra wfo rd  Da vid Mc Nulty 3

Ge ne r al F und 2013: Ope r ating Re sults Original Final Budget Budget Actual Variance Revenues and Transfers In $ 937,638,398 $ 945,128,001 $ 959,404,995 $ 14,276,994 Expenditures and transfers out (937,670,000) (946,282,622) (938,791,865) (7,490,757) Fund Balance Appropriated** (31,602) (1,154,621) ‐ Revenues and transfers in over expenditures and transfers out 20,613,130 Fund balance at the beginnning of the year 175,698,244 Fund balance at the end of the year 196,311,374 ** Budgeted use of fund balance represents encumbrances carried forward from FY 2012. 4

Ge ne r al F und 2013: Re ve nue s Variance with Final Budget ‐ Budgeted Amounts Favorable Original Final Actual (Unfavorable) Taxes: Property $ 648,962,083 $ 648,962,083 $ 654,898,370 $ 5,936,287 Sales 121,137,839 125,254,839 127,273,310 2,018,471 Other 9,630,421 9,730,421 11,113,935 1,383,514 Total taxes 779,730,343 783,947,343 793,285,615 9,338,272 Shared Revenues (federal/state/local) 90,818,923 93,337,482 94,612,804 1,275,322 Charges for services 61,687,528 62,373,295 64,535,379 2,162,084 Licenses and Permits 3,319,455 3,320,455 4,062,881 742,426 Other 543,149 565,426 1,309,101 743,675 Transfers in 1,539,000 1,584,000 1,599,215 15,215 Subtotal before Appropriated Fund Balance 937,638,398 945,128,001 959,404,995 14,276,994 Appropriated Fund Balance 31,602 1,154,621 ‐ (1,154,621) Total Revenues $ 937,670,000 $ 946,282,622 $ 959,404,995 $ 13,122,373 5

Ge ne r al F und 2013: E xpe nditur e s Budget vs. Actual + Encumbrances Budgeted Amounts Favorable Original Final Actual Encumbrances (Unfavorable) $43,283,548 $44,126,775 $41,663,173 $225,015 $2,238,587 General Government Human Services 181,818,711 187,035,404 184,720,084 1,267,219 1,048,101 Education 334,532,675 334,532,675 334,532,675 0 0 Community Development & Cultural 26,192,547 26,343,295 25,917,801 139,574 285,920 Environmental Services 8,031,780 8,137,977 7,661,402 22,230 454,345 General Services Administration 23,253,299 23,405,015 22,421,170 345,361 638,484 Public Safety 106,445,440 108,589,481 107,763,560 96,311 729,610 Transfers out 214,112,000 214,112,000 214,112,000 0 0 Total Expenditures $937,670,000 $946,282,622 $938,791,865 $2,095,710 $5,395,047 6

Histor y and T r e nds 7

Budge t Change s Sinc e F Y 2009 (in millions) $984.4 $982.8 $971.2 $953.6 $952.1 $951.2 $947.1 $938.5 F Y 2009 F Y 2009 F Y 2010 F Y 2010 F Y 2011 F Y 2012 F Y 2013 F Y 2014 Adopte d Ame nde d Adopte d Ame nde d Adopte d Adopte d Adopte d Adopte d 8

Une mployme nt 12.0% 10.0% 8.0% 6.0% Wa ke NC 4.0% US 2.0% 0.0% Oc t 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Wa ke 4.0% 5.6% 5.3% 4.4% 4.1% 3.6% 3.5% 4.6% 8.4% 8.7% 8.3% 7.5% 5.9% NC 5.6% 6.6% 6.5% 5.5% 5.3% 4.8% 4.7% 6.2% 10.8% 10.6% 10.5% 9.5% 8.0% US 4.7% 5.8% 6.0% 5.5% 5.1% 4.6% 4.6% 5.8% 9.3% 9.6% 9.0% 8.1% 7.3% 9

Pr ope r ty Value (in millions) FY11 FY12 FY13 FY14 Budget FY15 Estimate Total Value $112,435.4 $112,901.3 $114,311.7 $116,345.0 $119,544.5 % Change 0.66% 0.41% 1.25% 1.78% 2.75% Real Property 103,067.2 104,028.4 105,311.0 107,325.0 110,276.4 % Change 0.61% 0.93% 1.23% 1.91% 2.75% Personal Property (non-vehicle) 6,530.2 6,044.8 6,173.3 6,220.0 6,391.1 % Change 4.59% -7.43% 2.13% 0.76% 2.75% Public Service 2,837.9 2,828.1 2,827.4 2,800.0 2,877.0 % Change -5.74% -0.35% -0.02% -0.97% 2.75% 10

Building Pe r mits (Januar y – Oc tobe r ) 9,847 9,298 5,344 4,886 4,049 3,318 3,107 2,890 2006 2007 2008 2009 2010 2011 2012 2013 11

Pr ope r ty T ax Re ve nue Histor y (in millions) $687.8 $682.1 $654.9 $645.7 $635.3 $629.0 $618.3 $559.4 Pro pe rty Re va l a nd T a x Ra te Cha ng e T a x Ra te Cha ng e F Y 2008 F Y 2009 F Y 2010 F Y 2011 F Y 2012 F Y 2013 F Y 2014 F Y 2015 (ac tual) (ac tual) (ac tual) (ac tual) (ac tual) (ac tual) (pr oje c te d) (pr oje c te d) 12

Sale s T ax Re ve nue Histor y 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 - F Y10 Ac tua l F Y11 Ac tua l F Y12 Ac tua l F Y13 Ac tua l F Y14 Budg e t F Y14 F Y15 Pro je c te d E stima te d Me dic a id Ho ld Ha rmle ss Sa le s T a x 13

F Y15 T ar ge t Base Budge t De ve lopme nt 14

F Y 2015 T ar ge t Base Calc ulations Star ting Point F Y 2014 Adopte d Budge t: Non- salar y and be ne fits Minus One -T ime F Y14 Adopte d Costs Plus Pr oje c te d F Y 2015 Salar y and Be ne fit Amounts E quals F Y 2015 T ar ge t be for e BMS Adjustme nts Plus/ Minus BMS Adjustme nts (inc l. adjustme nts for inte r - de par tme ntal c har ge s) E quals F Y 2015 T ar ge t Base 15

Change s fr om Adopte d to T ar ge t FY 14 Adopted Budget $982,800,000 Less Prior Year One ‐ Time Costs (3,876,577) Net Increases to Department Bases 1,817,669 Annualization of FY13 Pay Increase (Pay and Fringe) 1,300,022 Decrease in Unemployment Compensation Reserve Contribution (147,000) Decrease in Longevity (29,051) Recurring Board Revisions 2,727 Annualization of Justice Center (Non ‐ Salary, Non ‐ Fleet) Items Coming off Warranty 67,935 Annualizing Housekeeping and AV 97,472 Fleet Charges Lease Rate 187,956 Fuel (does not include a change in rate, consumption changes only) 57,559 Security Charges 126,102 Utility Increases 128,143 Building Lease Charges 25,804 Decrease in Property Tax Transfer (1,921,000) Total of Above Items (3,979,908) Remainder represents decreased S&B budget due to turnover (411,966) FY 15 Target Base $978,408,126 16

F Y15 T ar ge t Base FY14 Adopted FY15 Base Change Notes Revenues Property Taxes $682,085,000 $687,940,000 $5,855,000 Growth = $18.2m less FY14 One ‐ time of $12.5m Sales Taxes $132,481,000 $137,322,000 $4,841,000 All Other Revenues $168,234,000 $167,519,209 ($714,791) Subtotal $982,800,000 $992,781,209 $9,981,209 Expenditures County Departments $406,670,042 $404,199,168 ($2,470,874) WCPSS $327,496,020 $327,496,020 $0 Wake Tech $16,190,938 $16,190,938 $0 Transfers $232,443,000 $230,522,000 ($1,921,000) Increase for Property and Sales Tax of $6.8m; Decrease Prior Year One ‐ time of $8.75m Subtotal $982,800,000 $978,408,126 ($4,391,874) Surplus/(Gap) $0 $14,373,083 $14,373,083 Items to Consider Pro ‐ rated for FY15 Northeast Regional $870,000 *2.75% increase based on property tax growth WCPSS $9,006,141 *2.75% increase based on property tax growth Wake Tech $445,251 Employee Pay Increase $4,500,000 Assumes 3%, October start Health Insurance $750,000 Subtotal $15,571,391 Surplus/(Gap) ($1,198,309) *Assumes that the County continues with approach taken in previous two fiscal years; different approach may be applied for FY15 17

F Y15 F oc us  E stima ting de pa rtme nt re ve nue s  Upda te o f Se rvic e Ma tric e s  Stro ng b usine ss c a se s fo r b udg e t re q ue sts  Prio ritiza tio n o f e xpa nsio ns a nd ho w the y a lig n with lo ng -ra ng e pla ns 18

De par tme nt Adjustme nts: E xpe nditur e s De pa rtme nts Ca n  Mo ve the ta rg e t b a se b udg e t b e twe e n divisio ns, units a nd o b je c ts  Use c o mme nts in PB to e xpla in c ha ng e s (ve ry he lpful – re duc e s BMS q ue stio ns) De pa rtme nts Ca nno t  Cha ng e the b o tto m line b udg e t  Ma ke c ha ng e s to fle e t le a se s, fue l, utility c ha rg e b a c ks, fa c ility le a se s, 800 MHz/ CAD a nd risk ma na g e me nt c ha rg e b a c ks 19

De par tme nt Adjustme nts: Re ve nue s De pa rtme nts Ca n  Upda te de pa rtme nta l re ve nue e stima te s b a se d o n e xpe c te d vo lume s a t e xisting ra te s  Sub mit re q ue sts fo r fe e o r ra te inc re a se s thro ug h the Use r F e e fo rm 20

PB Upgr ade  L o o k a nd fe e l o f the syste m re ma ins the sa me  T a b s o n fo rms we re re vise d to a lig n with ho w the o rg a niza tio n is using the syste m  Pe rfo rma nc e Me a sure s a re no w upda te d thro ug h fo rms  I nfo Adva nta g e Re po rts he ld in He lpful Re po rts fo lde r 21

Ope r ating Budge t Cale ndar Date Meeting Type Tuesday, December 10, 2013 Budget Kick ‐ off Wednesday, January 15, 2014 Department Submissions on FY14 Year End Revenue Projections in PB Monday, January 27, 2014 ‐ PB Open Lab ‐ Specific Dates TBD Wednesday, January 30, 2014 Friday, January 31, 2014 Departments Submit Base Requests, Expansions, Reductions, Contract Listings, User Fees, FY15 Revenue Estimates Friday, February 14, 2014 Board of Commissioners Retreat Monday, March 03, 2014 Departments Submit Narratives, Updated Service Matrices and Performance Measures Mid ‐ March to Mid ‐ April Budget Meetings Tuesday, April 15, 2014 Departmental Update to FY15 Revenue Estimates Monday, May 19, 2014 2015 Recommended Budget Message Monday, June 02, 2014 2015 Public Hearing Monday, June 09, 2014 2015 Budget Worksession Monday, June 16, 2014 2015 Budget Adoption 22