Fiscal Year 2016-2017 County Manager Recommended Budget Washoe - PowerPoint PPT Presentation

Fiscal Year 2016-2017 County Manager Recommended Budget Washoe County Commission Meeting John Slaughter, County Manager April 26, 2016 1

•Budget Process Update •Fiscal Responsibility/General Fund assumptions Budget •County Manager’s Recommendations Strategic • Summary of Budget Recommendations by Strategic Plan Goal Plan • Public Hearing and adoption of FY 17 Budget Next Steps 2

• Budget Process Update •General Fund Assumptions/Summary of Recommended Budget Budget •County Manager’s Recommendations •Capital Improvement Plan (CIP) 3

Budget Process Update February and January March and April March Development of Department/Budget “Encouraged but Revenue and Cost Meetings Pragmatic” Estimates Tentative Budget April/May Manager Recommend Finalize and Adopt the Fiscal Year 2017 Budget 4

New Budget Approaches for FY 16-17 Budget � Certain costs have been removed from the indirect cost allocation and directly budgeted in departments’ budgets. – Other Post Employment Benefits (OPEB) – Building utilities costs – Leases � Advantage: Increase transparency and show full cost of operating departments � Recognition of salary savings in budget � Workers Compensation – Rates based on position type versus on a departmental basis. – Charges to departments based on actual positions occupied � Advantage: Decreased costs for some departments � Social Services – Indigent assistance costs budgeted in one fund versus split between funds � Continued review of past financial practices and reports 5

•Budget Process Update • General Fund Assumptions/Summary of Recommended Budget Budget •County Manager’s Recommendations •Capital Improvement Plan (CIP) 6

FY2016 Estimated General Fund Results � Revenues are estimated to out-perform by $5.67 million – C-Tax � $4.2 million higher than budgeted � 8.0% growth versus 5.57% growth budgeted – Property Taxes – higher by $1.7 million – Intergovernmental – higher by $1.4 million � Expenditure Savings – total of $1.17 million – Salaries & Benefits – savings of $2.0 million estimated – Services & Supplies higher than original budget due to mid-year adjustments 7

FY2016 Estimated General Fund Results � Transfers - $1.4 million higher than originally budgeted – Transfer to District Court for their ½ of savings for pilot Court expansion project ($771,530) – Mid-year augmentation for BCC chambers tech upgrades and other facility improvements ($495,428) Ending Available Fund Balance of $40.86 million 8

FY2016 Estimated General Fund Results $5,000,000 4,231,727 Overall, FY16 revenues and expenditures will outperform $4,000,000 Amount of Additional Revenue or Savings budget by $6.8 million. $3,000,000 Over/(Under) Original Budget 2,042,045 1,732,634 $2,000,000 1,401,920 $1,000,000 $- Property Tax C-Tax Intergovern. Salaries & Services & Transfers Revenue Benefits Supplies $(1,000,000) -956,870 -1,389,481 $(2,000,000) 9

Property Tax Cap Formula (NRS 361.4722) � General Cap – applicable to commercial – Greater of: � 10-year average of percentage change in a county’s assessed valuation (up to 8%) � 2 x CPI (up to 8%) � If the General Cap is below 3%, the Residential Cap resets at the lower rate. 10

Property Tax Cap Formula (NRS 361.4722) General Cap Factor FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 10-yr Average % Change in 7.2% 4.9% 4.0% 2.7% 1.7% 1.3% 0.6% -0.1% Assessed Valuation 2 x CPI 7.7% -0.8% 3.2% 6.4% 4.2% 3.0% 3.2% 0.2% Greater of: 10-yr Average % Change in Assessed Valuation or 2 x CPI 7.7% 4.9% 4.0% 6.4% 4.2% 3.0% 3.2% 0.2% (Not to Exceed 8%) Residential Cap Factor Lesser of: 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 0.2% 3% or General Cap Factor 11

FY17 Property Taxes Due FY16 Property Assessed Value $200,000.00 FY16 Property Taxes Paid $2,562.00 (Taxable Value = 35% of Assessed Value) FY17 Property Tax Cap of 0.2% x 0.2% Increase in property taxes to be paid in FY17 $ 5.12 12

Third Straight Year of Flat Property Taxes Pct. Change of Assessed Valuation versus Property Taxes 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 Assessed Valuation 8.7% 12.8% 11.8% 13.9% -12.2% -9.5% -7.2% -3.0% 0.2% 7.9% 8.0% 7.6% Total Property Taxes 7.9% 10.5% 6.2% 5.9% -1.3% -7.1% -7.7% -3.5% 0.9% 3.3% 4.5% 2.3% Assessed Valuation Total Property Taxes From FY15 through FY17, property tax revenues will increase an average of only 3.4% versus an increase in assessed values of 7.8%. 13

C-Tax Revenues Help to Offset Property Taxes’ Under-performance Washoe County Consolidated Tax $10.0 $9.0 $8.0 $7.0 Millions FY 11 $6.0 FY 12 FY 13 $5.0 FY 14 $4.0 FY 15 FY16 $3.0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 14

Outsized C-Tax Revenues are Projected to Add $5.6 million over Normalized Growth 110.00 103.15 105.00 100.00 95.51 97.50 95.00 92.86 92.01 88.43 88.43 88.43 90.00 90.20 85.00 80.81 80.81 80.81 80.00 75.49 75.49 75.49 75.00 70.99 70.99 70.99 69.33 69.33 69.33 70.00 65.00 FY 11 FY 12 FY 13 FY 14 FY 15 FY16 FY17 Baseline Projection 69.33 70.99 75.49 80.81 88.43 95.51 103.15 Normalization Scenario 69.33 70.99 75.49 80.81 88.43 92.86 97.50 Slowdown 69.33 70.99 75.49 80.81 88.43 90.20 92.01 Baseline Projection Normalization Scenario Slowdown • Projecting 8% increase in C-Tax in both FY16 and FY17 • At a 5% growth rate, we would have $5.6 million less in FY17 15

FY17 General Fund Revenues FY15/16 FY15/16 FY16/17 % Category Orig Budget Estimated Base Budget Change Taxes 147,266,413 148,999,047 152,237,231 2.2% Licenses and permits 8,544,000 8,267,600 9,301,254 12.5% Consolidated taxes 91,278,018 95,509,745 103,150,525 8.0% Other intergovernmental 18,487,672 19,889,592 20,798,698 4.6% Charges for services* 23,930,231 23,618,308 18,866,253 -20.1% Fine and forfeitures 8,023,650 7,267,179 7,501,750 3.2% Miscellaneous** 3,927,860 3,578,237 16,935,196 373.3% Total revenues 301,457,844 307,129,708 328,790,907 7.1% * Decrease is due to a $5.6 million decrease in overhead charges, as OPEB costs, leases and building utilities are now charged directly to departments. ** Increase is due to $13 million in reimbursements from Indigent Fund and $3.2 million in State hospital pass-through revenues being budgeted in General Fund 16

FY17 General Fund Expenditure Assumptions � Salaries and Benefits – COLA’s are contemplated but not included in Tentative Budget, will be included in Final Budget – Health insurance is budgeted at +6% – Budget for salary savings, in order to better align the County budget with actual fiscal results � Known increases to contract costs and mandated services are budgeted, but otherwise no inflation assumed for services and supplies. � Continued funding to CIP of $5 million � $ 3 million of department above-base requests to be funded (including $751,000 for the countywide security initiative) 17

FY17 General Fund Expenditure Assumptions � Debt Service – $860,000 increase for Medical Examiner Building Bonds – $400,000+ savings for three years due to bond refundings sold in February � Transfer to Roads Fund reduced by $750,000 to fund Infrastructure Preservation projects for CSD � General Fund’s OPEB cost reduced but offset by reductions in overhead charges to departments for OPEB � Contingency – maintained at $1.5 million � Stabilization Fund – maintained at $3 million 18

FY17 General Fund Expenditures FY15/16 FY15/16 FY16/17 % of Uses Orig Budget ETC Base Budget Total Public Safety 124,348,249 124,264,658 133,234,257 44.3% Judicial 57,271,618 55,882,286 62,624,255 20.8% General Government 56,529,702 56,842,958 41,801,407 13.9% Welfare 19,783,216 19,650,077 33,749,655 11.2% Culture and Recreation 13,083,561 12,771,621 15,122,917 5.0% Public Works 17,022,238 17,119,757 13,977,070 4.6% Community Support 269,761 357,087 269,761 0.1% Total expenditures 288,308,345 286,888,444 300,779,322 100.0% Transfers out 25,481,985 26,871,466 24,920,514 Contingency 1,500,000 - 1,500,000 TOTAL USES 315,290,330 313,759,910 327,199,836 Transfers out include $5,000,000 to CIP, $9,796,856 million to Health District, $5,598,494 to Debt Service Fund, $2,754,019 to Senior Services/CPS, and $1,699,733 to Roads Fund. 19

FY17 Recommended Budget* FY15/16 FY15/16 FY16/17 Orig Budget ETC Base Budget Revenues and Other Sources: Taxes 147,266,413 148,999,047 152,237,231 Consolidated taxes 91,278,018 95,509,745 103,150,525 Other Revenue 62,913,413 62,620,916 73,403,151 Transfers In 291,515 291,515 291,515 Total revenues and transfers in 301,749,359 307,421,223 329,082,422 Expenditures and Other Uses: Total expenditures 288,299,533 287,238,444 300,779,322 Transfers out 25,481,985 26,871,466 24,920,514 Contingency 1,500,000 1,500,000 Total Uses 315,281,518 314,109,910 327,199,836 Fund Balance Total Ending Fund Balance 29,844,690 44,611,065 46,493,651 Available Ending Fund Balance 26,094,690 40,861,065 42,743,651 Available Ending Fund Balance 8.3% 13.03% 13.07% as % of Expend/Transfers Out Less Capital * Does not include COLA’s currently in labor negotiations 20