FISCAL YEAR 2021 PROPOSED BUDGET OVERVIEW Slide 2 FY 2021 - PowerPoint PPT Presentation

Slide 1 FINANCE FISCAL YEAR 2021 PROPOSED BUDGET OVERVIEW

Slide 2 FY 2021 PROPOSED BUDGET OVERVIEW >

Slide 3 Overview Prepared in compliance with State of Oregon local  budget law Provide a financial plan for next fiscal year   Management  Public  Authorize County Spending Justify property tax levy  3 Pioneering pathways to prosperity.

Slide 4 Approach Cost of service  Fiscally sound  Sustainability  Maintain   Responsive local government  Comparatively low taxes & fees  High service levels  Strong financial position 4 Pioneering pathways to prosperity.

Slide 5 Role of Budget Committee What is the role of the Budget Committee?  To review the Budget proposed by the Budget Officer  Study the Budget by comparing prior year data, current data and  proposed budget If a majority agree – make changes to the resources (revenues) or  requirements (expenses)  Not Policies or Operating Procedures Policies are set by the Board of County Commissioners  Outlined in Oregon Local Budget Law – see ORS 294.305 to  294.565 5 Pioneering pathways to prosperity.

Slide 6 Housekeeping An impact sheet was missed  I blame COVID-19 inspired chaos  General Fund – Youth Services & Youth Think  A copy was sent to the Budget Committee & the Budget Book has  been updated 6 Pioneering pathways to prosperity.

Slide 7 Government-wide Revenues FY18 OPERATING REVENUE GOVERNMENTWIDE - $22,975,072 Internal Services Enterprise Zone 0% 5% Fines & Restitution 0% All Others Investment Earnings 5% 1% Rents 1% Property Taxes 40% Federal Funding 4% Charges for Service 5% License Fees & Permits 11% State Funding 28% 7 Pioneering pathways to prosperity.

Slide 8 Government-wide Revenues FY19 OPERATING REVENUE GOVERNMENTWIDE - $30,253,008 Property Taxes All Others 32% 16% Enterprise Zone 3% Internal Services 0% Fines & Restitution 0% Investment Earnings 4% Federal Funding State Funding Rents 9% 21% 1% Charges for Service 4% License Fees & Permits 10% 8 Pioneering pathways to prosperity.

Slide 9 Government-wide Revenues FY20 PROJECTED OPERATING REVENUE GOVERNMENTWIDE - $28,029,698 All Others 4% Property Taxes Internal Services 36% 0% Enterprise Zone Fines & Restitution 12% 0% Investment Earnings 3% Rents 1% Federal Funding 4% Charges for Service 4% License Fees & State Funding Permits 25% 11% 9 Pioneering pathways to prosperity.

Slide 10 Government-wide Revenues FY21 PROPOSED OPERATING REVENUE GOVERNMENTWIDE - $29,426,767 All Others 3% Internal Services Property Taxes 0% 35% Enterprise Zone 11% Fines & Restitution 0% Federal Funding Investment Earnings 4% 2% Rents 1% Charges for Service 4% License Fees & Permits 13% State Funding 27% 10 Pioneering pathways to prosperity.

Slide 11 Government-wide Revenues  Ignores Beginning Fund Balance  State Funding trending up & down  28% - 21% - 25% - 27%  Budget is Pre-COVID-19 projection  FY21 Revenue 5% increase over FY20 Projected  71% is due to State Funding - $985,312 of the increase  COVID-19 will decrease this  All Others – Transfers due to one-time transfers are down  Government-wide 11 Pioneering pathways to prosperity.

Slide 12 Government-wide Revenues GOVERNMENT-WIDE REVENUE COMPARISON FY18 to FY21 12,000,000 10,000,000 8,000,000 2018 Actual 6,000,000 2019 Actual 2020 Projected 2021 Proposed 4,000,000 2,000,000 - Property State License Charges Federal Rents Investment Fines & Internal Enterprise All Others Taxes Funding Fees & for Service Funding Earnings Restitution Services Zone Permits 12 Pioneering pathways to prosperity.

Slide 13 Government-wide Operating Expense (Personnel + Materials & Services) FY18 - FY21 Operations Expense 70% 60% 50% Materials & Services, 63% Materials & Services, 53% 40% Materials & Services, 50% Personnel, 57% Materials & Services, 46% Materials & Services, 43% Personnel, 54% Personnel, 50% Personnel, 47% 30% Personnel, 37% 20% 10% 0% 2018 Actual 2019 Actual 2020 Projected 2020 Revised Budget 2021 Proposed 13 Pioneering pathways to prosperity.

Slide 14 Government-wide Operating Expense (Personnel + Materials & Services)  Personnel amount increasing but % decreases  FY18 57% - $10,257,584  FY21 37% - $12,535,332  Increase in 4 years: 22.2% or $2,277,748  Materials & Services increasing but % grows from 43% and 63%  FY18 43% - $7,582,248  FY21 63% - $20,937,236  Increase in 4 years: 176.1% or $13,354,988  WHAT?!? Something changed. 14 Pioneering pathways to prosperity.

Slide 15 Government-wide Operating Expense (Personnel + Materials & Services)  Significant Changes  Special Economic Development Fund increased $1.7M  Operation Reserve Fund  $0 Actual in prior FY  $0 Projected in FY20  $6,061,853 in FY21 Proposed budget  When these changes are considered – percentages smooth out  Personnel FY21 49% - $12,535,332  M&S FY21 51% - $13,237,236 15 Pioneering pathways to prosperity.

Slide 16 Government-wide Operating Expense (Personnel + Materials & Services) FY18 - FY21 Operations Expense – Special Transactions Removed 70% 60% 50% Materials & Services, 53% 40% Materials & Services, 51% Materials & Services, 50% Personnel, 57% Materials & Services, 46% Personnel, 54% Materials & Services, 43% Personnel, 50% Personnel, 49% Personnel, 47% 30% 20% 10% 0% 2018 Actual 2019 Actual 2020 Projected 2020 Revised Budget 2021 Proposed 16 Pioneering pathways to prosperity.

Slide 17 General Fund 15 Year Projection Revenues exceed Expense for next 6 years  In FY26 and forward Revenues = Expense  In FY26 increases to $63K or 0.4% of revenue  Ending Fund Balance meets Minimum Fund Balance in  FY34 Revenue & Expense - General Fund with Fund Balance 35,000,000 $29,205,071 30,000,000 $22,990,680 25,000,000 $18,490,212 20,000,000 $14,563,053 15,000,000 10,000,000 5,000,000 - FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 BB Expense Revenue MinBal 17 Pioneering pathways to prosperity.

Slide 18 General Fund 15 Year Projection  Revenues & Expense generate fund balance until FY26 then matched to revenues  Meet point is sooner than projected last year (FY27) due to added Deputy position  Separation of Revenues > Expense greater than last year’s projection  Fund Balance above Minimum FB until FY34  Better than projected last year despite the Revenue & Expense change – result of PERS Side Account “taming” PERS increases  Meeting point was in FY28 – Now in FY34  Result of revenue projections trending and PERS Side Account 18 Pioneering pathways to prosperity.

Slide 19 General Fund 15 Year Projection The General Fund is heading to a balanced point going  forward If Projections are Headlights on a road – this is a straightaway to a  curve Curve is not as tight as projected last fiscal year  Meeting point moved sooner but generate fund balance FY21 to  FY25  PERS Side Account has help signifcantly Options  Ignore it – 6 years is still way out there and long term looks fine so  not a problem to worry about Be aware and plan – Execute to minimize the curve – as we are  Additional PERS Side Account request  19 Pioneering pathways to prosperity.

Slide 20 General Fund 15 Year Projection Balancing on the point right now  Not just Wasco County – all connected government  agencies facing same difficulties  Some sooner than others – some may not be aware yet Plan to hold partner agencies to the same standard  Wasco Management uses Ensure they are prepared to address increases without a Wasco  Bail-out Remember: $1 in wage today = $2.535 in full cost in 15  years Note: This is the same projected last budget cycle so is holding  true 20 Pioneering pathways to prosperity.

Slide 21 Unknowns  Don’t have a crystal ball – ALL PROJECTIONS PRE COVID-19  What will the COVID-19 ultimate impact be?  PERS – How will the unfunded portion be managed?  Medical Insurance  County Growth – Population, Business  Federal/State Funding  Other Revenue Sources  Marijuana Tax – Trend seems set – about $90K  County Resident Expectations 21 Pioneering pathways to prosperity.

Slide 22 Major Areas to Watch - Personnel Personnel   Annual step increase 2.5%  Market adjustment every 3 years – FY20 3.1%  Average since inception 3.6%  Health insurance up 8% on 1/1/21 22 Pioneering pathways to prosperity.

Slide 23 Major Areas to Watch - Personnel Personnel   PERS rate increased in FY20 – before PERS Side Account  Tier1/2 – up 5.38% to 25.18% - a 27.2% increase  OPSRP-General – up 5.68% to 17.20% - a 49.3% increase  OPSRP-Police/Fire – up 5.64% to 21.93% - a 34.6% increase  Impact of PERS Side Account – 4.3% rate credit  Tier1/2 – up 1.08% to 20.88% - a 5.4% increase  OPSRP-General – up 1.38% to 12.90% - a 12.0% increase  OPSRP-Police/Fire – up 1.34% to 17.63% - a 8.2% increase 23 Pioneering pathways to prosperity.