ORANGE COUNTY BUDGET FY 2009-10 Worksession Overview July 21, 2009

ORANGE COUNTYBUDGETFY 2009-10

Worksession Overview July 21, 2009

Presentation OutlinePresentation Outline

Worksession Agenda

Proposed FY 09-10 Budget

Future Budget Challenges

Budget Timeline


Worksession Agenda



Budget Timeline

Worksession AgendaJuly 21, 2009Worksession AgendaJuly 21, 2009

• Introduction• Fire Rescue• Public Safety Office /

Radio Communications• MSTUs Public Hearing• Corrections• Corrections Medical• Community & Environmental

Services• Parks & Recreation• Orange County CRA (OBT)• I-Drive CRA

Day 1 - Budget Worksession

• Utilities• Public Works• Growth Management• Convention Center• Administrative

Services• Health Services• Family Services• LYNX



• Constitutional Officers• Court Administration• Jury Services• Sheriff• Library• Outside Agencies / Commissioner

Reports• Summary of Changes / Requests

– Approval of:• Proposed Millages / Budget• Budget Consent Agenda




Worksession Agenda



Budget Timeline

Proposed FY 09-10 BudgetProposed FY 09-10 Budget

• General Fund $ 821M $ 748M (9.0%)

• Special Revenue 1,405 958 (31.8%)

• Debt Service 358 378 5.5%

• Enterprise Funds 815 676 (17.1%)• Internal Service 236 223

(5.5%)$ 3,635M $2,983M

(18.0%)

FY 2009 FY 2010 %


County’s Total Budget

• Items That Cause Budget Fluctuations

– Large capital projects/debt issues

– Increases in grants and multi-year grant awards

– Accounting/budgeting changes

• Impact of Budgeting Standards

– Interfund Transfers – $365 million

– Internal Service Funds – $223 million

– Pass Through Funds

• Fund balance/reserves


Rate Rate Change

• Countywide 5.1639 4.4347 (14%)

• Fire MSTU 2.5862 2.2437 (13%)

• Sheriff MSTU 2.1234 1.8043 (15%)

Millage Rate Comparison

2007Millage

2010Millage

Taxable Value: $200K Home $1,975 $1,697 ($278)


FY 2008-09 FY 2009-10 Millage Property Property Rate Taxes Taxes Change

• Countywide 4.4347 $474.6M $427.9M ($46.7)

• Fire MSTU 2.2437 130.6 116.2 (14.4)

• Sheriff MSTU 1.8043 105.1 93.5 (11.6) Total $710.3M $637.6M ($72.7)

Maintaining Current Millage Rate

Property Tax Revenues Down 10%

$0

$200

$400

$600

$800

$1,000

$1,200

2007 2008 2009 2010

Mil

lion

s

Countywide Tax

Sheriff MSTU

Fire MSTU

Sales Tax

PST

State SharedRevenue

$959 $959 $942

$853

($89)


$474 $476 $475 $428

$107 $107 $105$94

$130 $133 $131$116

$128 $126 $116 $104

$89 $89 $88 $87

Major Revenue Sources

• Deleting 300+ Vacant Positions

• Operating Budget Reductions

• Using Current Year Cash Savings• CIP Savings• Reserves

2010 Budget Strategies


• Constitutional Officers 5• Administrative Services 22• Comm. & Environ. Services 33• Convention Center 29• Corrections 19• Family Services 16• Fire Rescue 7• Growth Management 82• Health Services 4• Public Works 48• Utilities 15• County Admin. Support 20• Other 8TOTAL 308


Deleted Positions

FY 2008-09 Budget


General Government

$289M

Public Safety$498M

Outside Agencies $147M


General Government

$289M

Public Safety

$498M

Outside Agencies

$147M

$482M

Outside Agencies

$147M

General Government

$289M

Public Safety

$498M

$249M


$482M


Outside Agencies

$147M

General Government

$289M

Public Safety

$498M

$142M

$249M

$482M


Outside Agencies

$147M

General Government

$289M

Public Safety

$498M

$142M

$249M

$482M

$60M Savings


General Government

$249M

Public Safety$482M


Tax Based Operating Budget

Public Safety$482M

Public SafetyTax Based Operating Budget

• Sheriff $184M

• Fire Rescue 146

• Corrections 146

• Other ___6_

TOTAL $482M

ProposedFY 2010

3.2% Decrease


• Administrative Services $46M• Family Services 45• Health Services 37• Parks & Recreation 31• Comm. & Environ. Services 20• Growth Management 10• Other 60

TOTAL $249M

General Government

$249

ProposedFY 2010

General GovernmentTax Based Operating Budget

13.8% Decrease


• Constitutional Officers $ 53M• LYNX 35• Other 54 (CRAs, Outside Agencies ,Courts, CRP)

TOTAL $142M


ProposedFY 2010

Outside AgenciesTax Based Operating Budget

3.4% Decrease


General Government

$249M

Public Safety$482M


Tax Based Operating Budget

$60M Reduction





$60M



• CIPs– Animal Services Expansion Deleted ($8.4M) – Corrections Expansion Reduced ($9.1M)

• General Fund Reserves– $51.1 Million– 6.8% of General Fund







$60M

$30M


• Regular Employees

– No cost of living adjustments

– Annual salary increases

– Periodic market studies

• Bargaining Unit Employees

– Step plans

– Negotiated annual step increases and various incentives

– Periodic market studies


Salary History 2000-2010

• Five Year Average Annual Salary Increases 2006-2010:– Regular employees: 2.7%

• Ten Year Average Annual Salary Increases 2001-2010:– Regular employees: 3.3%



2,600

2,700

2,800

2,900

3,000

3,100

3,200

3,300

3,400

3,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Employees

General County Employees (Excludes: Const. Offices, Enterprise Operations, and Public Safety)


Worksession Agenda



Budget Timeline

Future Budget ChallengesFuture Budget Challenges

Revenue Outlook 2011 and Beyond• Property Tax Outlook

– FY 2011 - (5.6%)

• Sales Tax & Other Major Revenues

– FY 2011 - (2.0%)?

$0

$200

$400

$600

$800

$1,000

$1,200

2007 2008 2009 2010 2011

Mil

lion

s

Countywide Tax

Sheriff MSTU

Fire MSTU

Sales Tax

PST

State SharedRevenue

$959 $959 $942

$853

($89)

$474 $476 $475 $428

$107 $107 $105$94

$130 $133 $131$116

$128 $126 $116 $104

$89 $89 $88 $87

Major Revenue Sources

$810

$402

$88

$109

$101

$85

($43)


Sheriff• $183.9 million operating budget

• Largest budget in county

• Sheriff’s MSTU millage rate:

– Reduced from 2.1234 to 1.8043 over the last three years

– 15% reduction

• Sheriff’s MSTU supports approximately 50% of Sheriff’s budget


Sheriff• FY 2010 budget includes no salary increases

• Trend not sustainable

• FY 2011 will require evaluation of revenue enhancement options and/or service level adjustments


Fire Rescue• $145.8 million operating budget• Budget is structurally imbalanced• Based on current trends, Fire will

deplete reserves by FY 2011• Fire’s MSTU millage rate:

– Reduced from 2.5862 to 2.2437 over the last three years

– 13% decrease


• New stations and equipment replacement on hold

• Various programs on hold• FY 2010 budget is based on no salary

increases• Trend not sustainable • FY 2011 will require evaluation of revenue

enhancement options and/or service level adjustments


Fire Rescue

Corrections• $148.7 million operating budget

• Budget highly dependent on inmate population

• Current inmate population is 3,800 compared to August 2008 peak of 4,955

• Inmate population is volatile and can increase in future based on a variety of factors


Corrections• Future facility requirements

• Medical care costs

• Juvenile Assessment Center


Public Safety Radios• County operates an extensive public

safety radio system

• The current radio system has been in operation since 1992

• The FY 10 budget provides $9 million to replace Sheriff’s out-dated radios

• The budget includes approximately $5 million to replace radios in Fire, Corrections, and other departments

• Radio infrastructure CIP needs to be funded in future


State Mandated Costs• The FY 10 budget includes

approximately $66 million in state mandates

• These costs include:– $45M FRS – $9.3M Medicaid match– $8.1M DJJ– $3.7M Medical Examiner’s Office

• As State revenues decline, we may see additional mandates

• Future impact of federal and state mandates on county’s budget is unknown


Primary Care Access Network (PCAN)• The budget includes $14.6 million for 11 PCAN

clinics• Over the past ten years, patients being served have

increased from 5,000 to 100,000• Increases in healthcare costs and expensive

secondary care creates financial challenges for the PCAN program

• Program needs to be restructured to control costs:– Cap enrollment– Close clinic(s)– Provide more revenue support– Restrict secondary care


• Orange County’s funding for LYNX has increased from $23 million to $40 million over the past 5 years

• In FY 09, the County’s $40 million funding contribution included extra funding for fuel costs

• Major recipient of stimulus funding

• Once stimulus funding goes away, funding will have to be increased


LYNX

LYNX• For FY 10, LYNX funding is

$35 million

• LYNX is providing status quo service next year

• Providing dedicated funding for LYNX continues to be a challenge


Public Works• 48 positions are being

eliminated in FY 2010• Staffing level below FY 2000• Providing adequate O&M

funding continues to be a challenge

• Level of services have been reduced

• CIP has been reduced by $70 million from FY 09 - 14

• Funding new road construction will continue to be a challenge


Family Services• Increasing demand for

mental health and homeless issues

• Lack of funding for safety net programs

• Streamline service delivery


Facility Costs• Facilities Management

maintains over 6 million square feet

• Escalating maintenance costs with aging infrastructure

• Over the past five years, utility costs have increased from $7.4 million to $12.2 million, which is a 65% increase

• Costs and square footage are increasing, while budget is decreasing


Healthcare Costs• $72 million program covering 9,111

employees and 18,981 total members

• Includes BCC, Constitutional Officers (except Sheriff), LYNX and other organizations

• Medical trend is 9% increase

• Future funding challenges

• County continues to implement cost containment strategies: Self insurance, wellness programs, plan design changes, and other


Environmental Protection

• Limited funding for Total Maximum Daily Load (TMDL)/water quality

• Air and petroleum programs funding uncertain

• GreenPLACE maintenance


Tourist Development Tax• TDT collections are down

due to the recession

• Attendance & operating revenues for the OCCC are down

• Additional OCCC operations subsidy will be needed

• Challenges for Community Venues


Utilities• Declining revenues in

Utilities due to economic conditions

• Water supply continues to be a concern heading into the future– Funding for alternative water

supply projects

• Funding for solid waste cell construction continues to be a challenge



Worksession Agenda



Budget Timeline

• Budget Worksession with BCC Jul 21 – 23– Approval of Tentative Millage Rates– Approval of Tentative Budget– Approval of Budget Consent Agenda

• Notify PA of Proposed Millage Rates Aug 1

• PA Mails TRIM Notices Aug 12 - 17

• 1st Budget Public Hearing – 6:00 p.m. Sep 10

• 1st Library Public Hearing – 5:01 p.m. Sep 15

• 2nd Library Public Hearing – 5:01 p.m. Sep 22

• 2nd Budget Public Hearing – 6:00 p.m. Sep 24

Budget TimelineBudget Timeline

ORANGE COUNTYBUDGETFY 2009-10

Worksession Overview July 21, 2009

Documents

ORANGE COUNTY BUDGET FY 2009-10 Worksession Overview July 21, 2009