Orange County UpdateOrange County Update

Presented byPresented by

Supervisor Bill CampbellSupervisor Bill Campbell

Santa Ana Kiwanis ClubSanta Ana Kiwanis Club

April 28, 2010April 28, 2010

1)The Orange County Budget

2)OC Sunergy Solar Program

3)Open Space in Orange County

Presentation Topics

The Orange County Budget

• Mixed Signals Continue

• Home Values Stabilizing

• Retail Sales Rebounding

• Unemployment Leveling

• Foreclosures Continue

• Increasing Levels of Federal & State Debt

Economic Outlook

County Budget Overview

• County Revenue 6.2% below projections

• County expenses 20.6% below budget

• Salary and Employee Benefits are 5.1% below budget

• Lower number of County employees than in Previous Five Years

• Services and Supplies are 24.3% below budget

County Budget Overview (continued)

•General Fund Cash is $124 million, 115% above level 12 months ago

•$150 million Tax and Revenue Anticipation Notes issued in July

•$278.9 million General Fund reserves

Prop 172 Public Safety Sales Tax Revenue History

$206,456,438 $211,625,048

$279,629,322

$219,392,885

$237,394,385 $239,049,677 $239,736,529 *

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

FY 99-00 FY 00-01 FY 01-02 FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13

Employment Rates

Orange County - % Change in Employment

-0.71%

0.03%

-5.01%

-0.20%

0.60%1.10%

0.19%

1.20%

-0.25%

-1.56%

-0.56%

-3.58%

-4.72%

-1.59%

-4.92%

-1.20%

-0.06

-0.05

-0.04

-0.03

-0.02

-0.01

0

0.01

0.02

0.03

2007

:Q1

2007

:Q2

2007

:Q3

2007

:Q4

2008

:Q1

2008

:Q2

2008

:Q3

2008

:Q4

2009

:Q1

2009

:Q2

2009

:Q3

2009

:Q4

2010

:Q1

2010

:Q2

2010

:Q3

2010

:Q4

Year

ove

r Yea

r % C

hang

e

Projected

Sources: - Actuals from California Employment Development Department- Projected from Chapman University

County Actions Taken

•Hiring Freeze Imposed

•13% real budget cuts for non-public safety departments

•275 employees laid off

•Bi-weekly furloughs in some departments

County Actions Taken (continued)

• New Collective bargaining agreements

General Employees• No across the board pay increases for 3 years

• Overtime paid only after 40 hours worked

• Lower pension formula for new employees and one time option to trade down for current employees

Public Safety• No across the board pay increases for 3 years

• Overtime only paid after 40 hours worked

• Lower pension formulas for new employees

Orange County Sunergy

• OC Sunergy is a collaborative effort between the County and OC Cities to put solar photovoltaic cells on rooftops

• OC Sunergy's goal is to lower energy costs, increase energy efficiency and reduce carbon emissions.

• OC Sunergy will provide 100% financing for installation of rooftop solar for homes and businesses

• The net cost of the system including financing charges will be amortized over 20 years and be repaid on the homeowners property tax bill

• OC Sunergy will help reduce consumers energy bills because of the federal subsides and utility subsides

• OC Sunergy will allow property owners to finance other energy efficiency products

OC Sunergy Initiative

Orange County Open Space

Orange County Open Space

•September 29, 2009, the Board of Supervisors approved a Letter of Understanding to the Irvine Company and The Nature Conservancy identifying the County’s intentions regarding the transfer of approximately 20,000 acres of permanent open space from the Irvine Company to the County.

•These areas are currently owned by The Irvine Company and managed by the Irvine Ranch Land Conservancy.

•In 2001, the Irvine Company announced its intent to preserve this land as permanent open space. It further specified its commitment to convey the land over the next 10 years to “an appropriate municipality.”

Orange County Open Space (Continued)

•The lands range from Gypsum Canyon on the north to Laguna Laurel

•These lands are some of the most pristine and beautiful natural areas in all of Orange County.

•Included are areas such as:•The “Sinks” area of Limestone Canyon and Fremont Canyon

•Approximately 2,000 of the Open Space Lands are to be set aside for the new Blackstar Canyon Wilderness Park

Limestone Canyon – “The Sinks”

Fremont Canyon

Orange County Open Space (Continued)

•County would enter into a management agreement with the Irvine Ranch Land Conservancy for a period of not more than three years

•Allow all of the current resource management, scientific and public programs under way to remain to ensure no interruption in services of the land and people

Orange County Open Space (Continued)

•Preserving undeveloped open space remains a priority for the County as envisioned in the County’s General Plan and OC Parks Strategic Plan

•OC Parks receives approximately 70% of its revenues from a dedicated stream of property tax, with the remaining 30% coming from fees, leases and license

•OC Parks would have to accept financial responsibility of these lands

•OC Parks is currently finalizing negotiations with the Nature Conservancy of Orange County and the Irvine Company and will return to the Board with transaction documents and final agreements for the Board’s consideration prior to July 1, 2010.

Questions?