Managed Growth in Orange County

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Presentation Outline

• Worksession Agenda
• Proposed FY 09-10 Budget
• Future Budget Challenges
• Budget Timeline

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Presentation Outline

• Worksession Agenda
• Proposed FY 09-10 Budget
• Future Budget Challenges
• Budget Timeline

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Worksession AgendaJuly 21, 2009
Day 1 - Budget Worksession

• 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

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Worksession AgendaJuly 22, 2009
Day 2 - Budget Worksession

• Utilities
• Public Works
• Growth Management
• Convention Center
• Administrative Services
• Health Services
• Family Services
• LYNX

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Worksession AgendaJuly 23, 2009
Day 3 - Budget Worksession

• Constitutional Officers
• Court Administration
• Jury Services
• Sheriff
• Library
• Outside Agencies / Commissioner Reports
• Summary of Changes / Requests
• Approval of
• Proposed Millages / Budget
• Budget Consent Agenda

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Presentation Outline

• Worksession Agenda
• Proposed FY 09-10 Budget
• Future Budget Challenges
• Budget Timeline

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Proposed FY 09-10 Budget
FY 2009 FY 2010

• 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)

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Proposed FY 09-10 Budget

• Countys 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

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Proposed FY 09-10 Budget
Millage Rate Comparison
2010 Millage
2007 Millage

• Rate Rate Change
• Countywide 5.1639 4.4347 (14)
• Fire MSTU 2.5862 2.2437 (13)
• Sheriff MSTU 2.1234 1.8043 (15)

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Proposed FY 09-10 Budget
Maintaining Current Millage Rate

• 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)

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Proposed FY 09-10 Budget
Major Revenue Sources
959
959
942
853
474
476
475
428
107
107
105
94
130
133
131
116
128
126
116
104
89
89
88
87
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Proposed FY 09-10 Budget
2010 Budget Strategies

• Deleting 300 Vacant Positions
• Operating Budget Reductions
• Using Current Year Cash Savings
• CIP Savings
• Reserves

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Proposed FY 09-10 Budget
Deleted Positions

• 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 8
• TOTAL 308

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Proposed FY 09-10 Budget
FY 2008-09 Budget
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Proposed FY 09-10 Budget
482M
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Proposed FY 09-10 Budget
249M
482M
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Proposed FY 09-10 Budget
249M
142M
482M
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Proposed FY 09-10 Budget
249M
60M Savings
142M
482M
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Proposed FY 09-10 Budget
Tax Based Operating Budget
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Proposed FY 09-10 Budget
Public Safety Tax Based Operating Budget
Proposed FY 2010

• Sheriff 184M
• Fire Rescue 146
• Corrections 146
• Other ___6_
• TOTAL 482M

3.2 Decrease
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Proposed FY 09-10 Budget
General Government Tax Based Operating Budget
Proposed FY 2010

• Administrative Services 46M
• Family Services 45
• Health Services 37
• Parks Recreation 31
• Comm. Environ. Services 20
• Growth Management 10
• Other 60
• TOTAL 249M

13.8 Decrease
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Proposed FY 09-10 Budget
Outside Agencies Tax Based Operating Budget
Proposed FY 2010

• Constitutional Officers 53M
• LYNX 35
• Other 54
• (CRAs, Outside Agencies ,Courts, CRP)
• TOTAL 142M

3.4 Decrease
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Proposed FY 09-10 Budget
Tax Based Operating Budget
60M Reduction
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Proposed FY 09-10 Budget
2010 Budget Strategies

• Deleting 300 Vacant Positions
• Operating Budget Reductions
• Using Current Year Cash Savings
• CIP Savings
• Reserves

60M
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Proposed FY 09-10 Budget
2010 Budget Strategies

• CIPs
• Animal Services Expansion Deleted (8.4M)
• Corrections Expansion Reduced (9.1M)
• General Fund Reserves
• 51.1 Million
• 6.8 of General Fund

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Proposed FY 09-10 Budget
2010 Budget Strategies

• Deleting 300 Vacant Positions
• Operating Budget Reductions
• Using Current Year Cash Savings
• CIP Savings
• Reserves

60M
30M
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Proposed FY 09-10 Budget
Salary History 2000-2010

• 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

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Proposed FY 09-10 Budget

• Five Year Average Annual Salary Increases
  2006-2010
• Regular employees 2.7
• Ten Year Average Annual Salary Increases
  2001-2010
• Regular employees 3.3

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Proposed FY 09-10 Budget
General County Employees (Excludes Const.
Offices, Enterprise Operations, and Public Safety)
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Presentation Outline

• Worksession Agenda
• Proposed FY 09-10 Budget
• Future Budget Challenges
• Budget Timeline

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Future Budget Challenges

• Revenue Outlook 2011 and Beyond
• Property Tax Outlook
• FY 2011 - (5.6)
• Sales Tax Other Major Revenues
• FY 2011 - (2.0)?

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Future Budget Challenges
Major Revenue Sources
(89)
(43)
959
959
942
853
810
476
475
474
428
402
107
107
105
94
88
133
130
131
116
109
128
126
116
104
101
89
89
85
88
87
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Future Budget Challenges

• Sheriff
• 183.9 million operating budget
• Largest budget in county
• Sheriffs MSTU millage rate
• Reduced from 2.1234 to 1.8043 over the last three
  years
• 15 reduction
• Sheriffs MSTU supports approximately 50 of
  Sheriffs budget

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Future Budget Challenges

• 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

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Future Budget Challenges

• Fire Rescue
• 145.8 million operating budget
• Budget is structurally imbalanced
• Based on current trends, Fire will deplete
  reserves by FY 2011
• Fires MSTU millage rate
• Reduced from 2.5862 to 2.2437 over the last three
  years
• 13 decrease

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Future Budget Challenges
Fire Rescue

• 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

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Future Budget Challenges

• 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

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Future Budget Challenges

• Corrections
• Future facility requirements
• Medical care costs
• Juvenile Assessment Center

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Future Budget Challenges

• 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
  Sheriffs 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

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Future Budget Challenges

• 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 Examiners Office
• As State revenues decline, we may see additional
  mandates
• Future impact of federal and state mandates on
  countys budget is unknown

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Future Budget Challenges

• 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

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Future Budget Challenges
LYNX

• Orange Countys funding for LYNX has increased
  from 23 million to 40 million over the past 5
  years
• In FY 09, the Countys 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

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Future Budget Challenges

• 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

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Future Budget Challenges

• Public Works
• 48 positions are being eliminated in FY 2010
• Staffing level below FY 2000
• Providing adequate OM 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

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Future Budget Challenges

• Family Services
• Increasing demand for mental health and homeless
  issues
• Lack of funding for safety net programs
• Streamline service delivery

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Future Budget Challenges

• 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

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Future Budget Challenges

• 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

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Future Budget Challenges

• Environmental Protection
• Limited funding for Total Maximum Daily Load
  (TMDL)/water quality
• Air and petroleum programs funding uncertain
• GreenPLACE maintenance

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Future Budget Challenges

• 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

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Future Budget Challenges

• 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

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Presentation Outline

• Worksession Agenda
• Proposed FY 09-10 Budget
• Future Budget Challenges
• Budget Timeline

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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 600 p.m. Sep 10
• 1st Library Public Hearing 501 p.m. Sep 15
• 2nd Library Public Hearing 501 p.m. Sep
  22
• 2nd Budget Public Hearing 600 p.m. Sep 24

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