3 TOTAL ESTIMATED GAB: $66.0M General Fund: $31.63MSpecial Revenue Funds: $7.9MEnterprise Funds: $2.3MInternal Service Funds: $5.1MSPLOST Funds: $19.0MFinal amount will be determined before adoption, but these numbers are in the ball park.
4 “GAMING THE ECONOMY”At the beginning of FY 2012, the BOC agreed for an allowance to use up to $1,000,000 in General Fund reserves over 2 years as necessary for budget balancing, until a final full and certain local economic recovery occurs.While there has been some recovery, it has been weak, resulting in inconsistency and lag in revenue recovery. This year’s focus is on constraining revenues. There is no room for waste.Going into FY 2014, it may be possible to eliminate the use of fund reserve – if certain assumptions materialize.
5 Reconciliation ISSUES PRIOR TO ADOPTION Using current adjusted baseline assumptions, the projected GF budget should balance with less than 1% budgeted for contingency.The final General Fund budget balance is affected by two factors:Final revenue estimates for real ad valorem taxes will show less than 1% growth. The current baseline assumes a slight increase in auto tags and mobile homes from last year. New Tax Ad Valorem Tax (TAVT) figure have not been included, because frankly, nobody knows how to estimate them. It could create an unknown windfall, wipeout, or zero growth result.Increases to market rate for Parks and Recreation fees are recommended.Gap analysis (making an allowance for final reconciliation prior to adoption – current adjusted baseline considers structural full costs).
6 OTHER FACTORSRemember, due to GASB 54 accounting changes in FY 2012, the Emergency Management Agency Fund and the Solid Waste Fund are now included and represented in the General Fund.While this has increased the aggregate figure for the General Fund since FY 2012 by about $1.5M, it merely represents what is already supported by former General Fund subsidies (taking money out of one pocket and putting it in another, if you will).
8 County Revenues: THE GOOD Marginal economic improvement will improve some elastic revenues such as: cable franchise fees, alcoholic beverage excise taxes, insurance premium taxes, financial institution taxes, occupation taxes….., and sales taxes.Certain licenses and permits such as those for alcohol, marriage and pistol permits and finger printing fees will also improve some.Solid waste recycling and container rental revenues are trending upward.Real property ad valorem taxes will begin to show better growth in FY 2015.
9 COUNTY REVENUES: THE BAD Poor ambulance fee collection at EMS will be improved with no additional cost burden if recommendation to contract out is approved and promised results materialize.Lower investment income especially from the Hospital Authority corpus, due to lower investment rates will negatively impact revenues.The Sheriff’s Department must be vigilant in retaining Federal prisoners and submitting reimbursements.
10 REVENUE STRATEGYA key issue is the need for timely and aggressive revenue collection where it is weak in some areas. Fee increases are recommended for certain recreation programs; no other increases planned, but they are being evaluated.
11 EXPENDITURESInternally we continue to manage most costs and spending inputs reasonably well except, in some cases, overtime.Gasoline, electricity and water utility costs are increasing due to utility rate increases rather than consumption. We are incrementally introducing VOIP telephony services in the county that are now beginning to show some results in lowering telephone costs.Risk management is on watch list (property/casualty/liability, workman’s comp).
12 EXPENDITURE STRATEGYAllocate available funds in the 2020 CIP update to continuing technology, energy and water conservation improvements to help lower operating costs.Redesign purchasing strategies to identify increased bundling of key commodities for competitive solicitation.Review risk management strategies and consider competitive solicitations for property, casualty and workmans compensation insurance.Recommend a one year reduction of ten percent (10%) in mileage reimbursements from the current IRS rate.
13 Special Revenue Fund Issues SPLOST: SPLOST 2013 will begin in late fall; the 2020 Capital Improvement Plan (CIP) update is being prepared.Recreation: New facilities such as the Greenway, the Tennis Center will result in an increase in maintenance inputs. Parks and Recreation Department reports that the current budgetary level will not be able to ensure the current level of maintenance for these new facilities. Fee increases are recommended to reduce the subsidy required from the General Fund.Keep Bulloch Beautiful (KBB): The City of Statesboro continues to cut funding from its Solid Waste disposal fund. KBB is low on fund reserve.All other Special Revenue funds are in good shape.
15 EMPLOYEE COMPENSATION No general pay increases, Christmas awards or annual leave cash outs are recommended.While employee health insurance will increase at 5-6% (below market rate, which indicates our plan is performing well), present cash reserves will be used to avoid employee increases, in lieu of no raises.We are still awaiting information from GEBCORP on redesigning the current 401k retirement plan. Any changes will be dependent on costs and available funding.
16 HEALTH INSURANCE 0% increase for employee contribution. 6% increase for county contribution.
17 PERSONNELMaintain/increase one FTE for grant funded position in the Mental Health Court.Reduction-In-Force for one FTE in Building Inspections.Privatize EMS billing resulting in a reduction in force of two FTE.
18 CAPITAL EXPENDITURES (SPLOST) Significant investment in technology for:Overall Financial AccountingPayroll Accounting (Time and Attendance)Operating Expenses and Maintenaince: Copiers, Functional Hardware and SoftwareFleet Diagnostics
19 CAPITAL EXPENDITURES (SPLOST) New Facilities and Renovations:Begin construction on new tax administration annex.Pre-design and infrastructure for Ag Arena.Energy and Water Efficiency Retrofits.Jail Safety and Security.CI Roof.Rural Fire Vehicles and Equipment.
20 Capital expenditures (SPLOST) Transportation:Fleet and Equipment Replenishment and Existing leasesRoad Re-StripingBridge MaintenanceConsider up to two Dirt Road Paving ProjectsResurfacing, Intersections, or both?Airport Lighting System
21 CAPITAL EXPENDITURESRecreation and Solid Waste have still not submitted project specific lists or pools, but they do have CIP allotments.
22 RECOMMENDATIONS ON BUDGET REQUESTS Budget UnitRequestAmountRecommendationSuperior Court Judges6% increase$11,171Approve 6%; statutory increase for circuit by population.Indigent Defense3% increase$8,000Approve 2%Aging ServicesMaintain present level of service due to federal/state grant reductions.$11,000Not recommended (Defer for mid-year amendment consideration).RecreationRestore (2) FT personnel for unfilled positions during FY 2012; add (1) FTE$70,000 (net subsidy from General Fund)Approve unfilled, deny additional.LibraryProvide 3% increase$15,525Averitt CenterProvide additional funding.$10,000Not recommended (continue to receive 20% of Lodging Tax collections.
24 WATCH LISTOvertime. Public Safety overtime, though better managed in FY 2013, still needs to be restrained. That partly justifies why an automated time and attendance system is being proposed in the capital budget so annual and sick leave can be better monitored at the management level, and so errors can be reduced. It is also more efficient to get away from a paper system where there is much redundancy.Recommendation: Mandate that departments review and better monitor overtime; utilize SPLOST funds to purchase an automated time and attendance system for better accountability.
25 WATCH LISTEnergy/Water Conservation. Propose that available funds be allocated from Capital Improvements Program and budget to audit and retrofit additional buildings. We have seen some reduction in energy costs for nearly all the buildings participating in the energy block grant. However, the City of Statesboro’s water rate increases have negatively impacted water and sewer costs to the County. A Phase II energy and water conservation audit is recommended with investments made in facilities with the most favorable cost-benefit ratio. The fact that this can be done with less oversight from the state grant program can expedite the implementation of any retrofits.Recommendation: Utilize SPLOST funds to complete Phase II audit and follow through with measures that will bring about the highest cost savings.
26 WATCH LISTAnimal Shelter Costs: These costs need to be further examined as the escalation of animal medications and veterinary care has risen exponentially since the new Animal Shelter has opened. Also, a new scheduling pattern for Animal Control Officers needs to be examined to reduce overtime.Recommendation: Continue to work with selected veterinarian to solicit competitive proposals for animal medications; to reduce overtime, consider new staggered scheduling of personnel among ACO’s throughout seven day work week to handle peak loads.
27 WATCH LISTSolid Waste: Last year, as part of the DCA Recycling Hub Grant (which assisted in expanding the recycling Processing Center) a voluntary Curbside Recycling Program began first in the City of Statesboro. It has been marginally expanded elsewhere in the County (Brooklet, Portal, etc.).Recommendation: A cost analysis must be done to determine if recycling and subscription revenues are properly offsetting costs. The receipt of the hub grant several years ago was based on assumptions that may have optimistically projected higher recycling revenues for pledged programs. This will have to be reviewed.
28 RISK MANAGEMENTSignificant Workers Compensation increase in FY 12 and 13.Most accidents and injuries are due to slip-trip-fall.Lots of deer strikes at the Sheriff’s department (unavoidable?).Need to figure out how to increase outreach effort beyond safety.Have not shopped for WC, PC insurance in years.Recommendation: While losses do not seem to be off the charts, we should consider bidding out WC and PC insurance.
30 Fire and EMS vehicle aging Information Technology Staffing Top Ranked Unmet NeedsFire and EMS vehicle agingInformation Technology StaffingAdditional personnel for Sheriff, Solicitor, EMS, Probation, RecreationEmployee Retirement Plan Re-design (can probably be accomplished with no budget impact)
31 ON THE HORIZON When do we want to begin construction on Ag Arena? I-16/US 301 project (water-sewer improvements, zoning, DABC marketing effort, bonding additional projects like roads).Fire Agreement with City of Statesboro.Greenway Protection Ordinance.Road improvement strategies.
32 FY ‘13 Budget Approach and Strategy Aggressive revenue collections.Aggressive cost containment.Develop a long-term strategy for risk management.Gear capital expenditures to areas which reduce operating costs and increase operational efficiency.Shift slack resources into areas that are burdened.
33 Decision points Fee increases for Parks and Recreation. CIP update and project funding (CIP update draft probably won’t be ready until late summer).