Bexar County Budget Department August 9, 2011 Budget Update FY

April Long Range Forecast 2

FY Recap April 2011Budget presented an outline of targeted cuts needed to balance budget through forecast period, while maintaining County capacity for service delivery and employee compensation $2 M (annualized) mid-year savings from May Freeze $5M from Attrition/Vacancy Program $5M from targeted cuts in FY Budget $5 M for Return on Investment (ROI) from use of Technology to be realized by FY

Revenue Update FY April Estimated Revenues:$319,626,152 FY July Estimated Revenue:$321,241,328 Difference:$1,615,176 FY April Projected Revenues:$316,203,191 FY July Projected Revenue:$314,691,230 Difference:($1,511,961) 4

Revenues FY Compared to April Projections: Ad Valorem Tax revenues remain flat April 2011 tax roll estimated a 2% loss compared to previous year, however the Certified tax roll received July 2011 remains flat compared to previous year. Although appraisals on existing properties declined 2%, New Construction largely offset this loss. Over $2 Billion still under appeal 5

Other Revenues However, this increase in tax revenue was offset in decreases in other revenues: Geo Contract $2.9M lower for FY and FY combined (fewer Federal Inmates) Mixed Beverage Tax- $1.25M lower (State Budget cuts) Intergovernmental Revenue- $1.04M lower (State and Federal cuts) Sales, Refunds and Miscellaneous -$1.5M lower (Sale of Milagros Building, one-time revenue) 6

Expenditures In April the estimated expenditures for FY were $320,842,700. Budget (with attrition/vacancy plans) is $325,570,670. Therefore approximately $5M in additional savings is needed to reach the target as presented in the April update. Areas to gain efficiency may include: Staffing of Court System Cost savings from lower inmate population Reorganization of departments under County Manager 7

Expenditures Criminal Justice comprises 69% of the Countys total General Fund Expenditures This includes Adult and Juvenile Justice and Detention 8

Forecast FY FY FY Beginning Balance$54,710,239$55,122,620$49,246,250 Revenues$321,241,328$314,691,230$319,534,269 Available Funds$375,951,567$369,813,850$368,780,519 Expenditures$320,832,017$320,570,670$317,854,509 Appropriated Fund Balance$55,122,620$49,246,250$50,926,010 Recurring Revenue v Recurring Expenditures($5,879,440)$1,679,760 9

Reminder Other Expenses that must be addressed: Increases in Healthcare cost (12% per year) FY Retirement and Unemployment is increasing $1.3M Continued declines in stock market could cause Retirement expenses to further increase Service Delivery 10