HomeMy WebLinkAboutMINUTES - 04202010 - D.1 (2)RECOMMENDATION(S):
Open and conduct a public hearing to receive input on the FY 2010-11 Recommended
Budget;
1.
Acknowledge that, due to significant market losses in the Contra Costa County
Employees Retirement Association assets, retirement expenses are expected to increase
significantly in the next five years.
2.
Acknowledge that the Recommended Budget does not balance annual estimated
expenditures with estimated revenues in FY 2010-11, and although technically
balanced with the judicial use of minimum reserves is not structurally balanced;
3.
Acknowledge that action by the State regarding its budget may require subsequent
adjustments to the Recommended Budget adopted by the Board;
4.
Acknowledge that although the Recommended Budget does not include a specific
appropriation for contingency, that the Board maintains its ability to manage General
Fund contingencies during the fiscal year by use of reserve funds set aside for that
purpose;
5.
Acknowledge that any restoration of any recommended program reductions will
require an equivalent reduction in funds from other County priorities in order to adhere
to our balanced budget policy;
6.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 04/20/2010 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Lisa Driscoll, County Finance
Director, 335-1023
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes
of the Board of Supervisors on the date shown.
ATTESTED: April 20, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Stephen Ybarra, Auditor-Controller, Robert Campbell, Chief Accountant, Laura Strobel, Budget System Administrator, Lisa Driscoll, County Finance
Director
D. 1
To:Board of Supervisors
From:David Twa, County Administrator
Date:April 20, 2010
Contra
Costa
County
Subject:RECOMMENDED COUNTY BUDGET FY 2010/11
7.
RECOMMENDATION(S): (CONT'D)
Direct the County Administrator to prepare for Board adoption on May 11, 2010, the FY
2010-11 County and Special District Budgets, as modified, to incorporate any changes
directed by the Board during these public hearings; and
Direct the County Administrator to prepare for consideration by the Board of
Supervisors on May 11, 2010, lay-off resolutions necessary to carryout Board action on
the Recommended Budget.
FISCAL IMPACT:
See attached FY 2010-11 Recommended Budget document. The General Fund budget
presented includes the use of $3.3 in General Fund reserves and a total of $21.5 from
resources not expected to continue into the 2011-12 fiscal year.
BACKGROUND:
An explanation of the reasons behind the County Administrator’s recommendations
presented in the FY 2010-11 Recommended Budget and other background information is
presented in the attached – April 9 12, 2010 Budget Message to the Board of Supervisors.
MEET AND CONFER/LAY-OFF RESOLUTIONS
County Departments, in cooperation with Labor Relations, have begun the meet and
confer process with employee representatives regarding the impact of program reductions
on the terms and conditions of employment for affected employees. Pending Final
Budget adoption on May11, Position Elimination/Lay-off Resolutions will be presented
to the Board for adoption on that day, with cancellation dates effective prior to June 1.
This will allow the County to achieve a full year of savings in the FY 2010-11 budget
and generate savings in the current fiscal year as well to help to offset a portion of the
projected deficit described to your Board in the mid-year report of February 23.
CLERK'S ADDENDUM
Speakers: Vince Wells, President Local 1230, Contra Costa County Firefighters;
Marianna Moore, Director, Contractors’ Alliance of Contra Costa; Bob Britton;
Professional and Technical Engineers Local 21; Johnny Jefferson; Director of
Revenue Collections; Rollie Katz, Public Employees' Union Local One; Teddi Ivey,
resident of Concord; Stephanie Batchelor, resident of Martinez, Daniel Reynolds Sr.,
resident of Richmond, Lavonna Martin for On behalf of Janet Kennedy, resident of
Martinez. CLOSED the hearing; ACKNOWLEDGED that due to significant market
losses in the Contra Costa County Employees Retirement Association assets, retirement
expenses are expected to increase significantly in the next five years;
ACKNOWLEDGED that the Recommended Budget does not balance annual estimated
expenditures with estimated revenues in FY 2010-11, and although technically
balanced with the judicial use of minimum reserves is not structurally balanced;
ACKNOWLEDGED that action by the State regarding its budget may require
subsequent adjustments to the Recommended Budget adopted by the Board;
ACKNOWLEDGED that although the Recommended Budget does not include a
specific appropriation for contingency, that the Board maintains its ability to manage
General Fund contingencies during the fiscal year by use of reserve funds set aside for
that purpose; ACKNOWLEDGED that any restoration of any recommended program
reductions will require an equivalent reduction in funds from other County priorities
in order to adhere to our balanced budget policy; DIRECTED the County
Administrator to prepare for Board adoption on May 11, 2010, the FY 2010-11 County
and Special District Budgets modified as necessary to incorporate any changes directed
by the Board during these public hearings; and DIRECTED the County Administrator
to prepare for consideration by the Board of Supervisors on May 11, 2010, lay-off
resolutions necessary to carryout Board action on the Recommended Budget.
ATTACHMENTS
Budget Message
FY 2010-11 Recommended Budget rev
April 9, 2010
Board of Supervisors
Contra Costa County
Martinez, CA 94553
Dear Board Members:
Contra Costa County has long focused on our Mission “to provide public services which improve the
quality of life of our residents and the economic viability of our businesses.” As we move towards fiscal
years 2010-2011-2012 and beyond, it is not possible to understate how serious we are being challenged in
our efforts to meet our public service mission.
Maintenance of current year’s countywide service delivery levels impossible
While the Global and National economy are showing signs of a slow recovery, the same cannot be said
for California or Contra Costa County. California State’s budget deficits are estimated at $20 billion each
year for 2010-11 and several years beyond. The impact of the housing market collapse on local property
tax revenues and pension cost increases continue to negatively impact our Budget for 2010-11 as well as
for the next several years. Additionally, we continue to see increased demand for services and no appetite
on the part of the public to provide additional funding for services.
In this environment, it is not possible to sustain services at the current level. Since 2008-09 County
Departments have reduced their budgets or increased revenue by over $190 million. Reserve use is likely
to increase in the next budget cycle as revenues continue to decline and expenses increase. As was the
case for the past two years, significant cuts will be necessary.
We are no longer able to provide the level of services the public demands, nor are we able to sustain our
current level of wages and benefits without reductions in the number of employees.
Cuts to our General Government operations will impact our ability to: serve the agriculture community,
complete appraisals timely, perform general accounting, respond to public concerns, issue records and
reports, support county departments, provide public information, respond and resolve information
technology problems, maintain our county properties, and complete personnel actions.
Board of Supervisors
JOHN M. GIOIA
1st District
GAYLE B. UILKEMA
2nd District
MARY PIEPHO
3rd District
SUSAN A. BONILLA
4th District
FEDERAL D. GLOVER
5th District
County Administrator
County Administration Building
651 Pine Street, 11th Floor
Martinez, California 94553-4068
V-925-335-1080
F-925-335-1098
David Twa
County Administrator
Contra Costa
County
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Cuts to our Law and Justice operations will impact our ability to: provide animal service responses,
investigate and prepare cases for court, prosecute/defend/provide probation services for misdemeanors,
serve at risk youth and domestic violence victims, track probationers, remove abandoned vehicles,
provide crime prevention services, complete criminal investigations, respond to crime calls, supervise
inmates, and recruit/train/deploy law enforcement officers.
Cuts to our Health and Human Services operations will impact our ability to: respond and serve children,
adults and families in our protection programs, provide new-born home visiting, tutor foster youth, help
families needing assistance with workforce services, support community organizations, offer therapy
services for children and adults, provide access and timely mental health services for children, utilize
therapeutic settings for children, perform public health outreach and education, and serve the homeless.
In developing our 2010-2011 budget recommendation, we have strived to adhere to the Board of
Supervisor’s policies requiring a balanced budget, reserves, and acceptable debt ratios. Most importantly
the recommended budget continues to address the Board of Supervisor’s fiscal and service delivery
priorities including health care cost containment by allocating funds to our OPEB prefunding trust.
The County Administrator’s Office has worked closely with our Department Heads to submit budget
recommendations that adhere to these policies and to achieve our financial targets. All departments were
provided direction to absorb their increased costs of doing business, plus their share of local revenue loss,
and their OPEB prefunding requirement. Some departments will also need to make additional cuts once
the State Budget is approved. No department is free from impact. This budget is offered as a balanced
package including $3.3 million in general fund reserves; however, in order to keep reserve use as low as
possible, we have relied on ‘one time only funds’ from a variety of sources, the most significant being
ARRA (Federal Stimulus funds) and ATA (furloughs). This will result in significantly greater cuts to our
2011-12 budgets unless new stimulus funding occurs, or we are able to arrive at significant wage and
benefit savings. Should the Board of Supervisors direct any reductions in the proposed cuts to our 2010-
11 budget, this will require changes in other County priorities in order to maintain a balanced budget.
Normally the Baseline Budget identifies the projected funding gap by determining the level of resources
required to provide in the budget year the same level of service provided in the prior year. Again due to
the significant impacts of mid-year reductions, the Baseline Budget is based upon level of service as of
January 1, 2010.
In summary, we are proposing a General Fund budget of $1.218 billion, which is 2% or $34.4 million
lower than our Baseline Budget total expenditures. Of this amount, $3.0 million was reduced from health
services (excluding Enterprise Funds). Our Hospital Enterprise Fund cut $3.2 million in maintenance
level General Fund subsidy and the Contra Costa Community Health Plan Enterprise Fund cut $1.0
million for a combined $7.2 million in reductions from the General Fund to health services.
Revenues show a $10.9 million increase from Baseline, $8.8 million of which is in Employment and
Human Services from state caseload growth allocations and federal stimulus. This budget requires the
elimination of $23.5 million in programmatic expenditures in the General Fund including 78 funded full-
time equivalent position reductions from the Baseline level identified by our departments. This level of
required reduction is especially alarming when you consider the Board of Supervisors has already taken
action to reduce the County and Special District Budgets by over $90 million in FY 2008-09 and $65 million
in FY 2009-10.
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$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2000-01
Actual
2001-02
Actual
2002-03
Actual
2003-04
Actual
2004-05
Actual
2005-06
Actual
2006-07
Actual
2007-08
Actual
2008-09
Actual
2009-10
Proj't
2010-11
Recom'd
General Purpose Revenue Other Local Revenue Federal Assistance State Assistance
Historical Perspective
Between FY 2000-01 and FY 2007-08, total expenditures for the General Fund grew by an average of
6.6%. They decline by 2.6% in FY 2008-09 and another 4.9% in FY 2009-10. Although they are
expected to grow by approximately 2% in FY 2010-11 due to one-time resources, a decline rather than
growth is expected for the next several years.
10 Year Expenditure Growth (in millions)
$855
$1,019
$1,059
$1,103 $1,128
$1,173
$1,270 $1,288
$1,255
$1,194 $1,218
$800
$900
$1,000
$1,100
$1,200
$1,300
$1,400
2000-01
Actual
2001-02
Actual
2002-03
Actual
2003-04
Actual
2004-05
Actual
2005-06
Actual
2006-07
Actual
2007-08
Actual
2008-09
Actual
2009-10
Proj't
2010-11
Recom'd
As depicted in the following chart, total revenues began to decline in FY 2008-09 but are expected to
increase slightly next year due to one time sources. Although they are expected to grow by
approximately 2.6% in FY 2010-11, a decline rather than growth is expected for the next several years.
10 Year Revenue Generation (in millions)
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9.7%
7.3%
5.5%
8.3%
9.1%9.6%
8.6%8.10%
6.8%
11.7%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
2001-02
Actual
2002-03
Actual
2003-04
Actual
2004-05
Actual
2005-06
Actual
2006-07
Actual
2007-08
Actual
2008-09
Actual
2009-10
Proj'd
2010-11
Recom'd
$1,000
$1,050
$1,100
$1,150
$1,200
$1,250
$1,300
$1,350
2001-02
Actual
2002-03
Actual
2003-04
Actual
2004-05
Actual
2005-06
Actual
2006-07
Actual
2007-08
Actual
2008-09
Actual
2009-10
Proj't
2010-11
Baseline
2010-11
Recom'd
Total Expenditures Gross Revenue
As shown below, the County has struggled with maintaining a structurally balanced budget over the years
and is projecting to be unable to balance the current year budget with available annual revenues; the
recommended reductions presented for FY 2010-11 use $3.3 million in General Fund Reserves.
Change in General Fund Actual Status (in millions)
Prior to the housing market collapse last year; the County had reversed the declining reserves trend
experienced earlier this decade. It is anticipated that reserves will be expended in the current fiscal year,
and the FY 2010-11 Recommended Budget already includes $3.3 million in planned reserve spending for
on-going program expenses.
Unreserved Fund Balance (as of June 30)
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General Fund Revenue and Appropriations/Recommended Budget
The recommended General Fund budget of $1.218 billion is supported by local, federal, and state
resources. Over half of our revenue, $614.2 million (50.6%) is dependent on State and Federal
allocations. Our general purpose revenue available from sources such as property tax and interest income
is only $310.0 million. The remaining ‘Other Local’ revenue is generated primarily by fees, fines, and
licenses. In the past, the assessed valuations of the County’s tax rolls had increased in the double digits
due to the strong housing market. The current economic downturn has eliminated growth in assessed
valuation and has greatly reduced almost all revenue sources. In FY 2008-09, assessed valuation growth
was flat (0.226%), in FY 2009-10 it declined by 7.19%, and it is projected to decline by another 5% in
FY 2010-11. The following chart breaks out total revenue by source.
Total Revenue: $1.215 Billion
Federal,
$217,679,841
18%
State,
$396,481,606
32%
General Purpose,
$309,997,000
26%
Other Local,
$290,509,689
24%
These revenue resources are used to fund programs throughout the County. All categories below are self
explanatory, except ‘Other Charges’, which includes contributions to other funds such as the Enterprise
Funds and interest expense on bonds and other debt. The following chart breaks out recommended
expenditures between the major expense areas.
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Other Charges,
$251,389,692 , 18%
Services and Supplies,
$380,734,222 , 27%
Salaries and Benefits,
$667,938,643 , 49%
Expenditure Transfers,
($85,016,956), 6%
Fixed Assets, $2,955,623 ,
<1%
General Government,
$223,509,050 , 18%Law & Justice,
$314,661,307 , 26%
Health & Welfare,
$679,830,866 , 56%
Total Expenditures: $1.218 Billion
Our General Fund resources fund three functional areas: General Government, Law and Justice, and
Health and Human Services. Last year’s Recommended Budget included General Government at 18%,
Law and Justice at 26%, and Health and Human Services at 56%. The following chart shows the
distribution of resources in these three areas in the FY 2010-11 Recommended Budget.
Distribution of Expenditures
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FY 2009/10
Budgeted Net
County Cost
Share of
Total
FY 2010/11
Recommended
Share of
Total
Agriculture-Weights & Measures 1,765,976 0.5% 1,920,124 0.6%
Animal Services 3,250,294 1.0% 3,155,367 1.0%
Assessor 14,756,524 4.5% 14,885,580 4.8%
Auditor-Controller 2,992,166 0.9% 2,904,778 0.9%
Board of Supervisors 6,843,935 2.1% 4,567,880 1.5%
County Administrator 6,696,950 2.0% 4,735,929 1.5%
County Clerk-Recorder 4,231,940 1.3% 4,108,343 1.3%
County Counsel 1,652,072 0.5% 1,603,822 0.5%
District Attorney 11,988,718 3.7% 13,388,579 4.3%
Employment & Human Resources 20,213,944 6.2% 18,047,764 5.8%
General Services 12,023,828 3.7% 11,672,664 3.7%
Health Services 95,336,278 29.1% 89,654,532 28.6%
Human Resources 2,642,816 0.8% 1,888,211 0.6%
Justice System Planning 3,975,628 1.2% 3,847,398 1.2%
Miscellaneous Services 10,136,736 3.1% 8,057,351 2.6%
Plant Acquisition 293,394 0.1% 42,127 0.0%
Probation 34,745,647 10.6% 36,470,257 11.6%
Public Defender 17,225,208 5.3% 16,722,134 5.3%
Public Works 0 0.0% 0 0.0%
Sheriff-Coroner 64,054,640 19.6% 63,948,880 20.4%
Superior Court-Jury Commissioner 10,393,316 3.2% 9,846,320 3.1%
Treasurer-Tax Collector 1,481,790 0.5% 1,301,985 0.4%
Veterans Services 696,296 0.2% 560,061 0.2%
327,398,096 100.0% 313,330,086 100.0%
Each department of the County is included in one of these functional areas and is described in detail in
the Recommended Budget. The General Government Functional Group includes Agriculture (including
Cooperative Extension functions), Assessor, Auditor-Controller, Board of Supervisors, Central Support
Services, Clerk-Recorder, Conservation and Development (formally Building Inspection and Community
Development), County Administrator, County Counsel, Crockett/Rodeo Revenues, Debt Service,
Department of Information Technology, Employee/Retiree Benefits, General Services, Human
Resources, Public Works, and Treasurer-Tax Collector. The Law and Justice Functional Group includes
Animal Services, Conflict Defense, District Attorney, Justice Systems Development/Planning, Probation,
Public Defender, Sheriff-Coroner, and Superior Court Related Functions. The Health and Human
Services Functional Group includes Child Support Services, Employment and Human Services, Health
Services Department, and Veterans Services.
As was described above, each of these departments were asked to submit budgets which balanced their
requirement to provide services with the County’s goals of adopting a FY 2010-11 General Fund budget
that balances annual expenses and revenues, and that addresses revenue loss and includes an
appropriation for partially pre-funding the County’s OPEB liability. The following chart compares the
Recommended Budget’s share of general purpose revenue between Agencies to the current year.
Changes in Overall Department Share of General Purpose Revenue
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The following chart compares the Recommended Budget’s share of general purpose revenue between
Agencies to the Baseline Budget Request.
Comparison of Share between Recommended Budget and Baseline Request
FY 2010/11
Baseline Request
Share of
Total
FY 2010/11
Recommended
Share o f
Total
Agriculture-Weights & Measures 1,725,440 0.5% 1,920,124 0.6%
Animal Services 3,561,954 1.0% 3,155,367 1.0%
Assessor 15,105,580 4.4% 14,885,580 4.8%
Auditor-Controller 2,911,546 0.8% 2,904,778 0.9%
Board of Supervisors 4,789,831 1.4% 4,567,880 1.5%
Conservation & Development 42,743 0.0% 0 0.0%
Cooperative Extension 252,094 0.1% 0 0.0%
County Administrator 4,921,911 1.4% 4,735,929 1.5%
County Clerk-Recorder 4,108,343 1.2% 4,108,343 1.3%
County Counsel 1,817,587 0.5% 1,603,822 0.5%
District Attorney 15,611,427 4.5% 13,388,579 4.3%
Employment & Human Services 26,868,867 7.8% 18,047,764 5.8%
General Services 12,388,820 3.6% 11,672,664 3.7%
Health Services 96,832,985 28.0% 89,654,532 28.6%
Human Resources 2,368,136 0.7% 1,888,211 0.6%
Justice System Planning 3,975,628 1.1% 3,847,398 1.2%
Miscellaneous Services 8,057,351 2.3% 8,057,351 2.6%
Plant Acquisition 43,394 0.0% 42,127 0.0%
Probation 37,078,943 10.7% 36,470,257 11.6%
Public Defender 17,204,840 5.0% 16,722,134 5.3%
Public Works 1,454,154 0.4% 0 0.0%
Sheriff-Coroner 72,166,363 20.9% 63,948,880 20.4%
Superior Court-Jury Commissioner 10,393,316 3.0% 9,846,320 3.1%
Treasurer-Tax Collector 1,536,585 0.4% 1,301,985 0.4%
Veterans Services 560,061 0.2% 560,061 0.2%
345,777,899 100.0% 313,330,086 100.0%
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It would appear from the Recommended Budget that the majority of program reductions are coming from
a handful of County departments. It should be noted that 80.8% of our general purpose revenue is spent
in just seven departments. The chart below shows the ranking of Agency share of general purpose
revenue. If we were to attempt to close the budget gap by totally eliminating general purpose revenue
funding from departments beginning with the bottom of this chart, we would need to eliminate 16.5 of
our 26 departments.
Ranking of Department Share of General Purpose Revenue
FY 2010/11
Baseline Request
FY 2010/11
Recommended
Share of
Total
Health Services 96,832,985 89,654,532 28.6%
Sheriff-Coroner 72,166,363 63,948,880 20.4%
Probation 37,078,943 36,470,257 11.6%
Employment & Human Services 26,868,867 18,047,764 5.8% 80.8%
Public Defender 17,204,840 16,722,134 5.3%
Assessor 15,105,580 14,885,580 4.8%
District Attorney 15,611,427 13,388,579 4.3%
General Services 12,388,820 11,672,664 3.7%
Superior Court-Jury Commissioner 10,393,316 9,846,320 3.1%
Miscellaneous Services 8,057,351 8,057,351 2.6%
County Administrator 4,921,911 4,735,929 1.5%
Board of Supervisors 4,789,831 4,567,880 1.5%
County Clerk-Recorder 4,108,343 4,108,343 1.3%
Justice System Planning 3,975,628 3,847,398 1.2%
Animal Services 3,561,954 3,155,367 1.0% 19.2%
Auditor-Controller 2,911,546 2,904,778 0.9%
Agriculture-Weights & Measures 1,725,440 1,920,124 0.6%
Human Resources 2,368,136 1,888,211 0.6%
County Counsel 1,817,587 1,603,822 0.5%
Treasurer-Tax Collector 1,536,585 1,301,985 0.4%
Veterans Services 560,061 560,061 0.2%
Plant Acquisition 43,394 42,127 0.0%
Conservation & Development 42,743 0 0.0%
Public Works 1,454,154 0 0.0%
Cooperative Extension 252,094 0 0.0%
345,777,899 313,330,086 100.0%
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The following chart shows total appropriations by agency regardless of the funding source. Please note
that several agencies – such as the Library and Child Support – do not appear in the charts above because
they do not receive any general purpose revenues.
County Departments
FY 2010-11
Baseline Request
FY 2010-11
Recommended Difference
Agriculture-Weights & Measures 5,488,581 5,683,265 194,684
Animal Services 10,801,974 10,676,627 -125,347
Assessor 19,513,587 19,413,587 -100,000
Auditor-Controller 8,161,802 8,155,034 -6,768
Board of Supervisors 6,873,408 6,651,457 -221,951
Child Support Services 18,902,523 18,902,523 0
Conservation & Development 74,234,530 70,816,287 -3,418,243
Cooperative Extension 252,094 0 -252,094
County Administrator 17,596,021 16,402,910 -1,193,111
County Clerk-Recorder 22,947,574 22,947,574 0
County Counsel 5,706,740 5,492,975 -213,765
District Attorney 30,572,571 28,896,280 -1,676,291
Employment & Human Services 425,742,268 424,126,800 -1,615,468
General Services 63,275,864 62,559,708 -716,156
Health Services 979,819,471 968,462,565 -11,356,906
Human Resources 8,289,661 7,754,136 -535,525
Justice System Planning 11,248,566 11,267,869 19,303
Library 25,457,667 24,745,269 -712,398
Miscellaneous Services 76,719,445 76,719,445 0
Plant Acquisition 3,093,456 3,092,189 -1,267
Probation 64,243,961 61,088,281 -3,155,680
Public Defender 17,249,529 16,766,823 -482,706
Public Works 146,338,031 144,685,743 -1,652,288
Sheriff-Coroner 199,448,740 195,553,161 -3,895,579
Superior Court-Jury Commission 18,358,503 17,641,653 -716,850
Treasurer-Tax Collector 5,093,407 4,858,807 -234,600
Veterans Services 735,061 735,061 0
Special Districts
CCC Fire Protection Distri ct 125,166,070 117,752,070 -7,414,000
Crockett/Carquinez Fire 869,806 485,581 -384,225
Special Districts (other than Fire) 123,893,660 123,893,660 0
Appropriation Grand Total 2,516,094,571 2,476,227,340 -39,867,231
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Full-Time Equivalent Positions (FTEs)
The chart below reflects total estimated position elimination counts as of today for all departments (of the
119 listed, 78 are in the General Fund and were funded this year). Please note that these numbers
represent rounded/funded FTEs and are not necessarily filled. The actual number of positions
recommended for elimination on May 11 will be higher; this is due to the requirement that all vacant
positions within a department in a specific classification with a lay-off be eliminated – funded or not.
The actual number of lay-offs will be lower due to vacant positions and bumping.
FY 2010-11
Baseline Request
FY 2010-11
Recommended
% o f
Whole Reduction
County Departments
Board of Supervisors 28 28 0.4% 0
Miscellaneous Services 32 32 0.4% 0
County Administrator 129 106 1.4% -23
Human Resources 45 44 0.6% -1
Auditor-Controller 54 54 0.7% 0
Treasurer-Tax Collector 30 28 0.4% -2
Assessor 122 122 1.6% 0
County Counsel 50 49 0.6% -1
Health Services 2,817 2,803 36.1% -14
Employment & Human Resources 1,693 1,688 21.7% -5
County Clerk-Recorder 80 80 1.0% 0
Sheriff-Coroner 990 990 12.7% 0
Probation 345 330 4.2% -15
Agriculture-Weights & Measures 47 47 0.6% 0
Animal Services 76 76 1.0% 0
Conservation & Development 199 181 2.3% -18
Child Support Services 170 170 2.2% 0
District Attorney 175 169 2.2% -6
Public Defender 85 83 1.1% -2
Public Works 279 262 3.4% -17
General Services 252 248 3.2% -4
Library 172 169 2.2% -3
Veterans Services 6 6 0.1% 0
Total County FTE 7,876 7,765 100.0% -111
Special Districts
CCC Fire Protection District 373 365 n/a -8
Special Districts (non-Fire) 12 12 n/a 0
All Funds FTE 8,261 8,142 -119
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Other Post Employment Benefits (OPEB)
In addressing this top fiscal and service delivery challenge, the Recommended Budget again includes $20
million in partial pre-funding. The January 1, 2010 funding level was 2%. While we would prefer a
greater level of pre-funding, the absence of any new resources makes this impossible without further
service cuts. Nevertheless, $20 million will continue to have a significant impact on the County’s OPEB
liability. The recently released 2010 Actuarial Valuation indicated that over the last four years, the
County has reduced its OPEB UAAL by 60%, Normal Cost by 78%, 30 year amortization of UAAL by
60%, and annually required contribution by 71% (from $216 million to $63 million). None of these
reductions could have been achieved without the support and cooperation of our employees. Continued
negotiations towards Countywide health care cost containment strategies and the redirection of
designated future resources remain key to resolving the OPEB dilemma. The Board of Supervisors
continues to make significant progress towards a solution for one of the biggest fiscal challenges the
County has faced to date.
American Recovery and Reinvestment Act of 2009
Department and CAO staff has been very involved in tracking and pursuing opportunities available
through the American Recovery and Reinvestment Act of 2009 (Federal Stimulus), which was signed
into law on February 17, 2009. The $787 billion stimulus package provides for unprecedented levels of
transparency and accountability and offers a unique opportunity to strengthen our local economy, create
jobs, and fund a variety of local and regional projects. The Employment and Human Services
Department alone is anticipating $21.1 million from the Federal Stimulus for a number of programs.
Over $19 million in Federal Medical Assistance Percentages has been included in the 2010-11
Recommended Budget. In an effort to keep the residents of Contra Costa Country informed about the
American Recovery and Reinvestment Act and our efforts in Contra Costa County, the County
Administrator’s Office has posted a report that tracks the County’s efforts in securing stimulus funding
for various projects that will improve the lives of our residents and stimulate the economy. The report,
which is updated regularly, is available for review at www.cccounty.us.
Fleet/Internal Services Fund
The FY 2010-11 Recommended Budget includes fully funded vehicle depreciation. Requiring the annual
budgeting of full vehicle depreciation will continue to facilitate regularly scheduled replacement of
County vehicles, which began in FY 2008-09.
Capital Improvement Planning
FY 2008-09 began implementation of our Capital Facility Improvement Program. The facility
maintenance analysis, which was completed in FY 2007-08, revealed the level of improvements that will
be required to extend the useful life of County facilities, and promote the health and safety of employees
and the public who utilize our County facilities.
The analysis included comprehensive building condition assessments of 93 facilities and a total of 2.9
million square feet of building space, and identified a total of $251.2 million in deferred facilities
maintenance needs and capital renewal requirements organized into 4 categories based on level of
priority. The distribution of costs by level of priority was as follows:
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Priority 1 – Currently Critical $ 2,059,913
Priority 2 – Potentially Critical 25,881,877
Priority 3 – Necessary, but not Critical 175,052,172
Priority 4 – Necessary, within 6-10 Years 48,180,568
Due to significant fiscal constraints, the FY 2009-10 budget did not include appropriations for capital
improvements and neither does the FY 2010-11 Recommended Budget. However, staff will continue to
work towards a plan to address our highest priority critical health and safety capital improvements and to
develop a mechanism for periodic thorough review of all facilities and use. The County Administrator
continues to work with the General Services Director to implement the Real Estate and Asset
Management Program (RAMP), which was formalized in the last year. Savings has begun to be achieved
through a thorough review of all facility use and the resulting elimination/consolidation of under used
properties/leases.
Retirement/Pension Costs - Future Year Projections/Budgets
General Fund retirement expense in the current year is over $13.6 million less than FY 2008-09.
Departments Countywide were able to reduce projected expenditures for FY 2009-10 by a like amount
without reducing programs or services. However, beginning in FY 2010-11 calendar year 2008 market
losses (26.5%) in combination with unachieved earning assumptions (7.8%) exceeded 34% and have
begun to necessitate increased contributions to the Contra Costa County Employees Retirement
Association (CCCERA). Positive market experience for calendar year 2009 of 21.9% has drastically
changed the projection of pension increases since last year; however, pension costs are still expected to
increase for the next five years. Actual FY 2007-08 retirement expenses and projected increased
contributions, assuming 7.8% earnings annually for the next five years are depicted in the chart below:
Projected Retirement Expense
$218
$206
$220
$237
$259
$278
$263 $268
$215
$175
$195
$215
$235
$255
$275
$295
2007-08
Actual
2008-09
Actual
2009-10
Proj't
2010-11
Recom'd
2011-12
Proj't
2012-13 2013-14 2014-15 2015-16
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Recommendations
In conclusion, this proposal provides for a General Fund budget of $1.218 billion. It contains $23.5
million in reductions including our Enterprise Funds. All Departments are impacted─however, the
impact is relatively slight compared to past years. These changes are the minimum necessary to respond
to economic losses and to address our costs of providing public services. The worst is yet to come.
It is recommended that the Board of Supervisors:
1. Open and conduct a public hearing to receive input on the FY 2010-11 Recommended Budget;
2. Acknowledge that, due to significant market losses in the Contra Costa County Employees
Retirement Association assets, retirement expenses have begun to and are expected to continue to
increase significantly in the next five years.
3. Acknowledge that the Recommended Budget is not structurally balanced containing over $41.2
million in one-time or non-continuing monies including Federal Stimulus;
4. Acknowledge that action by the State regarding its budget may require subsequent adjustments to
the Recommended Budget adopted by the Board;
5. Acknowledge that, although the Recommended Budget does not include a specific appropriation
for contingency, the Board maintains its ability to manage General Fund contingencies during the
fiscal year by use of reserve funds set aside for that purpose;
6. Direct the County Administrator to prepare for Board adoption on May 11, 2010, the FY 2010-11
County and Special District Budgets, as modified, to incorporate any changes directed by the
Board during these public hearings; and
7. Direct the County Administrator to prepare for consideration by the Board of Supervisors on May
11, 2010, lay-off resolutions necessary to carryout Board action on the Recommended Budget.
DAVID TWA
County Administrator
DT:LD