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HomeMy WebLinkAboutMINUTES - 10311989 - 1.47 /. Y7 TO: BOARD OF SUPERVISORS aE.sE.;L o Contra FROM: Phil Batchelor, County Administrator Costa DATE: October 31, 1989 cos.: coos County SUBJECT: FIRST QUARTER BUDGET REPORT FOR FISCAL YEAR 1989-90 SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1. Accept this report and direct the County Administrator to continue to monitor the budget and implement corrective plans, where necessary. 2. Authorize the County Administrator to rescind the resolution imposing a freeze on positions, non-critical fixed assets and other major purchase items for most Departments. BACKGROUND: Over the last five years, the staff of County Administrator' s Office has prepared quarterly reports which analyze the status of the budget and highlights the Departments and budget units which deviate from the budget plan in terms of expenditures and revenues. Actions which are necessary to ensure a healthy budget by the end of the fiscal year are recommended as part of the quarterly reporting process. Other items which have major fiscal impacts are also reviewed as part of this periodic report. The aim of the first quarter report is to identify potential financial problems and initiate actions to correct these problems. Thus, to a large extent, this report sets the budget monitoring agenda for the remainder of the fiscal year. In contrast, subsequent quarter reports will define the magnitude of the problems and discuss the progress in problem resolution. It is anticipated that a greater amount of staff time will be required to monitor budgets this fiscal year owing to a greater amount of problems caused by budget reductions in fiscal years 1987-88 and 1988-89. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): qq ACTION OF BOARD ON O CT .3 198 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS YY I HEREBY CERTIFY THAT THIS IS A TRUE Ll_UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. cc: Personnel ATTESTED OCT 31 1989 General Services PHIL BATCHELOR,CLERK OF THE BOARD OF Auditor-Controller SUPERVISORS AND COUNTY ADMINISTRATOR BY DEPUTY M382 (10/88) + -2- As a result of this review, we can report to you that most budget units are within the budget targets for the first quarter. Those departments and budget units that will require special attention in the second quarter include the Health Services Department, Social Services Department, Sheriff ' s Department, Probation Department and General County Revenue. More details on these departments are provided below. However, it should be noted that most of the problems associated with these departments were discussed during the budget development process itself. General County Revenue It is too early to determine the overall status of revenues relative to the budget plan. Very limited or no information is available at this time for such major revenues as property taxes, franchise fees and interest earnings. Overall, revenues which are received on a monthly basis are above targeted levels in the first quarter, when compared to the amounts received during the same period last year. Revenues which appear to be stronger than anticipated are sales taxes, real property transfer taxes and transient occupancy taxes. However, vehicle registration fees received to date indicate that this source will be slightly under-realized this fiscal year. The October earthquakes may cause certain real-estate markets to slow down in the short term, according to some experts. A downturn in real-estate sales will impact supplemental property tax revenue and property transfer tax this fiscal year and property taxes next fiscal year. Real-estate transactions will be closely monitored over the next quarter to identify tendencies or trends. Health Services Department The Health Services Department is projecting a balanced budget for fiscal year 1989-90 . To achieve this, it was necessary for the Department to reduce 25 positions, utilize new drug program and tobacco tax revenues, and make program cuts for a reduction of $1. 4 million. Although, the issue of Public Health Nurse supervision is to be decided by the Board on November 14, 1989, the Beilenson hearing and balance of the reduction plan have been completed. Areas of concern for this fiscal year continue to be: 1) State and Federal licensing standards regarding the Merrithew Memorial Hospital physical plant; and 2 ) Hospital in-patient and clinic out-patient census. The average hospital census is 142 for the first quarter, exceeding the budgeted census of 135. Probation Department The Department is expected to be within its budget target as a result of steps taken. All layoff and demotion notices have been delivered and all reassignments have been made. The Probation Department' s part of La Cheim contract was cancelled as of October 1, 1989 . The Boys ' Center is down to 5 boys and will close as scheduled on November 1 , 1989. With the closure of the Boys ' Treatment Center, State funds for FY 1990-91 could be reduced if the Juvenile Court increases commitments to the California Youth Authority (CYA) . CYA commitments will be monitored throughout 1989-90 to prevent base commitments from increasing. Social Services Department - General Assistance With 250 of the year expended, the Social Service Department has expended 260 of budgeted funds. This is significant because in the past, first quarter expenditures have been less than 25% of the budget. Historically, the biggest increase in the General Assistance caseload and expenditures occurred during the winter and spring months. Therefore, if historical trends continue this -3- year, the General Assistance program will exceed its budget. The County Administrator' s Office and the Social Services Department are working together to insure that the budget target is reached. Additionally, staff from the Department and the County Administrator' s Office are currently looking at improving the federal and state funding reimbursement programs to enhance the County' s revenue recovery capabilities. A report will be prepared for the Finance Committee on this subject in the near future. Sheriff ' s Department The average daily inmate population for all the County adult detention facilities for the first quarter continues to be less than the budgeted level. The first quarter ADP averaged 1,400 as compared to a budgeted ADP of 1, 410 . During the first quarter, County parole has been expanded and the electronic home surveillance program has begun. If these programs continue to expand and prove successful, they may have a positive impact on inmate population. Possibly offsetting this, however, is the continual. increase in City police activity related to drug enforcement. This has potential for seriously overcrowding County detention facilities, greatly increasing County costs. The Sheriff ' s Department budget situation for the first quarter presents a positive trend. It should be noted, however, that this is a transition quarter for the department' s budget reduction plan approved by the Board on August 15, 1989. The Sheriff ' s Department has made significant progress in implementing that plan. The elimination of positions in the Marine Patrol, Crime Lab and the Investigation Division has been made. At this point, on an annualized basis it looks as if the plan is achievable and will result in the anticipated reductions. Of particular significance is the 16 percent reduction in overtime department-wide in the first quarter compared to the same period in FY 1988-89. Hiring and Purchasing Freeze On May 9 , the Board imposed a freeze on filling permanent and temporary positions and in ordering non-critical fixed assets and other major purchase items. The freeze was imposed because of anticipated budget shortages this fiscal year and the need to mitigate the adverse effects of a budget shortfall. Over the last six months, a variety of service disruptions have occurred because of the freeze and Department managers have adjusted work schedules and priorities to overcome these obstacles. On August 15, the Board adopted. budget reduction plans for each Department to insure a balanced budget for 1989-90 . Over the last two months, the CAO staff has worked closely with Department staff to implement the required reduction plans. As a result, we can report to you that many of the plans adopted by the Board have been successfully implemented and recommend to you that the Board authorize the County Administrator to rescind the freeze for those Departments. Staff of the Administrator' s Office will continue to work- with the staff of the remaining Departments to achieve compliance with the Board adopted reduction plans. Finally, it should be noted that if financial reversals occur, the Administrator' s Office may have to recommend that the freeze be reimposed.