The URL can be used to link to this page

Home My WebLink AboutMINUTES - 02152005 - D3 f . s t r TO: BOARD OF SUPERVISORSContra ,•' •�• FROM: JOHN SWEETEN COUNTY ADMINISTRATOR s s Costa DATE: February 15, 2005covKK ••s;. s ""�~ County A ``t SUBJECT: 2004-05 FY MID-YEAR BUDGET STATUS REPORT SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: ACCEPT this report regarding the mid-year status of the 2004-05 County Budget. BACKGROUND: The Administrator's Office annually reports the status of the County Budget as of January 1 to determine whether departmental expenses and revenues to date are consistent with the spending plan adopted, and amended from time to time, by the Board of Supervisors. Mid-year reviews provide an opportunity to identify variances from anticipated expenditures and revenue receipts, and permit budget staff to confer with departments regarding the potential need for budgetary adjustments. The mid-year budget status report is particularly important in that (a) it is based on a sufficient amount of experience during the budget year to permit a reasonably accurate assessment of how closely actual expenses and revenues are likely to track with the approved budget, and (b) it permits a relatively accurate prediction of year-end fund balance available for budget planning for FY 2005-06. Our review of departmental budgets at this mid-year juncture suggests that departmental expenditures and revenues are performing substantially in accord with the approved budget. No actions of the Board are required at this time other than an adjustment for Employment and Human Service Department detailed below. This assessment could change based on intervening factors —e.g., revenue curtailments or program shifts by the State —that could affect current year costs and revenues, or that could substantially impact in a negative way our outlook for the ensuing fiscal year. DISCUSSION This report provides an overview of the status of the County's FY 2004-2005 Budget as of January 1, 2005. Included in this report are tables that summarize the County's mid-year fiscal condition by type of fund, by categories of expenses and revenues in the General Fund, and by General Fund department (Attachment A). CONTINUED ON ATTACHMENT: ,YES SIGNATUR RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND T N OF BOARD OMMITTEE APPROVE OTHER SIGNATURE(S): 17 ACTION OF BOARD ON "APPROVE AS RECOMMENDED 2C OTHER �W Spdaker : Rollie K (Z ., PEU Local #1 , 5034 Blum Road, Martinez . VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN UNANIMOUS(ABSENT ) AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE AYES: NOES: SHOWN. ABSENT: ABSTAIN: ATTESTED CONTACT: JOHN SWEE EN,CLERKE BOARD OF SUPERVISORS AND COUNTY ADMINIS TOR CC: County Administrator vm Auditor-Controller EHSD Health Services BY ?g&�:4��EPUTY 4m 4 t � The County's implementation of its Board-approved FY 2004-05 adjusted spending Ian is p gp proceeding as anticipated. As of January 1, 2005, with 50% of the fiscal year havingpassed, actual expenditures for all County funds totaled 42.4% of planned spending, while actual revenues totaled compare 43.2% of amounts anticipated for the year. These fig p are to 41.2% and 43.7% respect •ively for the same period last year, indicating the budget is slightly tighter g Y g than in the past and will likely have less year-end operational fund balance. For the General Fund alone, actual expenditures totaled 45.0% of planned spending, and . . . actual revenues totaled 37.3% of amounts anticipated for the year. Again, these figures . g compare unfavorably to our experience for the same period last year, 44.3% and 39.4% respectively. The specific dollar amounts were as follows: ALL FUNDS Second Quarter Summary Budget Actual Percent Expenditures $ 1,993,134,848 $ 844,296,244 42.4% Revenues $ 1,8089301,569 $ 781,0689019 43.2% GENERAL FUND Second Quarter Summary Budget Actual Percent Expenditures $ 11215,768,790 $ 54696609625 45.0% Revenues $ 191169144,997 $ 416,318,224 37.3% GENERAL FUND Second Quarter Expenditure Summary Budget Actual Percent Wages & Benefits $ 581,8979150 $ 282,383,769 48.5% Services & Supplies $ 444,647,141 $ 183,902,468 41.4% Other Charges $ 272,9729790 $ 13396499061 49.0% Fixed Assets $ 519102,229 $ 91095,902 17.8% Inter-departmental Charges $ (144,850,520) $ (62,370,575) 43.1% Provisions for Contingencies $ 109000,000 $ - 0.0% Total Expenses $ 11215,7689790 $ 546,660,625 45.0% GENERAL FUND Second Quarter Revenue Summary Budget Actual Percent Taxes $ 156,517,172 $ 13798439424 88.1% Licenses, Permits, Franchises $ 179341,416 $ 311571750 18.2% Fines, Forfeitures, Penalties $ 1590021157 $ 2,9501295 19.7% Use of Money& Property $ 4,2339750 $ 1,182,525 27.9% Federal/State Assistance $ 627,3299979 $ 1591913,507 25.5% Charges for Current Services $ 186,9329338 $ 89,6479274 48.0% Other Revenue $ 1089788,185 $ 21,623,449 19.9% Total Revenues $ 1,116,144,997 $ 41623189224 37.3% As noted above, County expenditures and revenues at mid-year were within acceptable parameters. The difference between budgeted expenditures and revenues, $184.8 million and $99.6 million for all funds and general fund respectively, is a combination of fund balances and prior year encumbrances. Specifically, the general fund includes $64.1 million in fund balance and $35.5 million in prior year encumbrances ($28.4 million of which are appropriations for capital projects). Although significant variances in anticipated expenses and p p revenue receipts are noted at mid-year, these variances are normal and recurring, as noted below. Revenues o Revenue from State and federal sources are typically late in being realized because much of it is based on expenditure claims paid in arrears. Therefore, departments that rely on State and federal revenue -- most notably Health Services, Employment and Human Services, and Child Support Services -- experience a two-to three-month lag in revenues. Expenditures o Salary costs are generally understated at mid-year because salary appropriations in the budget include cost-of living adjustments, and those adjustments were not effective until the beginning of the second quarter, October 1, 2004. Unanticipated position vacancies also lessen salary costs, though vacancy savings continue to lag behind prior years. Some reduction in salary costs is anticipated in the second half of the fiscal year due to retirements, which tend to occur in March, and the possibility of a hiring freeze. • Employee benefit costs are understated at mid-year because the budget includes appropriations for health insurance cost increases that did not become effective until the end of the second quarter. Actual expenses for employee health insurance will increase the second half of the year. • "Services and supplies" costs are generally understated throughout most of the fiscal year because of the time required to process payments to vendors and contractors. Thispayment cycle averages about one month in arrears. Additionally, in very tight fiscal years departments tend to wait until later in the year to make purchases to ensure that resources are not needed elsewhere. General County Revenue General Purpose Revenues total $270 million spread over 50 accounts. Such revenues consist primarily of$137 million in property tax, $69 million in State Motor Vehicle in Lieu Tax (from non-realignment vehicle license fees) and $11 million in sales tax. Based on six months of experience, it appears that General Purpose Revenues will meet our budget target. This contrasts with prior years when revenues exceeded the budgeted levels. The main reason for this revenue situation is that revenues were budgeted very aggressively this fiscal year. Given theprojected revenue position at mid-year, General Purpose Revenues will be closely monitored over the remainder of the fiscal year. CAO staff will work with the staffs of the Auditor and Treasurer-Tax Collector Offices to monitor the impact of ERAF III loss, and the performance of Property Tax in Lieu of VLF and In-Lieu Sales and Use Tax revenues. These accounts are new in the current fiscal year, making accurate predictions difficult. Employment and Human Service Department The Employment and Human Services Department anticipates remaining within budgeted appropriations for the year, notwithstanding higher than anticipated public assistance payments. Actual net costs are at 52.6%, and actual revenue is at approximately 34.4%, of budget for the first half of the fiscal year. This would indicate that the department is on a path to exceed its budget authority. However, these levels are in line with the department's experience this time last year. Approximately $10 to $13 million is expected to be received in the next several months from the State and federal governments. Appropriation adjustments have not yet been submitted to the Board of Supervisors for this new revenue, but will be in early March. After adjusting for these revenues, EHSD will end the fiscal year within its budget appropriation. The County Administrator's Office budget staff has been and will continue to work closely with the department to ensure that net County costs at year end do not exceed the amounts budgeted. Health Services Department The Health Services Department continues to experience rising cost pressures and only modest revenue increases. Various measures aimed at reducing costs were undertaken during the 2004-05 fiscal year and implementation is continuing. These measures include the I t transition of the operation of the George Miller Centers and the family homeless shelters to nonprofit community based organizations. Actual revenues and expenditures in this department are on target. Actual net costs are 43.5% of budget for the first half of the fiscal year. The department is projecting to end the fiscal year within its budgeted expenditures despite delays in the transition process. t� H W W � � � � � � O � � � � R � � � � R � R � R � e o •�+ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 H d? 00 1` M O tt' O I` M O M O CO CO O M O N N 00 it co d0• � O qt � � mt � � M CMO � � 'd' q• co* � O 't qt lqT O �• N LN O O O qt qq a ao �- a Q W O M M ' CO CO O O m 00 1` qt O M CO N it 00 O O a 0 H t ti O I` N CO N N O O CO N I` CA 00 M I` N M q• COM O O COO N CO coON M O CO M CO O O O O O M 1` tet• � V- M CO M M r- M M 1` 1` O CM qCT CD 0 H CO N dw O O q' M Ow CO O O 00 Nw 00 rw L 1` CO 00 N 00 O O Ow CO O O C N � mt 0NNOCACOd' MC) CMOCMCMO � Orco - Z v 4 O N T- N Cr) Ln M r O O CA 1` 00 r- CO M 00 N O O (0 00 N � CMO qt Q N 00 Ow Mw Mw 00 N `w N O O O �w CO �w �w rw 00 �fi rw 00 rw III: La Cp W N CO r 1` N N N LL. r• T- t� J 6F}699 6F}69.6F}64}64}609-6g 6F? 64 64 64 6f} 6g 6F}6q 6g 6F} 64!}6R-}643, 6F}6F}6F} 6F}69 6F} 60). O T- MM it O O r O M O qq r O CO M 1` � r M ' 1` T- M N � O O O I` O c0 CO I` O M O r M M M 1` N M N O O M t0 CO tet• O LO it tt O O) 13 I` d' 1` Nt 00 I` I` I` I` N IRT N N qt ti 00 CO 1` O r I` q;T M r M O 1` W 4) O ti O 'l; M 00 O N 1` dw O O CO 'Ir A �tw O M 00 O 00 � V-: CV Ln 1` O, H 00 O CO CO 00 M 00 1` O 1` CO N 00 � O Ln N M O N q• N O 00 M r- O O O ZCM CD rti 00 O r- � ti M N N 1` ti CO 1` 1` O M 't M CO CO O O t` C6 w w w w w w w w w w w w w w w w w w w w w W 13 Q 00 CO 00 CO Imo- LO � L �• CSO L r Lf 7 O M T- M 00 00 Ldp O Ln M 00 V- O L!'� V1 = X N M N LO LO N N �- N 00 � r- r m W N r 60!).6F} 609. 6F}69 6g 6F?609.60} 60D.609.6F}6F?60).605.10.60).60!}6F}6F}6F}60} 60)-601.60!}609,69.6F}6g 6q m 0 0 %0.-0, 0 0 0 0 0 %0%-0, 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 o \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ d It I` 00 O M 00 ti M CA tt 1` CO It N 00 ti O 00 O O CO N N 1` C� �- O M N ti O O N N It N 00 V- 00 It ti 00 M 00 CO CO O CO d' O O � O O M N O 1` Q N M O I` Ln O qgt N M '4t 1` CO N M N O N Nr M N O 1` M � m O O Q O N C) CO I` �• I` M M 1` r M O O O O N �- '• M 00 ' 00 O ' �- O CO �' 00 I` ' VO O CA O �- O M CO r- O O CO CA O 00 X 0 0 T- 00 1` O d' M O r tV O M CO M M 't O I` r T- M O O Cn N 1` O M CO O 00 N � � w w w w w w w w w w w w w w w w w w w w w w w w w O 1` � O N C� I` CO O CO r CO N O CA O L17 M I` CO 00 N 1` P.: `Ct' C� 00 M = d Cn M 1` CO M t0 O CO CO O CO � 00 CA 1` O I` i` M � N �- CO M 1` a) r �- V M I` 1` CO O O O M N CA 00 O C� 1` 00 1� O M d' M O O CM �fi M Q Chi MNC r- Nt0O MCA r% 1` N M P. V-a w O O N N V 46 cu r C) 6F}6F}6F} 6F}69 6F}6F} 6F3 69 6F}6F}6s 6q 6F}6r}60).ff}609- 6F369).64 6F}6F}6F} 6q 6Pf 6F3 60�6f} 00 W O O N CO CO O I` r- I` N LOr W O M CO N M CO N O I` �- M 00 M O O CO N O O O M00 1` V- CM O O 00 M CO I` 00 CO M C3� CA M I` d' r- M 00 N N CO � CO C) M 00 CO r- O Q� w w w w w w w w w w w w w w w w w w w w w ♦"� CN tet' 0 O 0000 � P.- 0~0 N CO d• N lq c0 � N CA O M CO CO N 1` N N d' 00 et = �t N I` M N O C) CO C) O tt O CA C) O N CM 0 N 00 CO M 00 00 00 O O M C) 00 O O T- CO O Nit ti Mti CO O CA O �- rCIO w w w w 'p > N O ) O Nw CM rw N M N N O N V-w CO O O N 1` �w Mw N /! O N N CO m\V M 1 � N r- 00 N �- O N N T- N co M � � Y.1 LU 6F} 60%6g 6F}6g 6g 6F}6F}6H 6F}6q 6f} 6F}6F}6�}60% 6a 6F}6F}6F} 6F}6F}6F3 6q 64 6F}60-}6F}6F} LL W � F" cz OC U) CO a w C) co W O o CO CO CO z � Z w w 0 � O � w U �- O c v � Z �- � zw z > wz U V 0 W > 0w w CO 0 c� W � UUO � W E 0w ~ w w -' > wz °C �- za u> > � Cl) � c J O � � � UO = 00 � >- W � O J Z -� C� - � U u� w - LO °�' �- 00U —j U) = 0ww, W W �' W � u) ZOC > w � u' co pLU U) W U W U m a� C Z Z Z ~ CO U ? � W Y Z W W U O W > Z O � O OJO � � >C) W C) >- WCQ > WLU W O LL wU � Luw w °6 >- JOz =) wUQu- OU) zQ W N O -' Q -� z � U � OUCO 0U� Uo1 -10zw � E- pWZ -j < w -a Z0 D = ZOw U- zJWU JW L. QZ � LUU) z < wZ _j _3wI- ZIxmV � � < p � J � - ui Q wpQW (n Q a. � � WO � - — U � mmZa. F- 0LU0OLuLU :D � Q0 = w � � 0 = � C� � 0zUCOZ) OZ) w � a- p m 4c 1 ♦ � 36L TO: BOARD OF SUPERVISORS ---s.:_.-z-•.o� .:- •... Contra FROM: John Sweeten County Administrator °' ' " ... Costa srA_ '�`� DATE. February 15, 2005 cooKCounty SUBJECT: Implementation of Hiring Freeze SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION(S): DIRECT the County Administrator to immediately institute a freeze on hiring and other personnel actions through September 30, 2005. FISCAL IMPACT: Unknown, however fund balance in the General Fund may be achieved. BACKGROUND/REASON(S) FOR RECOMMENDATION(S): Contra Costa County is facing another difficult budget year in 2005/2006. The County is anticipating general fund cost growth that will exceed general fund revenue growth. In addition, one-time revenues used to balance the current year budget will not be available in the budget year. Therefore, the County Administrators Office is recommending that the Board impose a freeze on all personnel transactions through September 30, 2005. This hiring freeze is intended to help create fund balance that may be used to alleviate future budget shortfalls and to reduce the number of layoffs that may otherwise be necessary. The freeze will apply to the addition of any position, the upward reclassification or reallocation of positions or the filling of any vacancy that is funded partially or in whole by the County general fund. Departments may request exemptions from the freeze under certain circumstances. An exemption may be requested if the position is required to maintain staffing ratios required by law, required for health and/or safety reasons, or necessary to maintain the core functions of the department. Instructions on the freeze and the exemption request process will be sent to Department Heads in a separate memo. CONTINUED ON ATTACHMENT: SIGNATURE: -------- RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATI BOARD CO MITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON - APPROVE AS RECOMMENDED VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN UNANIMOUS(ABSENT AND ENTERED ON THE MINUTES OF THE BOARD AYES: NOES: OF SUPERVISORS ON THE DATE SHOWN. ABSENT: ABSTAIN: ATTESTED CONTACT: Dorothy Sansoe 5-1009 JOHN SWEETEERK OF THE BOARD OF SUPVRtVVISORS AND CC:Human Resources COUNTY ADMINISTRATOR Auditor/Controller BY - ,DEPUTY w