HomeMy WebLinkAboutMINUTES - 02142006 - SD.2 Sot) 0 Z,
TO: BOARD OF SUPERVISORS Contra
FROM: JOHN SWEETEN, •;' -
COUNTY ADMINISTRATOR x e lig V � '`, Costa
DATE: February 14, 2006 County�OST`A-COIIIi'�,G4'
SUBJECT: 2005-06 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 2005-06 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 the
ensuing fiscal year.
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. 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 ensuring fiscal year.
DISCUSSION
This report provides an overview of the status of the County's FY 2005-2006 Budget as of
December 31, 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: _1.,ryr9SIGNATURE: 7
----------------------•------------------------------------- - - --- -1-------_ -------------
L—RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
------ -------- ----- - ----- - = - - - - -------------------------------------------------ACTION OF BOARD
ON f APPROVE AS RECOMMENDED OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
y, AND CORRECT COPY OF AN ACTION TAKEN
UNANIMOUS(ABSENT //l _. ) AND ENTERED ON THE MINUTES OF THE
BOARD OF SUPERVISORS ON THE DATE
AYES: NOES: SHOWN.
ABSENT: ABSTAIN:
ATTESTED
CONTACT: JOHN SWEETEN,CLERK OF THE B OF SU ERVISORS
AND COUNTY ADMINISTRATOR
CC: County Administrator
Auditor-Controller
EHSD
Health Services l/
BY �EPUTY
2005/06 Mid-Year Budget Status Report
February 14, 2006
Page Two (2)
The County's implementation of its Board-approved FY 2005-06 adjusted spending plan is
proceeding as anticipated. As of December 31, 2005, with 50% of the fiscal year having passed,
actual expenditures for all County funds totaled 42.6% of planned spending, while actual
revenues totaled 44.2% of amounts anticipated for the year. These figures compare favorably to
42.4% and 43.2% respectively for the same period last year.
For the General Fund alone, actual expenditures totaled 46.4% of planned spending, and actual
revenues totaled 38.6% of amounts anticipated for the year. These figures compare favorably to
our experience for the same period last year, 45.0% and 37.3% respectively. The specific dollar
amounts were as follows:
ALL FUNDS
Second Quarter Summary
Budget Actual Percent
Expenditures $ 2,089,762,474 $ 890,587,938 42.6%
Revenues $ 1,899,241,165 $ 838,673,643 44.2%
GENERALFUND
Second Quarter Summary
Budget Actual Percent
Expenditures $ 1,256,930,755 $ 583,539,273 46.4%
Revenues $ 1,186,049,339 $ 457,270,624 38.6%
GENERALFUND
Second Quarter Expenditure Summary
Budget Actual Percent
Wages& Benefits $ 632,691,001 $ 298,573,819 47.2%
Services &Supplies 460,386,519 217,496,031 47.2%
Other Charges 286,221,061 127,310,904 44.5%
Fixed Assets 31,809,717 12,090,687 38.0%
Inter-departmental Charges (164,177,543) (71,932,111) 43.8%
Provisions for Contingencies 10,000,000 (58) 0.0%
Total Expenses $ 1,256,930,755 $ 583,539,272 46.4%
GENERALFUND
Second Quarter Revenue Summary
Budget Actual Percent
Taxes $ 244,424,126 $ 153,063,474 62.6%
Licenses, Permits, Franchises 13,928,074 2,175,621 15.6%
Fines, Forfeitures, Penalties 15,490,236 2,247,670 14.5%
Use of Money& Property 3,565,054 2,643,337 74.1%
Federal/State Assistance 601,180,132 173,280,698 28.8%
Charges for Current Services 196,912,642 93,649,377 47.6%
Other Revenue 110,549,075 30,210,447 27.3%
Total Revenues $ 1,186,049,339 $ 457,270,624 38.6%
As noted above, County expenditures and revenues at mid-year were within acceptable
parameters given the Board approved budget. The difference between budgeted expenditures
and revenues, $190.5 million and $70.9 million for all funds and general fund respectively, is a
combination of fund balances and prior year encumbrances. Specifically, the general fund
includes $43.6 million in fund balance and $27.3 million in prior year encumbrances ($22.3 million
of which is Capital projects). Although significant variances in anticipated expenses and revenue
receipts are noted at the mid-year, these variances are normal and recurring, as noted below.
2005/06 Mid-Year Budget Status Report
February 14, 2006
Page Three (3)
Revenues
❑ 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 experience a two-to three-month lag in revenues.
Expenditures
❑ Salary costs are generally understated at mid-year because salary appropriations in the
budget include cost-of living adjustments, and COLA's were not effective until the
beginning of the second quarter, October 1, 2005; however, there were few COLAs in the
current fiscal year. Unanticipated vacant positions also lessen salary costs, though
vacancy savings continue to lag behind prior years. Some reduction in permanent salary
costs is anticipated in the second half of the fiscal year due to retirements, which tend to
occur in March, however, the majority of this savings is spent in retiree pay-outs.
❑ 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, December 1, 2005. Actual expenses for employee health
insurance will increase the second half of the year. Unless the number of vacant positions
continues to grow.
❑ Service and supplies costs are generally understated throughout most of the fiscal year
because of the time required to process payments to vendors and contractors. This
payment cycle averages about one month in arrears. Additionally, in very tight fiscal years
departments tend to wait later in the year to make purchases to ensure that resources are
not needed elsewhere.
General County Revenue
General Purpose budgeted revenues total $293 million spread over 50 accounts. It consists
primarily of $148 million in property tax, $75 million in State Motor Vehicle in Lieu Tax (from non-
realignment vehicle license fees) and $10 million in sales tax.
Based on six months of experience, General Purpose Revenues will exceed the budget target.
Revenues will exceed budget due to the one-time 'true-up' of Property Tax in Lieu of VLF and the
receipt of several old SB90 claims.
Employment and Human Service Department
The Employment and Human Services Department anticipates remaining well within budgeted
appropriations for the year. At mid-year, the actual net costs are 51.6% of budget and actual
revenue is approximately 29.8% of budget. These levels are in line with the department's
experience this time last year. While these numbers would suggest that the department is on a
path to exceed its budget authority, due to revenue claiming delays, the majority of the
department's revenue is expected to be received in the next several months from the State and
federal governments. Based on anticipated future claims, EHSD will end the fiscal year well
within its budget appropriation.
Health Services Department
The Health Services Department continues to experience rising cost pressures and modest
revenue increases. Various measures aimed at reducing costs were undertaken during the 2004-
05 and 2005-06 fiscal years. Detention medical costs continue to rise and implementation of cost
savings measures at the Chris Adams and Summit Centers have not yet materialized. Actual
revenues and expenditures in this department are on target. The department is projecting,to end
the fiscal year within its budgeted expenditures despite these challenges.
2005/06 Mid-Year Budget Status Report
February 14, 2006
Page Four (4)
Animal Services Department
The Animal Services Department is projected to over expend services and supplies, as actual net
costs in this area are 55.5% of budget for the first half of the fiscal year. Expenditures for
services and supplies are associated with increased capacity at the new animal shelters in
Martinez and Pinole, resulting in additional and unexpected costs which had not been anticipated
when the budget for fiscal year 2005-06 was developed. The issue will be resolved as part of the
fiscal year 2006-07 budget process.
Probation Department
The Probation Department is spending at higher than anticipated levels for the first six months of
the fiscal year. The high rate of spending is primarily due to Probation's staffing at the Chris
Adams and Summit Center, increases in out-of-home placements, and temporary and overtime
staffing costs at Juvenile Hall.
While the Health Department is in the process of recruiting Psychiatric Technicians for the Chris
Adams and Summit Centers, Probation is continuing to staff the juvenile treatment programs with
Probation Counselors that were not included in Probation's final budget. Probation's overstaffing
of these two facilities resulted in $228,000 of expenditures above anticipated levels for the first six
months of the year. If the current level of staffing is maintained for the remainder of the fiscal
year, Probation's overrun is projected to be $456,000.
Additionally, while the actual cost of Probation's out-of-home placements for the first six months is
not available at this time (due to the limited availability of data from the State's new CalWin data
system), we do know that the number of juveniles in private placement is on the rise. While
Probation has limited discretion over placement decisions, they maintain a steady dialogue with
the Juvenile Court effort to ensure placement decisions are necessary and appropriate. The
increase in placements is also a result of eliminating the Placement Diversion Program in the
FY05/06 budget. The Placement Diversion Program provided intervention and intensive
supervision services to minors in imminent risk of out-of-home placement as a way of reducing
placements.
While the average daily population of the Juvenile Hall is well within the budgeted level of 190, the
Department is using a significant amount of overtime and temporary salaries to accommodate the
increased transportation needs resulting from the temporary loss of a courtroom in Juvenile Hall.
As a result, minors must be securely transported by Probation Counselors from Juvenile Hall to
the temporary court facilities located at Lion's Gate. Additionally, internal and external
inefficiencies have resulted in delayed recruitment of permanent Probation Counselors.
The County Administrator will continue to monitor these situations and work with the Probation
Department to ensure a balanced budget by year end.
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