Loading...
HomeMy WebLinkAboutMINUTES - 05101988 - 1.65 •'.b. 'TD: BOARD OF SUPERVISORS ++ FROM: Phil Batchelor, County Administrator Contra tra Costa DATE'. May 3 , 1988 C SUBJECT; 3RD QUARTER REPORT SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND' AND JUSTIFICATION RECOMMENDATIONS 1) Accept this report and 2) direct the County Administrator to continue to carefully monitor the 1987-.1988 Budget. BACKGROUND Each quarter for the last 13 quarters, my office has provided the Board with a status on the County Budget. Although over the last four years there have been many times when a cautious approach to spending has been recommended, there have. been many positive things to report as well. The Third Quarter Report for 1987-1988 is very similar to many reports in the past in that there are both positive and negative aspects to it. HIGHLIGHTS * The Health Services Department is projecting a positive fund balance for the second year in a row. * More revenues from motor vehicle fees and interest earnings are projected, helping the County to balance the budget. * The County Administrator and Departments have developed and implemented plans to help them stay balanced, in some cases implementing freezes in vacant positions and monitoring purchases more carefully. * Jail overcrowding continues to be the major concern of the 1987-1988 budget. More recently Juvenile Hall . overcrowding has become a concern. * The General Assistance budget projects over expenditure for the year, a result of increased focus on the homeless and changes in policies which have resulted in the County being the agency of last resort for more people. CONTINUED ON ATTACHMENT: YES. SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION O BOARD COMMITTEE APPROVE OTHER - S 1 GNATURE(SI: T� nn p ACTION, OF 60ARD ON M' ay, 10 ,.1.-4.88 A!'PROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I •HEREBY CERTIFY THAT THIS IS A TRUE X 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: County AdmnlStatOr ATTESTED I`Iay, 10", -1988 Auditor-Controller PHIL BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY M382/7-83 — ( DEPUTY 3rd Quarter Report -2- May 3 , 1988 BUDGET UNIT DISCUSSION Ten departments have managed their budgets in such a way that significant fund balances are expected in relationship to their total general fund appropriation. It is felt that these departments should be recognized for the efforts they have made to contribute to the fund balance at the end of this year. Those departments are: * Animal Services * Municipal Courts * Auditor-Controller * Recorder * Building Inspection * Sheriff * District Attorney * Social Services * General Services * Treasurer-Tax Collector In addition to the ten departments listed above, the Health Services Department is expected to have a fund balance as well. Their fund balance is not part of the overall General Fund Balance, but it is used to help finance the following year' s operations for the Health Services Department, thereby reducing the need for a general fund subsidy. For that reason, the Health Services Department is to be commended also for their tight management of this year' s budget. Additional details on specific budgets which are operating outside of the budget plan are provided in the paragraphs below. County Clerk - Expenditures for this budget are higher and revenues are lower than the budget plan anticipated. This budget picture will likely continue through the end of the fiscal year, leaving a substantial deficit. The deficit is largely workload related due to ongoing workload as well as new programs implemented by the courts which effect the County Clerk' s office. Costs are also driven by the number of appeals processed by the Clerk' s office and to some degree the nature of the cases appealed. Our office is working with the Clerk' s office to develop alternatives to handling workload increases and expects to implement a plan soon which will address these problems for next fiscal year. It should also be noted that the surplus on the Recorder' s side of the Clerk' s office will be used to reduce this deficit to the lowest possible level. Community Services - The Community Services Department has been projecting a deficit for two quarters. This is due to revenues not being received at the same rate that expenditures are taking place. This budget is supposed to be completely funded from non-general fund sources. Therefore, our office is working with the Community Services Department to reduce the projected deficit to zero, or to arrange for a repayment plan from next fiscal year' s budget, so that the General Fund ends up even. Conflict Defense Services - It is anticipated that this budget will be over-extended by the end of the fiscal year due primarily to the unexpected and unbudgeted costs associated with court appointed counsel in those cases that resulted from the deputy public defender' s job action. Without these cases, the expenditures for this budget unit would be close to the amount budgeted. 3rd Quarter Report -3- May 3 , 1988 General County Revenues - General County Revenues, or those revenues which are not attributable to the efforts to a specific department, are projected to slightly exceed budgeted levels. Both secured and unsecured property taxes are estimated to be realized at slightly below budgeted levels. Supplemental property taxes are expected to experience a shortfall of between $400,000 and $600 ,000 from the levels budgeted. The shortfall is largely attributable to three recent state laws which exempt and limit property values from supplemental taxes. These changes were not anticipated when the budget plan was finalized last year. Several revenue sources are expected to offset these revenue losses. Revenues from vehicle registration fees should exceed budgeted levels, owing in part to increases in new auto prices. Additionally, a large volume of new vehicles have been sold over the last two years, resulting in a greater number of registrations. Finally, interest earnings are expected to exceed budget levels because greater amounts of money were invested than originally anticipated, yielding greater earnings. General Services - Last year at this time, the General Services Department was anticipating a deficit. A dramatic turnaround has taken place during the last year due primarily to the County being the beneficiary of lower than expected utility rates and gas prices. A significant fund balance is anticipated in the department as a whole. Health Services - For the second year, the Health Services Department is expected to end the fiscal year with a positive fund balance. Major factors contributing to this situation are listed below: Patient volume is increasing. Hospital census is up from 118 per day average last year to 133 a day this year. Out patient volumes are up 30. These increases have resulted in a lower cost per unit of service. Passage of AB 650, and the Board' s decision to give 500 of that to the Health Services Department, provided some cushion for the Medical Services Program. The receipt of one-time revenue resulting from litigation settlements with the state dating back to 1981-1982 and 1982-1983 contributed to the fund balance. Award of state grants to finance needed equipment rather than the use of County subsidy also assisted. Positive cashflow position of the enterprise fund resulted in interest earnings rather than interest expense. 3rd Quarter Report -4- May 3, 1988 As stated previously, the fund balance anticipated in Health Services Department will be used to help finance next fiscal year' s Health Services Department budget. Municipal Courts - Although expenditures for this department are exceeding budgeted levels, a positive fund balance is expected due to revenues being received at a much greater rate than anticipated in the budget plan. One of the major reasons for the revenue increase is that the Supreme Court acted on the Financial Responsibility Act which allows the County to collect $10 for each ticket processed from those people who receive citations for not having proof of insurance. This was not included in the budget plan, but has significant revenue and workload impacts. Probation - The Probation Department has a projected deficit which was also discussed in the second quarterly report. The deficit has been reduced significantly to approximately $150, 000 . This is largely the result of an improved revenue projection. In order to reduce the deficit, the department has held several management positions vacant and has implemented a policy change relating the private placement of court wards. The current spending rate is directly related to the overcrowding of the juvenile hall. Unbudgeted expenditures are anticipated to staff the reserve living unit at juvenile hall and care for a larger number of juveniles in the budget plan anticipated. My office continues to urge this department to explore alternative resource allocations to control spending and to direct available funds to the highest priority services. Sheriff - The Sheriff ' s Department as a whole should generate a positive fund balance by the end of the fiscal year. The department has generated an expected fund balance through good management of expenditures, attention to generation of revenues, and judicious management of their vacancies. The detention side of the department' s operation will see a significant over-expenditure of funds due to overtime and the care of inmates directly related to overcrowding at the County' s detention facilities. The population at the detention facilities has escalated far beyond expectations. In fact, the final 1987-1988 budget was based on the average daily population expectation of 1,055 . In March 1988 the average daily population was 1, 328. Superior Court - This department is anticipated to end the year with a deficit. Projected revenues are below budget expectations due to the loss of state reimbursement for jury fees . and arbitration. Expenditures are projected to be over the budget plan due primarily to the continuation and implementation of programs associated with state mandates. It should be noted that certain revenues that might be attributable to this budget through an SB 90 reimbursement are not currently planned due to the uncertainty of the impact of SB 709 on these revenues. However, if these revenues were accrued, the anticipated deficit would be reduced to zero. 3rd Quarter Report -5- May 3 , 1988 CONCLUSION Given all the constraints that County departments and the Board have to work under in order to provide the many needed services that the County offers, it seems truly amazing that there are only a few departments that appear to be projecting deficits by the end of this fiscal year. Those departments which are contributing positively to the fund balance are to be congratulated and urged to continue their good work.