FY 2016-17 Budget: Calendar Policies 2020 Strategic Plan Napa County Executive Office FY 2016-17 Budget: Calendar Policies 2020 Strategic Plan (Introduction) Leanne Link, Assistant County Executive Officer Presented to Board on January 5, 2016

Napa County Budget Process January 5 – FY 2016-17 Budget Policies and Budget Calendar; 2020 Strategic Financial Plan February 9 – 2014-15 Performance Measures Report March 22 – FY 2015-16 Mid-Year Review April 19 – FY 2016-17 Budget Study Session June 7 – FY 2015-16 Third Quarter Review June 13, 14 – FY 2016-17 Budget Hearings June 21 – FY 2016-17 Budget Adoption

Napa County Key Budget Policies With some exceptions, goal is no increase in Net County Cost Pursue new revenue to the fullest extent possible With limited exceptions, no new or enhanced programs unless offset by dedicated revenue Maintain General Fund Contingency equal to 3% of appropriations

Napa County Key Budget Policies Do not backfill reductions in State or Federal funding Goal of General Reserves and Fiscal Contingency Designation combined equal to 20% of appropriations HHS Fund Requirement of 10% Fiscal Contingency Once other needs met, any additional available discretionary resources to be transferred to Accumulated Capital Outlay (ACO) budget. Napa County Board of Supervisors

Napa County 2020 Strategic Financial Plan Builds on the Principles from the 2017 Plan Focuses on the General Fund Revises Financial Projections through FY 2019-20 Forecasts Structural Balance Identifies Challenges Reiterates Core Philosophy, Guiding Principles & Key Policies Reprioritizes Short Term Solutions in the Fiscal Contingency Strategy Makes a minor adjustment to Longer Term Solutions in the Fiscal Contingency Strategy Napa County Board of Supervisors

2020 Strategic Financial Plan Fund Balance Resources Napa County Board of Supervisors Fund Balance: FY 2012-13 Actual FY 2013-14 Actual FY 2014-15 Actual General Fund 65,836,347 68,290,852 68,209,516 Tobacco MSA 11,811,133 12,014,883 8,147,042 Special Projects 1,161,705 1,404,135 226,336 Total General Fund 78,809,185 81,709,870 76,582,894 Accumulated Capital Outlay 39,032,972 14,626,106 23,098,834 Total Fund Balance 117,842,157 96,335,976 99,681,728 % of Total GF Expenditures 72.2% 57.2% 52.4%

2020 Strategic Financial Plan Revenues and Expenditures (adjusted) Fiscal Year FY 2012-13 Actual FY 2013-14 Actual FY 2014-15 Actual Revenue 157,654,187 164,021,053 171,872,748 Expenditures 154,232,106 161,332,524 166,041,439 Difference 3,422,081 2,688,529 5,831,309 % Change from Prior Year   -21.4% 116.9% Excess ERAF is the return of local property taxes to the County after all school funding requirements are met. Thought some reduction might occur with the Local Control Funding Formula. As long as property tax growth keeps pace with school funding growth, we should continue to receive EERAF revenue.

2020 Strategic Financial Plan Baseline Projection Assumes that revenues and expenditures continue at historic rates. No new or expanded programs.   A C T U A L P R O J E C T E D Fiscal Year FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Surplus/(Deficit) $3.4 M $2.7 M $5.8 M $2.2 M $1.6 M $1.0 M $1.7 M $2.4 M

2020 Strategic Financial Plan Revenue Reduction Scenario Assumes that overall expenditures increase by 5% from the Baseline Scenario.   A C T U A L P R O J E C T E D Fiscal Year FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Surplus/(Deficit) $3.4 M $2.7 M $5.8 M ($6.3 M) ($7.3 M) ($8.2 M) ($7.8 M) ($7.4 M)

2020 Strategic Financial Plan Expenditure Increase Scenario Assumes that overall revenues decline by 5% from the Baseline Scenario.   A C T U A L P R O J E C T E D Fiscal Year FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Surplus/(Deficit) $3.4 M $2.7 M $5.8 M ($6.5 M) ($7.3 M) ($8.2 M) ($7.9 M) ($7.5 M)

2020 Strategic Financial Plan Revenue Decrease - Expenditure Increase Scenario Assumes that revenues decrease by 5% and expenditures increase by 5%.   A C T U A L P R O J E C T E D Fiscal Year FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Surplus/(Deficit) $3.4 M $2.7 M $5.8 M ($15.0M) ($16.2M) ($17.4M) ($17.3M) ($17.2M)

2020 Strategic Financial Plan Revenue Increase Scenario Assumes that revenues increase by 5% .   A C T U A L P R O J E C T E D Fiscal Year FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Surplus/(Deficit) $3.4 M $2.7 M $5.8 M $10.8 M $10.5 M $10.2 M $11.2 M $12.2 M

2020 Strategic Financial Plan Jail Operations Increase Scenario Reflects the potential impact of several Jail options: Operating a new 366 bed jail Operating a smaller second facility with “split” operations Operating a smaller booking/holding facility and renting beds from another county   A C T U A L P R O J E C T E D Fiscal Year FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Surplus/(Deficit) $3.4 M $2.7 M $5.8 M $2.2 M $0.08 M ($2.0 M) ($2.8 M) ($3.6 M)

2020 Strategic Financial Plan Strategies: Resource Allocation Fiscal Contingency Revenue Enhancement

2020 Strategic Financial Plan Resource Allocation Strategy: Identifies services appropriately funded by General Fund Identifies services appropriately funded by other resources Identifies expenditure priorities when additional resources are available

2020 Strategic Financial Plan Fiscal Contingency Strategy: Identifies short term solutions Identifies longer term solutions Assigns priorities for reductions

2020 Strategic Financial Plan Fiscal Contingency: Short Term Major GF office remodels not for critical health/safety needs are deleted Defer purchase of equipment Delay implementation of new/expanded programs not offset by dedicated revenue Defer approval of contracts not revenue offset Implement a selective hiring freeze

2020 Strategic Financial Plan Fiscal Contingency: Longer Term Moratorium on new/expanded programs Use GF designations (e.g., Fiscal Uncertainty) Where possible, do not continue unfunded state/federal programs Reduce GF support moderately to programs Reduce discretionary programs Reduce or eliminate GF to Special Projects Use Tobacco MSA Major Program Reductions Eliminate (where possible) Capital Improvements Increase OPEB amortization to 25-30 years Reduced workweek / furloughs

2020 Strategic Financial Plan Revenue Enhancement Strategy: Identifies ways to enhance revenue for services Identifies ways to enhance revenue for capital projects including GO Bond Adds seeking grant funding for capital projects (Jail)

Napa County Budget Process Questions?

Budget Study Session Thank you.