Berks County Proposed FY2009 Budget County Commissioners Meeting November 18, 2008

Berks County FY2009 Budget Presentation Budget Schedule Summary of Proposed Budget Significant Budget Factors Significant Capital Plan Changes Budget Initiatives Budget Execution Risks Select Budget Details Budget Projections Questions and Commentary

Berks County Proposed FY08 Budget Budget Schedule November 18, 2008 Present Proposed FY09 Budget December 16, 2008 Adopt Final FY09 Budget Public Review –County Commissioners’ Office –Budget Office –County Website

Berks County Proposed FY09 Budget Summary No tax increase. Tax mills. Net 2009 billing $121.5M Total net tax revenue is projected at $125.5M General Fund revenue and expenditures of $217.6M and $205.6M, respectfully Operating revenue & expenditures of $471.2M and $469.1M, respectfully No new headcount. Reflects FTE reduction of 95 budgeted positions.

Berks County Proposed FY09 Budget Summary- Cont’d The budget reflects a surplus of $2.1M. No fund balance is used to balance the budget $22.68M in capital projects. Partially fund with $6.3M of Reserves. Only AgLand and open space is funded with debt. Set aside $1.34M of general fund balance for future capital needs Unreserved/undesignated fund balance is projected at $101.9M or 21.7% of total operating expenditures

Berks County Significant FY09 Budget Factors Decreases: Assessed value increase only 0.95% - decrease in tax revenue ($908K) Nursing home MA increase only 1% - revenue decrease ($800k) Increases pension costs ($7.8M) Lower interest rates –reduced interest income ($500K) Increases Refinance and reduce debt – lower debt service $3.5M Defer CRC program – reduce operating costs by $3M Youth Ctr. Bed mix change – reduce cost by $630K Reduce headcount –lower personnel costs by $1.6M

Berks County Significant FY 08 to 09 Capital Changes Tabled the Prison expansion project – reduced capital by $17M Tabled the Video Visitation project – reduced capital by $1.2M Tabled Haycreek trail project – reduced capital by $3.9M Committed $6.75M of reserves to 2009 capital projects Reduced outstanding debt by $55.6M P &I (Principal only $30.6M)

Berks County Proposed FY09 Budget Initiatives Strategic planning. Align resources and staff with strategic priorities. Right size Lower service costs. Focus on shared resource, process improvement Pursue performance contract financing to lower utility costs Implement park recommendations-active recreation facilities Right size fleet. Move to a lease rental model Align not for profit funding with strategy funding decrease of $84K. Deeper cuts 2010 – 2012

Berks County Proposed FY09 Budget Initiatives – Cont’d Continued funding of Reading Area Community $3.2M Ag Land- $1M for new fed state certification funding. $5.479M in total easement payments. Move to self funded model. No new debt. Open space easement acquisitions $724K. Conversion of $36M line of credit to GOB debt. Re-allocation of $10M to 911 infrastructure upgrade 2011 Improve data/decision support with ERP software Improve IT capabilities

Berks County Proposed FY09 Budget Execution Risks Crime impacts on: Prison population – 1,200 Children placements in CYS Juvenile placements in JPO and YDC Court costs Operational risks: Pension investment performance – ARC Pmt Employee health Net new employees Final union contract wage increases 2009 Tax growth - Assessed value versus inflation Federal state budget cuts – unfunded mandates

Select Budget Details Tax Revenue and Consumption Capital Plan Summary Fund Balance Summary Budget Projections

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