The County of York 1 Adopted: December 18, 2013

…planning for sustainability 2

 Development of long-term PAN&RC strategy  Although a long-range strategy for sustainability was not developed,  steps were taken to improve the operating efficiency and financial performance  Hired an experienced Asst. Administrator/CFO  Implemented medical records system … Answers On Demand  Installed new Laundry system  Brought operations back in-house  Reduced operating costs and overtime requirements  Continued reduction of Agency Nursing requirements 3 Did we meet our objectives?

 Integrated new Patriot telephone system within 911 radio infrastructure  “Go Live” date February 2014  On-line bidding and vendor registration system in design development phase; full implementation expected 1 st quarter

 Developed build-out plans for Judicial Center 5 th Floor  Includes multiple configurations  Project cost estimates range from $6.0 million to $8.5 million  Completed cost reduction and operations efficiency projects at Pleasant Acres Nursing & Rehabilitation Center  Completed $1.7 million Laundry upgrade at PAN&RC  Improved efficiency and productivity  Reduced cost of operations  Implemented new Answers On Demand billing and services reporting software 5 Notable Achievements in 2013

 Initiated planning process for new 911 Radio System upgrade  System migration required by 2012 Middle Class Tax Relief Act law  Contract approved for new frequency identification and licensure  Contracts approved for system development:  Harris Radio  Alcatel-Lucent  Safety, Security and Communications Consultants  Project is estimated to cost approximately $30 million  Project is currently on hold pending further input from FCC and federal officials 6 Notable Achievements in 2013

 Upgraded Citrix software from v4.5 to v6.5  Improved service and stable platform  Estimated project completion in 2014  Integrated HP Slate 900 units into high-volume portable reporting systems  MH/IDD  Treatment Courts  Initiative will continue to be expanded in 2014  Replaces more costly laptop computers 7

Notable Achievements in 2013  Resumed operating and fiduciary responsibility for Marketway West facility  Action resulted from mortgage default by HW York Properties  Facility now managed by Bennett Williams  Property is under Sales Agreement with Yohn Property Management, York, PA  Issued RFP for Voice Over Internet Protocol telephony system for County of York  Pilot program in progress at several satellite and MDJ offices 8

Notable Achievements in 2013  Introduced new Health Savings Account (HAS) health benefit plan  Empowers employees to manage their healthcare dollars  20% of eligible employees participating upon initial enrollment  PSSU (MH/IDD & Drug & Alcohol) bargaining unit also participating  Implemented Exclusion Screening  PA DPW Medical Assistance Bulletin requirement  Requires all employees and all County vendors be screened for Medicare/Medicaid fraud 9

Estimated $9.0 million fund balance Total General Fund spending $4.3 million under budget Tax revenues $777,000 above plan ICE revenues $2.6 million below budget PAN&RC subsidy $1.2 million below budget 911 subsidy $1.6 million below budget General Fund operating budgets $2.4 million below budget RESULTS Seeking financial stability…

Tax Revenues were higher than anticipated, reflecting leveling off or reduction in foreclosures General Fund operating expense declined for second year in a row, demonstrating strong fiscal controls and management by Elected Officials and Dept. Directors Potential future bond refundings could generate significant debt service cost reductions 11 FAVORABLE TRENDS:

 Continued reliance on one-time debt service refunding opportunities to balance budget  Health care costs continue to increase at 7% annually  ICE daily population is trending downward; lack of guaranteed population creates variable income experience 12 UNFAVORABLE TRENDS :

 Bargaining unit contract increases have moderated, but union wages continue to out-pace non-bargaining employee salaries Differential compresses compensation program 13 UNFAVORABLE TRENDS:

2013 Year End Cash Position  No draw down was required  Year-end Unrestricted Cash Balance = $9.0 M  $20 Million TRAN will continue to be required to provide gap financing in Dollars in Thousands

15 … working toward sustainability

Total County Budget  GENERAL FUND  Principal County Operating Budget $186.4 $188.1  Dedicated Library Tax  Capital Reserve Fund PROPRIETARY FUND York County Nursing Home County Control SPECIAL REVENUE FUND Principal Human Services Budget Domestic Relations Budget Housing, CDBG & Liquid Fuels Budget FIDUCIARY FUND Retirement Fund Tax Claim TOTAL BUDGET $ $ Dollars in Millions

2014 Budget Objectives 17 Develop strategy for migrating 911 radio system to new public safety spectrum Implement County-wide Voice Over Internet Protocol telephony system Finalize plan for Judicial Center 5 th Floor build-out

The Bottom Line… 2013 General Fund Budget $188,876,930 Millage Rate = % increase from 2012 Includes Dedicated Library Tax (.1 Mill) 2014 General Fund Budget $190,561,484 Millage Rate = 4.52 No increase from 2013 Includes Dedicated Library Tax (.1 Mill) 18

General Fund Expense Summary by Sector 19 How Your Tax Dollars Are Utilized... Total General Fund = $190,561,484 Note: Prison operation comprises 49% of total sector costs

General Fund Growth Trend 20 Dollars in Thousands $184,548,761$190,561, Est2014 BudIncr. 3.3% Average Growth Per Year : 2001 – % %

GOVERNMENT ADMINISTRATION Includes: Support functions Debt service Employee benefits 20134Budget = $71.4M Debt Service up $1.7 million 21 Dollars in Thousands

Government Administration Major impacts: Benefit costs up $2.6 million Retirement Plan contribution (ARC) flat at $10.0 million Health care claims costs are up 7% from 2013 Partially offset by higher employee contributions Debt Service costs are up $1.7 million from 2013 Anticipated refunding of 2006 bonds will provide $2.9 million of debt service relief 22

Government Administration 23 +1% +7% Dollars in Thousands +12%

COURT SYSTEM & PUBLIC SAFETY  Includes:  Court & Court related functions  Corrections  Public Safety  2014 Budget = $90.9M  Total expenses are down $1.3 million or 1.4% 24 Dollars in Thousands

Court System & Public Safety Major Impacts: Prison operational costs up $844,000 Average daily ICE population projected to decrease by 100 detainees Annual ICE revenue projected to decrease $2.9 million Projected 2014 “out-of-county” inmate daily population : ICE DOC actual daily ICE population estimated at

Court System & Public Safety Average York inmate population is stable due to alternative sentencing programs 2013 average is 1,480 ICE population is becoming increasingly unstable 2014 projected average population is average was Average Daily Prison Population

Court System & Public Safety Major Impacts (Cont’d): 911 Operations subsidy down $1.8 million Reflects increased PEMA funding for 2014 Court Admin and MDJ budgets down $278,000 and $164,000, respectively Special Counsel for Juvenile delinquency cases reduced $360,000 27

Court System & Public Safety 28 2% +2% -21% Dollars in Thousands -8%

HUMAN SERVICES Includes: CY&F MH/IDD Area Agency on Aging PAN&RC Veterans Affairs 2014 Budget = $18.9 Million Total expenses down $1.1 million PAN&RC subsidy down $1.4 M CY&F subsidy up $354, Dollars in Thousands

Human Services Major Impacts: PAN&RC subsidy down $1.4 million from subsidy is $5.7 million Reflects improved operating economies and increased Medical Assistance billing efforts PAN&RC population is 90% Medicare/Medicaid dependent CY&F subsidy is up $354,000 Reflects increases in child placement costs Area Agency on Aging subsidy is down $50,000 due to reduced state funding 30

Human Services % +3% 0%-7% -1% Dollars in Thousands

OTHER EXPENSES Includes: Government Services Planning Commission Conservation District Ag Preservation Rabbittransit YCEA $1.4 M of Discretionary allocations 2014 Budget = $9.3 Million Expenses are down $435,000 or 5% 32 Dollars in Thousands

Other Expenses Major Impacts: Includes $100,000 for City Nuisance Abatement officers Most Special Allocations held to 2013 level New allocations include: Criminal Justice Planner (YCPC) $60,000 Byrnes Health Center 5,000 Mid-Penn Legal Services 7,000 PA Immigration Resource Ctr. 3,000 33

Other Expenses 34 -7% 0% Dollars in Thousands

Millage Rate Distribution Govt Admin$ 55,934, Court System & Public Safety $ 45,658, Human Services$ 18,882, Other Expenses$ 5,361, Library Tax$ 2,450, TOTAL$ 128,286, SECTOR2014 BUDGET (1)MILL RATE Note (1): Budget expense net of revenue offsets

Tax Rate History County taxes have risen.52 mills since 2008, or 13% Average 2.0% / year No increase for 3 consecutive years: 2010 through 2012 % Increase per year: % % % Millage Rates Mills

Tax Rate Comparison 37 School Taxes County Taxes Municipal Taxes 75% 17% 8% Avg. School Taxes mills Avg. County Taxes 4.52 mills Avg. Local Taxes 1.98 mills For every real estate tax dollar paid in York County… millsTotal Based on 2012 municipal & school data

2014 Budget In summary… 38

2014 Budget Highlights No tax increase for 2014 Millage rate remains at 4.52 mills Dedicated Library Tax remains at.1 mills Total Consolidated Budget = $476,710,065 General Fund Budget = $190,561, budget does not require drawdown on $9 Million Unrestricted Fund Balance 39

The County of York 40