Bexar County Budget Department Spring 2012 FY Budget Update

FY Budget Plan The FY Adopted Budget targeted cuts needed to balance budget through the forecast period, while maintaining County capacity for service delivery and employee compensation, which included: $2 M (annualized) mid-year savings from May Freeze $5 M from Attrition/Vacancy Program $5 M from targeted cuts in FY Budget $5 M for Return on Investment (ROI) from use of Technology to be identified in FY Budget 2

FY Original Forecast 3

Submitted Department Plans Cost Savings CMAG - District Clerk($60,459) Criminal District Attorney($821,202) Criminal District Courts($91,465) County Clerk($260,863) District Clerk($316,070) Economic Development($100,001) Judge/Commissioners($25,951) Justice of the Peace - Precinct 1($12,375) Justice of the Peace - Precinct 1, Place 3($19,842) Justice of the Peace - Precinct 2($22,435) Juvenile($1,100,000) Purchasing($40,974) 4

Submitted Department Plans County Manager Community Resources($426,216) Information Technology($938,513) Infrastructure Services($571,024) Appellate Public Defender's Office($124,578) Budget($49,522) Human Resources($214,660) Judicial Support Services($183,962) Total County Managers Cuts($2,508,475) 5

Departments on the Attrition Plan Amount Needed Constable Pct. 2$51,895 County Auditor$84,894 County Courts at Law$110,466 Juvenile Courts$47,994 Probate Courts$39,277 6

Technology Savings Technology Efficiencies and Innovations: Lawson Implementation $642,477 Automation of County Clerk processes $191,275 Re-negotiation of communication contracts $344,986 Interactive Foreclosure Maps $238,252 BCIT is working to realize additional savings toward the $5M goal. 7

Targeted Cuts An additional $5 million in savings through targeted programmatic reductions were identified by the Budget Department. These savings were realized through Jail Staffing, reduction of Court Appointed Attorney Fees in the County and Civil Courts, reductions in Juvenile Detention costs, and recurring revenues. 8

Revised Forecast Assumptions House Bill 1038: appraisers taking into consideration surrounding properties to include foreclosures Community Housing Development Organizations lawsuit - County will LOSE approximately $1 million per year in Ad Valorem Based on preliminary tax rolls, ad valorem revenues for FY are less than the Fall Projection 9

Result: this forecast lowers projected property tax revenue growth from previous forecasts: Current Previous Dollar Decrease (1.6%) in FY % $ 4,962,392 1% in FY % $ 7,394,495 2% in FY % $ 9,972,513 3% through FY % $ 10,271,689 Revised Forecast Assumptions 10

Revised Forecast Without Strategic Issues General Fund FY Actual FY Estimate FY Projection Beginning Balance 54,710,24961,003,37961,269,150 Revenues324,929,328328,057,898317,277,019* Available Funds380,073,960389,061,277378,546,169 Expenditures319,070,581327,792,127328,089,135 Fund Balance61,003,37961,269,15050,457, *Original Projection for FY Revenues was $320,895,305, a difference of $3,618,286.

Revised Forecast Without Strategic Issues 12

Revised Long Range Forecast 13

Strategic Issues

Detention Update 15 This FY

Service Delivery Plan Planning tool for use in preparing for increased service demand as a result of: Increases in overall Bexar County population Increased population in unincorporated area A more urban-like and developed unincorporated area 16

Used annual growth rate in the 2000s to project the growth through 2017 using 2010 population as the baseline Decade Annual Percentage Population Increase % % % % % % Service Delivery Plan 17

Bexar Countys population projected to increase by 13.3 percent through 2017 Increase of 268,000 citizens Estimated Bexar County population in 2017 of 1.9 million citizens Service Delivery Plan 18

If cost-effective service delivery methods arent identified, the cost of serving our growing County population could be $19.2 million over the next five years. This does not include City Like Services Service Delivery Plan 19

If City Like Services were in the unincorporated area of Bexar County: Tax rate increase of $ per $100 valuation Would bring total tax rate up to $1.552 per $100 valuation Constitutional Limit of $0.80 per $100 valuation There is an RFP out to develop options for citizens in the unincorporated area to acquire more City Like Services, as needed. Service Delivery Plan 20

County will need to change our way of delivering services: E-gov, technology, automation More efficient business processes More cost-effective staffing models Proactive service delivery planning program Focus on Core Service Delivery Service Delivery Plan 21

Employee Compensation Going forward, the County will need to identify ways to fund Cost of Living Adjustments to keep up with future inflation growth and maintain market competitiveness with other employers FYI: 1% salary increase for all County employees = $2,133,453 22

Employee Compensation 74% of County Operating Revenue is provided by property taxes Employee salaries and benefits account for 70% of County Operating Expenses 23

Employee Healthcare Medical inflation trends are expected to be 9% per year over the forecast period Segal Company: 9.6% source: 2012 Segal Health Plan Cost Trend Survey Aon Hewitt: 9.9% source: 2011 Healthcare Trend Survey Towers Watson: 7% source: 2011 Annual Towers Watson/National Business Group on Health Employer Survey 24

Healthcare Five Year Forecast 25

Employee Healthcare $10,000+ $5,000 - $9,999 $2,500 – $4,999 $1,000 - $2,499 $0 - $999 Claims Group (total 2011 claims) % Claimants% Costs 8.4%53.9% 8.2%15.2% 12.2%12.9% 17.8%10.2% 53.4%7.8% 26

Employee Healthcare * Medical Plan shortfall based on current premium equivalent levels County Contribution$28,359,303 Employee/Retiree Contribution$10,088,519 Total Contributions$38,447,822 Total Contributions$38,447,822 Total Expenditures$41,410,516 Medical Plan Shortfall *$2,962,694 27

Employee Healthcare We have used one-time money for the past two years Healthcare Changes: County and employees pay more for same coverage Reduce benefits to better match current contributions Decrease costs through healthy lifestyle, preventive care, plan incentives RFP Medical Insurance Provider 28

Employee Healthcare Employee Health Clinic Clinic Visits FY ,236 FY Estimate4,300 Types of services provided Pre-employment physicals Medical care for minor injuries or illness Preventive Health Screenings Wellness Programs 29

Strategic Issues Summary Service Delivery Plan Providing services to growing population Employee Compensation Maintain market competitiveness Cost of Living Adjustments Employee Healthcare Rising healthcare costs RFP for medical insurance provider Complete BCIT Cost Savings Plan for inclusion in the Budget. 30

LRFF Summary

Economic recovery has not yet resulted in increased revenue for the County Offices and Departments will need help identifying funding for new programs Prioritize new funding requests for one-time expenditures demonstrating reduction in future staffing needs (Increased productivity) County still has to address strategic issues including healthcare 32

The Proposed Budget will address the shortfall by: Refining Revenue Projections Continuing to identify operational efficiencies LRFF Summary 33

Budget Calendar Budget Submissions DueMay 25 Certified Tax Roll ReceivedJuly 25 Proposed BudgetAugust 21 Work Sessions August 23 & 28, September 5 Adopted BudgetSeptember 11 34