Budget Strategy Directors / Elected Officials - Meeting

Today’s Agenda 2010 Budget Status 2011 Budget Strategy 2011 General Fund Budget Projections Budget Subcommittees Role Discussion

2010 General Fund Budget Status

2011 General Fund Strategies Revenue Sources – Sales Tax increase is on November ballot. Review all fees and grants and regional service agreements to to maximize revenue receipts. Budget Reductions in 2011: Phasing in Prop. 1 cuts of $637,000 estimated to be about $492,000 in An additional $290,000 in 1-yr labor freeze savings is under negotiation. Reduction of Fund Balance: One of the adopted 2011 budget goals is to use no more than 50% of the unreserved fund balance (50% estimated at $300,000). Current proposal is to use up to $150,000 of fund balance and use only on one-time costs. Plan for future years: Develop a three to five year plan to bring the General Fund revenues and expenditures into balance. 4

Budget Strategies (cont.) Revenue Stabilization- Look at ways to limit expenditures to match reliable and sustainable revenues and use windfall revenue streams to balance downswings and fund capital expenses. Sales Tax DNR Revenue Timber Tax

Budget Strategies (cont.) 2011 Budget Goals and Objectives: Look for cost savings opportunities - Continue to evaluate and implement where appropriate opportunities to: Consolidate programs or services to gain efficiencies or improve customer service, where appropriate. Seek additional funding sources to support services through programs and grants and other funding sources. Continue to partner with other local agencies to improve service delivery and/or reduce costs. Privatize and/or outsource services, programs, and functions where appropriate (such as animal services, etc.).

General Fund 5 year projection:

General Fund Costs:

Non-Departmental – 17% of General Fund

Internal Fund Costs

General Fund Base Budget

Sales Tax Proposition Reduction Phase-In (Drafted )

Projections with reductions:

Revised General Fund Budget If Prop. 1 passes

Projections if Prop. 1 passes

Other Budget Strategies Revenue Stabilization Reserve Create Revenue Stabilization reserve in the general fund in addition to 10% operating reserve. Sales Tax revenue received over budgeted amount to be distributed as follows: 60% to Revenue Stabilization reserve for use in future downturns 20% to Capital Improvement or approved one-time expenses 20% to programs When reserve reaches an amount greater than 5% of operating expenditures in the general fund, these funds will be used for property tax reductions Issue: lost flexibility for capital and supporting programs

Other Budget Strategies Use of Subcommittees: Interdepartmental subcommittees to provide input to County Administrator & Commissioners on budget issues. Administrative Community Services Law & Justice Running start on 2012 $140,000 efficiency/cut target Are there ways the County can save dollars by finding interdepartmental efficiencies? Collaborate on across the board department cuts Assist with implementation of 2010 Strategic Plan

The good news …. Most departments spending levels are below budgeted amounts, few budget appropriations 3.2 million dollar Broadband project approved for Jefferson County Economic Development planning is underway ILA with City adopted this week for Memorial Field and Rec Center & longterm parks & rec planning New IS Manager on board to help harness technology for improved efficiency, quality and easier citizen access to Co. services 2010 Jefferson County Strategic Plan adopted for navigating into the future Permit revenues up 21% from 2009 thru DCD employees back to 40 hrs In addition to 10% operating reserve, able to encumber some permit funds in 2010 to cover DCD’s review obligations that carry over to future years Interdepartmental cooperation through budget committee and subcommittees, brown bag lunches …

Budget Calendar

Questions and discussion