1. Administration’s Recommended 2018 Proposed Budget August 8, 2017

2. Agenda Principles Budget Drivers Key Initiatives Revenue Expenditures
Comparisons
Levy Impact
Internal Services
County Fiscal Position
Budget Schedule

3. Guiding Principles (Examples)
Operating and capital budget decisions should support and reflect the county’s vision, mission and goals
Make strategic investments in our human resources to attract and retain a qualified workforce
The budget should address the county’s current needs and position the county to meet the future needs of a growing, aging and diversifying population
Consider changes in the county’s tax base, potential change in tax rate, tax impact on property owners, population, inflation, service delivery changes and economic trends affecting county property taxpayers when adopting the property tax levy
Adhere to fund balance, debt service and other financial policies to ensure the ongoing financial health of the county and protection of the county’s AAA bond rating

4. 2018 Budget Drivers Cost of employee wages and benefits
Rapid growth in some unfunded mandates
Debt service funding
Service demands from growing population
Staffing and funding support for preventative building maintenance and timely delivery of new projects
Improvements to ensure efficient operations and security of technology infrastructure
Land and Water Legacy Program (LWLP) costs
Return of the Lake Elmo Library

5. 2018 Key Initiatives Public Safety
New Positions : Legal Assistants (one is special project); 1.0 Juvenile Attorney I; 1.0 Dispatcher
Additional resources to fund increase caseloads in child protection and mandated state court costs
Continuation of County Attorney’s Major Crimes Prosecution Section/Sex Trafficking Unit
Update to County Attorney records management system (LENS 9)
Utilize increased Community Corrections Act subsidy aid to fund support for service delivery & levy reduction
Continuation of Dosage Probation project
Complete implementation of the Sheriff’s Office public safety records management system
Continue efforts to address the challenges of medical and mental health issues in the county jail
Added dispatcher position to ensure adequate service and safety of officers; mitigates increasing overtime costs
Increased funding for overtime in the Sheriff’s Office to more closely reflect actual costs
Reduced jail bed revenue due to new Chisago County jail
Public safety radio system infrastructure/antennas

6. 2018 Key Initiatives Public Health & Community Services
New Positions: 1.0 Case Aide; 2.5 MNChoice Social Workers; 1.0 MNChoice Supervisor; .50 Planner II; 1.0 Policy Analyst Transportation; 1.0 Social Worker DD; 1.0 DD Supervisor; 1.0 Office Support; 1.0 Family Service Worker
Continued support for child protection services including staffing and effective management of child placement costs stemming from child protection changes
Increased staffing for MnChoices reassessments and new assessments for safety net clients and funding cost shift
Increased staffing to address rising developmental disability caseloads
On-going management of Recycling and Energy Facility and implementation of waste designation
Support for healthy aging for older adults
Completion of mandated community health assessment
Implementation of improvements in yard waste and composting services
Completion of countywide assessment of subsurface sewage treatment systems (SSTS)
Modest increase in support for MN Extension

7. 2018 Key Initiatives Public Works
New Positions: 1.0 Building Services Project Specialist; 1.0 Fleet Technician; 1.0 Building Services Technician; 1.0 Custodian
Increase project delivery capacity to ensure preventative maintenance and timely delivery of new projects
Funding for continued road construction and maintenance costs
Continued investment in roads, transit, and county fleet
Support additional county space for Lake Elmo Branch Library and fully fund rent for North Shop
Increase support for county fleet to ensure efficient and cost effective operations
Complete park building facility condition review

8. 2018 Key Initiatives Internal Services
New Positions: 1.0 Senior Application System Analyst Developer; 2.0 System Administrators; 1.0 Business Analyst; 1.0 Senior Security Analyst
Implementation of Human Resources Information System
Investments in security of data and computer systems
Increased support for enterprise-wide software solutions
Negotiation of new contracts with the county’s bargaining units that expire at year end of 2018
Upgrade to county’s financial management system (E1)
Support move toward mobile access to county systems
Continued focus on leadership development/succession planning
Continued implementation of comprehensive plan; updated strategic plans related to communications and economic development

9. 2018 Key Initiatives Library & Property Records and Taxpayer Services
New Positions: 1.5 Librarians Lake Elmo; 1.0 Library Service Assistants Lake Elmo; .60 Teen Librarian; .50 Librarian Oakdale; 1.0 Appraiser I; 2.0 Special Project Taxpayer Technicians
Addition of Lake Elmo branch library and improve space at Valley branch library
Implementation of library strategic plan and plan for facility improvements
Investment in library collection, equipment, and core staffing
Funding to pilot Sunday hours at the Oakdale branch library
Administration of 2018 elections and increased absentee voting location; possible addition of electronic poll books
Replacement of Image Storage system for recorded property documents
Improve homestead application workflow and add on-line submittal

10. Major Non-Levy Revenue Impacts for 2018
REVENUE SOURCE
TOTAL
CHANGE
Intergovernmental Revenues
$65,912,200
$6,123,600
Fees for Services
$15,701,600
$446,800
County Program Aid
$10,104,300
$990,900
Licenses & Permits
$4,945,700
$144,200
Investment Earnings*
$1,990,300
$586,700
*Largely due to a recent accounting change requiring the county to budget the investment earnings related to the county’s Other Post Employment Benefits (OPEB).

11. County Program Aid

12. County Program Aid (CPA) Compared to Levy Funding

13. New County Program Aid (CPA) Used Towards Mandates
New CPA Available in 2018: $990,900
*Significant 2018 Mandated Cost Increases:
Out-of-home placements of children $284,900
MNChoices cost shift estimate $260,500
Child Protection (includes court-appointed attorney increases) $231,100
Regional Treatment Centers Cost Share $205,500
State Public Radio System Upgrade $ 87,500
Chemical Dependency Treatment $ 85,100
TOTAL $1,154,600
Estimated shortage: <$163,700>
* Additionally, the 2017 Legislative Agenda describes more than $8.4 million in unfunded mandates that have been shifted to Washington County in recent years.

14. County Imposed Fees/Contracts
Departments review fees annually
Determine if fees cover the costs of providing certain services
Budget includes the following county-determined fee increases:
County Assessor Assessment Agreements (+2%)
Public Health regulatory fees (+2%)
Revenue increases from increased activity levels

15. Major Intergovernmental Revenue Impacts for 2018
DEPARTMENT
TOTAL
CHANGE
Community Services
$24,615,900
$1,725,400
Road & Bridge Capital
$23,970,800
$3,010,600
Public Works
$5,883,100
$244,300
Public Safety
$4,690,600
$456,300
Public Health
$4,682,500
$597,300

16. 2018 General Highlights County Net Tax Levy
$102.7 million Increase %
County Tax Rate (Net Tax Capacity)
30.153% Decrease 1.0%
County Tax Impact (Median Valued home)
$32 Increase 4.6%
LWLP Tax Impact (Median Valued Home)
$3 Increase 33.3%
Non-Levy Revenues
$109.8 million Increase %
Operating Expenditures (excludes capital and debt)
$176.3 million Increase %
Capital Expenditures
$31.9 million Increase %

17. Major Operating Expenditure Impacts for 2018
EXPENDITURE TYPE
TOTAL
CHANGE
Personnel Services
$116,601,800
$9,255,200
Services & Charges
$26,244,100
$650,900
Client/Citizen Related Support
$19,010,000
$582,700
Utilities/Repair & Maintenance
$6,509,100
$6,100
Materials & Supplies
$6,080,000
$219,300
Minor Equipment
$1,845,500
$301,400

18. Operating Costs History (without Personnel Costs)

19. Employee Compensation
All contracts are settled through 2018
2.5% General Adjustment; range adjustments
Health Insurance renewal 8.87%
County contribution toward Health insurance needs to be bargained for 2018

20. Debt Service
Thoughtful, guided process of issuing debt and increasing debt service levy
Planned debt service increases has allowed large cost items to be built without property tax spikes
Use of debt has allowed the cost of long-term capital items to be paid for by the residents that benefit from the asset (roads, buildings, technology, etc.)
5% increase = $687,500
Reviewing possibility of refinancing existing 2007 and 2011 issuances to reduce costs
Planning 2019 capital improvement bond issue

21. Lake Elmo Library
January 1, 2018 Lake Elmo Library will re-join the county library system
In 2012, when city pulled out of the county system, the library levy was reduced by the amount of county library being paid by residents of Lake Elmo
2018 recommended budget includes a levy increase for libraries equal to amount that was cut in 2012 times the percentage increase in the county library levy since 2013
Agreement in place that provides for the operation of the library

22. Lake Elmo Library Return $335,000
REVENUE/EXPENDITURE TYPE
2018 PROPOSED AMOUNT
REVENUES:
Levy
$335,000
EXPENDITURES:
Staff Full-Time Equivalent (FTE)
$154,800
Internal Rent
$ 94,300
Collection, Programming, etc.
$ 55,500
Technology (Phones, Licenses, Computers, Communication Lines, etc.)
$ 23,200
Office Equipment & Supplies
$ 7,200
TOTAL EXPENDITURES:

23. Capital Projects
Capital Repair Fund provides for the upkeep of existing county facilities to those areas that pay rent to Building Services
County fleet in Sheriff’s Office, Public Works
Robust Pavement Preservation program
Funding for traffic signals/countywide traffic capacity and safety improvements
Park facility improvements including St. Croix Bluffs Maintenance building

24. Capital Road & Bridge Projects
Summary
Over $5 million to improve pavements
Over $17 million for reconstruction
Designing and developing the projects of the future
Construction
County 15 and County 14 (Old Trunk Highway (TH 5) Realignment (Lake Elmo/Baytown Township)
County 21 from County 14 to south of 30th Street (Bayport/Baytown Township)
County 3 from County 4 to North County Line (May Township/Scandia)
County 6 from Century Avenue to Grenada Ave (Oakdale)
In Design in 2018
County 12 – Trunk Highway (TH) 244 to County 9 – developing strategic plan for corridor –for construction in 2019 (Grant/Mahtomedi/Willernie)
County 13 Pedestrian Bridge over I-94 – for construction in 2019 (Lake Elmo/Oakdale/Woodbury)
County 13 and County 22 Intersection Improvement – Roundabout – for Construction in 2018 (Cottage Grove)
County 18 from County 38 to County 13 – Roundabout and 4-lane expansion – for construction in 2020 (Woodbury)
County 19 from Tamarack to I-94 – Full Reconstruct – for Construction in 2020 (Woodbury)

25. Countywide Mission Directed Budget (MDB)
In accordance with Policy #2202, the recommended MDB-funded projects assist the county in supporting the county’s vision, mission, and goals
Priority funding is given to those projects that have a countywide or multi-departmental benefit
Projects meet criteria of program
Allows for funding of certain one-time projects without impacting levy
Board Workshop for final approval in September
DEPARTMENT
PROJECT
AMOUNT
Community Corrections
Probation System Review
$50,000
Library
Digital Literacy Area
$45,000
Strategic Planning Equipment
$15,000
Information Technology
Auditing Tool
$62,000
Sheriff
Field Radio Technology
$52,000
TOTAL:
$224,000

26. 2018 Special Project Position Conversions
Department
FTE
Title
Public Health
1.0
Environmental Specialist
Human Resources
Administrative Assistant
Attorney
Attorney II
These positions are included in the 2018 Proposed Budget and do not require additional funding.

27. 2018 Recommended New Positions (Levy Funded)
Department
FTE
Title
Cost
Attorney
2.0
Legal Assistants (one will be Special Project)
$120,000
1.0
Attorney I – Juvenile
$90,000
Information Technology
Senor Applications System Analyst Developer
$103,900
Systems Administrator
$167,200
Business Analyst
$88,200
Senior Security Analyst
$98,400

28. 2018 Recommended New Positions (Levy Funded)
Department
FTE
Title
Cost
Library – Lake Elmo
1.5
Librarian I
$109,400
1.0
Library Services Assistant
$45,400
Library
1.1
Librarian I (.60 Teen and .50 Oakdale)
$79,900
Property Records & Taxpayer Services
Appraiser I (mid-year hire)
$34,400
2.0
Taxpayer Services Technician (1-year Special Project positions for Elections)
$94,700
Sheriff
Dispatcher
$72,300
TOTAL
15.6
(100% Levy funded positions)
$1,103,800

29. 2018 Recommended New Positions (Partial or No Levy Funding)
Department
FTE
Title
Cost
Levy Funding
Community Services
.50
Planner II
$40,700
$8,500
1.0
Case Aide – Child Protection
$65,400
$52,400
2.5
Social Workers - MNCHOICE
$209,300
$16,200
Supervisor - MNCHOICE
$101,600
$8,000
Policy Analyst - Transportation
$101,100
$20,200
Social Worker – Developmentally Disabled
$82,500 $0
Sr. Social Worker – Developmentally Disabled
$91,300
Office Support
$50,800
$35,600
Family Services Worker – Child Protection (mid-year hire)
$35,800
$28,700

30. 2018 Recommended New Positions (Partial or No Levy Funding)
Department
FTE
Title
Cost
Levy Funding
Public Works
1.0
Fleet Technician
$72,700 $0
Building Services Project Specialist
$62,300
Building Services Technician I
Custodian
$46,500
TOTAL
14.0
Partial or No Levy Funding
$1,022,300
$169,600

31. Voter-Approved Land and Water Legacy Program (LWLP)
Recommended issuance of $5 million in bonds
$9 million spent to date
Warner/Wilder Project – expected closing late August/early September
452 acres protected
$14 million in non-county funds leveraged (state, Met Council, landowner donation, etc.)

32. 2016* Population Estimates
253,102
5-co. Avg.
434,818
7-co. Avg.
100k
200k
300k
400k
500k
600k
1.2M
1.3M
100,617
Carver
142,436
Scott
252,845
Washington
348,652
Anoka
418,432
Dakota
540,653
Ramsey
1,237,560
Hennepin
*Most recent estimate available from Met Council for all counties

33. Estimated Market Value for Taxes Payable in 2017
5-co. Avg.
$546.1M
7-co. Avg.
$300M
$400M
$500M
$600M
$700M
$1,700M
$100M
$200M
$1,800M
$133.9M
Carver
$196.7M
Scott
$253.6M
Washington
$300.7M
Anoka
$545.5M
Dakota
$619.4M
Ramsey
$1,772.7M
Hennepin

34. Employees Per 1,000 Capita

35. New Position History (includes mid-year hires)

36. 2017 Employees Per 1,000 Capita Ranges
5.34
5-co. Avg.
5.8
7-co. Avg.
6.0
7.0
8.0
4.0
5.0
4.4
Dakota
4.8
Washington
5.1
Scott
5.3
Anoka
6.8
Hennepin
7.1
Carver
7.3
Ramsey
Washington County 2018 = 4.8

37. Net County Levy* Increase History
*Excludes Regional Rail, Land & Water Legacy, and County Program Aid.

38. 2017 Statewide County Levy Increases
-6.0%
0.0%
6.0%
12.0%
18.0%
-5.85%
State Low
3.49%
Washington
4.00%
State Average
17.99%
State High

39. Net Levy* Per Capita
*Excludes Regional Rail , Land & Water Legacy, and County Program Aid

40. 2017 Net Levy* Per Capita Ranges
$404
5-co. Avg.
$453
7-co. Avg.
$500
$600
$700
$300
$400
$317
Dakota
$364
Anoka
$376
Washington
$447
Scott
$513
Carver
$541
Ramsey
$614
Hennepin
Washington County 2018 = $398

41. Operating Costs Per Capita

42. 2017 Operating Costs Per Capita Ranges
$688
5-co. Avg.
$784
7-co. Avg.
$500
$600
$700
$800
$900
$1,000
$575
Dakota
$647
Washington
$677
Anoka
$687
Scott
$847
Carver
$998
Ramsey
$1,056
Hennepin
Washington County 2018 = $683

43. Net Levy* & Tax Base Growth
*Excludes Regional Rail and Land & Water Legacy levies

44. Net Levy* & New Construction
*Excludes Regional Rail and Land & Water Legacy levies

45. County Tax Rates

46. 2017 Tax Rate Ranges 34.09% 38.62% 5-co. Avg. 7-co. Avg. 28.00% 30.45%
26%
28%
32%
34%
36%
38%
40%
42%
44%
46%
54%
56%
28.00%
Dakota
30.45%
Washington
35.90%
Scott
37.27%
Anoka
38.85%
Carver
44.09%
Hennepin
55.85%
Ramsey
Washington County 2018 = 30.15%

47. 2017 Average County Tax on $245,000 home
$785
5-co. Avg.
$889
7-co. Avg.
$600
$700
$800
$900
$1,000
$1,000
$1,200
$1,300
$644
Dakota
$709
Washington
$825
Scott
$857
Anoka
$893
Carver
$1,013
Hennepin
$1,283
Ramsey

48. Cumulative Population, Inflation, and Levy Growth since 2010

49. Estimated Impact of Levy Increase Residential Homestead Taxpayers
Home Valued at $257,000 for Pay 2018
(assuming a 4.9% value increase from 2017 to 2018)
2018
Net Levy
Change
Actual Pay
2017
Estimated Pay
General
LWLP
Total
6.9%
33.3%
$700
$ 9
$709
$732
$ 12
$744
$ 32
$ 3
$ 35
(+4.9%)

50. Tax Base Changes – Pay 2018
Countywide estimated market value change 2017 to 2018: +6.9%
2017 up 3.0%
2016 up 2.8%
2015 up 12.1%
Value of new construction: $426.7 million (+17.5%)
2017 total $363.0 million
2016 total $303.2 million
2015 total $332.8 million
Median value change in residential homes: 4.9%
2017 change equaled +1.1%
2016 change equaled +1%

51. INTERNAL SERVICE DEPARTMENTS 2018 Proposed Budget
Full-Time Equivalents (FTE)
Administration
$1,894,800
15.0
Accounting & Finance
$2,148,900
17.5
Human Resources
$1,807,500
14.0
Information Technology
$7,575,200
50.0

52. ADMINISTRATION Initiatives & Challenges
Transition/Support for countywide budget analyst
Continued implementation of recommendations from Strategic plan, Communications plan, and Economic Development plan
Leading 2040 comprehensive planning update
Implementation of Records Management program
Delivery of 3rd Employee Engagement Survey
Coordination of the Land & Water Legacy Program

53. ACCOUNTING & FINANCE Initiatives & Challenges
Key role in Human Resources Information System (HRIS) implementation and Point of Sale project
Countywide financial management system (E1) upgrade
Expanding use of technology to make business transactions more efficient and secure
Bond issue for Land and Water Legacy Program; potential refinance to reduce interest costs
Coordinating financial oversight of Metro Gold Line Project

54. HUMAN RESOURCES Initiatives & Challenges
Conversion of human resources special project position to regular status
Negotiations of contracts with all employee groups for contracts beginning in 2019
Human Resources Information System (HRIS) implementation
Development of recruitment strategies to ensure county workforce that is prepared to serve county residents
Effective management of liability and workers compensation claims

55. INFORMATION TECHNOLOGY Initiatives & Challenges
New Position: 1.0 FTE Senior Application Systems Analyst Developer
Support for countywide financial management system (E1)
Replaces need for consultant funding
Management of interfaces between modules and other county systems
New Position: 1.0 FTE System Administrator (Configuration)
Management of all county technology devices (desktops, monitors, laptops, mobile devices)
Responsible for securing from potential threats and vulnerabilities
New Position: 1.0 FTE System Administrator (Communications)
Management of growing need for remote/mobile access of county workers
Increasing need with new Sheriff’s records management system mobile capabilities
Ensuring accessibility of data without jeopardizing functionality and security

56. INFORMATION TECHNOLOGY Initiatives & Challenges
New Position: 1.0 FTE Business Analyst
Immediate need to support of E1 upgrade project; adding staff support able to reduce project costs by $100,000
Support of new Human Resources Information System
Assistance to departments defining needs, gathering requirements and identifying potential technology solutions
New Position: 1.0 FTE Senior Security Analyst
Develop policies to mitigate risk in our technology environment
Currently only have one individual assigned to this task
Lead the security team and initiatives across various disciplines in the Information Technology Department
Funding: Next Gen 911 Address Point Project
Need to assign address points for multi-unit properties to ensure public safety responders have good data
Position supported by County Sheriff

57. INFORMATION TECHNOLOGY Initiatives & Challenges
Key role in HRIS system implementation, point of sale project, Financial Management System (E1) upgrade, and Sheriff’s Records Management System
Implementation of enhanced technology allocation fund
Budget continues transition to more stable funding; replaces one-time sources to fund maintenance cost increases on technology systems
Additional funds for system and data security
Support for mobile workers and in field workforce

58. GENERAL OPERATIONS Countywide Revenues
Property tax levy, delinquent property taxes
Penalty and interest on late and delinquent taxes
Mobile home property taxes
Property taxes paid on distribution lines
State and federal grants – indirect costs
Interest earnings
MN Counties Intergovernmental Trust dividend
Public Employees Retirement Association (PERA) aid

59. GENERAL OPERATIONS Significant Expenditures
Supports Legislative activities
Funds county contributions to Health Savings Accounts and associated fees
Countywide newsletter issued three times per year
Funds internal auditor and records management functions
Base contingency level remains the same as 2017
Supports MN Extension activities
Funding included for mandated State court costs
Other Post Employment Benefit (OPEB) costs
Worker’s compensation, property/casualty insurance, employee severance costs

60. COMMISSIONERS Very little change from 2017
Includes a travel and training budget which anticipates costs for 2018 attendance; flat from 2017
Salaries are required to be set each year; budget includes a general adjustment at beginning of year (2.5%)

61. County Fiscal Position
Balanced budgets
Multi-year winner of Government Finance Officers Association (Budget & Comprehensive Annual Financial Report - CAFR)
Fund balance that meets county policy
Significant progress on funding our retiree health care obligations
Significant progress on improving condition of roads
Stable levy and operating costs per capita
Continued response to growing service demands from a growing, developing county

62. 2018 Budget Schedule April 4 Budget workshop with County Board
April - June
Departments complete budget estimates
July
Budget hearings with Administration
August 8
Present proposed 2018 budget
August - September
*Departmental budget workshops
September 26
Set 2018 preliminary levy
October 10
Capital Improvement Plan (CIP) workshop
November 14
December 5
Public Budget Hearing (after 6 p.m.)
December 12
Adopt 2018 final levy, budget, and CIP
*Public is welcome to attend all departmental budget workshops