1. GENERAL EXPENSE FY 2012-2013 Proposed Budget Christine Moody, Budget & Financial Planning Manager

2. Purpose Consolidation of Non-departmental mandated and essential payments and services that cannot otherwise be allocated to individual departments. ◦ Debt Service ◦ Special Services & Projects ◦ Tourism ◦ Title III ◦ Risk & Benefits ◦ General Fund

3. Debt Service County limited by ORS 287.053 to carry debt on limited tax full faith & credit bonds of no more than 1% of real market value on taxable property within the county. ORS 287.054 similarly provides a debt limit on general obligation bonds of 2% of real market value. TOTAL OUTSTANDING DEBT: $103.5 million Total FY 12-13 Debt Service Payments: $12.6 million

4. Special Services & Projects Economic Development ◦ Funded primarily with Video Lottery from State of Oregon  50/50 split between general allocation program and economic development strategic investment projects. Courthouse Facility Security ◦ Revenue from court fines, fees & assessments. Expenditures must develop or implement court security improvement. Capital Projects ◦ Juvenile Justice Center construction fund – contains balance of voter approved GO-bonds. Remaining balance is completing remodel of National Guard Armory on Serbu Youth Campus. Done in FY 12-13 County School Funds ◦ National Forest Svc & State Timber Harvest Payments (now that Secure Rural Schools has ended). Transfer all funds to Lane Education Service District which transfers to county schools.

5. Transient Room Tax Transient Room Tax revenue for enhancement of Visitor Industry which is in the business of attracting and providing services and accommodation to support the convention business and tourism. ◦ Travel Lane County (fna CVALCO) ◦ Capital Improvements (Lane Events Center) ◦ Lane County Historical Museum ◦ Rural Tourism Program ◦ Special Projects ◦ Parks Receipts of tax show slow economic recovery. Olympic Trials in summer 2012 will provide boost.

6. Title III Secure Rural Schools (SRS) provided federal funding for timber dependent counties in regions with substantial holdings of federal forests. Title III portion of this funding used exclusively for: ◦ Firewise Communities program  Lane County has a grant program run through Land Management in Public Works. Encourages local solutions for wildfire safety. ◦ Search & Rescue and other Emergency programs  Search & Rescue, Wildland Policing, National Dunes & Communication tower upgrades ◦ Wildfire Protection Plans  Lane County developed under prior SRS legislation.

7. Title III Lane County receipt of Title III revenue: All Title III funding is eliminated with the expiration of the SRS legislation. Reserves of these funds - $2.1 million – is being spent in FY 12-13. Public Safety services are stable, while Firewise Program is being reduced from $1.1 million in FY 11-12 to $512,000 in FY 12-13.

8. Risk & Benefits Risk Fund ◦ Fund holds reserves for payment of both general liability and workers’ compensation claim payments. ◦ County began paying for excess liability insurance in FY 10-11 as a result of increases in Tort Claims limits by the legislature. ◦ Due to higher litigation, Risk Fund began paying for one attorney in County Counsel office beginning July 1, 2012 Benefits Fund ◦ Health, Dental, PERS, Deferred Comp, all employer taxes Retiree Benefit Fund Retiree Medical insurance benefit (no longer given to new EEs) Unemployment Reserve. ◦ County is self-insured and receives quarterly bill. Anticipated that majority of reserve ($1 million) will be spent with FY 12-13 layoffs. Rate may increase in FY 13-14.

9. General Fund Revenue & expenses required to meet Countywide operating requirements within the General Fund. ◦ REVENUE  Property Tax Revenue  Cigarette, Liquor, Car Rental and Amusement taxes  Timber Payments from O&C Lands ◦ EXPENDITURES  Debt Service transfers  Legal ad expenses  Association Dues – separate attachment  Metro TV, etc Prudent Person and Service Stabilization reserve

10. General Fund General Fund Reserve Policy ◦ 5% Prudent Person – ‘emergency reserve’ ◦ 5% Economic Stabilization Reserve  Use of this reserve can be approved through budget process. Committee should consider trends:  Revenue growth below 2.5% annually  Unemployment rate in excess of 7% (March 2012=8.3%)  If used, should restore in 2 fiscal years.

11. General Fund Reserve History FY 12-13 General Fund Reserve is $6.8 million, or 10% of operating revenue.