1. County of San Joaquin Board of Supervisors Multiyear Budget Outlook 2011-12 to 2014-15 April 5, 2011 1

2. 2 Today’s Presentation 1.2010-11 County Budget Summary 2.Multiyear Budget Outlook  2011-12 to 2014-15 3.Review of Reserve & Capital Funds 4.2007-08 & 2010-11 Staffing Levels

3. 3 2010-11 Adopted Budget – $1.214B  L&J, Health & Human Svcs = 81.7%  Federal/state funds = 53.0%

4. 4 2010-11 Adopted Budget – $1.214B

5. 5 2010-11 Adopted Budget Net County Cost – $223.5 Million 11.5% 10.5%

6. 6 2010-11 Adopted Budget General Purpose Revenues - $223.5 Million

7. Multiyear Budget Outlook 2011-12 – 2014-15 7

8. 8 2010-11 Adopted Budget 11.5% 10.5%

9.  Existing MOUs 9 Multiyear Budget Outlook Salary Adjustments Bargaining Unit/ Employee Organization MOU Expires Full Time Allocated Percent of Total SEIU6/30/113,79471.1% Middle Management6/30/111933.6% Peace Officer Misc6/30/11170.3% Nurses12/31/113576.7% Attorneys6/30/121122.1% Correctional Officers6/30/122314.3% Probation Officers6/30/121162.2% Deputy Sheriffs6/30/152414.5% Law Enforcement Mgmt6/30/15200.4% Sergeants6/30/15380.7% UnrepresentedNA2174.1% Total Positions5,336100.0%

10. 10 Multiyear Budget Outlook Retirement - Employer Contributions  7.5% annual rate increase  Current benefit formula & cost share

11. 11 Multiyear Budget Outlook Health Insurance Premiums 2009-10 Adopted 2010-11 Adopted 2011-12 Prelim 3-Year Total Self-funded health plans Annual premium increase13.9%15.0%15.4%44.3% Prior year’s carryover13.9% Increase implemented0.0%15.0%25.0%40.0% Use of excess reserve$5.4 M$5.6 M$1.8 M$12.8 M Excess reserve balance (6/30/2012) $1.4 M Enrollment2,7302,517 Fully-insured health plan Premium increase.0%7.4%5.0%12.4% Enrollment2,2012,115  12.5% annual rate increase  Current health plans & cost share

12. Multiyear Budget Outlook Labor Costs 12 2010-11 Adopted 2011-12 Prelim 2012-13 Prelim 2013-14 Prelim 2014-15 Prelim Salary$329.4 M$333.6 M$334.7 M$335.6 M$336.8 M Benefits Retirement$102.5 M$115.5 M$124.8 M$134.7 M$145.5 M Health/Dental/ Vision 66.8 M78.6 M88.0 M98.6 M110.6 M Other28.3 M29.4 M29.5 M 29.6 M Subtotal$197.6 M$223.5 M$242.3 M$262.8 M$285.7 M Total$527.0 M$557.1 M$577.0 M$598.4 M$622.5 M Annual Increase$30.1 M$19.9 M$21.4 M$24.1 M 4-Year Total$95.5 M NCC Increase$13.2 M$9.0 M$9.5 M$10.7 M 4-Year Total$42.4 M

13. 13 2010-11 Adopted Budget General Purpose Revenues - $223.5 Million General Purpose Revenues 2010-11 Budget % of Ongoing Sources Ongoing Sources Property Taxes$165.1 M84.7% Sales Taxes11.1 M5.7% Property Transfer Tax/Penalties6.1 M3.1% Redevelopment Pass Thru2.5 M1.3% Franchise Fees2.4 M1.2% Interest/TOT/State Subvention2.6 M1.3% Tobacco Settlement Fund5.1 M2.6% Subtotal – Ongoing Sources$194.9 M100.0% One-time Sources Capital Outlay Funds8.4 M Fund Balances20.2 M Total General Purpose Revenues$223.5 M

14.  Property taxes  2011-12 decline 3%  2012-13 decline 2%  2013-14 flat  2014-15 growth 2%  Sales taxes  General Purpose – 2% annual growth  Prop 172 & Realignment – 1.5% annual growth  Capital & reserve funds policies 14 Multiyear Budget Outlook General Purpose Revenues - Assumptions

15. 15 Multiyear Budget Outlook General Purpose Revenues 2010-11 Adopted 2011-12 Prelim 2012-13 Prelim 2013-14 Prelim 2014-15 Prelim Property Taxes$165.1M$161.9 M$158.6 M $161.8 M Sales Taxes11.1 M12.1 M12.4 M12.6 M12.9 M Others13.6 M13.7 M13.5 M 13.6 M Capital Funds13.5 M.0 M Fund Balances20.2 M10.2 M Total GPR$223.5 M$197.9 M$194.7 M$194.9 M$198.5 M Dedicated Sales Taxes Prop 17233.5 M37.1 M37.6 M38.2 M38.8 M Realignment-Social Svcs 24.5 M27.0 M27.4 M27.8 M28.2 M Grand Total$281.5 M$262.0 M$259.7 M$260.9 M$265.5 M Annual Changes($19.5 M)($2.3 M)$1.2 M$4.6 M 4-Year Total($16.0 M)

16. 16 Multiyear Budget Outlook Summary Increase /(Decrease) 2011-12 Prelim 2012-13 Prelim 2013-14 Prelim 2014-15 Prelim 4-Year Total GPR (incl Prop 172 & Realignment Sales Taxes) ($19.5 M)($2.3 M)$1.2 M$4.6 M($16.0 M) Net County Cost Labor Costs$13.2 M$9.0 M$9.5 M$10.7 M$42.4 M Elections2.4 M Public Asst FMAP3.2 M Misc Reductions(1.1 M) NCC Increase$17.7 M$9.0 M$9.5 M$10.7 M$46.9 M Projected Shortfall($37.2 M)($11.3 M)($8.3 M)($6.1 M)($62.9 M)

17. 17 Multiyear Budget Outlook Summary – Projected Budget Gap $62.9M

18. County Reserves & Capital Funds 18

19.  Working capital, cash flow, unforeseen midyear expenditures, & emergencies  General Reserve  $10.0M  Reserve for Contingencies  $19.1M or 1.6% of budget  Board-established goal – 5% of budget by 2020 19 Multiyear Budget Outlook Reserve Funds

20. Preliminary Budget Outlook Capital Improvement & Maintenance Funds 20 Construction/Renovation Projects Funded by General Fund 2010-11 Adopted Not Committed Contractually Justice Facilities$29,278 K$18,720 K Jail Expansion$23,758 K$13,434 K Juvenile Hall Expansion5,000 K Juvenile Justice Courtroom49 K--- Courthouse Remodeling471 K286 K Parks & Recreation Facilities$5,689 K$5,290 K Regional Park Improvements2,224 K2,204 K Micke Grove Zoo Improvements1,642 K1,569 K Micke Grove Fire Systems/Water Study286 K81 K Micke Grove Master Plan/Campsites74 K60 K Lockeford Community Center1,107 K1,020 K County Park Improvements290 K Oak Grove Park Irrigation66 K

21. Preliminary Budget Outlook Capital Improvement & Maintenance Funds 21 Construction/Renovation Projects Funded by General Fund 2010-11 Adopted Not Committed Contractually General Government$5,812 K$4,715 K Countywide Food Service Facilities$1,557 K$1,537 K South County Government Center698 K Public Health/Clinic Master Plan688 K165 K Canlis Building638 K626 K Administration Building606 K332 K Agricultural Center542 K395 K Environmental Health Relocation500 K Hazelton Complex Remodeling303 K281 K Former ORR/ROV Building149 K145 K Motor Pool Complex75 K--- Public Defender Remodeling56 K36 K Total$40,779 K$28,725 K

22. Preliminary Budget Outlook Capital Improvement & Maintenance Funds 22 Maintenance Projects Funded by General Fund 2010-11 Adopted Not Committed Contractually Justice Facilities Sheriff Facilities$930 K$406 K Probation/Juvenile Hall Facilities796 K452 K Parks & Recreation Facilities Park Pavement Maintenance248 K--- Boggs Tract Community Center HVAC50 K General Government Canlis Building Digital Controls802 K796 K Underground Fuel Tanks408 K156 K Record Center Roof Repair/Replac75 K70 K Public Works Sewer/HVAC58 K57 K ADA Building Upgrades54 K Total$3,421 K$2,041

23. 2011-12 Budget Planning 23

24. 1.Limit/suspend fixed assets purchases 2.Reduce County-issued cell phones 3.Restrict business-related travels 4.Adjust fees for cost-recovery 5.Defund capital improvement projects 6.Redirect reserve funds 7.Reinstate hiring freeze 24 Budgetary Actions/Strategies

25. 2011-12 Budget Planning  Suspend Board-established reserve & capital funding policies  Address half of 2011-12 deficit with one-time solutions  Use General Fund year-end balance  Redirect from Reserve for Contingencies  Identify mid- & long-term capital projects for possible de-funding  Explore labor cost saving opportunities/options 25

26. Staffing 2007-08 & 2010-11 26

27. 27 Staffing by Representation Units Adopted Budget: 2007-08 & 2010-11 Representation Unit 2007-08 % of Total2010-11 % of Total Elected/Executive390.6%400.7% Senior Management801.3%791.5% Mid Management2193.5%1933.6% LEMA/Sergeants631.0%581.1% Confidential1252.0%981.8% SEIU4,38770.9%3,79471.1% Nurses4226.8%3576.7% Deputy Sheriffs2724.4%2414.5% Correctional Officers 2724.4%2314.3% Attorneys1512.4%1122.1% Probation Officers1252.0%1162.2% Peace Officer Misc330.5%170.3% Total6,188100.0%5,336100.0% 370, 6.9% 4,966, 93.1% 401, 6.5% 5,787, 93.5%

28. 28 Staffing by Department Adopted Budget: 2007-08 & 2010-11 Department2007-082010-11 Department 2007-082010-11 Ag Commissioner5349Human Resources5242 Airport1211Human Services1,015950 Assessor-Recorder139127Info Systems7873 Auditor-Controller3526Labor Relations53 Board of Supervisors 1613Parks & Recreation4447 Child Support181175Probation322287 Comm Development8948Public Defender9771 County Administrator169Public Works426387 County Counsel18 Purchasing2621 District Attorney250189Registrar of Voters1916 Emergency Operations 1211Sheriff-Coroner847738 EEDD129116 Treasurer-Tax Collector 5554 Environmental Health 7062UC Coop53 Facilities Mgmt6450Veterans Services54 Health Care Services 2,1081,736Total6,1885,336

29. Questions? 29