Berks County

Proposed FY2007 Budget

County Commissioners MeetingNovember 16, 2006

Berks CountyFY2007 Budget Presentation

• Budget Schedule

• Fiscal Condition and Budget Projections

• Budget: Highlights and Service Initiatives

• Budget Summary

Berks CountyProposed FY07 Budget

Budget Schedule

• November 16, 2006 Present Proposed FY07 Budget

• December 19, 2006 Adopt Final FY07 Budget

• Public Review– County Commissioners’ Office

– Budget Office

– County Website www.co.berks.pa.us

Berks CountyProposed FY07 Budget

Bottom Line

• The budget utilizes the existing tax rate

• The budget is balanced, expenditures match revenues, so we are not deficit spending and as a result,

• No fund balance is used to balance the budget

2007 BUDGET SUMMARY EXCLUDING CAPITAL PROJECTS FUND

All Funds

Total Revenue $436,269,103

Total Expenses $429,548,316

Excess Revenue over Expenses $6,720,787

General Fund

Total Revenue $203,544,489

Total Expenses $184,833,316

Excess Revenue over Expenses $18,711,173

Berks CountyProposed FY07 Budget

Current Fiscal Conditions

• Budget challenges continue– Assessed value growth

– Federal and State budget cuts

– Growth in revenue; few options for generating revenue

– We have identified efficiencies, made cuts, reallocated resources, etc. but more needed

• Future Projections– Budget Forecast FY07 thru FY10

Berks CountyProposed FY07 Budget

Personnel/Staffing

• Voluntary Severance was

very successful in cost avoidance

• Self Insured Health Coverage was also successful – reserve established

• Short Term/Long Term Disability

• Pension Obligation

• New Positions – 37 FTE’s

Berks CountyProposed FY07 Budget

Initiatives

• Community Corrections

• Ag Land Preservation & Open Space

• Accounting Software

• Reserve Center

• Use of Former Berks Heim Facility– Archives

– Veterans’ Affairs

Berks CountyProposed FY07 Budget

Initiatives

• Berks Heim– 2007 Balanced Budget– Efficient Operation– Business Plan

• Practices already in place

• Changes in Rate Structure

Berks CountyProposed FY07 Budget

Capital Projects

• Prison Expansion• Community

Corrections• Voice over IP• Accounting Software• Courts – Audio

upgrades, digital recorders

• Parks & Recreation– Connector Trail for

Union Canal

– Haycreek Trail

– Stonecliff Recreation Area

– Restoration of Gruber Wagon Works

– Antietam Lake

Berks CountyProposed FY07 Budget

• Proposed Designations of Fund Balance

– Additional $2M Self Insured Health ($4M Total)

– $4M for 2008 Capital

– $2.7 of Tipping Fees for Solid Waste and Recycling

Budget Process Successes

• Level of analysis

• Zero based budgeting concept

• Departments explain twice as much on twice as many line items

• Communication between all fiscal departments

• Budget Office/Purchasing work hand in hand– Professional Fees, Contracts, Supplies, Equipment, etc

– Departments work off of actuals rather than budget

Future Challenge: continue to develop good data, departments understand analysis and cause and effect of revenue and spending patterns

Financial Overview

TAX OVERVIEW

2006 2007 % Change

Millage Rate 6.935 6.935 0%

Assessed Value 17,366,539,400 17,847,725,700 2.77%

Tax Revenue

Property Tax -General Use $115,054,661 $118,289,786 2.81%Interims $570,501 $585,000 2.54%Tax Claim $3,500,000 $3,500,000 0.00%

Total Tax Revenue $119,125,162 $122,374,786 2.73%

Note: Tax Revenue is net of discounts and uncollectibles of 4.6%.

BUDGET SUMMARY EXCLUDING CAPITAL PROJECTS FUND

All Funds 2006 2007 % Change

Total Revenue $403,337,998 $436,269,103 8.16%

Total Expenses $397,526,202 $429,548,316 8.06%

Excess Revenue over Expenses $5,811,796 $6,720,787 15.64%

General Fund 2006 2007 % Change

Total Revenue $193,787,485 $203,544,489 5.03%

Total Expenses $175,254,115 $184,833,316 5.47%

Excess Revenue over Expenses $18,533,370 $18,711,173 0.96%

Personnel Trend Chart

$118M $130.7M $124.1M $126M

2626

2572

2554

2529

$110,000,000

$112,000,000

$114,000,000

$116,000,000

$118,000,000

$120,000,000

$122,000,000

$124,000,000

$126,000,000

$128,000,000

$130,000,000

$132,000,000

2004 2005 2006 2007Year

Do

llar

s

2480

2500

2520

2540

2560

2580

2600

2620

2640

Hea

dco

un

t

Total Comp FTE's

2007 New Positions

Department FTE'sTotal Comp

Clerk of Courts - Office Support 2 68,297$ Temp 12.31.07

Prison Community Corrections 13 758,847$ Qtr Year- Start 10.1.

Prison Transition Team 5 235,553$ Expansion

Prison-Co's 8 409,635$ Under Staffed

Courts-Supervised Visitation-OS 1 51,256$ 2 Part Time Temp to 8.31.07

Court -MDJ -OS 1 37,291$ Part Time only Higher Volume

CYS Kinship Unit-CW's 6 281,589$ Temps Start 7.1.06 Contingent

Commissioner - Ag Coordinator 1 85,092$ Economic Development

Total Full Year impact 37 1,927,560$

Less: 3 Quarters CCC (569,135)$ Less: Half year CYS Kinship (140,795)$

2007 Budget Impact 1,217,630$

2007 Capital Plan

Plan Total $41.9M

Software, $2.1M

Building Equipment,

$500K Intangibles- Easements,

$8M

Park Improvements,

$5.9M

Equipment, $2M

911 Infrastructure,

$1.4M

Building Improvements,

$22M

2007 CAPITAL PROJECTS Fund

Revenue $15M

Expenditures $38M

Recap: Prison Upgrade & Expansion $15.5M Community Corrections $3.8M Other Projects $4.7M Ag Land Easements $8MTotal Capital Assets $32M Open Space Allocations $6MTotal Capital Projects $38M

Revenue represents proceeds from new borrowing for Agland Preservation and Open Space. Target borrowing $36M over 3 years.

Expenditures represent consumption of existing proceeds from1998,1999, 2002 Bond Issues, AgLand Pres Open Space Line of Creditand Health Choices Funds

2007 Revenue by Source

Interfund Transfers6%-$26M

Other Revenue8%-$37M

Real Estate Taxes

27%-$122M Departmental Earnings

14%-$64M

Grants45%-$202M

2007 Expenditures by Function

Cultural/Rec3% ($14M)

Community & Economic Dev

2% ($7M)

Human Services42% ($195M)

General6%-($30M)

Public Works0%-($2M)

Judicial9%-($43M)

Miscellaneous2% ($11M)

Capital Projects8% -($38M)

9111%-($7M) Debt Service

5%-($22M)

Not for Profits1%-($4M)

Youth Det Ctr3%-($12M) Berks Heim

7%-($32M)

Public Safety11%-($50M)

GENERAL FUND BALANCE OVERVIEW

2006 2007Total Fund Balance 79,943,929$ 89,511,835$

Reservations-Cumulative Losses:Berks Heim (9,510,754)$ (8,837,386)$ Youth Detention Center (3,258,264)$ (6,674,239)$ Other Reservations:Worker Comp Trust Fund (2,581,548)$ (2,981,548)$ Hazmat, Encumbrances and Other (1,892,180)$ (1,863,956)$

Designations:Self Insured Health Fund (2,000,000)$ (4,000,000)$ ($2M Additional)Environmental Litigation Fund (875,007)$ (875,007)$ Solid Waste/Recycling Fund -$ (2,739,487)$ (New)Capital Projects - 2008 -$ (4,000,000)$ (New)

Total Unreserved Fund Balance 59,826,176$ 57,540,212$

2007 Consumption of Taxes By Function

Debt Service 18% -$22MHuman Services

8%-$10M

Berks Heim -1% -($2M)

Youth Det Ctr 2%-$3M

Culture/Rec. 4%-$5M

Public Works -2%-($3M)

Public Safety 31%-$38M

Comm - Econ.Dev 1%-$2M

General Govt. 4%-$5M

Not for Profits 3%-$4M

Misc 5%-$5M

9111%-$1M

Judicial 26%-$32M

Tax Consumption Comparison by Function

-50

51015

202530

3540

Mill

ion

s

Do

llars

2006 2007

2007 2008 2009

Total Revenue 436,269,103$ 434,531,551$ 438,024,924$

Total Expense 429,548,316$ 445,769,264$ 463,003,010$

Net Surplus/(Deficit) 6,720,787$ (11,237,713)$ (24,978,086)$

Use of Fund Balance -$ 11,237,713$ 24,978,085$

Incremental Mils 0 .475Mil 1.095Mil

Includes Debt Service for 2007 through 2009 related to Agland Preservation / Open Space borrowing $36M.

Includes Debt Service for 911 Infrastructure upgrade and relocation 911/EMA Center $50.3M borrowing/Interest Only 2008-2010

Include Prison Expansion / Community Corrections operating costs for 360 inmates in 2008 and 2009 = $8M - 2008, $8.5M - 2009.

Assumes Union contract renewals are no higher than 2007 rates.

3 YEAR FINANCIAL FORECAST

General Fund Balance Projection-Unreserved

2008 2009

Balance @ January 1st - Unreserved $57,540,212 $45,129,384

Changes in Reservations and DesignationsIncrease in Worker Comp Trust Fund ($400,000) ($400,000)Increase Tipping Fee Reserve for Solid waste ($2,700,000) ($2,700,000)Enterprise Fund Adjustments:Berks Heim ($1,331,000) ($1,331,000)YDC ($425,697) ($425,697)Communications-911 ($316,418) ($316,418)Use of 2007 Capital Designation $4,000,000 $0 Projected Surplus or (Deficit) ($11,237,713) ($24,978,085)

Unreserved Fund Balance (Deficit) @ December 31st $45,129,384 $14,978,184

Note: Assumes no headcount is added in 2008 or 2009.Note: Enterprise Fund adjustments represent depreciation of assets net of new capital asset purchases which are capitalized and depreciated.

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