County Budget Planning workshop · 16/06/2020 · 2021 BUDGET WORKSHOP COUNTY BUDGET PLANNING...

Efficient, Effective, Responsive

County Budget PlanCOUNTY BOARD

2021 BUDGET WORKSHOP COUNTY BUDGET PLANNING WORKSHOP ning workshopJune 16, 2020

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Efficient, Effective, ResponsiveDiscussion Items

• 2019 Financial Year Review

• 2020 Budget & Financial Performance

– COVID-19 Impacts

– 2020 Year-end Projections

• 2021 Budget Pressures & Opportunities

• 2021 Financial Planning Environment

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2019 Financial Year Review

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Beginning Fund Balance $ 310.4 $ 341.3

Total Revenues 357.5 365.6

Expenditures:

Current 314.9 330.4

Capital Projects and Equipment 12.3 17.1

Debt service - -

Total Expenditures 327.2 347.5

Other Financing Sources (uses) 0.6 (5.8)

Non-spendable, Restricted,

Committed or Assigned 217.0 239.4

Unassigned 124.3 114.2

Ending Fund Balance $ 341.3 $ 353.6

Net Change in Fund Balance $ 30.7 $ 12.7

Audited

12/31/2018

Unaudited

12/31/2019

Fund Balance Summary(in millions)


General Fund – Fund Balance History

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Change in General Fund balance: Actual vs. Planned

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**Actuals may not include audit entries


ELF – Fund Balance History

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Transportation/Transportation Sales Tax – Fund Balance History

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2020 Budget & Financial Performance

– COVID-19 Impacts

– 2020 Year-end Projections


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Dakota County COVID-19 Impacts –Total Projected Impact

YTD Actuals

Forecast for

Remainder of Year Total YE Forecast

Total Budgeted Spending Diverted to COVID-19 5,805,152 16,397,521 22,202,673

Total Unbudgeted COVID-19 Spending 671,609 3,968,763 4,640,372

Total Budgeted and Unbudgeted COVID-19 Spending 6,476,761 20,366,284 26,843,045

Total Projected Revenue Shortfalls Due to COVID-19 5,879,000

Total Projected Dakota County COVID-19 Impact 32,722,045

Data as of 6/11/20

** Sheriff and Public Health revenues are net of State, Federal, and other Intergovernmental revenues that offset

personnel costs


COVID-19 Related Grants

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Grant Description (Grants - Awarded, Applied for, or

Considering Applying for)

Awarding

Entity Awarded Applied For TotalCOVID-19 Response Grant State 393,362$ 393,362$

Community Development Block Grant - COVID Funds Federal 1,134,381$ 1,134,381$

Emergency Solutions Grant (ESG) Federal 571,921$ 571,921$

Pohlad - COVID Homeless Prevention Grant Other 99,900$ 99,900$

FHPAP State 20,250$ 20,250$

Emergency Services Program (ESP, in Housing) State 83,130$ 83,130$

Emergency Preparedness Management Grant - Supplement State 89,265$ 89,265$

FY 2020 Coronavirus Emergency Supplemental Funding Program (BJA) Federal 58,008$ 58,008$

FEMA Public Assistance Grant Federal -$

FEMA Individual Assisstaance Grant Federal -$

CARES Act Federal -$

Totals 2,199,564$ 250,653$ 2,450,217$


Year-End Projections - Operations

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Total Operating Budget Year-End Projections by Major Categories

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Object Category Actuals

Amended

Forecast

Forecast % of

Budget Budget Variance

Property Taxes 33.4$ 140.4 100% 140.4 -

Charges for Services/Other 16.1$ 43.4 95% 45.7 (2.3)

Licenses & Permits 1.1$ 1.4 100% 1.4 -

Federal Revenue 8.9$ 33.1 97% 34.3 (1.2)

State Revenue 12.5$ 50.9 100% 51.1 (0.2)

Other Intergovernmental Rev 1.5$ 5.7 95% 6.0 (0.3)

Other Financing Sources 0.0$ 0.1 100% 0.1 -

Revenue 73.5$ 275.0 99% 279.0 (4.0)

Salaries/Benefits 75.2$ 187.9 94% 198.9 11.0

Dept/County Support 10.3$ 24.2 101% 24.0 (0.2)

Travel/Training 0.4$ 1.5 71% 2.1 0.6

Office Support 0.9$ 2.3 88% 2.6 0.3

Materials/Supplies 1.3$ 2.3 92% 2.5 0.2

Citizen/Client Related Service 14.0$ 48.5 97% 50.2 1.7

Interdepartmental (1.3)$ (9.0) 98% (9.2) (0.2)

Capital, Debt, Other Financing 2.6$ 7.9 100% 7.9 -

Expense 103.4$ 265.6 95% 279.0 13.4

Projected Contribution to Fund Balance (29.9)$ 9.4$ -$ 9.4$

in millions

Dakota County

Projection Summary - As of May 2020


Significant Variances $100K or Greater – Revenues

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Department Description Budget YE Projection Variance COVID Related

Public Health Public Health Family Health Promotions Fees 491,455 340,130 (151,325) Yes

Environmental Resources Host Fees 7,015,000 8,509,845 1,494,845

Corrections Juv Detention Beds 908,000 582,678 (325,322) Yes

Non-Departmental Interest on Investments 8,266,000 6,266,000 (2,000,000) Yes

Social Services Social Services - Waivers 2,380,000 1,479,262 (900,738)

Library Library Fines 400,000 174,564 (225,436) Yes

Parks Park Rentals Fees 1,063,374 816,000 (247,374) Yes

Byllesby Dam Byllesby Dam Sale of Energy 260,000 691,172 431,172

EEA EEA - Federal FFP Revenue 14,647,696 13,563,872 (1,083,824)

Social Services Social Sevice SSTS & MNChoice Revenues (State) 3,664,389 4,100,000 435,611

Sheriff School Liason 568,310 378,873 (189,437) Yes

39,664,224 36,902,396 (2,761,828)


Significant Variances $100K or Greater – Expenses

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Department Description Budget YE Projection Variance COVID Related

Facilities Mgmt Building Utilities (Electricity, Natural Gas,

Water/Sewer) 2,047,692 1,894,951 152,741

Facilities Mgmt Facilities Contracted Services and Public Facility

Upkeep 1,023,557 923,281 100,276 Yes

Non-Departmental Managed Print Services 299,143 160,043 139,100 Yes

Fleet Fleet - Gasoline 600,345 546,413 163,119 Yes

Risk Mgmt Risk Insurance Accounts (Net) 1,424,810 1,712,389 (287,579)

Information Technology IT Consulting 344,409 516,906 (172,497)

Sheriff Inmate Medical/Dental Care & Boarding 1,583,042 1,079,077 503,965 Yes

Environmental Resources Business Recycling Program 484,500 342,051 142,449

Social Services Direct Employment Services 217,664 30,000 187,664 Yes

Social Services CD Treatment 918,000 310,016 607,984 Yes

Social Services Detoxification 694,620 400,000 294,620 Yes

Social Services Reg Trmt Center (RTC) 1,707,000 1,810,932 (103,932) No

Social Services MH Community Living 509,475 260,000 249,475 Yes

Social Services County Adults 153,000 31,890 121,110

Social Services Employment DT&H 925,000 1,105,036 (180,036) No

Social Services Nursing Home 318,500 100,000 218,500 Yes

Corrections Juv Placement Residential 933,442 444,108 489,334 Yes

14,184,199 11,667,093 2,626,293


2021 Budget Pressures & Opportunities

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Countywide• Overall Uncertainty

– Pace of pandemic

– Pace of economic recovery

• Current planning assumes continued economic stress into 2021

– State and Federal funding

– Personnel costs 2021 and beyond

• Understanding and Adjusting to Long-Term Changes

– Supporting a remote workforce

• Technology

• Equipment

– Adjusting County workspaces to new environment

• CARES Act

– How to utilize 2020 reimbursement savings (that will fall to fund

balance) in 2021 and future budgets 16


Administration

• Agenda Management Software Replacement

• Begin transition to new website planning

• Provide support for an increasingly virtual workforce

– Providing resources and service

– Administration of policy and practices

– Supporting engagement, culture and communication

• Negotiate Collective Bargaining Agreements

– 13 Collective Bargaining Agreements, all expire at the end of

2020

• Increase automation of HR transactions to manage limited staff

resources against increasing organizational demand

– New employee On-Boarding

– Investigation and Grievance Tracking

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Operations, Management, and Budget (OMB)

• Replacement of enterprise financial/employee relations

application (OneSolution)

• Technology & ergonomic resources for teleworking

• Host server hardware replacement

• Pressures of hiring freeze

• Economic recovery

• County-wide space analysis

• Revenue/expenditure uncertainty

• Duration of COVID-19 and its aftereffects

• Increasing cyber security threat environment

• Increasing costs for insurance (property, auto and cyber

security)18


2021 County Attorney’s Office

• Ability to maintain same level of services

– Attorney vacancy in the Criminal Division

– Attorney vacancy in the Civil Division (Sept.)

– Legal Administrative Assistant vacancy in the Child Support

Division (Aug.)

– Potential loss of VAWA grant funding in 2021 for 2 victim witness

specialist positions (current grant expires 09/30/21)

• Demands associated with transfer, retention and disclosure of

electronic data

– Cellphones/Computers

– Body Worn Camera Video and Squad Video

• Long-term operational needs exist in the case management system,

as well as the ability to create specialized reports22

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Public Service and Revenue

• Staffing needs overall

– Workload pressures from hiring freeze

• Impacts on staff and customers

– Greater technology and ergonomic resources for continued

telework

• Assessing Services – Appropriate staffing levels to address climbing

appeals and multi-year backlog of reassessment mandate

• Service and License Centers – Extended backlogs for license

services and shift of RealID deadline to 2021

• Historical Society – Building Renovation Needs

22 20


Community Services

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Increased Service Demands

• Child Support

• Public assistance

• CareerForce Services

• Housing

• Child Protection

• Etc..

Funding Changes

• PH medical billing & immunization clinics

• JSC bed revenue

• CCA subsidy

• Rule 185 case mgmt. costs

• Family First Prevention Svcs Act funding

• Social Services program revenue

Staffing/Infrastructure Pressures

• Data management

• Technology tools & staff support

• Race equity work

• Community & partner engagement

• Employee safety & wellbeing

• Disability services administrative pressures

Innovation Priorities

• Pathways to Prosperity & Wellbeing

• Coordinated Response Pilot

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County Sheriff’s Office

• Discussion and implementation of potential local and national police

reform strategies

• Evidence Property Room Technician funding

• Electronic Crimes Unit domestic violence grant for 1.0 FTE expires

October 2021

• Staff funding pressures and needs– Patrol OPA study and Jail DOC

staffing study

• Support mental health and wellness of employees

• Crime evolution – technology

• Replacement of Jail Management System –RFP in 2020

• Mobile booking capability

• Jail physical needs assessment – medical and mental health unit,

short term female unit, social services workspace

• Expansion of body-worn-cameras22

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Physical Development

• Capital Projects:

– Impacts of State and Federal funding of projects on CIP

– Uncertain bidding climate and delays in availability or delivery of

supplies, equipment, vehicles and contracted labor

– Re-evaluation of workspace design standards due to increased

telework and client interactions

• General Concerns:

– Changes in dedicated revenues; i.e. CSAH, Sales and Use Tax,

Host Fees, State grants

– Funding availability to implement County Board approved capital,

strategic and master plans

– Capacity to deliver projects, programs and services with reduced

staffing

– Capacity to maintain parks and trails due to increased use23


2021 Financial Planning Environment

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Levy History

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2021 Preliminary Budget Assumptions

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Millions

Total % of Levy

2020 Levy (Operations & CIP) 144.61$

Change:

Salary/Benefits $3.68 to $7.36

Non-Personnel Costs 0.40$

Total Estimated Change $4.08 to $7.76 2.8% to 5.4%

Total Estimated Inflation Adjusted Current Level $148.69 to $152.37


Budget Scenario Presented to the County Board – November 2017

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2018 2019 2020 2021 2022

Available Levy Management Account (LMA) 11.67 7.44 4.10 0.53 0.00

Overall Planning Base Inflation Adjustment (3.1%/yr) 139.56 143.70 147.85 152.06 160.42

Departmental Budget Right Sizing Adjustments (0.30) (0.20) (0.10) - -

New Non-Levy Revenues (1.35) (1.41) (1.45) (1.48) (1.56)

Adjusted Net Levy Costs 137.91 142.09 146.30 150.58 158.86

Total New Requests (Levy only) 3.54 3.72 3.90 4.10 4.30

Additional County Resources 1.20

Assumes Funding Half of Requests 1.77 1.86 1.95 2.05 2.15

Total Requested Levy 140.88 143.95 148.25 152.63 161.01

Total Requested Levy (% increase) 6.1% 5.3% 5.4% 5.5% 5.5%

Less: Use of LMA (Total used through 2020 $16.53M) (4.23) (3.34) (3.57) - -

Total Adjusted Levy 136.65 140.61 144.68 152.63 161.01

Total Adjusted Levy (% increase) 2.9% 2.9% 2.9% 5.5% 5.5%

2018 Levy increase: 2.9%

(in millions)


Potential Strategies to Manage the 2021 Budget

• CARES Funding

– Use for One-time uses for COVID-19 related

items

• Reallocate existing levies

• Use of Levy Management Account ($6

million available)

• Hold or Eliminate Vacant Positions

• Tax levy

• Find other way to increase revenues or

decrease expenses over the long-term 28


CARES Funding Strategy

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$$$

Use of FB – CARES

Spending

• Limited Term Position Funding

• Partial Mileage/Travel Funding

• One-time COVID Expenses

Revenues

• Short-Term Revenue Loss

Use of FB – CARES Replacement

Revenues Strategy

• Increasing Current Revenues

• New Revenues (new grants, levy, other)

Spending Strategy

• Elimination of One-time COVID Expenses

• Elimination of CARES FB Funded Vacancies

• Elimination of CARES FB Funded Mileage/Training

Total Offset of Use of FB (CARES)

Over 3 Years


Levy and Household Growth

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Budget Development Process

• June 16 – County Board Budget Workshop #1

• July 14 - GGP COVID/Year-End Forecast Update

• August 18 - County Board Budget Workshop #2

• September 1 - GGP Budget Update

• September 22 - County Board Adoption of maximum levy

• November 3-6 – County Board Budget Hearings

• December 1 – CIP Public Hearings

• December 1 – County Board Budget Public Hearing

(“Truth-In-Taxation”)

• December 15 – County Board Adoption of 2021 Budget

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THANK YOU!

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County Budget Planning workshop · 16/06/2020 · 2021 BUDGET WORKSHOP COUNTY BUDGET PLANNING...

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Transcript of County Budget Planning workshop · 16/06/2020 · 2021 BUDGET WORKSHOP COUNTY BUDGET PLANNING...