Bexar County
Budget Department
Spring 2012
FY 2011-12
Budget Update
FY 2011-12 Budget Plan
2
The FY 2011-12 Adopted Budget targeted cuts needed to
balance budget through the forecast period, while
maintaining County capacity for service delivery and
employee compensation, which included:
 $2 M (annualized) mid-year savings from May Freeze
 $5 M from Attrition/Vacancy Program
 $5 M from targeted cuts in FY 2011-12 Budget
 $5 M for Return on Investment (ROI) from use of
Technology to be identified in FY 2012-13 Budget
FY 2011-12 Original Forecast
3
$410
Salary and
Benefit
Adjustments
$400
Millions
$390
Health
Insurance
Transfer
$380
$370
Service
Delivery Plan
$360
$350
$340
Baseline
Funds
Needed
$330
$320
Current
Funds
Available
$310
$300
08-09
09-10
10-11
11-12
12-13
13-14
14-15
15-16
Submitted Department Plans
4
Cost Savings
CMAG - District Clerk
Criminal District Attorney
Criminal District Courts
County Clerk
District Clerk
Economic Development
Judge/Commissioners
Justice of the Peace - Precinct 1
Justice of the Peace - Precinct 1, Place 3
Justice of the Peace - Precinct 2
Juvenile
Purchasing
($60,459)
($821,202)
($91,465)
($260,863)
($316,070)
($100,001)
($25,951)
($12,375)
($19,842)
($22,435)
($1,100,000)
($40,974)
Submitted Department Plans
5
County Manager
Community Resources
Information Technology
Infrastructure Services
Appellate Public Defender's Office
Budget
Human Resources
Judicial Support Services
Total County Manager’s Cuts
($426,216)
($938,513)
($571,024)
($124,578)
($49,522)
($214,660)
($183,962)
($2,508,475)
Departments on the Attrition Plan
6
Amount Needed
Constable Pct. 2
$51,895
County Auditor
County Courts at Law
$84,894
$110,466
Juvenile Courts
$47,994
Probate Courts
$39,277
Technology Savings
7
• Technology Efficiencies and Innovations:
•
Lawson Implementation
$642,477
•
Automation of County Clerk processes
$191,275
•
Re-negotiation of communication contracts
$344,986
•
Interactive Foreclosure Maps
$238,252
•
BCIT is working to realize additional savings toward the
$5M goal.
Targeted Cuts
8
• An additional $5 million in savings through
targeted
programmatic
reductions
were
identified by the Budget Department. These
savings were realized through Jail Staffing,
reduction of Court Appointed Attorney Fees in
the County and Civil Courts, reductions in
Juvenile Detention costs, and recurring
revenues.
Revised Forecast Assumptions
9
 House Bill 1038: appraisers taking into
consideration surrounding properties to include
foreclosures
 Community Housing Development Organizations
lawsuit - County will LOSE approximately $1
million per year in Ad Valorem
 Based on preliminary tax rolls, ad valorem
revenues for FY 2012-13 are less than the Fall
Projection
Revised Forecast Assumptions
10
Result: this forecast lowers projected property
tax revenue growth from previous forecasts:




Current
(1.6%) in FY 2012-13
1% in FY 2013-14
2% in FY 2014-15
3% through FY 2016
Previous
1.0%
2.0%
3.0%
3.0%
Dollar Decrease
$ 4,962,392
$ 7,394,495
$ 9,972,513
$ 10,271,689
Revised Forecast Without
Strategic Issues
11
FY 2010-11
Actual
FY 2011-12
Estimate
FY 2012-13
Projection
Beginning
Balance
54,710,249
61,003,379
61,269,150
Revenues
324,929,328
328,057,898
317,277,019*
Available Funds
380,073,960
389,061,277
378,546,169
Expenditures
319,070,581
327,792,127
328,089,135
Fund Balance
61,003,379
61,269,150
50,457,034
General Fund
*Original Projection for FY 2012-13 Revenues was $320,895,305, a
difference of $3,618,286.
Revised Forecast Without
Strategic Issues
12
$405
$390
Baseline
Funds
Needed
Millions
$375
$360
$345
Available
Funds
$330
$315
$300
08-09
09-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
Revised Long Range Forecast
13
Strategic Issues
Detention Update
15
Avergae Daily Population for the Month
Jail Population Trends and Projections*
4,700
4,600
4,500
4,400
4,300
4,200
4,100
4,000
3,900
3,800
3,700
3,600
3,500
3,400
Peak FY
2012
2011
Last FY
2009
This FY
Month
* Total Population - includes Housed out of Facility and Sheriff's Department Electronic Leg Monitor (ELM) Work Release inmates
Service Delivery Plan
16
• Planning tool for use in preparing for
increased service demand as a result of:
• Increases in overall Bexar County population
• Increased population in unincorporated area
• A more urban-like and developed
unincorporated area
Service Delivery Plan
17
• Used annual growth rate in the 2000s to project
the growth through 2017 using 2010 population
as the baseline
Decade
1960-1969
1970-1979
1980-1989
1990-1999
2000-2009
2010-2019
Annual Percentage
Population Increase
2.09 %
1.91 %
1.99 %
1.75 %
2.10 %
2.10 %
Service Delivery Plan
18
• Bexar County’s population projected to
increase by 13.3 percent through 2017
• Increase of 268,000 citizens
• Estimated Bexar County population in
2017 of 1.9 million citizens
Service Delivery Plan
19
• If cost-effective service delivery
methods aren’t identified, the cost of
serving our growing County population
could be $19.2 million over the next five
years.
• This does not include “City Like”
Services
Service Delivery Plan
20
•
If “City Like” Services were in the unincorporated
area of Bexar County:
•
Tax rate increase of $1.2251 per $100 valuation
•
Would bring total tax rate up to $1.552 per $100
valuation
•
Constitutional Limit of $0.80 per $100 valuation
•
There is an RFP out to develop options for citizens
in the unincorporated area to acquire more “City
Like” Services, as needed.
Service Delivery Plan
21
• County will need to change our way of
delivering services:
•
E-gov, technology, automation
•
More efficient business processes
•
More cost-effective staffing models
•
Proactive service delivery planning program
•
Focus on Core Service Delivery
Employee Compensation
22
 Going forward, the County will need to
identify ways to fund Cost of Living
Adjustments to keep up with future inflation
growth and maintain market
competitiveness with other employers
 FYI: 1% salary increase for all County
employees = $2,133,453
Employee Compensation
23
 74% of County Operating Revenue is provided
by property taxes
 Employee salaries and benefits account for 70%
of County Operating Expenses
Employee Healthcare
24
 Medical inflation trends are expected to be 9% per
year over the forecast period

Segal Company: 9.6%
source: 2012 Segal Health Plan Cost Trend Survey

Aon Hewitt: 9.9%
source: 2011 Healthcare Trend Survey

Towers Watson: 7%
source: 2011 Annual Towers Watson/National Business Group on
Health Employer Survey
Healthcare Five Year Forecast
25
Healthcare
$70,000,000
$64,467,010
$65,000,000
$60,000,000
$59,144,046
$55,000,000
$54,260,592
$50,000,000
$49,780,360
$45,670,055
$45,000,000
$40,000,000
$41,899,133
$35,000,000
FY 11-12
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
Employee Healthcare
26
Claims Group
(total 2011 claims)
% Claimants
% Costs
8.4%
53.9%
$5,000 $9,999
8.2%
15.2%
$2,500 – $4,999
12.2%
12.9%
$1,000 - $2,499
17.8%
10.2%
$0 - $999
53.4%
7.8%
$10,000+
Employee Healthcare
27
County Contribution
$28,359,303
Employee/Retiree Contribution
$10,088,519
Total Contributions
$38,447,822
Total Contributions
$38,447,822
Total Expenditures
$41,410,516
Medical Plan Shortfall *
$2,962,694
* Medical Plan shortfall based on current premium equivalent levels
Employee Healthcare
28
• We have used one-time money for the past two
years
• Healthcare Changes:
•
County and employees pay more for same coverage
•
Reduce benefits to better match current
contributions
•
Decrease costs through healthy lifestyle, preventive
care, plan incentives
• RFP Medical Insurance Provider
Employee Healthcare
29
• Employee Health Clinic
• Clinic Visits
•
•
•
FY 2010-11
FY 2011-12 Estimate
3,236
4,300
Types of services provided
•
•
•
•
Pre-employment physicals
Medical care for minor injuries or illness
Preventive Health Screenings
Wellness Programs
Strategic Issues Summary
30
• Service Delivery Plan
• Providing services to growing population
• Employee Compensation
• Maintain market competitiveness
• Cost of Living Adjustments
• Employee Healthcare
• Rising healthcare costs
• RFP for medical insurance provider
• Complete BCIT Cost Savings Plan for inclusion
in the Budget.
LRFF Summary
LRFF Summary
32
• Economic recovery has not yet resulted in
increased revenue for the County
• Offices and Departments will need help
identifying funding for new programs
• Prioritize new funding requests for one-time
expenditures demonstrating reduction in future
staffing needs (Increased productivity)
• County still has to address strategic issues
including healthcare
LRFF Summary
33
 The Proposed
Budget will
address the
shortfall by:
 Refining
Revenue
Projections
 Continuing
to identify
operational
efficiencies
Budget Calendar
34
Budget Submissions Due
May 25
Certified Tax Roll Received
July 25
Proposed Budget
Work Sessions
Adopted Budget
August 21
August 23 & 28,
September 5
September 11