County of Monterey
Recommended Budget
Fiscal Year 2013-14
County of Monterey | County Administrative Office | June 5, 2013
Historical Perspective
$620.0
Dollars in Millions
$610.2
$600.0
$591.1
$582.6
$580.0
$564.9
Expenditures
$560.0
$528.5
$540.0
$553.8
$541.0
$520.0
$507.9
$500.0
$489.8
$544.8
$535.3
$495.8
$480.0
$470.0
$460.0
$440.0
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
In response, the Board adopted
reductions totaling $25.7 million and 209
positions as part of its 2009-10 adopted
budget.
Over the next four years, the County
chipped away at its structural deficit,
cutting another 123 positions and reducing
General Fund Contributions (GFC) by
another $11.7 million, for a four year total
reduction of 332 positions and $37.4
million in GFC.
Revenues
$523.7
In the February 2009 Forecast, Monterey
County staff forecasted a general fund
structural deficit of $65.4 million to emerge
by 2011-12.
2011-12
Monterey County’s employees helped
minimize impacts of these reductions;
miscellaneous employees now contribute
3.5% of salary towards their retirement,
while safety employees pay an additional
4.5%.
2
REUTERS
Historical Perspective
Tue Mar 12, 2013 9:11am EDT
Moody’s cuts California’s Santa Clara County pension
obligation bond
(Reuters) - Moody’s Investors
Service said late on Monday
it cut California's Santa Clara
County pension obligation
bond (POB) rating to A1, from
Aa3.
The rating agency also
affirmed the county's Aa2
general obligation bond
rating and its outstanding
certificates of participation
and lease obligations rated
A1. The outlook is stable.
About $1.5 billion of longterm debt is affected by the
rating actions.
"The rating change reflects
Moody’s changed view of the
pledge supporting POBs versus
general obligation bonds," the
rating agency said in a
statement. "We believe this
pledge is relatively less secure
than our prior estimates, both in
terms of probability of default
and likely losses in the event of
default."
3
THE PRESS-ENTERPRISE
Historical Perspective
Ma rch 2 8, 2 012
RIVERSIDE COUNTY: Top administrator expects
196 layoffs
Riverside County’s top
administrator said Wednesday
that as many as 196 county
jobs may have to be eliminated
in the coming months because,
despite ongoing cuts, expenses
still outstrip revenue.
In the first of two days of
hearings on budget plans for
2012-13, county supervisors
heard that and other
unwelcome news, including the
possibility of cutbacks in fire
protection. The second hearing,
covering the Sheriff ’s
Department and district
attorney’s office, is scheduled
for 9 a.m. today in the board
chambers, 4080 Lemon St.,
Riverside.
Interim County Executive
Officer Larry Parrish said the
hearings are intended to
provide “an overview of a
strategy to handle what we’ve
got in the way of an extremely
complex and difficult set of
circumstances.”
Parrish is asking for layoff
plans from department heads
by May 1. Formal budget
hearings are in June.
In a memo to the supervisors,
Parrish wrote that despite signs
of economic recovery, “the
revenue needed to sustain a full
fiscal recovery of our county’s
budget is not expected for
several years.”
4
SANTA CRUZ SENTINEL
Ma y 3 1 , 2 013
About 100 employees of Santa Cruz Counseling Center on
furlough due to federal sequesters
Teachers at Santa Cruz County Head Start
are facing furloughs
SANTA CRUZ -- Fewer than 1
percent of the jobs in Santa
Cruz County involve working
for a federal agency, yet the
federal sequester requiring cuts
of $85 billion as of March 1 to
trim the deficit is hitting home
at a local nonprofit.
The pain is being felt at the
Santa Cruz Community
Counseling Center, which
expanded Head Start for
children ages 3 to 5 and Early
Head Start for those younger
than age 3, with federal
stimulus funds three years ago.
The two programs locally were
operating with a budget of $7.9
million to serve 900 children
until a memo arrived in April.
"They issued a memo saying
you need to cut 5.19 percent off
the top," said Cynthia Sloane,
director of child and family
development programs at the
Santa Cruz Community
Counseling Center. "We had
only seven months to make up
this money because of our
fiscal year starting November
1.“
To pare the budget, about 100
employees are being
furloughed.
5
June 3, 2013
STATE BUDGET CUTS FORCE TULARE COUNTY
TO CUT
The recently signed state budget calls for a 10 percent across the board reduction to Child Welfare
Services – a drastic cut that officials announced Thursday will mean unavoidable cuts for local programs
run by the Tulare County Health & Human Services Agency.
"Tulare County has done everything within our power to minimize the local impact of the cuts put into place
by Governor Schwarzenegger and the Legislature, but layoffs look to be unavoidable," said Phil Cox,
Chairman of the Tulare County Board of Supervisors. "The Agency implemented many cost-cutting
measures earlier this year in anticipation of the Governor’s actions, such as freezing positions, but the state
program reductions are too deep to absorb locally."
The State of California budget reductions mean severe cuts to the Health & Human Services Agency's
grants and allocations, including a $2 million cut from CWS funding, and an additional $18 million cut from
the agency's overall budget. The $2 million CWS cut could mean as many as 55 layoffs.
"We’re going to do everything we can to preserve public services and local jobs," said Cox. "From under
filling positions, to moving staff members across departments within the Health & Human Services Agency,
we will use every tool we have to save as many positions as possible."
6
THE TRIBUNE
Ma y 1 4 , 2 013
SLO County budget to tap $4.3
million in reserves
Some departments gain, others lose in
spending proposal
San Luis Obispo County departments that deal with
parks, foster care and roads will see cuts in their
budgets if the Board of Supervisors approve a
proposed $494.8 million budget for the coming fiscal
year.
On the other side of the ledger, departments dealing
with the courts, Veterans Services and the county
library system will see boosts to theirs.
Regardless, an analysis prepared through the county’s
Administrative Office says services and staffing should
remain at current levels because of the relatively small
changes planned.
7
County of Monterey: Achieving Structural Balance
$620.0
Dollars in Millions
$600.0
$580.0
Expenditures
$560.0
$551.6
$539.4
$540.0
$528.5
$520.0
$500.0
$507.9
$489.8
$544.3
$526.3
$527.7
$523.7
$534.7
$531.7
$520.8
Revenues
$495.8
$480.0
$460.0
$470.0
$440.0
$420.0
$400.0
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
8
Purpose of the Recommended Budget
The Recommended Budget provides the residents of Monterey County, the
Board of Supervisors (Board), and others a broad understanding of the
County’s fiscal condition and recommended spending plan for the next fiscal
year.
County departments prepare their recommended budgets with the goal of
aligning their operating plans with strategic initiatives and objectives adopted by
the Board.
Department managers and the County Administrative Office analyze financial
results throughout the year to ensure the Board’s adopted spending plan is
carried out successfully.
9
County of Monterey Budget Process
BudgetDevelopment
Development
Budget
Forecasting
Forecasting
Forecast & Budget Development Process
November
Begin
Distribute
Forecast/Budget
Timeline &
Assumptions
CAO
Dec. - Feb.
Feb. – Mar.
April
Conduct forecast
& budget training
Build Three-Year
Forecast
Present ThreeYear Forecast to
Board of
Supervisors
Prepare 3rd
Quarter Update
CAO
Departments/CAO
CAO
Departments/CAO
December
December
March
April – May
Early June
Late June
Distribute GFC
Planning
Estimates
Prepare
Requested
Budgets
Build
Recommended
Budget
Budget Hearings
Budget Adoption
CAO
Departments
CAO
Board/All
Board/All
April
April
Dept.
Heads
Workshop
Budget
Appeals
End
Analysis of State & Federal Budget Impacts
10
Budget at a Glance – All Funds
2011-12
Actual
2012-13
Adopted
2013-14
Recommend
Expenditures
Salaries & Benefits
Services & Supplies
Other Charges
Fixed Assets
Op. Transfers Out
Contingencies
Total Expenditures
$
$
Revenues
Taxes
Licenses, Permits & Franchises
Fines, Forfeitures & Penalties
State & Federal Aid
Charges for Current Services
Other Revenues
Total Revenues
$
Use of Fund Balance
FTE Positions
$
468.4 $
271.2
80.2
27.5
48.6
896.0 $
486.0 $
300.6
76.9
31.0
46.5
4.6
945.5 $
499.5
302.6
83.4
39.0
112.4
5.2
1,042.1
157.6
14.5
9.8
331.1
266.0
113.3
892.2 $
153.1
18.0
11.8
359.7
234.0
120.2
896.8 $
162.0
16.1
12.1
373.8
254.2
177.1
995.3
3.7 $
48.7 $
46.8
4,306.8
4,515.2
4,675.9
Recommended financing
uses for all funds totals just
over $1 billion and 4,676
positions.
Increases countywide
appropriations by $96.6
million (primarily accounting
changes related to the statecounty realignment).
Increases countywide staffing
by 161 positions (154.5
general fund positions).
Included in the
recommended position
augmentations are 92
positions for Health & Social
Services to implement ACA.
ACA-related positions are
self-funded.
Dollars in millions: detail may not add to totals due to rounding.
County of Monterey | County Administrative Office | June 5, 2013
11
2013-14 Recommended Appropriations by Fund/Fund Type
The general fund is the
County’s largest fund, with
recommended appropriations
totaling $526.6 million (51% of
total).
Natividad Medical
Center , $189.7
Behavioral Health
Fund, $70.7
Other significant financing uses
include Natividad Medical
Center and the behavioral
health fund).
Special Districts &
Other Revenue,
$107.8
General Fund,
$526.6
Internal Service,
$32.9
Health & Welfare
Realign., $39.0
Road Fund, $36.8
Capital Projects, $22.1
Resort Ops, $8.4
Total: $1.04 billion; amounts may not total due to rounding.
Library, $8.1
Special District and Other
Revenue Funds, totaling $107.8
million, include services
financed by revenue sources
legally restricted to specified
purposes, such as County
Service Areas, sanitation
districts, Local Revenue Fund
(AB 109 Realignment), In-Home
Supportive Services (IHSS),
Office of Employment Training
(OET), economic development
programs, and special districts.
* Includes special revenue f unds such as Local Revenue Fund (2011 Realignment), Community Development, & Of f ice of Employment Training.
County of Monterey | County Administrative Office | June 5, 2013
12
2013-14 Estimated Revenue by Source (All Funds)
Top 3 Financing Sources:
Charges for
Services, $254.2
Federal and State Aid. The
County expects to receive
$373.8 million (38% of total) of
its revenue from the federal and
state government, mostly to
administer health, welfare, and
public safety programs.
Taxes, $162.0
Charges for Services. This
revenue is generated from
various fees charged by the
County for its services, such as
fees charged by the County’s
hospital and health clinics, park
admission fees, and recording
fees. Estimated financing from
this revenue source totals
$254.2 million, or about a
quarter of total County revenue.
Operating
Transfers,
$145.8
Federal & State
Aid, $373.8
Other, $31.3
Licenses, Permits, &
Franchises, $16.1
Total: $995.3 million; amounts may not total due to rounding.
Fines, Forfeitures, &
Penalties, $12.1
County of Monterey | County Administrative Office | June 5, 2013
Taxes. This category includes
secured and unsecured
property taxes, supplemental
assessments, and special
district fund taxes. Tax revenues
estimated for 2013-14 total
$162.0 million (16% of total).
13
General Fund Adopted Budget
Including Behavioral Health Fund (Part of General Fund Prior to 2012-13)
Behavioral Health
General Fund
$597.3
$600.0
$560.7
$571.4
$500.0
$560.2
$70.7
$66.0
$549.2
$534.4
$495.7
$526.6
The general fund supports
most County services including
public safety, health, public
assistance, land use,
recreation, environment,
administration and finance.
Recommended 2013-14
general fund appropriations
total $526.6 million.
$400.0
$200.0
Effective in 2012-13, funding
for behavioral health programs
was transferred from the
general fund into the new
behavioral health fund.
$100.0
Had this transfer not taken
place, the general fund would
have totaled $597.3 million.
$300.0
$0.0
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
County of Monterey | County Administrative Office | June 5, 2013
Growth over prior years is
centered around the
responsibilities resulting from
the state-county realignment &
ACA Implementation.
14
General Fund Strategic Reserve
Millions
$80.0
Strategic Reserve - NMC
$70.0
Strategic Reserve - General Fund
$60.0
$52.3
$52.3
$52.3
$52.3
$14.2
$14.2
$14.2
$14.2
$38.1
$38.1
$38.1
$38.1
$50.0
$40.0
$30.0
$20.0
$37.3
$37.3
County policy provides for a
strategic reserve equal to 10%
of general fund revenues for
the following purposes:
 To build the County’s
capacity for funding settlement
of legal judgments that exceed
reserves normally designated
for litigation; and
 To offset short-term revenue
reductions due to economic
downturns, and natural
disasters as determined by the
County Administrative Officer
or the Board.
The 2013-14 recommended
budget maintains the general
fund strategic reserve at the
2012-13 amount, totaling $52.3
million.
$10.0
$-
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
County of Monterey | County Administrative Office | June 5, 2013
15
2013-14 Estimated General Fund Revenues by Category
Estimated general fund
revenues total $521.4 million
for 2013-14.
Fines, Forfeitures
& Penalties,
$9.1, 2%
The largest source of
general fund revenue is aid
from the federal and state
government.
State &
Federal Aid,
$202.0, 39%
Licenses, Permits
& Franchises,
$15.6, 3%
Taxes,
$150.1, 29%
Other
Revenues,
$77.2, 15%
Charges for
Current
Services,
$67.4, 13%
These funds are generally
restricted to health and
social programs and, to a
lesser extent, public safety
functions.
The second largest category
is Taxes, which provides the
bulk of the County’s
discretionary revenue.
These revenues are
primarily used to enhance
public safety resources and
to support general
government functions.
Total: $521.4 Million
Dollars are in millions and may not total due to rounding.
County of Monterey | County Administrative Office | June 5, 2013
16
General Fund State & Federal Aid
Including New Behavioral Health Fund (Part of General Fund Prior to 2012-13)
Behavioral Health
General Fund
Millions
Historically state &
federal aid provided
over half of general
fund revenue.
$350.0
$300.0
$294.6
$302.4
$272.4
$272.8
$250.0
$66.0
$70.7
$200.0
$206.4
$202.0
$288.7
$270.0
$150.0
However, state &
federal revenues for
behavioral health
programs, previously
part of the general
fund, now reside in
the new behavioral
health fund.
The decline over the
last two fiscal years
reflects the loss of
federal stimulus
monies and state
budget reductions.
$100.0
$50.0
$0.0
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
--------------------------------------Actuals--------------------------------------
Estimate
Budget
County of Monterey | County Administrative Office | June 5, 2013
17
Program vs. Non-Program Revenue
Approximately two-thirds of the
County’s general fund revenues is
legally restricted to specific
activities.
Program
Revenue, $348.6,
67%
Non-Program
Revenue, $172.8,
33%
Examples include federal & state
aid for health & social services
programs, charges supporting
planning & building programs, and
entrance fees for support of parks
operations & maintenance.
Non-program revenues comprise
the other one-third of general fund
revenue and are the County’s only
true source of discretionary funds.
Primary sources of non-program
revenue include property taxes,
TOT, & sales and use tax.
The Board appropriates these
revenues as general fund
contributions (GFC) to supplement
departments’ program revenues.
County of Monterey | County Administrative Office | June 5, 2013
18
General Fund Non-Program Revenue
Millions
$190.0
$186.0
$180.0
$182.8
$172.8
$170.0
$168.6
$165.8
$168.0
$165.3
Discretionary revenues fell
sharply during and after the
recession, declining by
$18.0 million (9.7%) from
2007-08 to 2011-12.
During this time, property
taxes fell from $127.6 million
to $116.1 million, for a loss
of $11.5 million.
$160.0
$150.0
$140.0
The budget includes
estimated non-program
revenue of $172.8 million, an
increase of $7.5 million
(4.5%) over the estimate in
the current year budget.
$130.0
$120.0
$110.0
$100.0
2007-08
2008-09
2009-10
2010-11
2011-12
------------------------------------------Actuals-------------------------------------------------
2012-13
Adopted
2013-14
Recommend
County of Monterey | County Administrative Office | June 5, 2013
Although non-program
revenue remains well below
pre-recession levels, the
County is beginning to see
mixed, but overall positive,
improvement in its
discretionary revenues.
19
General Fund Non-Program Revenue Sources
Major sources of nonprogram revenue include:
TOT
$18.2 - 11%
Property Tax
$120.7 - 70%
VLF
$9.2 - 5%
Sales & Use Tax
$6.8 - 4.0%
Franchise Fees
$4.1 - 2%
Other
$10.3 - 6%
Total: $172.8 Million
Dollars are expressed in millions and may not total due to rounding.
Tobacco
Settlement
$3.4 - 2%
County of Monterey | County Administrative Office | June 5, 2013
Property tax revenue
comprises the bulk of nonprogram revenue, totaling an
estimated $120.7 million
(70%) in 2013-14.
Transient occupancy tax,
often referred to as a hotel
or room tax, is estimated at
$18.2 million.
Vehicle license fees are
estimated at $9.2 million.
Other significant sources of
non-program revenue
include sales and use tax,
tobacco settlement monies,
and franchise fees.
20
Largest Sources of General Fund Non-Program Revenues
Property Tax Revenue
Transient Occupancy Tax Revenue
Millions
Millions
$135.0
$20.0
$131.4
$18.2
$18.0
$130.0
$127.6
$16.6
$16.4
$125.0
$16.6
$16.0
$15.0
$120.7
$120.3
$120.0
$115.8
$13.0
$116.1
$115.0
$12.0
$110.0
$10.0
$105.0
2007-08
2008-09
2009-10
2010-11
$13.8
$14.0
$118.2
2011-12
-------------------------------------------------Actuals----------------------------------------------------
2012-13
2013-14
Estimate
Recommend
$8.0
2007-08
2008-09
2009-10
2010-11
2011-12
-------------------------------------------------Actuals----------------------------------------------------
County of Monterey | County Administrative Office | June 5, 2013
2012-13
2013-14
Estimate
Recommend
21
General Fund Appropriations
Recommended general fund
appropriations total $526.6 million.
Finance and
Administration,
$85.3, 16%
Land
Use/Infra./Environ.,
$28.8, 6%
Education &
Recreation, $5.0,
1%
Almost four-fifths of recommended
appropriations provide for three
key functional areas: public
safety/criminal justice, health, and
social services.
Public safety and criminal justice
programs, with $170.5 million in
recommended expenditures,
comprise about one-third of total
general fund appropriations.
Public Safety /
Criminal Justice,
$170.5, 32%
Health & Social
Services, $237.0,
45%
Total: $526.6 million.
Dollars in millions; amounts may not total due to rounding.
Recommended appropriations for
Social Services, totaling $166.6
million, represent another onethird of the general fund budget.
Health Department general fund
appropriations total $70.4 million
(13.4% of total), but this does not
include the $70.7 million that now
resides in the behavioral health
fund.
County of Monterey | County Administrative Office | June 5, 2013
22
General Fund Appropriations for 5 Largest Functional Areas
Millions
$180.0
$160.0
$170.5
+$12.7
$157.8 8.1%
$140.0
$158.5
$166.6
+$8.1
5.1%
2012-13
2013-14
$120.0
$100.0
$80.0
$79.0
$85.3
+$6.3
8.0%
$60.0
$66.2
$70.4
+$4.2
6.3%
$40.0
$28.0
$20.0
$28.8
+$0.7
2.6%
$0.0
Public Safety
Social Services
Finance & Admin. (1)
Health (2)
Land Use,
Infrastructure,
Environ.
1. Includes $41.4 million in countywide (non-departmental) costs such as funding for trial courts, grand jury, contingencies, shortterm borrowing, and contributions to other agencies (e.g., Proposition 172 allocations to fire agencies).
2. Excludes $70.7 million in the behavioral health fund (previously part of the general fund).
County of Monterey | County Administrative Office | June 5, 2013
23
General Fund Appropriations by Expenditure Category
Salaries &
Benefits,
$336.6, 64%
Services &
Supplies,
$125.7, 24%
Other Charges,
$31.8, 6%
Fixed Assets,
$3.5, 1%
Operating
Contingencies, Transfers Out,
$23.8, 4%
$5.2, 1%
Dollars in millions and may not total due to rounding.
County of Monterey | County Administrative Office | June 5, 2013
24
General Fund Appropriations – Salary & Benefits
Behavioral Health
General Fund
$400.0
$366.4
$350.0
$333.2
$333.7
$334.4
$342.2
$334.8
$29.8
$28.4
$336.6
$310.6
$313.8
$300.0
$278.9
$259.3
$250.0
$200.0
$150.0
$100.0
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
---------------------------------------------Actuals-----------------------------------------County of Monterey | County Administrative Office | June 5, 2013
2013-14
Estimate Recommend
25
General Fund Contributions
General Fund Contributions
(GFC) represent discretionary
funding appropriated by the Board
to supplement department’s
program revenues.
The Board allocates almost half of
available GFC to support the
public safety function and has
taken significant steps to protect
this function to the extent possible
during the last four years of
budget reductions.
Finance and
Administration,
$64.9, 37%
Public Safety /
Criminal Justice,
$83.2, 47%
Total: $178.0 million.
Land
Use/Infra./Environ.,
$16.0, 9%
Education &
Recreation,
$2.0, 1%
Health & Social
Services, $1.8, 7%
Dollars in millions; amounts may not total due to rounding.
As a percent of the countywide
total, GFC for the public safety
function has grown from 40.6% in
the 2008-09 adopted budget,
before budget reductions took
place, to 48.7% in the 2013-14
recommended budget.
During the same time period, most
other functional areas have seen
significant declines due to the
County’s loss of non-program
revenues.
County of Monterey | County Administrative Office | June 5, 2013
26
General Fund Contributions
2007-08 Adopted:
% of
$
Total
Sheriff
2013-14 Recommended:
% of
$
Total
$48.7
23.6%
$50.4
28.3%
12.9
6.2%
16.7
9.4%
District Attorney
7.3
3.5%
9.1
5.1%
Public Defender
Emergency Comm.
7.4
0.7
3.6%
0.3%
9.2
1.3
5.1%
0.7%
Public Safety GFC
$77.0
37.3%
$86.6
48.7%
Probation
Countywide GFC
$206.7
$178.0
Note: 2013-14 GFC for the Sheriff's Office includes a $3.0 million transfer of health realignment monies for
inmate medical services. Not shown in the table are amounts for Child Support Services, which is supported
by federal & state funding and has a negative (surplus) GFC of $0.4 million.
County of Monterey | County Administrative Office | June 5, 2013
27
Sources of Financing for Appropriations, by Function
Millions
$250.0
$11.8
$200.0
$150.0
General Fund Contributions
$83.2
Program Revenue
$225.2
$100.0
$87.3
$50.0
$64.9
$20.4
$16.0
$12.8
$0.0
Health & Social
Services
Public Safety /
Criminal Justice
Finance and
Administration
Land Use,
Infrastructure,
Environ.
County of Monterey | County Administrative Office | June 5, 2013
$2.0
$3.0
Education &
Recreation
28
Requested vs. Recommended Augmentations - Appropriations
$10.0
$9.0
$8.0
Requested
$9.1
Recommended
$8.1
$7.0
$6.0
$6.1
$5.0
$4.6
$4.0
$3.0
$4.4
$2.8
$2.0
$1.0
$0.9 $0.6
$0.3 $0.1
$0.0
Health & Social
Services
Public
Safety/Criminal
Justice
Finance & Admin.
Land Use,
Infrastructure,
Environ.
County of Monterey | County Administrative Office | June 5, 2013
Education &
Recreation
29
Requested vs. Recommended Increases to General Fund Contributions
$5.0
$4.9
Requested
$4.5
$4.0
$3.5
Recommended
$4.3
$3.5
$3.0
$2.7
$2.5
$2.0
$1.5
$1.2
$1.0
$0.9
$0.6
$0.5
$0.2
$0.3 $0.1
$0.0
Public
Safety/Criminal
Justice
Finance & Admin.
Land Use,
Infrastructure,
Environ.
Health & Social
Services
County of Monterey | County Administrative Office | June 5, 2013
Education &
Recreation
30
Requested vs. Recommended Position Augmentations (General Fund)
120.0
100.0
Requested
Recommended
105.0 105.0
80.0
60.0
40.0
39.0
37.0
20.0
18.5
12.5
2.0
0.0
0.0
Health & Social Services
Public Safety/Criminal
Justice
Finance & Admin.
County of Monterey | County Administrative Office | June 5, 2013
Land Use, Infrastructure,
Environ.
31
Self-Funded vs. GFC-Funded Position Augmentations (General Fund)
Department
Social Services
Health
Sheriff-Coroner
District Attorney
Emergency Communications
County Administrative office
Public Defender
Probation
Assessor-County Clerk –Recorder
Economic Opportunity
Human Resources
Information Technology
Auditor-Controller
County Counsel
Resource Management Agency
Clerk of the Board
TOTAL FTEs:
Self Funded
55.0
41.0
0.5
7.0
4.6
1.0
0.0
0.0
0.0
0.0
0.0
2.0
0.0
0.0
0.0
0.0
111.1
Supported by
General Fund
Contributions
6.0
0.0
13.5
4.0
0.4
3.0
4.0
3.0
2.0
2.0
2.0
0.0
1.0
1.0
1.0
0.5
43.4
County of Monterey | County Administrative Office | June 5, 2013
Total
61.0
41.0
14.0
11.0
5.0
4.0
4.0
3.0
2.0
2.0
2.0
2.0
1.0
1.0
1.0
0.5
154.5
32
Augmentation Highlights – Health & Social Services
Adds 92 positions within the health and social services function
to implement the Affordable Care Act (ACA), including:
 51 positions for Social Services for eligibility
determinations and other activities associated
with ACA implementation; and
 41 positions for the Health Department to increase
capacity for clinic services under the ACA.
The ACA will bring 27,000 additional people into Medi-Cal as of January 1, 2014, and an additional
27,000 people will be eligible to purchase health insurance through the State Health Insurance
Exchange Program.
The cost of these positions would be fully supported by federal and state funding.
Adds three employment & training workers, requiring no GFC, to better comply with the SB 1041
mandates for providing employment services to CalWORKs families.
County of Monterey | County Administrative Office | June 5, 2013
33
Augmentation Highlights – Public Safety
Provides an increase of $2.2 million in GFC and 14 positions for the Sheriff’s Office to improve the safety
and security of staff, the community, and inmates housed in the County Jail, including:
 Adds 12 custody and control positions to staff the jail’s control towers, which will allow the Sheriff’s
Office to redeploy deputies to other critical functions appropriate for their level of skill and training.
 Provides funding to cover the full cost of mandated medical services to inmates;
 Re-establishes the Corrections Emergency Response Team (CERT) team and associated training
and equipment;
 Adds two positions to oversee development, improvement, and
implementation of various programs in the jail aimed at helping
inmates become successful members of society and reducing
recidivism; and
 Provides funding for technology upgrades and improvements,
including video surveillance in the jail.
County of Monterey | County Administrative Office | June 5, 2013
34
Augmentation Highlights – Public Safety (Continued)
Provides $489,618 for Probation to
restore 2.0 Silver Star Gang
Prevention and Intervention
probation officers, retain an Adult
Placement Program position, and to
cover Next Generation Radio
(NGEN)operations costs; and
Adds 5.0 dispatch positions in
Emergency Communications at a
GFC of $43,313 to reduce employee
overtime and improve service levels.
Provides additional funding for the District Attorney and Public Defender, including:
 $403,521 and 11 positions for the District Attorney to combat real estate fraud, investigate gang
activity, support efforts related to forensics, and provide victim and witness assistance. Of the 11
positions, 7.5 are funded by new revenue while the remaining 3.5 are supported with GFC; and
 $464,389 to the Public Defender to restore four positions at risk due to departmental cost pressures.
County of Monterey | County Administrative Office | June 5, 2013
35
Augmentation Highlights – Public Safety (Continued)
Criminal Caseloads
The Board has made
considerable effort to protect
public safety functions,
including the District
Attorney & Public Defender
budgets, from the impacts of
the recession.
20,000
18,177
18,146
18,000
17,797
18,391
18,153
17,935
16,966
16,450
15,548
16,000
14,953
14,885
14,257
14,377
14,303
13,905
14,000
14,365
13,560
13,426
12,887
12,498
12,467
11,788
12,000
12,049
11,611
10,819
10,000
9,318
Since 2007-08, total GFC for
support of departments has
fallen $28.7 million (13.9%).
During this same period,
GFC for the DA & PD each
increased by $1.8 million.
8,000
Felony
Misdemeanor
The recommended budget
provides $9.1 million in GFC
for the DA & $9.2 million for
the PD.
Total
6,000
4,486
4,000
3,224
3,261
3,540
3,850
4,468
4,375
3,563
3,081
2,589
2,754
2,607
2,731
2011
2012
2,000
Source: CJIS data provided by the Monterey County District Attorney’s Office
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
County of Monterey | County Administrative Office | June 5, 2013
Although caseloads have
declined since the prerecession years, overall
staffing levels for both
offices have increased as
part to the Board’s
commitment to public safety.
36
Augmentation Highlights – Finance & Administration
Restores two positions, requiring a GFC of $138,891, for the Assessor-County Clerk-Recorder to
meet increased workload needed to ensure accurate assessment of property values.
Restores two Economic Opportunity positions, including a Redevelopment Analyst III and a Housing
Manager, requiring a GFC of $276,987.
Adds four positions and a GFC of $507,512 to the County Administrative Office for support of a gang
task force coordinator, emergency planner, and two administrative secretaries.
Adds an additional $411,816 and two positions, including an assistant director and a principal
employee relations specialist, and funding for employee relations consulting work.
County of Monterey | County Administrative Office | June 5, 2013
37
Staffing Trends – All Funds
The Recommended Budget
includes 4,676 positions,
increasing by 161 positions
(3.7%) since adoption of
the 2012-13 budget.
5,000
4,847.5
4,500
4,639.1
4,675.9
4,630.4
4,306.8
4,000
4,515.2
3,500
Many of the recommended
position augmentations
support areas that leverage
federal and state funding,
particularly in the health
and social services function
which is preparing to
implement ACA.
However, overall staffing
levels remain below prerecession levels while, at
the same time, the County
has been required to take
on additional
responsibilities from the
State under “realignment”
and ACA.
3,000
2,500
2,000
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
County of Monterey | County Administrative Office | June 5, 2013
38
Staffing Trends – Overtime (All General Fund Departments)
Overtime Expenditures:
2011-12
Actual
Public Safety
Finance & Admin.
Land Use, Infrastructure, Environ.
Health & Social Services
Education & Recreation
Totals
2012-13
Adopted
2013-14
Recommended
Total
Salaries
% of
Total
Salaries
$5,324,838
48,552
$5,073,356
60,000
$4,964,588
77,000
$79,848,961
37,770,589
6.2%
0.2%
56,223
135,598
66,653
15,630,430
0.4%
592,823
23,193
532,399
20,757
519,783
8,500
82,941,307
1,914,219
0.6%
$6,045,629
$5,822,110
$5,636,524
$218,105,506
2.6%
0.4%
Staffing Trends – Overtime (Public Safety/Criminal Justice)
Overtime Expenditures:
2011-12
Actual
Sheriff
Probation
District Attorney
Public Defender
Emergency Comm.
Total
2012-13
Adopted
2013-14
Recommended
Total
Salaries
% of
Total
Salaries
$4,578,551
109,972
$3,253,917
362,000
$3,392,400
342,000
$36,874,625
20,699,948
9.2%
1.7%
73,640
80,000
75,000
13,130,933
0.6%
2,580
560,095
10,000
1,367,439
5,000
1,150,188
4,389,467
4,753,988
0.1%
24.2%
5,324,838
5,073,356
4,964,588
79,848,961
6.2%
County of Monterey | County Administrative Office | June 5, 2013
39
Employee Retirement Costs
Over the past decade,
PERS retirement costs
doubled, rising from $19.8
million in 2003-04 to $40.9
million by 2009-10.
Millions
$45.0
$40.8
$40.9
$40.8
$38.9
$40.0
$37.2
$35.5
$36.5
$35.2
$35.0
$32.7
$29.5
$30.0
Since that time, salaries
have flattened in the
absence of pay raises and
through staffing reductions
achieved through attrition.
In addition, employees now
contribute towards their
retirement.
$25.0
$19.8
$20.0
The combination of these
factors reduced general
fund PERS payments to
$32.7 million in 2012-13.
$15.0
$10.0
$5.0
$0.0
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
County of Monterey | County Administrative Office | June 5, 2013
For 2013-14, expenditures
increase due to higher
PERS contribution rates
and increases in staffing
related to the filling of
vacancies and position
augmentations.
40
PERS Retirement Unfunded Liabilities
Miscellaneous Plan Funded Status
Actuarial Asset Value,
$1,047,600,000
Safety Plan Funded Status
Actuarial Asset Value,
$336,300,000
Unfunded Liability,
$108,100,000
Unfunded Liability,
$122,200,000
Actuarial Liability,
$1,169,800,000
Actuarial Liability,
$444,400,000
County of Monterey | County Administrative Office | June 5, 2013
41
PERS Policy Changes
In April 2013, CalPERS adopted changes to its rate
smoothing & amortization policies.
The new policies will accelerate rate growth to pay down
unfunded liabilities at a faster pace.
The effect will be an increase in general fund expenditures
of $2.8 million in 2015-16, ramping up to a $14.3 million
annual increase over the following four years before
leveling off.
CalPERS is also studying two additional changes that will
increase rates beyond the higher amount described
above, including:
 Lowering its discount rate from 7.5% to 7.25%,
effective in 2015-16. The effect would be an
additional $3.0 million impact in 2015-16, growing to a $5.8 million increase after a five year
phase in period.
 Increase the life expectancy assumptions used for actuarial valuations. This change would
increase expenditures by another $2.5 million in 2015-16, with a $5.2 million impact by the
end of the five year phasing-in period.
County of Monterey | County Administrative Office | June 5, 2013
42
Forecasted PERS Expenditures
Millions
With Increased Life Expectancy (Likely)
$60.0
$59.5
$59.3
$59.1
$55.5 With Discount Rate Lowered to 7.25% (likely)
$55.0
$54.3
$51.4
$50.0
$47.1
$45.0
$42.8
$40.0
$40.3
$43.9
$35.0
$32.7
$32.7
$34.4
$34.5
$54.3
$54.1
$53.9
$50.9 With April 2013 Rate Change (Adopted)
$48.5
$47.5
$48.5
$48.3
$45.8
$48.1
$43.1
$40.3
$37.3
$30.0
$59.4
Status Quo (without PERS policy changes)
$34.6
$34.6
$34.4
$34.2
$34.2
$34.1
$33.9
$25.0
In total, PERS
expenditures will grow
between $2.8 million
and $8.3 million in
2015-16, ramping up
to an annual increase
of $14.3 million to
$25.3 million over the
five-year phase-in.
This level of rate
growth could
consume the potential
growth in the
County’s discretionary
revenue over the next
five years.
The estimated
impacts are modeled
on 2012 actual
salaries.
$20.0
$15.0
Includes terms of cost sharing agreements/MOUs in effect as of April 2013.
$10.0
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
County of Monterey | County Administrative Office | June 5, 2013
2022-23
Actual impacts will be
higher to the extent
payrolls grow.
43
County-Paid Employee Health Insurance Costs
Millions
$40.0
$38.8
$35.0
$32.7
$30.0
$32.1
$32.9
$34.3
$34.9
$30.5
Expenditures for
employee health
insurance are budgeted
to increase $3.9 million
in 2013-14 due to a
16% increase in
premiums as of
1/1/2013.
Assuming premiums
continue growing at a
more conservative
annual rate of 5.6% (the
2000-2010 average),
the County’s health
insurance costs would
rise by another $2.3
million in 2014-15 and
an additional $2.5
million in 2015-16.
$25.0
$20.0
$15.0
$10.0
$5.0
$0.0
2007-08
2008-09
2009-10
2010-11
2011-12
-----------------------------------------Actuals-------------------------------------------------
2012-13
2013-14
These increases will
add significant pressure
to operating budgets.
Estimate
County of Monterey | County Administrative Office | June 5, 2013
44
Other Funds
County of Monterey | County Administrative Office | June 5, 2013
45
Natividad Medical Center
Natividad Medical
Center
2012-13
Adopted
Net Patient Revenue: $
142,773,989
$
2012-13
Estimate
2013-14
Recommended
128,843,916
$
134,787,140
Government Revenue:
41,118,000
44,481,445
37,749,867
Other Revenue:
-
-
-
Total Revenue:
183,891,989
173,325,361
172,537,007
Operating Expenses:
175,230,966
165,144,422
170,667,503
Capital Expenditures:
21,442,471
21,442,471
19,060,583
Total Expenditures:
196,673,437
186,586,893
189,728,086
Use of Fund Balance:
$
(12,781,448)
$
(13,261,532) $
(17,191,079)
County of Monterey | County Administrative Office | June 5, 2013
NMC is a 172-bed acute
care hospital owned and
operated by Monterey
County.
NMC is designated as a
safety-net hospital, with
an emphasis on care for
women, children, and
families.
NMC provides inpatient,
outpatient, emergency,
diagnostic, and specialty
medical care, and is the
only teaching hospital on
the central coast.
NMC expects to use
$13.3 million in fund
balance in 2012-13
(including capital
expenditures) and $17.2
million in 2013-14, for a
combined consumption
of $30.5 million in
operating and capital
expenditures that
operations are unable to
fund.
46
Road Fund
Adopted
2012-13
Road Fund
Beginning Fund Balance $ 2,828,255
Revenue:
Cancellation of Reserves:
Expenditures:
Provisions for Reserves:
28,912,655
28,357,766
-
Ending Available Fund Balance: $ 3,383,144
Estimated
2012-13
$ 3,540,309
Recommended
2013-14
$
27,949,404
3,401,602
27,382,006
-
The road fund is primarily
funded by state and local
fuel taxes & grants.
-
28,088,111
30,783,608
$ 3,401,602
The road fund is a
special revenue fund to
account for revenues
dedicated to County road
and bridge construction
& related maintenance.
$
(0)
The general fund
provides funding to
support the Pavement
Management Program,
as well as the County’s
Storm Water
Management Program.
The recommended
budget for the road fund
shows erosion of fund
balance due to projected
road fund contributions
towards construction
projects in the current
year and in 2013-14.
County of Monterey | County Administrative Office | June 5, 2013
47
Monterey County Library
Monterey County Free
Libraries Fund
Adopted
2012-13
Beginning Fund Balance $
Revenue:
Cancellation of Reserves:
Expenditures:
Provisions for Reserves:
Ending Available Fund Balance: $
1,244,110
Estimated
2012-13
$
6,927,537
$
7,091,337
-
-
7,186,335
-
8,076,335
$
1,149,112
1,149,112
7,153,402
-
7,896,166
275,481
1,244,110
Recommended
2013-14
$
226,179
The Monterey County Free
Libraries (MCFL) provide a
network of information
centers that serve the
diverse communities of
Monterey County.
The fund’s operations are
primarily financed through its
share of property tax.
The fund has worked to
stabilize expenditures, while
seeking to shore up other
revenue to offset the decline
in property tax revenues
since the recession.
However, expenditures
continue to exceed available
revenue, resulting in
continued use of fund
balance.
The MCFL has implemented
its “Financial Plan” with the
future goal of maintaining a
positive fund balance,
reserves and contingency.
County of Monterey | County Administrative Office | June 5, 2013
48
Behavioral Health Fund
Adopted
2012-13
Behavioral Health Fund
Beginning Fund Balance: $
Revenue:
65,314,411
Cancellation of Reserves:
Expenditures:
-
Estimated
2012-13
Recommended
2013-14
$
$
66,017,361
65,235,162
Provisions for Reserves:
Ending Available Fund Balance: $
-
66,017,361
70,676,926
$
-
70,724,468
-
79,249
-
$
47,542
The Behavioral Health Fund
is a special revenue fund
effective July 1, 2012.
Behavioral Health provides a
range of mental health
services, such as inpatient,
social rehabilitation,
supportive housing, &
outpatient services.
Behavioral Health also
provides various alcohol &
drug programs, including
residential, transitional
housing, perinatal
residential, outpatient,
prevention, early
intervention, narcotic
replacement, drinking driver
programs, drug court, and
drug diversion.
Revenues & expenditures
for the fund continue to
increase due to
implementation of the
Affordable Care Act (ACA).
County of Monterey | County Administrative Office | June 5, 2013
49
Water Resources Agency
Adopted
2012-13
Water Resources Agency
Estimated
2012-13
Recommended
2013-14
Beginning Fund Balance: $ 13,615,202 $ 14,917,534 $
Revenue:
Cancellation of Reserves:
Expenditures:
Provisions for Reserves:
21,236,227
22,443,016
-
25,404,760
60,000
26,752,749
-
Ending Available Fund Balance: $ 12,408,413 $ 13,629,545 $
13,629,545
23,275,267
24,099,029
12,805,783
The Monterey County Water
Resources Agency (WRA) is
responsible for management
of groundwater resources
and flood control protection
for the County.
The WRA budget includes a
total of 25 funds.
The table to the left
summarizes the 12 major
funds, including WRA
Administration, Pajaro River
Levee, Nacimiento & San
Antonio water programs,
Castroville Seawater
Intrusion Project (CSIP),
Reclamation Ditch Operation
and Maintenance, Salinas
River Diversion Facility, and
the Salinas Valley
Reclamation Project.
The WRA expects to use
$0.6 million in fund balance
in 2013-14 and is working
towards the goal of a
structurally balanced budget.
County of Monterey | County Administrative Office | June 5, 2013
50
Current & Future Challenges
- ACA Operational Challenges
- ACA Fiscal Challenges
- Governor’s May Revision Proposal to Redirect 1991 Health
Realignment Funding from Counties to the State
- Audits & Settlements/Lawsuits
- Lower-than-budgeted COWCAP Recoveries
- Expiring Labor Contracts
- PERS Retirement Increases
- Health Insurance Premium Increases
County of Monterey | County Administrative Office | June 5, 2013
51
Current & Future Challenges – Capital Needs
Millions
$160.0
$8.1
$3.0
$140.0
$7.1
$120.0
$31.0
$3.0
$100.0
$80.0
Other
$40.3
Old Jail Partial
Demolition
County Parking
Structure
Public Defender Office
Building
East & West Wing
Renovations
Jail Housing Addition
$60.0
$40.0
New Juvenile Hall
(Phase I)
$52.4
$145.0 million total
capital improvement
plan need over next 5
years.
$20.0
$0.0
County of Monterey | County Administrative Office | June 5, 2013
52
Recommendations
It is recommended that the Board of Supervisors:
1. Hold a Public Hearing on June 5, 2013 at 9:00 a.m. to adopt the Fiscal Year (FY)
2013-14 Appropriation Limits pursuant to Article XIIIB of the California State
Constitution.
2. Commence Budget Hearings with the County Administrative Office summary
presentation of the FY 2013-14 Recommended Budget on June 5, 2013 at 9:00 a.m.
and continue Budget Hearings on June 6 & 7, 2013 beginning at 9:00 a.m. if
necessary.
3. Authorize the County Administrative Office and Auditor-Controller to prepare the FY
2013-14 Adopted Budget Resolution reflecting changes made by the Board during
budget hearings, to make any changes in budget units to reflect any position and/or
account adjustments approved by the Board during or prior to budget hearings.
County of Monterey | County Administrative Office | June 5, 2013
53
Recommendations (Continued)
4. Authorize the County Administrative Office and Auditor-Controller, in the event
that any unbudgeted fund balance is available as determined through the final
audited year-end FY 2012-13, to allocate such fund balance in the following order
of priority:
a) Increase the Public Safety Sales Tax assignment by $376,910 which totals the
amount of FY 2012-13 Public Safety Sales Tax contributions delayed due to
agreements with County fire districts.
b) Increase Strategic Reserve, to equal established Board policy of 10% of
estimated FY 2013-14 General Fund revenue.
c) Increase Accrued Leave Assignment not to exceed 30% of FY 2012-13
reported Compensated Absences liability to provide gap funding for
retirements and payroll buyouts that exceed the ability of General Fund
departments to cover within current operations.
d) Capital Assignment for all remaining unbudgeted fund balance.
County of Monterey | County Administrative Office | June 5, 2013
54
Recommendations (Continued)
5. Authorize the County Administrative Office to adjust the FY 2013-14 Adopted
Budgets for the Other Funds under the authority of the Board of Supervisors to
reflect the FY 2012-13 year-end final Available Fund Balance.
6. Direct the County Administrative Office, after adoption of the FY 2013-14 State
Budget, to return to the Board of Supervisors, if necessary, with a modified
County Budget that takes into account the impacts of the State Budget and
realignment of State responsibilities to counties.
County of Monterey | County Administrative Office | June 5, 2013
55