40
County of El Paso, TexasCounty of El Paso, TexasC i i C tC i i C tCommissioners CourtCommissioners Court
i
Vision Statement El Paso County-
Government that WORKS
Mission Statement To provide a safe and healthy quality of life that enables people to thrive and reach their potential through the efficient, effective, and equitable operation of government.
County-wide Priorities
.:. PUBLIC SAFETY
.:. HEALTH AND WELFARE
.:. COMMUNITY AND INDIVIDUAL DEVELOPMENT
.:. CUSTOMER SERVICE
.:. JUSTICE
.:. TRANS PORTATION AND INFRASTRUCTURE
Long Term Non-Financial County-wide Initiatives
".. Mai ntain the necessary resources to address public safety within EI Paso County.
Improve the quality of health care for the residents of EI Paso County.
".. Improve quality oflife activities for County residents.
Improve tbe way the County does business in the eyes of its constituents and its employees.
4. To ensure that County departments meet public needs effectively and effi ciently.
"'" To administer justice in accordance with the laws of the State of Texas.
Any Questions?Any Questions?
If you have any Questions please do notIf you have any Questions please do notIf you have any Questions, please do notIf you have any Questions, please do nothesitate to write or call:hesitate to write or call:
El Paso County Auditor’s OfficeEl Paso County Auditor’s Office800 E. Overland, Room 406800 E. Overland, Room 406El Paso, Texas 79901El Paso, Texas 79901--24072407
(915) 546(915) 546--20402040Fax: (Fax: (915) 546915) 546 81728172Fax: (Fax: (915) 546915) 546--81728172
[email protected]@epcounty.com
A copy of this budget package is available at:
ii
A copy of this budget package is available at:
www.epcounty.com/auditor/publications/default.htm
1 34
County Organization EI Paso County was created from Bexar District in 1849, organized in 1850,
and incorporated in 1871. Parts of EI Paso County were taken from Culberson County in
1911 and Hudspeth County in 1915. The County derived its name from being a well
known pass through the Rocky Mountains. It is the most Western County in Texas, and is
about equidistant from Houston, Texas, Los Angeles, California and Denver, Colorado.
Bordcred on the east side by Hudspeth County, EI Paso County is just to the north of the
International Boundary between the United States of America and the Republic of Mexico, and touches Dona Ana County in New Mexico. The County is a strategic cross
roads for continental north-south and east-west traffic, and spans a geographic area of about 1,0 13 square miles.
County government in Texas is, for many people, the primary and most
accessible level of government. County governments are political subdi vis ions of the
State. The State has created 254 Counties. Initia lly, the Counties were primarily created to facilitate the judicial system. As a result of State legis lative changes over the years, County governments in Texas are involved not only w ith the judic ial system, but also the
delivery of health and welfare services, law enforcement, public safety, cultural and recreational activities, and construction and maintenance of roads and bridges. In
comparison to some of the other States, Texas counties have only very limited ordinance
making authority, as specifically granted by the State legislature.
Counties in Texas have many comparable characteristics and are similarly
organized. Each County has a governing body called Commissioners Court. The
Commiss ioners Court is composed of fi ve members. One member, the County Judge, is
e lected at large to a four-year tenn . The o ther four members are County Commissioners
and each one is elected from a precinct to a four-year tenn. County Judges have judicial
responsibilities in all but the largest urban Counties. In large urban counties, such as El
Paso County, the County Judge has no judicial responsibilities. Instead, the EI raso County Judge is often referred to as the County's Chief Executive Officer (CEO). In all
Texas Counties, the County Judge pres ides over Commiss ioners Court meetings.
There are numerous e lected officials in most Texas Counties. Some of those
elected officials usually include the County Treasurer, County Clerk, District Clerk,
County Attorney, District Attorney, County Tax Assessor-Collector, County Sheriff, one
or more e lected State District Judges, one or more County Court at Law Judges, Justices of the Peace, and Constables. As has happened in a few other Counties, several years
ago, in a statewide election , the voters amended the constitution to abo li sh the office of
the EI Paso County Treasurer. After this abolishment, Commissioners Court formally instructed the County Auditor, an apolitical and appointed official, to perform all of the
statutorily mandated treasury functions. The County Auditor is appointed to a two
33 2
County Organization year tenn, by the State District Judges in each County. In EI Paso County, the County
Auditor, among other duties and responsibilities, serves as the County 's Chief Financial
Officer, Budget Officer, Payroll Officer, Investment Officer, Treasury Officer, Internal Audit Offi cer, and Cash Management Officer.
The Commissioners Court serves as the executive branch of County
government. Among a myriad of other constitutional and statutorily imposed duties and responsibilities, the fi ve members of Commissioners Court have the exclusive
responsibili ty and authority over a multitude of areas in the operation and in the affa irs of
County government. To name a few, the Commissioners Court is responsible for approving budgetary amendments, setting ad va lorem property tax rates , auditing, and
directing sett lement of all claims against the County. Addi tionally, this body appoints
certain County officials and board members. The Commissioners Court also determines
when propositions to issue bonds wi ll be submitted to the voters.
323
EI Paso County Demographics and Statistical Data
Population
EI Paso's population is estimated to grow from 679,622 in 2000 (U.S. Census) to well over 800,000 in 201 2, (City of EI Paso Economic Development Department), with much of that growth projected to occur in the suburbs and outlying areas. Within the City limits, the population increased about 9.3 percent during the decade of the 1990's, but outside the city limits including such communities as San Elizario, Vinton, Fabens, and
Horizon City, the population increased approximately 48.4 percent (estimates provided by the City of EI Paso). It is important to note that although this is only a 17.8 1% increase in 12 years, (679,622 in 2000, vs. 800,647, in 20 12) the Hispanic population has grown from 69.57% to 8 1.3%, or 11.73%, when comparing the 1990 and 20 I 0 Census. The information provided from the U.S Census Bureau for 20 10 lists the population at 800,647, up from prior estimates from the City of EI Paso for 2000 of757,000. Based on this population estimate of 800,647, there are approximately 790.6 people per square mile based on a land area of 1,012.69 square miles. Also, as a result of BRAC (Base Realignment and Closure), Fort Bliss is estimated to increase by a total of 50,000 family members and 34,000 soldiers by 201 3.
'" .., c: '" '" " o .c ...
$800
$600
$400
$200
$0 200020012002200320042005200620072008200920102011 2012
Fiscal Year
Place of Birth
According to the American Community Survey data for 2005- 2009, 71.6% of residents in El Paso were born in the United States, whi le on ly 28.4% were forei gn born, or born in Puerto Rico or the U.S. Island areas. This survey also reports that 48.4% of EI Paso' s population is male, 51.6% female, 30. 1 % is under the age of 18, and persons 65 years old and over comprise only 10.3% of the population.
31 4
EI Paso County Demographics and Statistical Data
Born in Puerto Rico, Island areas, 1.80%
Place of Birth, Cont 'd
Foreign Born, 26.60%
Born in the United States, 71.60%
Types of Households in EI Paso County, Texas
According to the U.S. Census Bureau 2009 American Communi ty Survey, there were 234,366 households in El Paso County, with the average household size being 3.06 people. Families make up 76.8% of these households, with married·couple families comprising 51.4% of this total.
Other Non-Family Households rn 3 .
People Living Alone 20·
Families I ~7%
0% 10% 20% 30% 40% 50% 600/0 70% 80% 90%
5 30
El Paso County Demographics and Statistical Data
Median Age and Birth Rates of EI Pasoans
As shown on the graph below, the median age of EI Pasoans is between 30 and 31.3 years of age. With its young population, our border region has grown much faster than the rest of Texas. In 2008 total births in EI Paso County were 14,054 compared to 14,3 11 in 2007 and as compared to 405 ,242 in Texas as a whole, for a minimal decrease of257 births per 1,000 in EI Paso County from 2007.
40
Q) 30 CJ)
< 20 c .~ '0 Q)
:E 10
o 2002200320042005200620072008200920102011
Fiscal Year
Education Level in Years of Formal Schooling
Bachelor's 12.50%
Associate 6.20%
Some LOO"g', ,,"v Degree, 20.80%
Graduate or
High School Graduate, 24.00%
9thto 12th Grade, No Diploma,
1.50%
As can be seen in the graph above, based on 2005-2009 estimates from the American Community Factfinder, only 52,440 of those 25 and over (420,324), or 12.5 percent, (compared to 17.05% in Texas) had graduated from college, while 293,497, or 69% of persons 25 years and over had atta ined a high school degree or higher.
29 6
El Paso County Demographics and Statistical Data
Education Level in Years of Formal Schooling, Continued
The Univers ity of Texas at EI Paso CUTEP) offers almost 8 1 bachelor's degrees, 81 master' s degrees and 17 doctorates. According to Hispanic Business Magazine, UTEP ranks as the No. I graduate engineering school for Hispanics and ranks in the top three universities in the nation in educating Hispanics as reported by the Hispanic Outlook in Higher Education Magazine. In the fall of 20)0, UTEP registered a record fall enrollment of 22, I 06 students, or 5.2% over the fall of 2009 figure .
The County's Per Capita Income
Personal income per capita is one measure of a community's ability to pay taxes. The higher the per capita income, the more property tax, sales tax, income tax, and business tax the government can generate. The chart below manifests that personal income per capita in 2009 has increased steadily since 2001. Personal income per capita, in El Paso County, after considering inflationary impacts, is low, especially when compared to Texas as a whole. Based on data obtained from the Regional Economic In fonTIal ion System, Bureau of Economic Analysis, per capita income has grown from 19,650 in 200 1 to 29,38 1 in 2009. The reasoning for this can be explained by economic stimulus in the region, which is further con finned by employment gains and an unemployment rate that refl ects a greater decline locally in comparison to the rest of Texas.
~
c !l :: $40 o U $30 -'" ~ ~" g :g $20 eQ .5 $)0 :l C $0 ~ 2001 2002 2003 2004 2005 2006 2007 2008 2009
Fiscal Year D EI Paso
Liquidity Ratio
A reliable measure of a local government's short-run financial condition is its cash position. Cash position, which includes cash on hand and in the bank as well as other assets that can be easily and quickly converted to cash, determines a government's abi li ty to meet its short-tenn obligations, or its liquidity. The immediate effect of insufficient liquidi ty is insolvency, or the inability to pay bill s. Low or declining liquidi ty may indicate that a government has overextended itself in the long run. A cash shortage may be the first clue to such a problem. A liquidity ratio of less than one-to-one
7 28
El Paso County Demographics and Statistical Data
(or less than 100 percent) would indicate that a governmental entity is facing serious liquidity problems. The graph below reveals that EI Paso County ' s liquidity ratio is at an acceptable level as of the end offisca l year 2010.
Liquidity Ratio, Continued
350% 301%
300% /~9%
250% 24 %
204% 19~ 200% .. , .
163% 149/ '-...... 150% ~, . ;y -
100%
50%
0% 200 1 2002 2003 2004 2005 2006 2007 2008 2009 20 10
Fiscal Year
Geography and Climatic Conditions
El Paso, with approximately f==(=T==T-=~~;-""·~~'~'~'o~u~,~,~~~ 1,0 13 sq uare miles of land area is C~i¥> ~KlAHOM"_ ARKAHSA
located in the far west portion of the +Am ... m" State of Texas, bordered on the west HEW MUICO
by the Rio Grande River and on the l north by the State of New Mexico. The altitude in the County is approximately 4,000 feet, with the highest mountain peak at 7,200 feet, with the mean high/low temperatures at 76.8/50.6 degrees Fahrenheit, respectively. In addition, E1 Paso enjoys about 202 days per year with clear skies, and 108 with partly cloudy skies. Rainfall in EI Paso averages about 9 inches a year.
MEXI(O
27 8
EI Paso County Demographics and Statistical Data
400
300
200
100
o
Operating Expenses per Capita
2002 2003 2004 2005 2006 2007 2008 2009 2010
Fisca l Year
As can be seen in the chart above, operating expenses per capita increased steadily from 2002 to 2004 and then experienced a decrease in fiscal year 2005. A combination of Commissioners Court mandates and the cooperation of County departments in maintain ing level fundin g in operations made that decrease possible. A minimal increase in 2006 is due to the fact that many employees were still one year behind in the ir step plan due to fi scal restrains implemented in fi scal year 2005. Expenses once again increased for fi scal year 2007 and 2008 based on inflation, population increases, and due to contractual increases, such as the Sheriff's Collective Bargaining Contract. Significant decreases took place during 2009 and 20 I 0, based on mandated reductions imposed on all departments, including reductions in force, hours without pay, furloughs, no step or cost of li ving increases, in addition to reductions in operating appropriations throughout the County.
$500
$400
$300
$200
$100
$0
Revenues Per Capita
2002 2003 2004 2005 2006 2007 2008 2009 2010
Fiscal Year
9 26
El Paso County Demographics and Statistical Data
Net Operating Revenues Per Capita, Continued
As can be seen on the graph on the previous page, revenues per capita increased from 2003 through 2006 mainly due to increased property tax and charges for services re venue. Starting in 2007, revenues per capita decreased due to steady growth in population when operating revenues did not grow at the same pace. Fiscal year 2008 saw a large increase, based on property and sales tax growth , in addition to increases in revenues such as federal prisoner revenue. Due to the County's commitment to reducing appropriations significantly in 2009 and 2010, it is expected that operating revenues will increase in the future.
Unemployment Rate Comparison
As can be seen in the chart below, unemployment in EI Paso County, as compared to Texas is high. Although the total residents employed in EI Paso County has increased from 261 ,553 in 2002 to 287,846 in 2010, this has not been enough to reduce the rate overall. Yet, it is interesting to note that s ince 2003, as unemployment in Texas increased or decreased, EI Paso County experienced the same trend. Some departments which have experienced the greatest increase in the number of employees in the County, are the District Attorney's Office, County Attorney's Office, Public Defender's Office, Sheriff's Department, Juvenile Probation Department, and Courts to name a few.
15.00%
10.00%
5.00%
0.00% 2002 2003 2004 2005 2006 2007 2008 2009 2010
Unemployment Rate - EI Paso County Fiscal Year • Unemployment Rate- Texas
Other Miscellaneous Statistics
EI Paso January 20 II Cost of Living Index - 82.5 vs. U.S. average - 100.0
Median Household Income -EI Paso $36,078 (2009) vs. $48,286 for Texas
Perons Living In Poverty (2009) - EI Paso County - 23.7%, Texas - 17. 1 %
25 10
El Paso County Demographics and Statistical Data
Other Miscellaneous Statistics, Continued
Home Ownership Rate- EI Paso County - 64.2%, Texas - 64.7%
Minority Owned Firms - 61.4%
Average Household Size - EI Paso County - 3.06 Persons vs. 2.8 1 Persons per Household in Texas
Mean Travel Time to Work -22.1 Minutes
Foreign Born Persons: EI Paso- 26.6%, Texas- 15.8%
Time Zone - Mountain
Employment
Unemployme nt Year Rate
2002 8.2% 2003 8.8% 2004 7.6%
2005 6.6% 2006 6.6% 2007 5.8% 2008 6.5% 2009 9.8% 20 10 9.6%
Property Values A mount m
Year thousam s
2004 $20,987,328
2005 $22 ,544,176
2006 $25 ,764,526
2007 $29 ,288,027
2008 $32 ,355,712
2009 $33,686,895
20 10 $33,925,366
20 11 $34,720,650
11 24
Formulation of the Budget For fi scal year 20 12. meetings w ill begin in December with the Conunissioners
Court, to apprise them on a monthly basis of any revenue projections and potential
shortfalls, due to the current economic conditions. Upon receiving feedback and
direction from the Court, the County Auditor will submit a proposed calendar of events
and budgetary instructions for the ensuing fi scal year's budget preparation cycle. These
budgetary instructions wi ll be submitted to each County department. These packages are
expected to be distributed no later than January 13th, to provide department heads additional time to plan spending for this year and next.
The proposals made by the departments and agencies must be returned to the
County Auditor's Office on or before February 10th. The requests/reductions, after
being evaluated by the County Auditor's budget staff and reviewed by the County
Auditor, are factored in to a preliminary baseline budget that contains no increases in
service levels other than those that are legally or contractually required.
Pursuant to the Texas Local Government Code, § II I.034(b)(4) and § 111 .039(b), only the County Auditor may estimate revenues. Tentative revenue estimates
will be included with the initial information that w ill be submitted to the Court in
December. Yet, since data required to ca lculate property tax estimates for the next fi scal
year is not received from the EI Paso Central Appraisal District (CAD) until July 25th or as soon as practical thereafter, property tax estimates wi ll be revised soon therea fter.
As in the past, the Commiss ioners Court is expected to instruct County
departments to work w ith the Auditor 's office in the development of the ir respecti ve
budgets. These meetings have been recei ved well and have proven to be very productive.
Public departmental budget hearings before the members of the Court are typically only
held if resolution between the departmental request and the Aud itor's Office
recommendation is necessary.
Late August and early September is when the final phases of the budgetary
cycle take place. Based on the monthly updates to be provided to the Commi ssioners
Court, addi tional instructions or hearings may be necessary for departments to prioritize
how the County's resources will be allocated. State law requires Commiss ioners Court to
adopt a property tax rate before September I st or as soon as poss ible thereafter but not later than the last day of the fi scal year, September 30th. Throughout this process, the
County Auditor enters any approved changes into the computerized budget system
factoring in any changes in estimated revenues from all sources anticipated in the ensui ng
fi sca I year.
After th is infonnation has been entered in to the system, pursuant to the Texas
Local Government Code, § 111.033 § 111 .037(a), on or immediately after the first day of
23 12
Formulation of the Budget each fiscal year, the County Auditor files a copy of the proposed budget with the County
Clerk. The copy of this proposed budget must be made available for public inspection by
any taxpayer.
Finally, the Commissioners Court holds a public hearing on a day within ten
ca lendar days after the date the proposed budget is fi led with the County Clerk but before the last day of the first month of the fi scal yea r. At the conclusion of the public hearing,
the Commissioners Court must take ac tion on the proposed budget. The Commissioners
Court may make any changes in the proposed budget that it considers warranted by the facts and law and required in the interest of the taxpayers.
The amounts budgeted in a fi scal year for expenditures from the various funds
of the County may not exceed the balances in those funds as of the first day of the fi scal
year, plus the anticipated revenue for the fiscal year as estimated by the County Auditor. Upon fina l approval of the budget by the Commissioners Court, the Court must fil e a copy of the budget with the County Auditor and the County Clerk. Thereafter,
Commissioners Court may spend County funds only in strict compliance wi th the budget.
Tentative FY2012 Budget Calendar
December 2011 Meeting with Commi ssioncrs Court
r"luesting input in regards to personn eI,
operating & capital needs of the County.
January - Letter and instruc tions fOr budgetary r"luests February 2012 submi tted to departments and returned to
Count y Audi tor. February - Mareh County Auditor reviews deparbnental
2012 r"luests and Departmental Hearin gs with
Auditor's Office are set.
Jul y-September 2 0 I Heari ngs with Comrni ssioners, and Adoption
of Property Tax Rate takes place.
October20 12 Proposed and Adopted Bud gets are fi led
with County Cl erk.
13 22
Highlights of the FY12 Budget
'" § $400 ... = ~ $200
$0
Total Adopted County Budget Trend
II _____ ___ $275
$221 $242 $257 $263 $259 $234
TTllllrl 20052006 2007 2008 2009 2010 2011 2012
Fiscal Year
Property Taxes
Overall the tax rate for EI Paso County decreased from $.363403/$100 of
assessed property value to the efTective tax rate of $.36 11 96/$ 1 00 of property value. This
represen ts a .002207 cent reduction below last years' tax rate, or 0.61 %. Based on the
average home value of $ 117,835 for 20 12, this amounts to an annual decrease of $0.4 1 in
each home owners County tax payments, or 0.10%. The chart below manifests this
change.
Impact of County Adopted Tax Rate on the Average Homestead
% FYI I FY12 $ DiiTerence Difference
Average $ 117,232 $117,835 $ 603.00 0.51 % Homestead Value
Tax Rate per $100 $0.363403 $0.361196 $ (0.002207) -0.61%
Average Tax $426.02 $425.62 $ (0.409298) -0.10%
21 14
Highlights of the FY12 Budget Fund Balance
The County operates under a balanced budget as required by law. In most of the annual operating budgets. the Commissioners Court members usually decide to use a portion of the undesignated fund balances to balance appropriations. As a sound financial management practice, members of the Commissioners Court consistently
emphasize maintaining sufficient fund balance levels in order to maintain and enhance the County's bond ratings. More importantly, the County focuses on having sufficient working capital for meeting current operating needs throughout the fi scal year, but more importantly during its first quarter - October through December. A more significant purpose of fund balance is to offset unexpected increases in costs and unanticipated dips
in revenues. As a rule of thumb, since the General Fund is the County's main operating fund, the County should maintain at a minimum 10-1 5% of the total General Fund adopted operating budget in anyone fi scal year. Prior to fi scal year 2005, the County's goal was to maintain a General Fund balance of at least 5 percent of the annual General Fund budget, with emphasis on reaching a 15 percent target. It was not until fi scal year 200 I that the County was able to achieve its 15 percent fund balance reserve goal. Commi ssioners Court members frequently decide to utilize the County's fund balance to prevent or reduce property tax increases in a given fi scal year. Preliminary estimates for
fi scal year 2011 reveal that the Court maintained stability of fund balance reserve.
'" = o .--~
2005 2006 2007 2008 2009 20 I 0 20 II
Fiscal Year
15 20
Highlights of the FY12 Budget
Major Funding Issues/Reductions for Fiscal Year 2012
Public Safety - Sheriff's Office Increases
Some of the major funding issues for the Sheriffs Department lie in the areas
of personnel, maintenance and medical services. In regards to personnel, the Collective
Bargaining Agreement over the course of the contract is anticipated to impact the County by an additional $4-$5 million per yea r. Thi s includes adding additional steps, additional
supplemental benefits, and educational incentive increases, and the purchase of raid
jackets. For fi scal year 20 I 0 and 20 II , understanding the fi scal challenges that the
County was facing, the Collective Bargaining Unit agreed to forego their cost of li v ing
increases for fi scal year 2010, for a fi scal year savings of $1.2 million and Holiday pay
during FY 2011 in the amount of $ 1.5 million. For fiscal year 20 12, the County was
more financ ially sound and absorbed these increases. In addition, the contract for
medical services for inmates has gone up over $).9 million for each jail fac ility since
fi scal year 2000, or over 218%. This continues to represent a fiscal challenge and is not
anticipated to change as increasing medical costs are expected to continue.
All Programs - Personnel Changes
Budgetary hearing policy is to avoid the creat ion of new positions whenever
poss ible. In years past, the Commiss ioners Court had approved proposed restructuring or
reorganizat ion of departments. Fiscal year 20 I 0 reflected a different situation, based on
our financ ial condition. For fi scal year 20 I 0, a "Hiring Freeze Committee" was
authorized by Commissioners Court , to include members of the County Attorney's
Office, Human Resources, Auditor's Office, and two representat ives from the
Commissioners Court. This Committee was not only tasked with reviewing any
departmental requests to fill vacant positions during the year, but was also faced with
meeting w ith department heads in regards to proposed and ultimately adopted reductions
in force. As a result of this, the County 's 2011 overall staffin g levels increased by only 3
positions as compared to 2010. The increases in staffing for fi scal year 2012 went up by
51 positions mostl y due to increases within the sheriffs departments and grants. As a
result of add ing these positions, the total General Fund impact for 20 12 is over $2
million. Before this year, employment in the County had increased by over 29% since
fi scal year 1999. Personnel appropriations are a material impact to the County budget
that must be considered by the Commiss ioners Court in future years.
19 16
Highlights of the FY12 Budget
Major Funding Issues/Reductions for Fiscal Year 2010, Cont'd
Personnel Changes by Program Type
FISCAL YEAR Program Type 2010 2011 2012 Administration of Justice 6 15.5 605.5 601.5 Culture and Recreation 48.0 49.0 55.0 General Government 531.0 528.0 536.0 Health and Welfare 36.0 35.0 50.5 Public Safety 1,277.5 1,282.0 1301.5 Public Works 75.5 75.5 75.5 Resource Development 10.5 10.5 10.0 Grants 164.0 175.5 182.0
Total 2,758.0 2761.0 2,812.0
General Government -Contingency Allocations
For fi scal year 2012, the Commissioners included in contingencies allocations
for personnel , operating and equipment for various purposes in the amount of $250,000
each, vs. $500,000 each in prior years. In addition, the most substantial increase was for
the appropriation of a 2% cost of living increase for a ll County employees in the amount
of $1.7 million, and the reversal of a 3 day holiday furlough impacting the County $906,000. Contingency allocations for 2012 also include $137,000 for Sheriff civilian reo grades to bring their scale in line with the County, $250,000 reserved for any possible Sheriff medical contract cola increases, and $668,000 to cover any possible unemployment de fic its.
All Programs - County Health and Life Contributions
The Risk Pool fund has continued to exhiblt stable finan cial perfonnance. In
the past, the Risk Pool fund has not been at such a healthy level and health insurance premiums for County employees and Reti rees have gone up as a result. Interestingly
enough, the County historically does not see the most costly medical expenses for
employees, their dependents, or retirees, but rather fo r their spouses, with dependents
being the least costly . Based on this stable financial position, the Commissioners opted
to invoke a relat ively small increase on employee and employer premiums, of 3. 1 %, wi th
an impact of$209,000 in 20 12.
17 18
All Funds Estimated Budgets and Actuals (Revenues) Operating Budgets
FY 2011 FY 2012 Taxes $162,384,750 $ 167,389,685 Licenses and Pennits 258,000 214,623 Inter!}>\emmental 35,562,495 5,987,159 OIarges for SetVices 45 ,403 ,334 47,806,038 Fines and Forfeits 5,9 19,000 6,472,499 Interest 2,202,350 680,673 Miscellaneous Revenues 3,994,853 2,023,670 Other Financing Sources 3,345,024 3,581,754 Total Re", nues and
Other Financing Sources $259,069,806 $234 156,101
Actual Sources
FY 2009 Taxes $147,733,352 Licenses and Pennits 229,677 [ntergo vemmental 26,756 ,028 Charges for Services 47,918 ,423 Fines and Forfeits 5,558,094 Interest 7,181,833 Miscellaneous Revenues 2,595,009 Other Financing Sources 140,662 ,231 Total Revenues and
Other Financing Sources $378,634,647
17 18
Revenues -All Fund Actuals Taxes
Taxes are a significant source of revenue of the County of El Paso and are
comprised mainly of property and sales taxes. Property taxes are levied each fi scal year
at a rate prescribed by Commissioners Court. Tax rates are calculated by utilizing Truth in Taxation Guidelines of the State of Texas, which limit the maximum debt tax rate to
cover principal and interest payments each fi scal year. Truth in Taxation laws also set
the guidel ines for determining the effective and rollback rates. The City Tax Office collects property taxes for the County under contractual agreement. Sales taxes represent a one half percent sales tax approved by the voters of the County of EI Paso effective
January I, 1988 as an effort to reduce property taxes and more proportionately spread the burden of funding County government.
Since fi scal year 2003 , the County's tax revenues have steadily increased due to the increases in property tax rates and property values. These increases have been
made in an effort for the County to maintain its current levels of services as well as to
fund increases in new debt for various projects. It is noteworthy to mention that it was
not until fisca l year 2003 that Commissioners Court opted to increase the tax rate from the previous four years from $0.361434/$ 100 to $0.396610/$ 100 of assessed property
values. For fi scal years 2006 and 2007, Commissioners decreased taxes from
$0 .432259/$100 of assessed property va lues to $0.391390/$ 100 of assessed property values. For fi scal years 2008 and 2009, Comm issioners adopted the effective tax rate of
$0.360267/$ 100, and $0.342437/$ 100, respectively, of property value.
SI50
S IOO
$50
$0 2005 2006 2007 2008 2009 20 10 20 11 20 12 2013 2014
Fiscal Year Budget Budget (Est.) (Est.)
Ln a non-appraisal year, the County can hi storically expect to see an increase of
2.0% in property tax revenues over the previous year, which is the basis for projecting revenue for fiscal years 201 3 and 20 14. During an appraisal year, when property values
wi ll most likely increase, the ant icipated increase in property tax revenues is closer to
19 16
Revenues -All Fund Actuals Taxes, Continued
5%. For fiscal year 20 12, the County is projecting an overall increase of approximately
$2.0 million in property tax revenues resulting from increased property values and not
due to the increase in the tax rate, as in prior years. For fiscal year 2012, Commissioners
Court adopted the effective tax rate of$.36 11 96 per $ 100 va luat ion.
Sales and Use Taxes represent the second largest source of County revenue and
are the only substantial elastic revenue source. Historical trends are the best tool
available for projecting this source of revenue. The projected revenue for fi sca l year
20 12 of $37.6 million is based on an optimistic trend for 20 11 of $37 mill ion.
Accordingly, revenue estimates for fi scal year 2013 and 2014 are estimated
conservatively at $38 and $39 million respectively.
Aside from Property and Sales and Use Taxes, the County also receives a
portion of the Bingo Tax, the State Mixed Beverage Tax, and the Hotel/ Motel Occupancy
Tax collected. For fi scal year 20 12, revenues for these sources are est imated at $52
thousand, $ 1.4 and $3.1 million, respectively, based on actual receipt estimates as of the
end of fisca l year 2010.
Licenses and Permits
This revenue source relates to licenses and pennits for businesses dealing with
alcoholic beverages, occupational licenses for co in operated amusement machines within
the County and for bai l bond permits. Because the maximum amount that can be charged
for any and a ll licenses and penn its is set by the State, this revenue source wi ll most
likely remain stable until the statutes are revised, thus resulting in very conservative
budgeted revenues for fisca l years 2013 and 2014.
~ c
:E ~ c ~
'" "
SI
so
:il so ~ 2005 2006 2007 2008 2009 20 10 2011 2012 2013 2014
0::: BudgctBudgct (Est.) (Est.)
Fiscal Year
15 20
Revenues -All Fund Actuals Intergovernmental Revenues
It is the County 's policy to aggressively seek funding sources that wi ll improve
the quality of life for its citizens without necessarily increasing the financial burden on
the General Fund. Budgeted revenues for fi scal year 2012 are significantly less than
those budgeted or received in prior fiscal years. Though drastic, that difference is due to
the fact that grant revenues are not budgeted at the beginning of the fiscal year but until
an actual grant award is received. By using this approach, the County of EI Paso avoids
overstating its budgeted Intergovernmenta l Revenues, particularly as it pertains to
Federal and State grants.
-;;
" ~
S4'
~ 52.
" ~ " = " " ~ 0:
so 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Blld:;et Bud:;et (ES1.) (Est.)
Fiscal Year
In the future, it is expected that this revenue source will remain stable. In most instances governmental entities do not guarantee funding of any sort, so any decision that
is made at other levels of government will impact the County's revenue stream. For example, the federal government's intense focus on anti-terrorism has shifted funding to other areas which are not the County's forte. As has happened with other revenue sources, the econom ic turmoil faced by the United States wi ll affect the amount of
Intergovernmental Revenue received. Historically, the County of EI Paso has received large grant awards from the Office of National Drug Control Policy to support anti-drug efforts in the area. If the federal administration shifts its focus to infrastructure projects which are more likely to jumpstart the economy, funding for the war on drugs may
decrease.
This revenue source is also impacted by the creation of new Courts. Two new District Courts began operat ions in the County of EI Paso during fiscal year 2008, increasing the number of case filings as well as the reimbursement received for support of the judiciary under government code 5 1. In addition, two new County Criminal Courts at Law were created by the passage of House Bill No. 4008 and these Courts began operations in January 2009.
21 14
Revenues -All Fund Actuals Charges for Services
This category relates to service fees charged by the various departments and
elected officials of the County_ The other category within charges for services relates
mainly to miscellaneous fees imposed through the judiciary or by departments pursuant
to state laws. The most significant revenue source under Charges for Services is prisoner
maintenance re imbursement for the incarceration of prisoners in the EI Paso Detention
facilities. Actual jail revenues have fluctuated between $ 12 million to about $16 million.
Fines and Forfeitures
$8
$6
$4
$2
$0 200S 2006 2007 2008 2009 2010 20 II 2012 20 \3 2014
Budget Budget (Est.) ([st.)
Fiscal Year
This category of revenue relates to funds generated by various elected officials
relating to the judicial process within the County. The County 's revenue for this source increased significantly beginning in fi scal year 2005 and progressively trended up through
fiscal year 2007 due to the collection effort s of several County officials of outstanding
bond forfeitures. Actual collections classified as Fines and Forfeits for fiscal year 2006
show a dramatic increase of approximately $4.36 over collections in fiscal year 2005.
However, that increase is due to the fact that, in the past, revenues coded directly to the
Fines and Forfeits sub-object were sufficient to constitute a major revenue source for the
County. Since fi scal year 2008, however, Fines and Forfeits no longer met the necessary
criteria to be considered one of the County's major revenue sources. This revenue source
now includes all collections stemming from child sa fety fees, county attorney bond
forfeitures, county traffic fees, fines and forfeits, juror fines and state drug forfeitures.
Aggressive collection efforts today wi ll result in less outstanding items to collect
on in the future. Starting in fi scal year 2006 and continuing through fiscal year 20 11 ,
13 22
Revenues -All Fund Actuals Fines and Forfeitures, Continued
Constables have held warrant roundups that target citizens with outstanding warrants.
Each person whose name appears on the warrants list published in the local newspaper has
the option of paying the fines assessed or may be imprisoned. Because the results have
been extremely positive, it is to be expected that the roundups will continue, thus reducing
the number of outstanding warrants that are carried on the County' s books from year to
year. Increased policing efforts are also expected to continue throughout the County,
resulting in increased collections pertaining to violation of child safe ty laws. Finally, we musl keep in mind thal population growth in EI Paso County will l:onlinue playing a
major role in the increase in collect ions for this revenue source.
~ $8 c
S $6
:,; c $4 C
$2
$0 2005 2006 2007
Interest
2008 2009 2010
Fiscal Year 2011 2012 2013 2014
Budget Budget (Est.) (Est.)
This revenue source is the result of aggress ive investment of the County 's
public funds in a va riety of investment options as authorized by law. This revenue source
varies directly with the direction of interest rates and the amount of funds available for
investment.
For fi scal years 2013 and 20 14, revenues from this source are est imated to stay
flat , based on a new depository institution contract, which will be awarded in 2013 , and
the interest rate anticipated.
The greatest factor that wi ll impact the Interest Earnings received by the
County of EI Paso in the future is the nation 's economy. When the economy seems to
falter, the Federal Reserve is more likely to make interest cuts that wi ll have an impact on
23 12
Revenues -All Fund Actuals Interest, Continued
the County's return on investment. Worldwide fac tors, such as increasing oi l prices and
developing economies, also affect the perfonnance of the stock market. The dollar remains weakened by the low interest rates set by the Federal Reserve but that helps to
narrow the trade gap as the demand for our exports increases. In the long run, this will
he lp the stock market and trick le down to interest revenues.
~ = $15
~ :; $10
.5 ~
~ $5
= '" ~ $0
Miscellaneous Revenues
c.: 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 BudgctBudgct (Est.) (Est.)
Fiscal Year
Miscellaneous revenues relate to those considered as non-recurring and not classified in any of the other major categories as defined, and thus fluctuate from year to
year. Because this revenue source is unpredictable, the County of El Paso relies heavily on historical revenue trends to make estimates for future years. One-time revenue sources are the most difficult to estimate, since they may be unexpected and not easily identified until very late in the fi scal year. The County of EI Paso makes every e fTort to
budget any revenues that may result from anticipated legislative changes. For fi scal years 201 2 through 20 14, the County will once aga in budget on the conservative side, based on
the unpredictable nature of grants and one-time sources of revenue.
Other Financing Sources
The overall majority of thi s category relates to transfers between other funds of the County such as from excess grant match refunds to the General Fund and inter-fund
transfers from various Special Revenue Funds, such as the Road and Bridge Fund, to the General Fund, as has been the case in the past.
In the fu ture, it is projected that Other Financing Sources wi ll continue to
decrease because County departments are strongly encouraged by Commissioners Court to pursue grants only if there are no match requirements.
11 24
Operating Budgets-Appropriations Other Financing Sources, Continued
$150
$100
$50
$0 2005 2006 2007 2008 2009 20 10 20 11 20 12 2013 20 14
Fiscal Year Budget Budget (Est.) (Est.)
Operatil12 Bull2ets FY 20tJ FY2012
Geneml Govemrrent $41,833,999 $49,208,259
Admini station of Just ice 53,855,139 50, 195,225 Public Sa rely 122,509,353 11 2,206,535 Health and Welfare 11 ,245,383 7,0 14,950 GomlUJI1ity Services 1,657,302 Resource Developtrent 327,519 390,75 1 Go Inrre and Recrea ion 7,371 ,881 7,605,426 Public 'Mxks 16,55 1,055 16,921 ,262 Capital Got lays 8,433,474 2,173,540 omt SelVice 12,889,808 13,044,170 Other Financing Uses 4,287,110 3,487,769 Total Expendinrres and
Other Financi ng Uses $280,96 2,023 $262,247,88
25 10
Expenditures -All Fund Actuals
Actual Uses
FY 2010
peneral Government $36,53 1,335
f<\dministation of Justice 49,6 12, 107
Public Safety 110,739,23 4
Health and Welfare 10,742,115
~ommunity Services 1,249,183
Resource Development 751,416
~ulture and Recreation 7,486,450
Public Works 9,482,444
~apita l Outlays 14, 199,1 15
Debt Service 14,4 14,777
pther Financing Uses 11,181 ,194
[f0tal Expenditures and
Other Financing Uses $266,389,370
Total Expenditures
Total expenditures for the County of EI Paso have grown steadily over the
years due to several factors, such as contractual increases re lating to sheriff deputies
covered by a collective bargaining agreement for salary increases, and operational cost increases such as uti lities and general inflationary factors.
General Government
The General Government component of the County's budget relates to
departments that are genera lly administrative in nature. For example, the County Judge
and County Commi ssioners are funded within this function, as they are the executive
body of the County and are responsible for making all the decisions that impact the
residents of the County of EI Paso. Others departments that fa ll within this category, to
name a few, are the County Auditor, the County and District Clerk Offices, the Information Technology Department and the Tax Office; the General and Administrat ive
account is also budgeted as part of the Genera l Government program.
Administration of Justice
Administration of Justice is one of the core services of County government and
has grown steadily since the early 1990s. These increases have related to nominal yearly
9 26
Expenditures -All Fund Actuals Administration of Justice, Continued
adj ustments as those given to other departments within the County. The fluctuations are
also related to increases in the Judiciary to include the funding of new Courts, such as
County Criminal Courts at Law Number 1-4, Juvenile Court Referee 2, Probate Court 2,
Associate Family Court 4, the 448'h District Court and County Criminal District Court
No. I . These increases have also impacted legal fees of the Council of Judges
Administration . Other changes that have affected expenditures and budgeted
appropriations are the increased staffing levels in related support offices such as the
County and District Attorney and the Public Defenders' offices, whose departments work
in direct relation with the Judiciary.
", $400 c:
~ $300
~ $200
$100
$0 2005 2006 2007 2008 2009 2010 2011 2012
Fiscal Year Budget Budget
Public Safety
[n regards to Public Safety, beginning in the late 1980s, the County entered into
a collective bargaining contract with the EI Paso County Sheriff deputies for salary and
benefi t compensation, which represents much of the trend increase in this area.
Other 51.4 1%
Total Operating Budget
Debt ' ,c.;", J 4.97%
Pu bl ic Sa rcty .79%
a pil al Outlays 0.83 %
27 8
Expenditures -All Fund Actuals Public Safety, Continued
Addi tiona lly, over the years. detention officers were added to the collect ive
bargaining agreement , and a c ivilian employee career ladder was approved by the
Comm issioners Court. There is a decrease in appropriations budgeted for fi scal year
20 12 as compared to fi scal year 201 1, which is indicative of the fact that grams will not be budgeted until the award letters are received. However, future expendi tures for public
safety are expected to continue to increase over the next several years.
Health and Welfare
The County of EI Paso has participated with the City of EI Paso in providing joint funding for certain public health and welfare programs in the past, such as on-site
sewage inspections. public health and denta l fac il ities, air and water pollution contro l, as
well as mosquito and animal control programs. For the future, the overall intent of the
Court remains to identify state mandates of indigent health. The County has taken back the administration of on-site sewage inspections, and set up an ani mal control division in
the Sheri ffs Offi ce to recognize savings in th is area.
Resource Development
Funding for any County activities that promote economic improvements for its
citizens is recognized here. For fi scal year 20 12, the Resource Development program
was increased minima lly fo r the re- instatement of auto a llowances and operating for the
Agri-Life Department of the General Fund.
Culture and Recreation
EI Paso County maintains several public parks, th ree public swimming pools, a
public golf course and a lake. Cultu ra l events, fairs, rodeos, livestock shows, c ircuses,
musica l perfonnances and a wide variety of other sport ing events are held at the County's
Coliseum. Some of the improvements thus far inc lude upgrades to the Ascarate Park
grounds, to include the lake, tra ils, playgrounds and ball fi elds.
Public Works
The County maintains several hundred mi les of roads, streets and highways,
and numerous bridges. Over the past few years, the Court has emphasized re- investment
of road funds fo r sign ificant improvement of roads and purchases of heavy-duty road
equipment util izing current revenues and prior years fund balance. A cont ingency of
$5.9 million in 20 12 has been set aside for the construction of the Fabens Port of Entry
budgeted in the Road and Bridge fund. Th is has also contributed to the increase in
budgeted appropriations in recent years.
7 28
Expenditures -All Fund Actuals Community Services
The area of Community Services relates direct ly to grant-funded activities over
the years. The foca l point has been on improving the outlying areas within the County of
EI Paso by providing necessities such as transporta tion and renovat ions to community
centers.
Capital Outlays
Thi s category is used to account for major construction expenditures and
utilized to acquire furni shings and equipment w ithin the Capital Project Fund.
Subsequent to fiscal year 2000, due to the utilization of the Capi tal Project Fund, fewer
resources fo r capi ta l outlay budgets were used under the Genera l Fund. In past years, the
Commissioners Court issued Certificates of Obi igat ions for various projects such as a
Coun tywide data processing upgrades, County Coliseum renovations, and the build out of
the County Courthouse 5th and 7 th floors to name a few. In fiscal year 2002, bonds were
issued to fin ance various projects in the County such as a new e lections system for voters,
renovations for the County Coliseum, and construction of a Fabens Port of Entry. It is
noteworthy to mention that for the 2001 -2002, and 2005-2008 fi scal years, the amount of
$ 1,000,000 was reserved to meet future needs of the County. Due to budgetary
constra ints in fiscal years 2003-2004, and 2009-20 12, the Court funded departmental
capital needs from ex isting funds remaining from prior year transfers.
$80
$40
$0
Capital Project Fund Only
$8 4~10,86 . $4.54 $2 77$1 41 . • $0.29
2002 2003 2004 2005 2006 2007 2008 2009 20tO 20tt 20t2
Fiscal Year
Debt Service
Thi s area relates to the County 's principal and interest payments due each year
as set out in various bond amortiza tion schedules. These expenditures are funded by ad
29 6
Expenditures -All Fund Actuals Debt Service, Continued
valorem property taxes that by law constitute the interest and sinking portion of the
County's tax rate calculated separately from the maintenance and operating component of
the ad valorem property tax rate. Debt Service expenditures for fi scal year 2008
increased dramatically fo r new bonds issued to COver capita l projects for the Sheriff' s
Department, parks, and the Ju venile Probation Department , to name a few. For fi scal
year 20 II , the County Commi ssioners did not issue bonds, as most departmental needs
were met with the issuance of bonds in fi scal year 2007. The County does intend to issue
$ 11 .7 million in G.O. Refunding Bonds in December 2012, for the purpose of interest
rate savings.
~
c: .~
$100
;: $50 ::;
$0
$66.0
~ ~26.0
-~ 6.0~ 16.2 l6.1 _p.91
14.6$14.'!$ 12.8$13.0 [[ [ un 2002200320042005200620072008200920102011 2012
Fiscal Year
Other Financing Uses
Other Financing Uses relates to transfers of funds to other funds andlor
payments not considered operating expenditures such as defeasance or refunding of
bonds issued. The County, upon recommendations of its financial advisor, took
advantage of lower interest rate financing and re funded various long-tenn obligations,
which were accruing interest at signifi cantly higher interest rates for a net future savings
to the taxpayers of EI Paso County, during 2008 and will again in 2012. Normally, other
uses relates to providing matching fund s to secure various grant funding, but has also
been used as a transfer into the Capital Project fund. A total of$1 mi llion, based on the
recommendation of the Capital Equipment Committee, was estabhshed during fi scal
years 200 I , 2002, 2006, 2007 and 2008 to be uti lized by departments when needed.
subject to the fina l review and approval by Commi ssioners Court.
5 30
EI Paso County~ Financial Strategy The County of EI Paso has identified six specific areas to protect aga inst future
financial difficulties.
1. Stabi lize the property tax rate and increase collect ion efforts.
2. Monitor revenue trends closely.
3. Plan for future County space necds.
4. Implement technology initiatives.
5. Gradually replace obsolete equipment.
6. Maintain fund balance to meet projected cash needs.
Stabilize the Property Tax Rate and Increase Collection Efforts
EI Paso County Government is largely financed by property taxes based on
truth-in-taxation guidelines set forth by the Texas Comptroller of Public Accounts. EI
Paso is a multi-jurisdictional area in that each jurisdiction has taxing authority; therefore,
taxpayers are charged with overlapping taxation. Property tax revenues for 20 11 , for the
General Fund, totaled just over $ 11 0 million. Ultimately, the County's first priority is to
stabilize its property tax rate and to keep it as low as possible while sustaining basic
public services. This was the case in fi scal years 1999 through 2002 when the Court kept
its tax rate of $0.361434 the same four years in a row. Based on truth in taxat ion
guideline calculations, as sales and use tax revenues increase, property tax revenues
should decline correspondingly. During these years, the County was fortunate to receive
various uncertified and un budgeted re imbursements, which resulted in significant fund
balance gains. The drawback to thi s was that various Commissioners' Courts
subsequently set expenditure levels significantly higher than sustainable actual future
revenues. As a result, subsequent tax rate increases were necessary and resulted in fi scal
years 2003, 2004, 2005 and 20 I I tax rates totaling $0.396610, $0.4108 17, $0.432259 and
$0. 363403, respectively. The tax rate remained the same for fi scal years 2005 and 2006
and decli ned to $0.391390 in 2007. The court adopted the effecti ve tax rate for fi scal
years 2008-20 10 and 2012, the latest rate being $0.361196.
Due to possible legislat ive init iatives aimed at limiting the abi lity of local
governments to levy property taxes and in essence shifting or capping local property
taxes or offsetting them with the levy of additional sales and use taxes, the Court is ever
more focused on minimizing future tax burden on its residen ts. Efforts have been and
remain focused on increasing collection efficiencies, reassessing fines and fees charged
for services in order to ensure costs are at least recovered, in addition to finding new
revenue sources.
31 4
EI Paso County's Financial Strategy Monitor Revenue Trends Closely
An example of a source of revenue where trends are monitored c losely is for
the second major revenue source for the County: The extra half-cent sales and use tax
that is incorporated into the local sales and use tax rate of8.25 percent . This half-cent tax
comprises $37.6 million or 16.10 percent of total County revenues for 20 12. This tax
usually responds quickly and unpredictably to unantic ipated changes in national and local
economic conditions such as the peso devaluation in Mexico and the September 11 , 200 1
disaste r. Unfortunately, there have been times when the County's service costs have not
varied in relat ion to the erratic sales and use tax inflows. Fortunately, in fi scal years
2004, 2005 and again in 2006-2008, EI Paso County experienced favorable recovery in
growth of sales and use tax revenue. In prior years and in 2010, this revenue grew at an
annual rate of approx imately 7%.
In addition, sales tax revenues are monitored very closely for erratic
fluctuations, as they may impact subsequent operating budgets. Therefore, this revenue
projection is forecasted based on actual collections of past years rather than on future
year's presumed growth in sales. Furthennore, State Tax Code requires that as long term
debt obligations ex ist, any excess of sales and use tax collections from the prior year must
be calculated and transferred to the Debt Service Fund for the repayment of debt. As a
result, the re is at least a one-year lag before the General Fund realizes the full impact of
substantial revenues gains for this source. Addit ionally, the County's sales tax rate is
presently at the maximum and growth is solely dependent upon the taxable sales tax base
and the local economy.
In response to prior shortfalls of actual expenditures outpacing the trend of
actual revenues, the County Auditor projects revenues, expenditures and fund balance
reserves fi ve years into the future. This project ion is maintained and updated monthly.
This method has proven effective in communicating past and future financial trends to the
Court, and a llows the abi li ty to factor in the impact of initiatives for revenue est imation
or expenditure enhancements or reductions. Based on the financial trend analys is, the
County is able to project future financial position based on current actions. This strategy
played a vital role in setting the tone of holding the line on expenditure growth during in
the 20 12 budget process since revenue had been declining. This process wi ll be uti lized
for years to come allowing the Court to assess its position and better evaluate the impacts
o f its actions prior to implementat ion.
323
EI Paso County~ Financial Strategy Plan for Future County Space Needs
For the County of El Paso, space issues have continued to be an issue for the Court. EI Paso County completed its new downtown courthouse in 1990 costing
approx imately $53 million with a total o f 428, 129 square feet. Since then, a study of the County's space needs has been perfonned to give the Court opt ions for effectively
planning and keeping pace with future growth needs. The Courthouse for all intent
purposes is a judicial courthouse; therefore, in fi scal years 200 I and 2002, the
Commissioners Court issued debt for a multitude of projects, the main project being construction of a courthouse annex, renovation or expansion of the existing downtown courthouse annex, and additional parking at the downtown courthouse. These bond
issues totaled $63 .4 million. Since the issuance of these bonds, numerous transactions have occurred, which are intended to alleviate the County's space needs for many years to come.
Implement Technology Initiatives
The Information Technology Department (lTD) is continuing to implement a number of systems that improve the efficiency of County departments. Together with the
County Auditor's Office, lTD has evaluated the county's budgeting and payroll and
human services software and will be upgrading the current legacy systems. Emphasis will be placed on new Enterprise Reporting Programs (ERP) being more efficient and
therefore reducing maintenance and support costs while providing better financial
reporting capabilities and more effic ient government services and ease of statewide financial reporting.
Gradually Replace Obsolete Equipment
The County' s financia l strategy is to gradua lly and regularly replace some of its
equipment each year in order to prevent all or most of the County's equipment from
becoming obsolete at anyone point in time. As part of the budgetary process, the
equipment committee evaluates all capital requests on a case-by-case basis and makes recommendations to Commissioners Court. The equipment committee is also tasked with the development of the County's fi ve-year strategic capi tal plan.
Maintain Fund Balance to Meet Projected Cash Needs
As a rule of thumb, since the General Fund is the County's main operating fund, the County strives to maintain a General Fund balance, at a minimum, equal to projected cash needs for the first fi scal quarter to meet operating obl igations (approximately $ 18-2 1 million net cash outflow) or 10- 15 percent of the total General
33 2
EI Paso County~ Financial Strategy Maintain Fund Balance to Meet Projected Cash Needs, Cont'd
Fund adopted operat ing budget in any one fi scal year. At the present level, this means
that the County should strive to maintain a minimum undesignated General Fund balance
of at least $2 1.4 million based on the fi scal year 20 12 General Fund budget. By maintaining a low fund balance, the County remains vulnerable to the lowering of
its' bond ratings. Lower bond ratings ultimately result in more cost ly future borrowing at
higher interest rates, and therefore, increased interest expense in response to an entity 's declining financ ia l position depicted at anyone point in time. In essence, having some
amount of fund balance gives the County the financial ability to cover unanticipated
revenue losses or significant unantic ipated expenditures should they occur.
Sources
Census 2000 Paso Del Norte Chi ld Health Factbook, Institute for Policy and Economic Development EI Paso County Demographics, Texas Cooperative Extension Data and Statistics Portal, Texas Higher Education Coordinating Board City of EI Paso, Economic Development Department
1 34
County government operations. We sincerely and Commissioners, other elected and apIJoi lnted ,. ,m,:i:
for their roles and support in developing this su~~in'lr.
The following individuals are to be the preparation of the 2012 Annual Op,e~,iti.,g been possible without their professionalism.
County
Wallace .l.l"-"~ Budget and
YvettJ lJu.v'as Budget
Gaby Senior Budget Acc:OjUltant
Maria Gamboa Budget Accountant
Any Questions?Any Questions?
If you have any Questions please do notIf you have any Questions please do notIf you have any Questions, please do notIf you have any Questions, please do nothesitate to write or call:hesitate to write or call:
El Paso County Auditor’s OfficeEl Paso County Auditor’s Office800 E. Overland, Room 406800 E. Overland, Room 406El Paso, Texas 79901El Paso, Texas 79901--24072407
(915) 546(915) 546--20402040Fax: (Fax: (915) 546915) 546 81728172Fax: (Fax: (915) 546915) 546--81728172
[email protected]@epcounty.com
A copy of this budget package is available at:
ii
A copy of this budget package is available at:
www.epcounty.com/auditor/publications/default.htm
County of El Paso, TexasCounty of El Paso, TexasC i i C tC i i C tCommissioners CourtCommissioners Court
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