Multnomah County Approved Budget FY 2015

www.multco.us/budget April 29, 2014

Prepared by the Multnomah County Budget Office ∙ 2

Overview

Schedule and Process

Corporate Budget Overview Summary information Use of OTO Percolating Topics & Issues General Fund Reserves & Contingencies

Trends Summary

Prepared by the Multnomah County Budget Office ∙ 3

Budget Process FY 2015 November 14th – Forecast for FY 2015 February 14th – Departments Submit Budgets March 13th – Updated Forecast for FY 2015 April 24th - Board Approved Budget* May 14th – Updated Forecast for FY 2015

Three Evening Public Hearings April 30th - East County – Sharron Kelly Conference Room May 7th - IRCO - Northeast May 14th - Multnomah County Boardroom

May 22nd - TSCC Hearing* May 29th - Adopt Budget* *Library District FY 2015 Budget on concurrent schedule

Prepared by the Multnomah County Budget Office ∙ 4

Budget Worksessions FY 2015 Week of April 28th – Financial Overview, CIC, Finance & Budget

Policies, Debt Overview, Capital Briefing, 3 Mini-Worksessions: HB 3194 Local Public Safety Reinvestment: Mental Health Pilot Affordable Care Act

Week of May 5th – Health & Human Services

Week of May 12th – Public Safety, General Fund Forecast and General Government

Week of May 19th – General Government, Library District, Amendments & Budget Note Review, TSCC Hearings

Week of May 26th – Adopt Budgets FY 2015 Multnomah County & Library District

Prepared by the Multnomah County Budget Office ∙ 5

Overall Financial Context

FY 2014 Adopted Budget = $1,533,439,628

FY 2015 Approved Budget = $1,617,303,040

An increase of $83.8 million or 5.5% Note: Includes Contingencies, Reserves, and Unappropriated Balance

Prepared by the Multnomah County Budget Office ∙ 6

General Fund Overview - $453 Million

*Note: does not include transfers, reserves and contingencies. Health Dept. includes $32.7M of FQHC/PCPCH

Where the money goes to:*

Where the money comes from:

Beginning Working Capital 11.2% Interest

0.2%

Taxes 73.5%

Licenses/Permits 2.4%

Intergovernmental 2.6%

Service Charges 8.9%

Other Sources 1.1%

$- $20 $40 $60 $80 $100 $120

Library

Nond

County Mgmt.

County Assets

Community Svcs.

Human Services

Health Dept.

Community Justice

Sheriff

District Attorney

$0.0

$24.7

$33.5

$6.1

$13.2

$61.2

$96.1

$58.5

$112.1

$21.6

Prepared by the Multnomah County Budget Office ∙ 7

All Funds Overview - $1.6 Billion Where the money comes from:

Where the money goes to:*

*Note: does not include transfers, reserves and contingencies

Beginning Working Capital

25.6%

Interest 0.1%

Taxes 28.1%

Licenses & Permits 2.0%

Intergovernmental 31.2%

Service Charges 6.9%

Other Sources 6.0%

$- $50 $100 $150 $200 $250

Library

Nond

County Mgmt.

County Assets

Community Svcs.

Human Services

Health Dept.

Community Justice

Sheriff

District Attorney

$68.1

$108.0

$134.9

$229.3

$194.6

$235.7

$167.1

$89.7

$127.4

$27.9

Prepared by the Multnomah County Budget Office ∙ 8

Full Time Equivalents +75.01 FTE FY 2001 Adopted – FY 2015 Approved (All Funds)

Total FTE w/ the Library

Total FTE w/out the Library

3,800

4,000

4,200

4,400

4,600

4,800

5,000

FY 2

001

FY 2

002

FY 2

003

FY 2

004

FY 2

005

FY 2

006

FY 2

007

FY 2

008

FY 2

009

FY 2

010

FY 2

011

FY 2

012

FY 2

013

FY 2

014

FY 2

015

AP

Prepared by the Multnomah County Budget Office ∙ 9

Full Time Equivalents (FTE) by Dept.

-

200

400

600

800

1,000

1,200

Nond Library DCHS Health DA DCJ MCSO DCM DCS DCA

(5.61)

(3.00)

+57.35

(6.10)

+5.50

+16.37

+5.00

+3.50 (7.80)

+9.80

FY 2014 Adopted FY 2015 AP

Prepared by the Multnomah County Budget Office ∙ 10

Eligible Retirements by Dept.

15%

0%

5%

10%

15%

20%

25%

30%

DCM DCHS MCSO NOND Library DCJ DA DCA Health DCS

Perc

ent o

f Dep

artm

ent

Retirement Eligibility as of FY 2015 15% of County Employees will be eligible to retire as of 7/1/2014

Eligible to Retire Percent of County Eligible to Retire

Prepared by the Multnomah County Budget Office ∙ 11

Eligible Retirements Rep. vs. Non-rep

0%

5%

10%

15%

20%

25%

30%

35%

40%

MCSO DA DCJ Library NOND DCM DCS DCHS Health DCA

Perc

ent E

ligib

le to

Ret

ire

Non-represented Employees Represented employees

30% "Executive Employees"

N =5

Prepared by the Multnomah County Budget Office ∙ 12

Budget Highlights General Fund balanced for next 3 years Invests in safety net services (including Mental Health

services, SUN, housing programs), maintains public safety service levels Strategic use of GF OTO for capital investments Creates three new capital construction funds for

transparency Includes additional Visitor Development Funds Provides for employee step/merit and COLA increases Fully funds reserves and maintains BIT stabilization

reserve

Prepared by the Multnomah County Budget Office ∙ 13

General Fund Basics FY 2015 General Fund Forecast

Ongoing revenues exceed expenditures by $8.3 million or 2.1% in FY 2015 Gap shrinks to $2.7 million by FY 2019 Driven by below average cost growth due to flat medical/dental rates and PERS rate

reductions Daily General Fund cost to run the county - $1.2 to $1.6 million

Policy Direction & Assumptions $4.7 million of the $8.3 million treated as one-time-only to balance budget for roughly

the next 3-years Assumes 95 USM beds/day – A reduction to 50 would result in a loss of $2.1 million

OTO Funds $15.4 million after funding General Fund reserve and BIT Reserve Includes $4.7 million of ongoing that is treated as OTO $9.8 million dedicated for capital projects or debt

Updated Forecast on May 14th

Prepared by the Multnomah County Budget Office ∙ 14

Use of One-Time-Only (OTO) Responding to Community Needs

Mental Health Pilot Project (40059, 50041) - $750,820 SummerWorks Internship Program (10035) - $250,000 Land Use Comprehensive Plan Update (91027) - $586,000 Mental Health & Addictions Engagement Services (25136B) - $471,000 MCSO Crisis Intervention Training – Patrol Enhanced (60023A) - $81,100 Veterinary Services (91030) - $197,316

Facilities Capital and Debt Health Department Headquarters (78006) - $1,000,000 Downtown Courthouse (78013) - $2,300,000 Columbia River Boathouse (78014) - $100,000 Animal Services Renovation (78015) - $700,000 Capital Debt Retirement Fund (10026) - $1,800,000

Information and Communications Capital DSS-Justice Funding (10009B) - $205,336 IT Continuity of Operations (78017) - $600,000 IT Network Convergence (78018B) - $1,139,000 DART Assessment & Taxation System Upgrade (72035B) - $1,500,000 Server Virtualization – NetApp (15002B) - $75,000

Other Upgraded Ballot Tally System (91026) - $500,000 MCSO Additional Hiring Process Backgrounders (60004) - $174,077

(See p. 18 of the Budget Director’s Message for more detail.)

Prepared by the Multnomah County Budget Office ∙ 15

General Fund Reserves – Fully Funded General Reserve @ 10% of corporate revenues or

$34.3 million

BIT Reserve @ 10% or $6.3 million

General Fund Contingency $9.1 million Regular - $1.25 million Additional ‘OTO’ - $858,471 Earmark for runoff election - $400,000 Earmark for disparities reduction in communities of color - $250,000 BIT Reserve - $6.3 million

Prepared by the Multnomah County Budget Office ∙ 16

Percolating Topics & Issues US Marshal Bed Usage Affordable Care Act & Healthcare Transformation HB 3194 Allocation Major Capital Projects Downtown Courthouse Health Department Headquarters

Local Partnerships & Roles i.e., SUN and Mental Health services

Cautionary Note – current revenues can not support backfilling ongoing federal/state/city programs and

major capital expenditures without impacting current services.

Prepared by the Multnomah County Budget Office ∙ 17

What We Spend our Resources on… FY 2004 Actuals – FY 2015 Approved (All Funds)

$0

$100

$200

$300

$400

$500

$600

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 AD FY 2015 AP

Mill

ions

Personnel Services

Contracts

Materials and Services

Internal Services

Capital

Debt Service

Prepared by the Multnomah County Budget Office ∙ 18

Adopted FTE vs. Total Personnel Costs FY 2002 Adopted to FY 2015 Approved (All Funds)

$200

$250

$300

$350

$400

$450

$500

$550

4,300

4,400

4,500

4,600

4,700

4,800

4,900

5,000

5,100 FY

200

2

FY 2

003

FY 2

004

FY 2

005

FY 2

006

FY 2

007

FY 2

008

FY 2

009

FY 2

010

FY 2

011

FY 2

012

FY 2

013

FY 2

014

FY 2

015

AP

Pers

onne

l Cos

ts (M

illio

ns)

FTE

FTE

Total Personnel Costs

Prepared by the Multnomah County Budget Office ∙ 19

Avg. Benefits & Insurance Cost per FTE FY 2002 Adopted to FY 2015 Approved

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

FY 2

002

FY 2

003

FY 2

004

FY 2

005

FY 2

006

FY 2

007

FY 2

008

FY 2

009

FY 2

010

FY 2

011

FY 2

012

FY 2

013

FY 2

014

FY 2

015

AP

Prepared by the Multnomah County Budget Office ∙ 20

Benefits & Insurance % of Payroll FY 2002 Adopted to FY 2015 Approved

30%

40%

50%

60%

70%

80%

90%

100% FY

200

2

FY 2

003

FY 2

004

FY 2

005

FY 2

006

FY 2

007

FY 2

008

FY 2

009

FY 2

010

FY 2

011

FY 2

012

FY 2

013

FY 2

014

FY 2

015

AP

Prepared by the Multnomah County Budget Office ∙ 21

PERS Rates Charged to Departments Based on % of Payroll for PERS, 6% Pick-Up, & PERS Bond

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Tier 1 & 2 Non-Uniformed

Tier 1 & 2 Uniformed

OPSRP Non-Uniformed

OPSRP Uniformed

Prepared by the Multnomah County Budget Office ∙ 22

FTE by PERS Tier Based on Actual People

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

TIER 2

TIER 3

TIER 1

Prepared by the Multnomah County Budget Office ∙ 23

Health Care Inflation/Costs

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

% Change in West Coast CPI-W

% Change in Avg Total Prem. for Family Coverage (Kaiser Survey)

% Change in Actual (Kaiser + Self Insurance)/FTE Costs

Prepared by the Multnomah County Budget Office ∙ 24

Where Do We Spend General Fund? FY 2003 Adopted to FY 2015 Approved

Public Safety

Health and Human Services

General Government

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 AP

General Govt.

Health & Human Services

Public Safety

General Govt. 17%

Health & Human Services

38%

Public Safety 45%

Based on department appropriations

Prepared by the Multnomah County Budget Office ∙ 25

How Fast does GF Grow to Support Services?

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

BIT MVRT @ constant rate Property Tax Total (Using constant MVRT Rate) Compound Average Growth Rate

Prepared by the Multnomah County Budget Office ∙ 26

Striking a Balance Balancing the demand for current services while preparing for

future demands by investing in our infrastructure & people Balancing the uses of resources across many service areas –

public safety, general government, and health and human services

Balancing the demand for current services while providing for financial flexibility and stability in the future General Fund balanced through FY 2017 General Fund and BIT stabilization reserves maintained and General

Fund contingency funded Prudent budget practices Deliberate use of OTO w/limited support for ongoing programs Wise use and management of debt along with maintaining credit

ratings