2010

Preliminary Budget

Douglas County, Colorado

October 27, 2009

 Today’s Presentation
9 2009 Forecast

9 Major Theme

9 2010 Recommended Preliminary Budget

9 Detail by Fund

2
 Where Do We Currently Stand?
2009 Forecast
• Current Forecast within 1%
– Result of adjustments made from 2008 to 2009

• Sales and Use Tax projected down 16.5%

– Funds capital projects

• All Funds have adequate fund balance to

manage 2009 shortfalls

• 2010 forecasts are adjusted to reflect continued

revenue trends
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 Major Theme
• Future Property Tax Forecast Major Focus
– Next re-appraisal period
– 2012 Forecast – 16% decrease
• Residential Forecast – 10% decrease
• Commercial – 20% decrease
• Vacant Land – 25% decrease
– General Fund impact $14.3 million decrease

• Actively managing this forecast

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 Favorite Budget Gimmicks –
What NOT to do …
From David Smith, Maricopa County Manager
• Undisciplined revenue estimates that are inevitably wildly
optimistic
• New revenue sources budgeted at unrealistic levels
• Using capital dollars for operating expenses
• Using one-time sources of funds for recurring expenses
• Early retirement buy-outs without eliminating the “retired
from” positions
• Spend down fund balances to support the operating budget
• Projecting unrealistic “efficiency savings” from process
changes
• Hoping to luck out that the economy will turn!

And Douglas County does NOT do any of these 5

 2010 Budget Assumptions
For Staff Recommended Budget
• Adopt 1 year budget
• Mill levy allocation remains the same
• All Funds are balanced
• All Funds meet fund balance/reserve policy
• Continued emphasis on business-friendly culture
• Incorporates 5-year Capital Improvement Projects plan
• Match on-going expenditures with on-going revenues
• Built into forecast:
– Fixed Charges
– Statutory increases
• No salary or benefit increases built in

6
 2010 Revenue Forecast
• Property Taxes
– 1.5% increase over 12/10/08 valuation

• Sales and Use Taxes

– Auto use down 11.0% from 2009 projections
– Building use down 16.7% from 2009
projections
– Sales tax holding flat with 2009 projections

• Major revenues (General Fund)

– Down 3.0% from 2009 projections
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 County Overview Summary
2010 Preliminary Budget is $218.8 million
• Major Revenues:
– Property Taxes
– Sales Taxes
– Intergovernmental
• Major Expenditures by function:
– Capital Improvements
– Public Safety
– Public Works
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 County Overview Summary
Revenues
Sources of Funding Revenues
1.0%
6.4% 0.5% Property Taxes $ 104,938,921
1.6% Sales & Use Taxes 34,010,000
0.5%
Specific Ownership Taxes 6,501,800
6.1% Licenses & Permits 3,310,300
Intergovernmental 34,603,776
Charges for Services 13,410,225
48.1%
Fines & Forfeits 1,108,800
15.8% Interest Earnings 3,566,000
Miscellaneous 14,074,040
Total Revenues - All Funds $ 215,523,862

1.5% Internal Service Funds 2,183,338

Use of Carryover Funds 1,135,669
3.0%

Total Sources of Funds $ 218,842,869

15.5%

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 County Overview Summary
Expenditures by Category
Contingency
1%
Spending Category Expenditure
Personal Services $ 87,152,962
Supplies 4,782,565
Capital Controllable Assets 169,000
18%
Interdept Charges Purchased Services 26,875,486
0%

Intergovt Support Building Materials 4,483,990

4% Personal Services
41%
Fixed Charges 8,774,481
Debt Services 9,731,400
Grants, Contributions
12% Grants,Contributions,Indeminties 25,889,883
Intergovernmental Support 9,335,602
Interdepartmental Charges 94,982
Capital 39,142,518
Debt Service
Purchased Services
Contingency 2,410,000
4%
12% Supplies
Fixed Charges
2%
4% Total Expenditures $ 218,842,869
Controllable Assets
Building Materials
0%
2%

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 County Overview Summary
Expenditures by Function
Self Insurance Funds Treasurer
1.1% 0.6% Function Expenditures
Capital Improve. & Infrastructure $ 44,344,699
Clerk & Recorder 5,666,589
Community Development 6,780,011
Contingency Reserve & Overhead 2,433,802
Public Works Capital Improve. &
Infrastructure Contingency
Coroner 1,298,865
17.4%
20.3% Reserve & County Assessor 3,607,112
Overhead
County Attorney 1,202,737
1.1%
County Commissioners & Admin. 5,200,484
2.6%
C &R Debt Service 9,731,400
Comm Plan District Attorney 6,628,643
3.1% Coroner
0.6% Finance 1,723,209
County
Health & Human Services 32,767,201
Public Safety
21.2% B OC Assessor Human Resources 956,603
C /A
dm. 1.6%
De 2. 4% Information Technology 8,380,453
bt
S
8%

erv
i ce
County Attorney Public Safety 46,501,750
y 3.

Di

4. 4
str

0.5%
Public Works
g

% 38,109,902
ol o

ict
At
n
ech

to

Self Insurance Funds 2,263,650

rn
ey
T
ti on

Health & Human

3. 0

Treasurer 1,245,759
%
rma

Services
Total Expenditures $ 218,842,869
I nfo

15.0%
Finance
Human Resources 0.8%
0.5%

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 County Overview Summary
Prior Year Comparison
$160,000,000
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$-
Operating Federal Grants Capital
2009 $160,192,808 $7,970,851 $69,580,069
2010 $158,703,471 $16,365,417 $43,773,981

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General Fund

13
 General Fund Overview
Revenue Forecast:
• Net change - $3.0 million or 3.1% decrease
– Property Taxes 3.1% increase
• Due to increase in assessed valuation
– Licenses & Permits 31.4% or $1.4 million decrease
• Building Permits 44.4% or $800,000 decrease
• Cable Franchise Fees 23.3% or $429,000 decrease
– Intergovernmental 38.1% or $1.3 million decrease
– Earnings on Investments 30% or $826,000 decrease
– Transfer from Justice Center 18.2% or $1.5 million
decrease
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 General Fund Overview (Con’t)

Expenditures Forecast:
– Salaries and related benefits $787 k or 1.3% decrease
• 35 positions closed in 2008 & 2009
• No salary increases

– Purchased services decreased $390 k or 1.9%

– Fixed Charges $950 k or 17.2% decrease
– Continue to set aside 50% of Business Personal
Property Tax for community minded initiatives
• Economic Development
• Water Initiatives

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 General Fund Overview (Con’t)

Positions Closed in 2008 & 2009:

Department FTEs Reduced Amount Saved
Assessor - 5.0 ($ 281,100)
Clerk & Recorder - 1.0 ($ 48,660)
CSU Extension - 0.5 ($ 21,300)
County Admin - 2.0 ($ 154,770)
CPSD -14.0 ($1,390,110)
Finance - 1.0 ($ 46,000)
IT - 7.5 ( $ 951,050)
Public Works - 4.0 ($ 489,300)

Total -35.0 ($3,938,890) 16

 General Fund Overview (Con’t)

• Items built into forecast

– Fixed Charges 17.2% or $950,000 decrease
– Tri-County population increase $71,607
– District Attorney population increase $96,978

• 2009 Mid-Year FTE Additions

– 2 Court Deputies $100,000
– Statutory Program Specialist $65,000

• Prior Year Board Commitments (effective in 2010)

– Transfer 1 FTE from LEA Fund to General Fund ($57,600)
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Law Enforcement Authority
(LEA) Fund

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 Fund Highlights:
Law Enforcement Authority Fund

• Primary Revenues
– Property Taxes (4.5 mills) $13.5 million
– Fines and Forfeits $1,057,000
– Total Revenues $16.2 million
• Primary Expenditures
– Salary & benefits $12.7 million
– Fixed Charges $1.3 million
– Total Expenditures $15.9 million
• Mid-year Addition of 1 FTE to coordinate CSV
• FTEs reduced by 1 - transferred to General Fund
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Justice Center Sales & Use Tax
Fund

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 Fund Highlights:
Justice Center Sales & Use Tax Fund

• Primary Revenues
– Sales and Use Taxes (0.43%) $14.6 million
• Primary Expenditures
– Transfers
• General Fund – Justice Center Operations $6.8 m
• Debt service on revenue bonds $2.7 m
– Capital requests $4.6 m
• North Substation furniture/fixtures/equip $2.0 m
• Dispatch Radio Consoles Replacement $1.6 m

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Human Services Fund

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 Fund Highlights:
Human Services Fund

• Primary Revenues
– Property Taxes (0.316 mills) $1.4 million
– Intergovernmental (Federal & State funding) $24.0 million
• Primary Expenditures
– Salary & benefits $3.3 million
– EBT (Electronic Benefit Transactions) $21.4 million
• New Requests
– 3 FTEs (80% reimbursed from State)
• 1 Child Protection Caseworker Supervisor $15,310 (net to County)
• 1 Child Protection Caseworker $12,429 (no cost to County)
• 1 Child Protection Clerk $8,847 (net to County)
These positions have a budget neutral affect on the fund
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Open Space Sales and Use Tax
Fund

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 Fund Highlights:
Open Space Sales & Use Tax Fund

• Primary Revenues
– Sales and Use Taxes (0.17%) $5.8 million
• Primary Expenditures
– Salary and benefits $599,000
– Transfer to Parks Sales & Use Tax Fund $912,000
– Debt service on revenue bonds $3.2 million
• Major Projects
– Palmer Divide trailhead and trail $250,000
– Bayou Gulch trail improvements $250,000

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Parks Sales and Use Tax Fund

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 Fund Highlights:
Parks Sales & Use Tax Fund

• Primary Revenues
– Sales and Use Taxes $913,000
– Cash-in-lieu $150,000
• Primary Expenditures
– Debt service on revenue bonds $796,200
– Capital projects $320,000
• Macanta Park perimeter fencing $150,000
• Regional & Local park improvements $100,000
• Central irrigation controls $70,000

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Conservation Trust Fund

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 Fund Highlights:
Conservation Trust Fund

• Primary Revenues
– Intergovernmental – Lottery proceeds $1.0 million

• Primary Expenditures
– No projections planned for 2010

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 Fund Highlights:
Emergency Fund

• Primary Revenues
– Re-appropriation each year from unspent prior year
funds

• Primary Expenditures
– Purpose of fund to account for expenditures
associated with Federal, State, or Local declarations
of disaster and is to cover costs from date of
declaration to the date recovery begins

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Road & Bridge Fund

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 Fund Highlights:
Road and Bridge Fund

• Primary Revenues
– Property Taxes (4.493 mills) $20.3 million
– Auto Ownership Taxes $6.5 million
– Highway User Tax Funds $5.0 million
• Primary Expenditures
– Salaries & benefits $8.2 million
• R&B Admin, Maint of Condition, Snow Removal, Traffic Services, Fleet Mgmt
– Intergovernmental Support (Sharebacks) $4.5 million
• Aurora, Castle Rock, Larkspur, Littleton, Lone Tree, Parker,
Castle Pines North
– Capital Improvement Projects $12.0 million
• Pavement management $5.0 million
• CIP $5.7 million
• Vehicle replacements $250,000

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 Fund Highlights:
Road and Bridge Fund

• Positions Closed in 2009

Administration -2 ($ 249,000)

Fleet -1 ($ 52,600)

Maintenance of -4 ($ 255,000)
Condition
Total -7 ($ 556,600)

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 Fund Highlights:
Road and Bridge Fund

• Major Projects
– Ridgegate / Mainstreet / Peoria $2.5 m
– DC16 over Plum Creek bridge replacement $1.7 m
– Newlin Gulch channel improvements $400,000
– Traffic signal maintenance $500,000
– Drainage projects $500,000

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Roads Sales and Use Tax Fund

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 Fund Highlights:
Road Sales & Use Tax Fund

• Primary Revenues
– Sales and Use Taxes (0.4%) $13.6 million
– Bond issue $13.5 million
• Primary Expenditures
– Intergovernmental Support (Sharebacks) $4.2 m
• Castle Rock, Larkspur, Parker
– Debt service on revenue bonds $1.6 m
– Capital outlay - CIP projects $19.1 m

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 Fund Highlights:
Road Sales & Use Tax Fund

• Major Projects
– Hess/Stroh Road extension $10.5 m
– Ridgegate / Mainstreet / Peoria $4.6 m
– Broadway & C-470 improvements $3.0 m
– Lincoln Ave multi-modal improvements $1.0 m

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Capital Expenditures Fund

38
 Fund Highlights:
Capital Expenditures Fund

• Primary Revenues
– No on-going revenue sources
• Primary Expenditures
– Miscellaneous Facilities Improvement and Maintenance
Projects of $200,000
– COP payments for Miller and Human Services
Buildings $1.4 million
• Fund Balance
– Reserve $5.0 million for future facility needs
– Reserve $6.3 million for Miller Building and Human
Services Certificates of Participation

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 Budget Process
October 14, 2009 Preliminary Budget presented to Board

October 27 Public Hearing – Preliminary Budget Presentation

November 1 Engineering provides CIP to Finance

Nov 3 & 16 BCC Budget Work sessions

December 15 Public Hearing – Present Budget to Board for Adoption

January 29, 2010 2010 Budget-in-Brief distributed

February 26 2010 Adopted Budget Book available online

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Questions?

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