FISCAL YEAR 2012 - 2013 RECOMMENDED BUDGET

Terri Daly, Chief Administrative Officer, EDC, May 28, 2012 

The total Recommended Budget for FY 2012-13 is $382M, which is $20M (5%) less than the Adopted FY 2011-12 budget of $402M. The County’s proposed General Fund budget, which includes discretionary funds for County services, is $194M, which is $15M (7%) less than the Adopted FY 2011-12 budget of $209M.

The Recommended Budget includes no growth in the General Fund discretionary revenue sources. The $15M decrease is primarily related to a decrease in fund balance of approximately $12M. Departmental revenues have also decreased slightly by $1.6M or 2%. Non-General Fund revenues are restricted in their use for programs delivered by the Department of Transportation, Public Health, Mental Health, Community Services and Erosion Control. The decrease of $5M within Non-General Fund revenues are primarily related to changes within Public Health (decrease of $5M), Mental Health (decrease of $5M), and Community Services (decrease of $2.2), offset with increases in the Road Fund of $4M and Road District Tax Fund $3M.

The Recommended FY 2012-13 Budget includes funding for 1747.73 full-time equivalent positions (FTEs). This represents a 9.1 FTE increase from the current FY 2011-12 allocation. This chart includes only departments with personnel allocation changes.

The Chief Administrator’s Recommended Budget for FY 2012-13. Departments have done an excellent job of maintaining their FY 2011-12 Net County Cost, the assigned target for FY 2012-13. This budget isbalanced with a slight surplus of $677,642. The Chief Administrative Office is recommending that this surplus be added to the designation for Capital Projects and reevaluated after the books close in August. This budget was our first budget based onthe Board adopted Investment Plan with long term strategies geared towards limiting government and enhancing services. These strategies include moving forward with replacement of costly, inefficient systems that require more and more resources to maintain, allowing employees to become more efficient and turning these savings into enhanced services. This budget is based on the core principals of spending conservatively, investing wisely and being flexible and ready to act. The strategy is tominimize future shortfalls by holding down spending until efficiencies can be gained through system and process improvements. Any “surplus” or unanticipated fundbalance should be invested wisely based on the investment plan. One time funds strategically invested result in future on-going operational savings to help close our structural deficit and enhance services.

The County continues to have a structural deficit (see Attachment A) resulting in a
projected shortfall of $8.2 million in FY 2013-14.

This budget is submitted during the ongoing negotiation of the State’s FY 2012-13
budget and does not make any assumption about the impact of the State’s Budget. The
State is facing a $15.7 billion deficit for FY 2012-13. In their overview of the Governor’s
May Revision the LAO agrees that the Administration’s estimates are based on
reasonable assumptions. It is important to note that the Governor’s proposed budget
relies on voters approving his November statewide ballot initiative. If the ballot initiative
fails, additional cuts will go into effect that could impact the County.

Each department summary provides a detailed list of program areas with corresponding
budgetary information, number of staff, extra help costs, and net county cost and/or
general fund contribution. Ten year information is shown in a staffing allocation trend
chart and a ten year fiscal history by line item class. Organizational charts show the
department’s staff by allocation and distribution by program. Detailed financial
information is shown by department, by fund type. Additionally the Budget Basics has
been updated to include current data and is incorporated into the Recommended
Budget document. Also included with the Budget Basics is the presentation given to the
Board in September, 2011 outlining the Strategic Investment Plan. CAO staff and
departments will be available to discuss this information with the Board in functional
group meetings and during the Budget Special Meetings.

The Budget Special Meetings will begin on June 5, 2012 and continue on June 6, 2012
if necessary. CAO staff will provide an overview of the Recommended Budget as well
as present a new Personnel Resolution for adoption. We would like to return to the
Board during the month of August with updates from the Investment teams and
recommendations for changes to the Recommended Budget. Budget Hearings are
scheduled to begin on September 17th with approval of the Adopted FY 2012-13 Budget on September 25th.

http://www.ineldoradocounty.com/FINAL_RECOMMENDED_BUDGET_12-13_reduced.pdf