Calaveras CountyRobin Havens

County Budget Analysis PA730: Managing Budget in the Public Sector

Where’s that?

•Founded in 1850 •Population of 45,578 (United States Census Bureau, 2012)•Angels Camp the only incorporated city in the County

Yes. Calaveras County was made popular by Mark Twain’s 1865 story, The Celebrated Jumping Frog of Calaveras County

Now, the Mission of Calaveras County is to: “…provide service, infrastructure, leadership, and vision necessary to advance a safe community, maintain a high quality of life, while preserving local history and culture, and to protect the personal liberties of all its citizens (County of Calaveras, California, 2011).”

Is that the Jumping Frog Place?

Goals of the Auditor Controller:

• Seek transparency in everything we do at the local level

• Pursue adoption of policies that prevent fraud or the perception of conflict/fraud

• Maintain accurate financial data and make available to the public

• Follow all laws- even if they are in conflict with “how we have always done things”

Calaveras County: Auditor Controller

Introduction to FY2011 BudgetLine item format, July to June FYNo budget message or narrativeSome Priorities, Goals, Objects of note;

Avoid one-time budget solutions Balance budget Maintain costs by controlling personnel expenditures Minimize general fund contributions to non-general fund programs Avoids raising fees Strive for a “healthy” reserve fund Developing a high quality workforce that provides excellent

customer service Building public-private partnerships Use technology to streamline processes and improve transparency, Plan for capital improvements Developing interdepartmental collaboration

“The priorities of the Calaveras County depend on localized issues that the Board of Supervisors may face.”

“Currently the priorities of the Board are Public Safety and completing the General Plan.”

“The largest reform was stripping the Board’s ability to make last minute changes in the budget. 

Line item Budget format a fit for their limited resources

Budget Process: Rebecca says…

Last Five Years: Expenditure fluctuations due to Recession

Expenditure

FY2011 FY2010 FY2009 FY2008 FY200760,000,000

62,000,000

64,000,000

66,000,000

68,000,000

70,000,000

72,000,000

74,000,000

76,000,000

Total General County Expenditures and Transfers Out

Total General County Expenditures and Transfers OutPolynomial (Total General County Expen-ditures and Transfers Out)

Last Five Years: Expenditure fluctuations due to Recession

Expenditure

Expenditures           

General Department Totals   FY2011 FY2010 FY2009 FY2008 FY2007

Total General 16,054,365 12,648,326 14,530,848 17,007,099 11,947,754

Total Public Protection 18,148,577 20,469,381 22,107,142 23,096,595 20,535,656Total Public Ways and Facilities 8,138,187 6,225,855 8,638,594 8,996,443 9,271,644Total Health 8,677,067 9,084,919 9,734,883 9,044,472 7,747,177

Total Public Assistance 14,023,939 14,027,543 14,802,817 13,869,296 13,183,408Total Education 601,033 704,311 822,456 848,255 832,170Total Recreation and Cultural 827,566 363,346 150,073 109,146 682,007Total Debt Service 2,286,302 3,061,603 1,250,255 959,256 833,402Transfers Out 0 0 0 0 0

Total General County Expenditures and Transfers Out 68,757,036 66,585,284 72,037,068 73,930,562 65,033,218

County Total Bonds and Other Long-Term Debt 35,027,541 34,986,151 35,532,743 5,131,122 5,645,514

Last Five Years: Expenditure fluctuations due to Recession

Expenditure

FY2011 FY2010 FY2009 FY2008 FY20070

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Total GeneralTotal Public Pro-tectionPolynomial (Total Public Protection)Total Public Ways and FacilitiesTotal HealthTotal Public As-sistanceLinear (Total Public Assistance)Total EducationTotal Recreation and CulturalTotal Debt Service

Total General County Expenditures and Transfers Out by Major Categories

Expenditure

FY2011 FY2010 FY2009 FY2008 FY20070

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Total FinancePolynomial (Total Finance)Total JudicialPolynomial (Total Judicial)Total Police ProtectionPolynomial (Total Police Protection)Total Protective InspectionPolynomial (Total Protec-tive Inspec-tion)Total Other Protection

Selected Large Budgets with Declines

Expenditure: General Department Totals FY2011

Total General23%

Total Public Protection

26%

Total Public Ways and Facilities12%

Total Health13%

Total Public As-sistance

20%

Total Education1%

Total Recreation and Cultural1%

Total Debt Service3%

Last 5 years: Also fluctuating with the Recession

Revenue

FY2011 FY2010 FY2009 FY2008 FY20070

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000Total Financing Sources and Transfers In

Total Fi-nancing Sources and Transfers InPolynomial (Total Fi-nancing Sources and Trans-fers In)

RevenueRevenues

             FY2011 FY2010 FY2009 FY2008 FY2007

Property Taxes 16,355,353 19,072,274 20,742,667 18,838,405 17,685,084Other Taxes 2,747,671 2,663,778 3,051,829 3,927,626 4,254,145

Licences, Permits and Franchises 2,108,541 2,094,863 2,455,098 3,066,210 4,280,248Fines, Forfeitures and Penalties  1,498,192 1,296,456 1,556,118 2,195,312 2,317,820

From Use of, Money and Property 1,015,528 994,378 1,398,797 1,389,226 1,328,506

State 25,949,281 23,011,472 27,896,310 19,964,341 21,446,531Federal 9,527,800 9,516,056 6,975,956 8,582,415 7,815,237Governmental: Other 512,110 85,704 142,819 68,697 86,610Charges for Current Services 6,446,581 6,485,158 6,193,112 5,675,277 5,682,426Miscellaneous Revenue 1,445,187 1,390,539 1,723,304 1,929,464 1,639,713Other Financing Sources 32,667 26,462 30,900,843 7,762,579 7,560Transfers In 652,245 0 0 1,581,438 0Total Financing Sources and Transfers In 68,291,156 66,637,140 103,036,853 74,980,990 66,543,880

Property Taxes24%

Other Taxes4%

Licences, Permits and Franchises

3%

Fines, Forfei-tures and Penalties

2%

From Use of, Money and Property

1%

State38%

Federal14%

Governmental: Other

1%

Charges for Current Ser-

vices9%

Miscellaneous Revenue2%

Other Financing Sources0%

Transfers In1%

FY2011 Revenues

Revenue

FY2011 FY2010 FY2009 FY2008 FY20070

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

FederalLinear (Federal)Charges for Current ServicesLinear (Charges for Current Services)

Steadily Increasing Revenues

Revenue

FY2011 FY2010 FY2009 FY2008 FY20070

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

Other Taxes

Linear (Other Taxes)

Licences, Permits and Franchises

Steadily Decreasing Revenues

Revenue

FY2011 FY2010 FY2009 FY2008 FY20070

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000Property Taxes

Property TaxesPolynomial (Property Taxes)

Revenue

General; $58,428,272

Special Revenue Funds;

$62,261,054

Capital Projects Fund; $25,506,005

Debt Service Fund; $2,351,951

Enterprise Funds; $2,298,840 Special Districts and other

Agencies; $2,756,242 All Fund Summary

Budget Principle #9 of the Calaveras County FY2011 budget call for the County to, “Strive for "healthy" reserves and a 3 to 4% contingency fund”

Callen (2012) noted that the updated target is 5 – 10% or three months of operating funds.

Actual: $725,797.00 = 1%Year-end general fund balance approach A formal stabilization fund allocation would

be a better fit for long term planning.

Reserve Fund

“Not Proficient” in all categories except Financial Summaries

Weaknesses:No Budget Message No time periods for goals in the Goals, Principal and

ObjectivesFunds not explained/connected to expendituresNo long-range financial planningNo performance measures or outcomes linked to budget

Strengths:Details of fund appropriation, revenues and expendituresSeparate Capital Budget

Evaluation Using GFOA Rating System

Weakness of FY2011 budget outweigh strengths

Budget provide the bare minimum required by the small county of Calaveras to function fiscally

No long-term planning or performance measures

Little interpretationEspecially difficult to track relationships

between the revenue funds and their full or partial expenditure

Formal, rigid and uninvitingWhy not provide level of detail in year-end

financial report?

Discussion

Smoother Board process with limitsMid-year forecast of decline in property tax =

cuts to FY2012 budgetMeager new local construction trendsDoubt about the stability of federal and

state funding = continuing Board contention

Proposition 30 pass avoids trigger cuts to education and the courts

Discussion: Forecasting the Future

Description: Add a clear narrative that describes:

1) The economic context of the county2) Lay out the interconnectedness and

relationships between the budget structure elements

3) Depict year to year and long-term processes and changes with supporting graphics

Recommendations

Performance: Show how expenditures support Mission“…giving the public a clearer view of what the

results of government expenditure are and providing some assurance that government agencies are focused on performance and are being held accountable… (Mikesell, 2011, p. 258)”

Citizens could be further empowered to understand and support their county government by the addition of transparent performance budgeting measures.

Recommendations

That’s’ it…!

So long from "Jim Smiley and His Jumping Frog"