Travis County Commissioners Court
Tuesday, August 2, 2011 (Agenda)
Item 22
22 is receive presentation on fiscal year 2012 preliminary budget.
I'm superstition in my old age.
when your planning and budget staff are on time and quiet, I'm inclined to think of bad news and not good.
>> we have good news.
>> good.
>> good morning, judge, Commissioners, rodney rhoades, planning and budget.
before I turn it over to the brain trust, I want to just kind of go over a couple of things.
as we mentioned last week, the preliminary budget was filed on the 25th of July.
the preliminary budget as directed by the Commissioners court was brought in just under 3% above the effective tax rate.
we'll talk a little about that in just a little while.
a couple of items of note, and as we go through the discussion, you will see that the preliminary budget is presented to you with adequate reserves, very healthy reserves, and that's done for a reason.
we are anticipating lower construction -- new construction numbers in f.y.
13.
as a result we are recommending that we hold reserves as much as we can going into 12.
and that those reserves be available to us for f.y.
13.
so with that, I will turn it over to leroy and jessica and let them walk you through it, and if you have any questions, we'll be happy to answer them.
>> first of all, I'd like to say that, you know, rodney and I are the ones at the front of the room, but our staff are the ones that do the work and I do want to congratulate them on a hard budget cycle.
all of the staff, and then the other departments, audit, david and Karen did a yeoman's job.
this is the first cycle for david to do the estimate and so we want to congratulate them and all the departments.
it's been a very cooperative budget cycle and we do appreciate that.
so with that, I think I'll turn it over to jessica and let her run through the presentation that we've got for you.
>> good morning, jessica rio, planning and budget.
we did file the budget on Monday, July 25th, and there should be a link also on the website for the public to view that, the executive summary.
the guidelines that you approved on February 22nd is what we used to guide us during the preliminary budget.
as rodney said, those guidelines included ensuring the preliminary budget was within 3% of the effective tax rate.
and the first slide gives you information on the tax rate as well as average appraised value of homesteads and the taxable value.
we have since received some updated information and the certified values actually that we will be using for the -- this is -- ties to the third revenue estimate as a preliminary budget always does.
the fourth estimate will take into consideration the values and that will be available for markup.
>> is there increase in the certified value?
>> there was.
we used 95.37 which was used in the third revenue estimate.
the actual certified net taxable value was 97 billion.
the difference there being a large property owner which perhaps could be under litigation, it's not certain at this time, so we have had conversations with the auditor's office and we believe it is prudent before -- before we use that increased value to see the results of that.
so whatever the auditor's decision on that will be presented in the fourth revenue estimate.
and we might say that the new construction, as you recall, new construction when we went to the bond rating was at 1.3 billion.
the actual certified new construction come in at 3.5.
that's that same large property owner.
and so we're very very cautious with those.
those are certified values, and they will stand regardless of potential litigation.
so that -- we will undoubtedly pick up with the increase net taxable value in the fourth revenue estimate, we would expect the effective tax rate to go down some.
so we will be revising these charts on the -- the proposed tax rate based on the fourth revenue estimate.
which we'll get sometime the third week of this month.
>> and the other thing that you'll be seeing in August is the tax ads that are required by law.
we'll be posting those for your review, and then the first day of markup, you recall, is when we require a vote on that tax rate so we can meet all such requirements on advertising.
this next slide is a little bit out of date given the certified values, but it gives you an idea of the context that the preliminary budget was filed under.
and then we gave -- provide a little history for you to see the change in value since 2003 to 2012.
overall, however, the county is in very good financial shape.
especially when compared to other governmental entities.
we believe that the preliminary budget represents a very sound financial plan for 2012.
we believe that the fiscal health is really due to our careful adherence as a county to adopted budget guidelines and historicry careful spending as well as prudent revenue estimates by the county auditor's office and then, of course, the fact that we are very keen on matching one-time expenditures with one-time available resources and ongoing spend yourself with ongoing available resources.
the budget meets the county's existing contractual and programmatic requirements, and it provides resources to maintain current benefit levels.
there are some increased employee retirement contributions that are included in the preliminary budget as well as increased employee life insurance and resources for new retirees on the health plan.
it provides fund fog the most current maintenance, that's what mce stands for when you can't fit it on a slide, and there are healthy reserves given the current conditions.
we've also provided within those reserves, one in particular flex about it to address some of the most critical state reductions and there's a budget hearing scheduled for -- I believe that's Wednesday, August 10th that you will be hearing some concerns on that issue.
>> does this reflect -- and I don't mean to get ahead of you, but sometimes I do get ahead of myself.
but I was kind of concerned on where the reflection is in the budget, especially looking in some of the -- maybe some of the new laws that we have to adhere to in the example the i.r.s.
situation as far as the bond funded employees that we have.
is this reflected in -- and I'm saying basically t.n.r.
is this reflect here whereby we may be able to see the impact it will have to general fund at this point and this portion of the preliminary budget or do we have to wait -- is it a wait and see type deal until a certain point in I'm kind of concerned.
>> Commissioner, the current preliminary budget is not address --
>> it does address current staffing.
>> not the anticipated needs should the election pass in November.
what it does do is identify those and that will be a discussion item that we will have on the -- in the afternoon.
>> okay, well, I just wanted to make --
>> but as far as any current bond staff that are working on current bond programs, it does address that.
we've been working with t.n.r.
over the last year and a half to ensure that those are appropriately funded and we've been bringing those over.
>> yeah, the other thing is we have maintained the same level of allocated reserve at $8.9 million in anticipation there will be some unknowns and those bond staff are unknowns.
>> I just wanted -- when you mention about the reserve and some of these things will be coming out of general fund, we'll address those issues at that time.
I didn't mean to get ahead of myself, but I wanted to make sure those persons that may be impacted by this are well aware of what's going on in the budget process to make sure that their concerns, especially department concerns are addressed.
so that's why I just kind of laid that out.
okay, go ahead, I'm sorry.
>> of the 8.9 million we budgeted for f.y.
11, how much of that do we think we will spend by the end of the fiscal year?
>> we currently have a balance in that account of 7.2 million.
>> 7.2?
>> do we expect any big hits between now and September 30th?
>> we are expecting some to be used.
we've actually got future earmarks currently at 2.3 million of that 7.2.
so I think our current projection is something like leaving at least 5 million of the 8.9.
>> thanks.
>> this next slide presents to you a comparison to f.y.
11 to f.y.
12 of some of the major funds, general fund, bridge, and other funds and transfers.
as you can see, the total at the bottom, we're at f.y.
11, 706, going to 742.3.
>> the general fund reflects the increase in
>> [indiscernible].
road and bridge reflects the decrease in state funding, correct?
>> there is that 10% annual.
>> decrease, correct.
it also represents a fact we have been using in that one particular fund one-time resources for ongoing requirements.
we have been dipping into our reserves to maintain that program.
and I'm sure t.n.r.
is going to be addressing that on Thursday, August 11th.
>> and the debt service funds reflect the increase in tax base as well, yes?
>> it reflects the requirements that we have -- well, and the increase in reserves, yeah.
>> and then risk management is the fund is lower.
what's the story there?
>> the risk management fund?
the lowering of the risk management fund.
>> we believe this is probably the last year that we will be able to right size the allocated reserve in the risk fund.
we've done that for the past four years at about 1.2 million per year.
and it looks like the reserve is essentially at the level that -- that we believe in the auditor's office and h.r.
believe that we need to maintain.
so we would not anticipate that in f.y.
13.
>> so we're capped out at an effective level?
>> yes.
>> I do neat we have reduced some of the -- note we have reduced some of the funds we lay aside because we decided it wasn't sufficiently risky, which is nice.
>> well, in chatting with the te wall street bond rating firms, we concluded that was too hefty.
>> yes, we have, and we right sized the health fund over the last several years, the reserve in the health fund.
but what we have not done is used one-time money.
this is one-time money, both the risk and the health fund.
we have not used it for ongoing expenses, which, you know, makes it worse the following year.
so we've been very careful to use it for, like, building c.a.r.
up and one-time expenses that we won't have recurring in subsequent years.
>> employee insurance has gone up significantly by 1.7?
>> beg pardon?
>> from fiscal year 11 to 12, employee insurance --
>> yeah, it's still -- still increasing and we do have, I believe, more participants on the health fund than we did in prior years.
this -- this total fund is based upon the total revenue in the fund, which not only includes what Travis County contributes but what dependents' families contribute to the fund.
so as you have more people in the fund, including retirees, then the fund will increase.
>> become healthier.
>> right.
>> and the other funds and transfers we've seen an increase.
>> right.
one of the large transfers, you know, is the bcp transfer which we're transferring, I believe, over $10 million a year for the balcones canyonland preserve.
we do have other transfers that we have in the recapitulation.
>> thanks.
>> so the risk management, this is a budgeted amount.
do we know about how much of that, say, for f.y.
11 we will spend this year?
another way to ask that, what will the balance be at the end of the fiscal year?
>> the revenue estimate, the third revenue estimate for the general fund indicates that the auditor's office is estimating that the beginning fund balance for f.y.
12 will be about $100.9 million.
>> but I mean for the risk management fund.
>> oh, risk management.
I'm sorry.
>> that's all right.
I'm just wondering, we -- say this year when we budgeted $17.6 million, do we know about how much we will spend of that?
>> let me check that right --
>> I can get the answer on the 10th if I need to.
>> well, the beginning -- the beginning balance in the third revenue estimate is $12.2 million.
that's what we expect to end up with.
we started f.y.
11 with 13.8.
so we are pulling the reserve down by about -- let's see, about 1.6.
so we believe this is -- f.y.
12 will be the last year that we will be able to use that.
>> okay.
I'm sorry.
go ahead, judge.
>> go ahead.
>> leroy, I'm trying to -- let me ask this question again.
you probably answered it.
but when do we expect the next revenue estimate?
because as far as the tax rate that we're basicallyly looking at is probably changed with this next estimate.
so --
>> we would expect --
>> expected to change from .48 to 62 down to whatever if the fourth revenue estimate is what we think it will be.
so I guess the question is when will -- when will that fourth revenue estimate be made available?
>> that was indicating the third week -- the third week of August.
what happens on those revenue estimates is planning and budget estimates the expenditures on every single fund and we submit those to the auditor's office as quickly after the books close for August.
it normally takes eight working days for the books to close for July, and then we do the projections.
we send them to the auditor's office and they do the revenue side and put them together and that's how you come up with the revenue estimate.
so we're looking for the third week, probably around the 20th, 21st we would anticipate a fourth revenue estimate.
so when you get your budget agenda work sheets, you should know essentially what resources would be available going into markup.
now, we do have a fifth revenue estimate, which is the result of everything that happens in markup, and it's also the result of a little finer calculation on expenditures that are done based on August's close.
so prior to us filing the proposed budget, we will have the fifth revenue estimate and that's generally what the adopted budget is based on.
>> okay.
I was just trying to get the scheduling in mind, you know, correct in my head as far as the when of all of this.
all right, thanks.
thank you.
>> the next slide presence the personnel changes in the preliminary budget.
there was the largest change was related to Commissioners court approved moving of the mental health public defender and office of child representation office of parental representation from grant fund to go general funding.
as you recall, and that was done sometime in the spring, I believe.
there was also additional attorneys for the child -- office of child representation and parental representation, and then there was a couple other -- excuse me, a few other ftes approved by Commissioners court midyear.
that totaled 29 f.t.e.
the others are very minor and there is additional information on those in the executive summary.
>> next on year can we leave off that the Commissioners court initiated --
>> they were done for very valid reasons as presented to court at the time.
the funding increases on slide 9, this information is detailed and this is really just a summary of numbers you, but it's detailed starting on page 6 of the executive summary of the preliminary budget.
as you can see, the largest increase was for maintenance -- there was also shortfall as we discussed earlier about the -- from the road and bridge fund.
the road and bridge fund did decrease to a little over 18 million this year, however, expenditures are greater than that.
so in addition to capital funding, there was a need to move some expenditures on to the general fund and that's represented here by that million 67,000.
new facilities of 1,000,010 thousands and the bcp increase that leroy referred to of 673,000, that's the incremental increase for f.y.
12 on top of the transfer that's already going over there.
title 4-e expenses moved to general fund that was part of a general plan you heard about previously.
the continuation of pilot programs and then some midyear court approvals that we previously discussed.
like I said, it's really better to look at the preliminary budget that has details about each programmatic increase and provide you much greater information.
as far as compensation, unfortunately the preliminary budget does not include funds for any compensation increases in f.y.
12.
county employees will not have received compensation increases from the last two years however 2012 will only -- since f.y.
97.
we realize the compensation committee has been meeting to develop recommendations for a revised compensation system and the compensation reserve includes funding for additional retirement and life insurance contributions that maintain current benefit levels and also anticipated new retirees that are entering into the plan in f.y.
12.
as far as health insurance benefits, we believe that we have -- we're continue to go have great success with our wellness initiatives.
we were named and acknowledged for those initiatives this year.
there was no rate change in 12.
the county is implementing a form you larry for the pharmacy -- formulary.
additional funds are required for new retirees anticipated to leave active employment and remain on the health plan and that's been included in the preliminary budget.
as far as capital recommendations, we have short-term certificates of obligation that are included here at 93 million, as well as the c.a.r.
reserve 18.7 million, long-term bonds authorized by voters in 2000 which was for u.s.
290 west of 2 million and other funds of 572,660, which include the bcp fund and a few other minor increases in other funds.
therefore capital totals 54.3 million.
you will be severing, as you know, next week an updated debt model as you are looking towards a November, 2011 bond election.
>> can I back up, and leroy, you are still to health care committee, right?
>> yes.
>> I'm wondering, and I don't need to have them today, but I'm wonder wag the statistics are with regard to increases or decreases in people who leave county employment, retire from county employment but stay on the health plan.
I imagine they are increasing because of the other employers not having insurance coverage or having very minimal insurance coverage.
>> you know, we have generally for the last several years projected that we would have 100 employees joining the health care plan and what we've experienced, it's been significantly less than that.
the number of people retiring during the recession has declined.
what we anticipate is we will see in 12 and 13 a accelerated people that number one retire and stay on the health care plan.
there is no doubt we have a very good health care plan for retirees and as such I don't have the percentage but we can get it for you.
Commissioners court has been very generous in -- in contributing to retirees' health care, especially those retirees that are less than 65.
that's where the cost is because medicare is not out in front of the retirees' plan.
so we can get you a kind of number of retirees that elect the health care plan.
I don't have that number right now.
>> as far as plan, there's a matching --
>> that's right.
those are also partners with the county so it's not like the county is funding the whole thing.
>> no, no, it is not.
>> thank you.
>> [one moment, please, for change in captioners] security recommendations of 317,787 that -- that I believe you've heard about and you might here again about, so that information was taken into consideration when we developed the car reserve and that obviously when we get to the adopted budget, I would anticipate that further decisions will have been made and that reserve will come down somewhat.
>> in the instance where we discovered that our risk management fund is -- is more healthy than it needs to be, is car where that overage would go, most logically?
>> yes.
>> one time.
>> one-time funding and -- and --
>> we have been able to, as you can see, increase the level of car significantly.
>> and just a further note on capital, one of the things that we have looked at this year is catching up on some, making sure that we weren't delaying vehicle replacements and its replacements that were only going to make us that much worse in the future.
we have gone back to the vehicle users committee I believe two years ago and had them pair down the request.
>> [indiscernible] the use of one-time resources seemed like an appropriate way to do that.
>> I might also add there was a -- you will notice in here we've got funding allocated not only for those vehicles -- we've actually been ramping up those over the last couple of years.
but the idea is that we're trying to put a concentrated effort over our needed one-time funding and make sure those are addressed going forward and we have the ability to do that.
>> vehicles would be covered by the regular car reserve?
>> I think actually vehicles, I have put a portion of them in the certificates of obligation and a portion of them are included in the car.
in car.
>> right.
>> hum.
>> they are eligible for co funding, so they often get moved over to co funding.
and you can see here, vehicles and heavy equipment on the next slide, 5.8, so actually I might have, now that I say that, I might have moved all of the vehicles to co.
>> what else would be in regular car.
>> > in car we have -- that would be in the executive summary as well as if you want to look at more details starting on page 45.
but a great majority of that was technology and computers, totaled 6.7 million, which is basically the its, 1.5 million of that or 2 million of that excuse me is centrally budgeted its, that includes replacement computers for the county.
there's a migration data center relocation, web services, there's a whole list of its related requirements that are listed there for you.
and --
>> okay, that whole list is part of the car reserve which is --
>> no, no, the 3.7 million is separate from that.
that is basically --
>> that's what I'm wondering about.
>> oh, I'm sorry.
the 3.7 includes the $2 million earmark for the international cemetery, it includes approximately $330,000 for emergency services and then 317,000 for the security reserve and then I believe like 90,000 for failing vehicles which we do every year in case there's a lemon mid year, then obviously another portion just in case there's unexpected needs during the year.
>> okay.
thanks.
>> but if a decision is made, for example, on the national cemetery, those resources are allocated, that reserve obviously would go down and those resources would be allocated to where they need to go.
so on -- as far as certificates of obligation, the 700 lavaca, we've got another portion of the be fit project funded here, vehicles and heavy equipment that were eligible per the current criteria for the current policy, tcso projects, I believe that includes year three of -- of a large project, hot mix, that's -- that 3.6 million I should note that in -- when road and bridge was very healthy, many years ago, that was funded from the road and bridge fund actually.
but we've been picking it up from certificates of obligation.
we also have that 2.6 million that I believe t.n.r.
spoke with you about that back in may.
which is the final settlement with -- with txdot.
some its projects, since
>> [indiscernible] management project, other t.n.r.
projects then an assumed issuance cost that is included in there.
voter proof bonds, we are issuing the last of the 2,000 voter proof bond authorization.
these funds are going to be used for u.s.
290 west and it's $2 million.
>> with regard to the difference, the philosophic difference between the car reserve which pay as you go and the certificates of obligation, which is pay over time, where in our budget rules do we have that?
>> we do have guidelines, that guidelines that are included in the adopted budget every year and that were last updated in March of 2008 that we use.
>> and the philosophic difference is between the pay as you go and the ongoing?
>> well, there's -- the different -- the first thing to be eligible for co funding is that they need to be capital.
so there's a review done between p.b.o.
and the auditor's office to ensure that every item on there is a capital item.
the other is a matching of, for example, vehicles lasts us obviously five to seven years, depending on what vehicle it is and what the policy is for that vehicle.
so that also is something that's taken into consideration.
we would not co fund anything that has a life less than five years, for example.
central reserves we do have an unallocated reserve that we are maintaining at 11% at 50 million.
unallocated reserve that leroy spoke of already at 8.9 or 9 million.
emergency reserve, same level as it was this year, 4.59 million and then the car reserve which we just recently discussed at 3.7 million.
also special purpose reserves, there's a reserve for ijs replacement at 4.7 million, a planning reserve, a reserve for state cuts that will be what you'll be looking at, also, during budget hearings.
tcso pay cycle reserve recently discussed, fuel and utility reserve of 1 million.
this is above and beyond what we've included in maintenance of current effort requests for t.n.r.
on fuel, which I believe was 880,000 off the top of my head.
a transition reserve, a future grant requirements reserve, which we've had this year, a security reserve, related to information that you've seen recently, salary savings reserve, we've basically we look at salary savings every year to make sure that we are correctly estimating what the salary savings rates will be in departments and given the economy, we're having less vacancies.
juvenile reserve and then the smart building reserve which is a carryover also from this year.
>> what is the transition reserve?
>> transition reserve?
>> the transition reserve is a one-time money that in anticipation of some key positions, retiring within the next fiscal year, in which as you have seen various positions, transition positions, authorize like harvey Davis, we didn't require any funds, but in some departments they don't have funds and when you have key individuals retire they come to court, currently on an individual basis, requesting transition slot and essentially funding -- in essentially funding while the recruitment process goes on and then a transition phase.
>> we've also been working with human resources to develop a proposed transition policy or guidelines to address immediate needs and then also a second piece of that would be some additional training opportunities for employees that we want to maybe groom and bring up through the organization that would provide an opportunity for them to have some management track, if you will.
so it's both a short term and a long-term planning effort.
as it relates to -- to growth and opportunity for employees long-term and adding the immediate -- addressing the immediate needs of retiring employees, such as this gentleman to my left, in the very near future.
>> let me ask this question.
looking at -- at all of this preliminary budget, which you all have done an outstanding job from what I have been able to gather this far.
jessica you mentioned earlier, I know that I have already spoken to you on a couple of occasions as far as looking at the debt model.
of course, the preliminary budget being one thing.
however, we're going to have to deal with some situations that deal with voter approved bonds, a general obligation bonds, and that should be coming up real shortly.
and of course we're going to have to make a decision on some of this.
so I guess my question is when could we see a debt model, in fact some of these may not be all board approved.
it may be other co issuance outside of voter approved authorization.
so saying all of that, when -- and seeing that these -- these moving parts as far as the preliminary budget and of course all of these other kind of things we've got to do.
my question is when will it be made available to the court to look at the debt models for the issuance of -- of bonds, if the voters of course approve it that's one thing, if they turn it down, then it's something else.
but in the interest of looking at what debt model will actually -- we'll actually look at so we'll know how to move forward and what to do as far as that's concerned, when would that debt model be made available to the court on that particular concern?
>> posted for next week.
>> oh, really?
>> yes.
>> well, see, I didn't --
>>
>> [multiple voices]
>> as soon as I am done here, that is what I will be working on the rest of the day and then hopefully providing you that presentation either late today or early tomorrow.
>> certain things that I ask for, I still kind of want mine the way I ask for it.
but we can get it the other way, too.
but I want mine a specific way.
>> you did ask me specific questions and I understand.
>> [laughter]
>> okay.
thanks a lot.
as far as individual budget writeups, each court member has a black book of department budget writeups, these contain ...
we also received production proposals from departments and those are summarized in those black books.
the departments have p.b.o.'s recommendation and p.b.o.
will be providing the court with departmental backup for budget hearings this week.
since they are scheduled for -- for August 10th, 11th and 15th.
>> the only thing that I need to ask about this is -- is money sufficient -- sufficient money for -- for disabled parking spaces.
I have had complaints throughout the year by taxpayers who go -- try to pay their taxes at the office in southeast Travis County.
if they can't get through the window, they have to park and go inside to pay and -- and there aren't any -- enough spaces for -- for disabled.
at that building.
so have we included anything in there for that.
>> that's the first that I have heard of it, Commissioner.
so I've -- I don't think that there's been any funds set aside for any kind of restriping at the tax office.
>> I think we probably need to do that in southeast Travis County, but I get that complaint every year and it's ongoing and it's because of the lack of disability, disabled parking spaces.
we need to make it room for it, they want to go in there and pay their taxes.
>> I think we absolutely must.
>> we can research and make sure where we identify that request or if in fact we have not received that request, we will bring it up at markup so that you can --
>> if you would, please.
>> yeah.
>> there will be a -- such a requirement to hold two public hearings.
the first will be Tuesday, September 20th at 9:00 a.m.
the second will be Friday, September 23rd at 9:00 a.m.
and then a public hearing on the 27th, a proposed budget.
and obviously Travis County residents are invited to provide input on the fy '12 budget every Tuesday during citizens communication.
>> can you --
>> sure.
the first is Tuesday, September 20th.
the second is Friday, September 23rd.
there should be a hold on your calendar, but I will double check today to make sure that -- because it is a Friday, it's not a regular court Tuesday.
that that hold is in place.
>> it's at 9:00, you said?
>> that's correct.
>> sure.
>> are those the earliest --
>> yeah.
>> I guess my problem with those dates is that -- is that by September 20th, for all practical purposes, we will have -- we would have a final budget.
>> I guess --
>> I guess that I should answer the question differently.
it depends on when the court will vote on the tax rate, traditionally that has been the first day of markup, which sets that requirement in motion for the advertising and then there's a lag obviously when we turn it into the papers to -- to have the advertisement and then come back for the hearing, but we can --
>> specifically -- the tax rate or their proposed budget proposal.
>> both -- what I'm thinking is our work on the budget will be done by September 20th.
we will be waiting for the year to end.
and some other formal requirements that we have to meet.
and -- and I'm a firm believer that if you have a public hearing, you ought to anticipate input and you ought to have an opportunity to take advantage of it.
so I would try -- my recommendation would be to back up those dates, to the earliest possible time, consistent with meeting legal requirements and give voters an opportunity to come and do it.
now, we don't have to have a second one that close to the first one, do we?
>> yes.
>> yes.
these are all worked out with -- with the county attorney's office, they are very specific on when they need to be and -- and we can back them up, however, there would need to be action from the court on a tax rate and then what would happen is that tax rate, if it were to change, would set other requirements in motion.
>> there's no problem with us putting in an additional public hearing in advance of that, though, right?
as long as we meet the statutory requirements, we could always go above them.
>> the law requires that the second public hearing be three days after the first one.
>> I believe -- it's listed in the budget manual.
>> john hilly.
>> we may need a more reasonable interpretation of them all.
>> you could also have more -- and --
>> I didn't have in mind more.
I had in mind the two earlier, two much earlier.
it's not like we have loads of people coming down to provide input.
we normally have a handful.
what I'm saying it seems to me that we would need that handful early enough for us to take advantage of the input if we choose to do so.
I am mindful, every other year that I have been here, around mid September we pretty much have done our serious work on the budget and we're waiting on the fiscal year to end.
right?
>> uh-huh.
>> so if -- if legally we are tied to these two dates, I can live with it.
but my preference would be to back them up and have them earlier if at all possible.
>> judge, these two particular dates coincide with the adoption schedule and -- and they are tied pretty closely with -- with our statutory requirements.
now, that doesn't mean that after September the -- September the -- the 7th, I believe it was, when the court takes action on the proposed tax rate, that we couldn't have a public hearing in advance of -- of those other dates.
but those dates are pretty locked in stone in terms of the adoption schedule.
>> what the court has done in previous years, which is what I attempted to -- to get into the agenda item last week, was the court sometimes holds public hearings on the preliminary budget.
in which -- in which we haven't recently.
but in previous years, you would like schedule maybe next week and have the public just come and -- and make any comments they wanted to about the preliminary budget that we have posted.
we are actually doing the presentation one week earlier than what we had originally planned.
so there is time.
if the court would like a public hearing on preliminary budget.
>> yes.
but we do need to work with -- with either the Austin american-statesman or the chronicle to ensure their deadlines as well.
>> what we are doing next Tuesday I guess the -- the chief disadvantage it that it be almost impossible to advertise for that.
>> that's correct.
>> but we wouldn't necessarily have to advertise if we --
>> that's why we're saying that obviously residents are invited every Tuesday to -- to talk about the fy '12 budget or tax rate.
>> that sounds like the county judge, there
>> [laughter]
>> I try.
>> okay.
we're working on it.
>> I guess -- would you -- would you also I guess every year we do this, but I want to make sure that it's done again and that is to alert the home -- the home or -- or state exemption that the county offers, I think folks need to continue to be reminded of that and then plus the disabled and also senior -- well, over 65 exemption.
what does that mean?
>> yes.
Travis County -- the Commissioners court has adopted their exemptions for the new year.
you do give a 20% homestead exemption to all people that have filed a homestead certification.
with the tax -- with the central appraisal district.
you do give an over 65 and/or handicapped exemption of $65,000.
totally disabled veterans in the state of Texas get 100% exemption from property taxes.
so there are exemptions that Travis County has adopted and are integrated into these calculations.
>> right.
thank you for that.
>> leroy, what I have asked for in the past was to have somewhere in the introduction of the budget the -- some kind of headings that -- tax relief given by Travis County and sometimes we do it and a lot of times we don't.
>> okay.
sure.
>> but I think that's one way to address this issue.
>> I think so.
>> is to say this is the tax relief that this budget provides for this tax relief for all homeowners in Travis County.
and -- and to kind of bring it to the people's attention.
what it is that we do before we budget everything else.
>> okay.
we will be glad to integrate that into the executive summary of the adopted budget.
>> I think we're --
>> it would be good to have.
otherwise I will be -- good points, Commissioner.
because every year I kind of lay that out as much as I possibly can to let folks know that there is some tax relief.
as far as Travis County is concerned.
>> the tax team which included the auditor's office and several members of p.b.o.
and others, did come up with a new format for more clearly laying out the tax burden county-wide, which was much appreciated.
is that those who are distributed by the tax office in the initial distribution of assessed values.
so -- so we can take that and integrate it into the executive summary of fy '12 adopted budget.
>> existing.
>> yeah.
>> thank you.
>> I just note that -- that as I mentioned before, we're using average homestead values for the entire Travis County and what I reported last time was to get some geographic distinction on average homesteads, I have used the -- the independent school districts and their average homestead is 108,000 as opposed to 272 for the entire county with manor independent school district at about 134,000.
so -- so the numbers we give are averaged against the much higher home values on the west side with eanes being the highest at 662,000 average.
>> okay.
>> so ...
>> just to conclude, what comes next, we've already discussed it, however the court has agreed to move forward with modified budget hearings schedule that you have received.
those dates are August 10th, 11th and 15th.
Wednesday the 10th there will be a presentation by departments on the impact of state reductions.
hhs.
August request in the clerk document management system, on Thursday August 11th, there will be a discussion on transportation natural resources, which will include the Travis County landfills, the bond program staffing, road and bridge funding, el roy road and northeast metro park phase 3 as well as a discussion with the district attorney on civil division staffing, then Monday, August 15th, there will be a discussion with a -- with the Travis County sheriff's office.
all of these are scheduled for 1:00 to 5:00 p.m.
in the afternoon.
the court is -- is asking --
>> you may have to move that to 1:30.
>> the more I think about it.
>> let me -- maybe that would make more sense.
>> 1:30 to 5:00 p.m.
>> three days.
>> yes.
>> we --
>> if we learn that -- we need that 30 minutes --
>> the court has asked to complete their budget agenda worksheet.
the budget markup is scheduled for September 7th, which is the -- which is the day that we will be asking for the tax rate to be set.
we are scheduled currently to adopt the budget on Tuesday, September 27th.
>> two questions.
how much did we budget for fuel?
I know that we had that in reserve.
>> we increased fuel by 880,000.
the base budget 2 point -- including the 880?
>> yes.
>> 2.9?
>> yes.
2.9 million.
>> plus a million in reserve.
>> there's a million in reserve for fuel and utility, though, correct.
>> because this year that was --
>> there was a request.
>> huge increase.
what was that number this year?
>> it should be -- about 800,000.
>> 861,000.
>> that we supplemented?
>> this year.
>> yeah.
>> the departments that are coming to their -- to the hearing with the Commissioners court, have been told what?
in terms of a -- in terms of a -- of expectation?
>>
>> [indiscernible]
>> did you all head to -- tell them matter was real scarce.
>> f.t.e.'s reduced from the budget.
mr. Reeferseed, any question or are you just showing that you got the back of the p.b.o.?
>> no, I do have -- I was original brought up here by the general question about -- about the -- about the -- excuse me, I'm ronnie
>> [inhale] reeferseed.
asking what about the citizens access.
a bunch of really great stuff.
you mentioned somewhere along the line the executive summary.
>> [one moment please for change in captioners] the auditor has the statutory responsibility to establish any funds that are statutorily required to be treated as separate funds.
we've mentioned the road and bridge fund, being that fund that road and bridge repairs are funded from.
we obviously have the debt service fund.
we have to pay our debt in any of the borrowings.
we have a special fund set up for 700 lavaca.
I think there's probably 60 individual special revenue funds that are represented on -- started on page 32 of the fy '12 preliminary budget recapitulation that does the consolidation and the transfers between those funds are designated there.
>> cool.
so the -- what I was loosely calling the budget is really a whole bunch of different revenue funds that are all specifically aimed at specific projects.
>> and one of the things that we put in the appendix is the auditor's official third revenue estimate, and planning and budget uses those revenues to tie the expenditure budgets together to balance it against the auditor's revenue estimate.
>> for anybody who wants to follow this whole drama, actually if you go to the planning and budget page at the Travis County website, all of the budget back to 2001, I think, are included there along with the executive summary, and then the first volume of one of these year's budgets there is a pretty good concise series of charts that show you where all our money comes from and where it all goes to by percentage.
>> again, is there something like the comprehensive annual finance report?
>> the annual comprehensive financial report is produced by the county auditor and it's normally released sometime late in the calendar year or early in the following after it has been audited.
>> this is not that.
>> this is not.
this is the budget piece, but the comprehensive financial statement is a balance sheet and income statement, is prepared by the auditor.
>> this is a silly question, but is the acronym for car?
>> (indiscernible).
>> okay.
it had to be something.
thanks for your help.
>> thank you, mr. Reeferseed.
dr. Kim?
>> thank you.
I appreciate all of you for your great (indiscernible) to give Travis County a wonderful financial good shape.
thanks to you all.
I enjoy living here.
and you had mentioned I made -- I didn't catch it, forgive me.
a couple of questions.
do you provide any financial support, money to Austin community college?
>> we do participate in the Austin community college internship program, and as such we do pay a stipend to those interns in the various departments.
>> that is it?
>> I believe that that may be the extent of our contributions.
>> and do you know how much it is?
approximately.
>> it's approximately 50,000 a year.
>> 50,000.
that is it?
>> for a number of interns, fall, spring, sometimes summer semesters.
>> right.
>> six to seven interns basically.
but that money goes directly to the interns.
to the students, not a.c.c.
>> that's my understanding, that's our contribution.
>> do you have a training -- isn't there an interlocal agreement for training for like tnr employees?
>> actually, health and human services does have -- has a couple of contracts.
>> but again, it goes directly to I believe employees or grant recipients receiving financial training for nonprofits.
it's for specific services.
>> we do have tuition reimbursement plan that -- where employees can apply for job-related training, and I know that some of them do get that training through a.c.c.
>> they bought new land, like some mall, and you didn't pay any money for that?
>> which one?
>> a.c.c.
bought new land --
>> we did not pay anything on their land acquisition.
>> thank you.
how many do you have public defender here in Travis County, how many?
>> we have the juvenile public defender office --
>> approximately.
>> you know, I would have to look up on -- if in fact you go to the website, you should be able to see the juvenile public defender -- it has the f.t.e.'s.
we also have the pilot programs where we're providing for special public defender offices for those special needs, the mental health.
>> what is the qualification public defender here?
they must be lawyer?
>> yes.
>> you can work in the public defender's office without being a lawyer.
the resiptionist, paralegals, social workers.
>> but to be an actual public defender and represent in court, yes, you have to be a lawyer.
>> and the balance fy, we don't have any deficit compared to the state and the national?
>> no.
and this court has been very diligent in following the recommendations that we've made for the last 18 years that I've been here in matching one-time expenditures with one time revenue and matching ongoing revenue with ongoing expenditures.
we do not have a deficit.
>> wonderful.
and last one, a couple, do we receive any money from united states of america?
>> yes, we do.
we have a very extensive grant program that various departments apply for grants.
they agendaize it every week.
you notice that on today's agenda there are a number of grants.
>> how much do we receive annually from u.s.a.?
>> I would have to --
>> approximately?
>> it's a whole lot of money because weatherization was nine million dollars.
>> nine million.
>> for weatherization, stimulus money weatherization.
>> oh.
and then --
>> a whole lot and a whole lot of programs throughout the year.
>> okay.
from state do we receive any money from state?
yes.
we do.
>> the state itself with a deficit, but still they provide some money to the Travis County?
>> yes.
>> how much a year?
>> not enough.
>> [ laughter ]
>> if you -- if you look at the backup for the grants' agenda each week, we have a running total of the grants that we receive, and you can generally find out whether or not it is state or federal or from a private foundation.
>> Travis County people has wonderful people to get money from state and the united states.
it's wonderful.
>> that's correct.
and --
>> we have very good financial shape.
>> one of the departments that is almost totally funded by the state is our adult probation department.
and those are state totally funded.
I think we have three or four f.t.e.'s in adult probation.
but that is probably the largest state funded departments in Travis County.
>> thank you.
wonderful for your (indiscernible) to run our Travis County.
wonderful.
thank you very much.
>> thank you, dr. Kim.
any other comments from any persons wishing to give comments on the preliminary budget?
any new and different stuff.
thank you very much.
>> [overlapping speakers].
>> thank y'all very much.
okay.
>> just one second.
>> mr. Rhodes.
>> could I ask budget staff to stand up for a second.
this may be my last opportunity to acknowledge them.
I would like for them to stand if they could.
>> [ applause ]
>> these guys have done a phenomenal job over the last four years that I've been associated with them.
and I think that they should be acknowledged for the work that they've done.
and I greatly appreciate them and I just wanted to publicly acknowledge them while I had the opportunity.
>> absolutely.
thank you.
>> thank y'all very much.
>> thank you, judge.
The Closed Caption log for this Commissioners Court agenda item is provided by Travis County Internet Services. Since this file is derived from the Closed Captions created during live cablecasts, there are occasional spelling and grammatical errors. This Closed Caption log is not an official record the Commissioners Court Meeting and cannot be relied on for official purposes. For official records please contact the County Clerk at (512) 854-4722.
