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  • Routt County Budget 2017

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    Scott Franz
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    Budget proposal for Routt County

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    Budget proposal for Routt County

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    © All Rights Reserved
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    363 Ansichten31 Seiten

    Routt County Budget 2017

    Hochgeladen von

    Scott Franz
    Budget proposal for Routt County

    Copyright:

    © All Rights Reserved
    Als PDF herunterladen oder online auf Scribd lesen
    Markieren Sie unangemessene Inhalte
    von 31
    UTT COUNTY 2017 BUDGET State of Colorado detail of Routt County The mission of Routt County is to efficiently deliver a balance of public services and infrastructure to provide a safe and healthy place to live ‘for present and future generations. 2017 Budget Overview ‘The 2017 Routt County budget projects $53,136,000 in revenues and $54,176,000 in expenses resulting in $1,040,000 of revenues under expenses, and after removing $555,000 of noncash expenses such as depreciation, the use of reserves is $485,000. The 2017 budget as compared to the 2016 budget includes $3,108,000 or 6% increase in revenues and $1,626,000 or 3% increase in expenses. The 2017 budget is separated into governmental activities and business type activities as follows. Governmental Activities include the County's basic services such as Property Tax Administration, Public Safety, Fluman Services, Community Services, Road and Bridge and Administration. Revenues fare anticipated to increase $1,729,000 or 4% to $43,927,000, expenses are anticipated to increase $559,000 or 1% to $43,239,000 and results in revenues under expenses of $1,312,000. The decrease in reserves is the result of several planned capital addition projects offset by an increase in reserves to set aside funding for future equipment replacements and medical claims. ‘The County’s base property tax revenue, which funds governmental activities, is anticipated to increase {$514,000 or 3.5% and is limited to this inerease by the Taxpayers Bill of Rights (TABOR). Sales tax from all sources is anticipated to increase $494,000 or 8% based on 2016 actual collections, ‘The modest growth experienced in the County’s two largest revenue sources, property tax and sales tax, remains tentative given the continued degree of uncertainty in the economy. Total personnel expense for governmental activities increased $1,581,000 or 8% above the 2016 budget. ‘The increase in personnel expense is primarily due to the following items. In 2017, the County-wide compensation plan includes a 2% across the board market adjustment and eligible employees will receive an anniversary step. The 2017 compensation plan’s cost is $464,000 or 3% above the 2016 budget. Also included in the 2017 budget is an $82,000 inerease in compensation land benefits for two of the three County commissioners whose term will begin in 2017. Recent legislation approved by the State and Routt County Board has increased the compensation for a newly lected commissioner by 619%. County elected officials have not had an increase in compensation since 2007. Full time equivalents (FTEs) increased 7.29 FTEs or 3% at a cost of $479,000 plus overtime at $103,000. ‘The County will be undertaking a conversion to a new Enterprise Resource Planning (ERP) system in 2017 as the County’s current software provider will no longer support the current software as of December 31, 2017. This project is discussed in more detail below. The size of the ERP project will require the addition of temporary staff in order to meet the conversion time table. The increase temporary FTEs for the ERP conversion project is 4.93 FTEs including .93 FTE from overtime with a total cost of $354,000, Other FTE increases include the addition of an Assistant County Manager and a combined 1.0 FTE increase in Building and Plant, Purchasing and Fair. Health insurance expense for Governmental Activities increased $572,000 or 21% over the 2016 budget. ‘The County's partially self-funded health insurance pool (Pool) experienced $3.9 million in claims in 2015 and is projected to incur $3.8 million in 2016, whereas the historical average since starting the partially self-funded pool has been $2.4 million. The increase in claims for 2015 and 2016 is due to exceptionally high claims experience driven by large claims, which are claims greater than $35,000. In order to build the Pool's reserves and improve the Poo!'s sustainability while continuing to offer @ competitive health insurance benefit to employees, in 2017 the County's contribution to the Pool was increased $841,000 or 25% to $4.2 million, employee contributions to the Pool were increased $300,000 ‘or 526% to $357,000 and the plan design was changed by increasing deductibles, increasing out of pocket maximums and decreasing the coinsurance for the high deductible health plan saving $183,000 or 5% in claims expense. At this time, actual claims are not expected to retum to the lower levels experience: 2011 - 2014. ‘Through the changes made in 2017, the Pool’s budgeted revenues over expenses are $461,000 and result in a projected year end reserve balance of $1.0 million. The compensation and health insurance increases for governmental activities are primarily being funded by anticipated increases in property tax, sales tax and Highway User Tax Funds (HUTF). Compensation, FTE and health insurance changes are discussed in more detail in the Governmental Activities “Personnel” section ‘The 2017 capital budget includes $300,000 for architectural design costs to expand the Sheriff department's administrative square footage as part of the joint City of Steamboat Springs (City) and County Law Enforcement facility (Joint Facility). The County's budget for its portion of the Joint Facility construction is $3.0 million with anticipated funding of $600,000 from the sale of land adjacent to the Detention Center to the City of Steamboat Springs and $2.4 million from reserves. Construction is, scheduled for 2018. ‘The County’s current Enterprise Resource Planning (ERP) software provider is stopping support of their ERP software as of December 31, 2017. As result the County has hired a consultant to assist in the request for proposal process (RFP) in order to find a vendor that will provide the County current best practices and technology. The current time line has selection of an ERP vendor and contract negotiation in December 2016 and January 2017, implementation starting February 1, 2017 and a “go live” date with core ERP functions such as financial statements, budget, payroll, accounts payable, accounts receivable, purchasing, etc. on January 1, 2018. Enhanced ERP functions such as on line vendor payments, online customer payments, capital assets, bid management, applicant tracking, benefit enrollment, work orders, etc. will be implemented throughout 2018. ‘The size of the ERP project and support stopping December 31, 2017 from the current ERP vendor requires additional temporary staff in order to meet the time line mentioned above. An additional 4.0 temporary FTEs for a total cost of $255,000 have been included in the 2017 budget. Accounting has 2 FTEs, Human Resources 1 FTE, and Purchasing 1 FTE. In addition, $99,000 of temporary overtime representing 93 FTEs for the departments mentioned above plus Information Systems has been included in the 2017 budget. Total temporary FTE and overtime costs are $354,000 and total temporary FTEs are 4.93. The cost of the ERP software is currently estimated to be $1,163,000 million. Total ERP project cost is $1,517,000. Funding for the ERP project is being provided from available reserve balances. ‘The planned replacement of Road and Bridge infrastructure includes the Butler Creek Bridge on County Road 67, 5.4 miles of road will be overlaid and 1.4 mile of road will be chip and sealed. The combined 6.8 miles of road budgeted for overlay and chip and seal represents 4% of the total paved road system. Total infrastructure expense is $1.6 million and is primarily funded by the Road and Bridge Fund's reserves. Nationally, gross domestic product increased in each of three quarters ended September 30, 2016. ‘Unemployment in the County has decreased slightly from 2015 levels by .6% to 2.4% and nationally by 1% 10 5.0%. ‘The County however should not be overly optimistic due to a number of uncertain economic indicators. ‘Wage growth is relatively low nationally. Consumer sentiment has decreased on average by 2.13% since October 2015 and has fluctuated in 2016. The number of families on food assistance in the County has decreased by 111 families to 450 or 20% since December 2015. ‘The decrease is due to the implementation of the Employment Fist program which requires those food assistance recipients who are capable of working to engage in “work registrant” activities in order to keep receiving benefits. Those activities can include volunteer work, educational activities, job search activities and work. The number of individuals on Medicaid or public assistance for health care has increased by 189 or 5% to 4,356 from September 2015 and represents 19% of the County’s population as compared to 18% in 2015. Internationally, there is the potential for negative economic impacts from China, Europe and the Middle East. Business Type Activities include the Yampa Valley Regional Airport (YVRA), the Regional Building Department, the Phippsburg Water and Sanitation System and the Milner Sanitation System. Revenues are anticipated to increase $1,379,000 or 18% to $9,209,000, expenses are anticipated to increase $1,067,000 or 14% to $8,937,000 and results in revenues over expenses of $272,000. After removing {$555,000 of noncash expenses such as depreciation, reserves increase $827,000. The business type activities are fundamentally financially self-sufficient by charging fees for services and receiving grants. ‘The Regional Building Department fees are anticipated to increase $323,000 or 30% to $1,413,000 based ‘on actual collections in 2016 and are anticipated to continue in 2017 based on known construction activity and a strong economy. YVRA fees are anticipated to increase $58,000 or 1% to $4,852,000 based on a slight increase in enplanements. Total personnel expense for business type activities increased $101,000 or 3% above the 2016 budget. ‘The increase in personnel expense is primarily due to the following items. The 2017 compensation plans cost is $78,000 or 3% above the 2016 budget. Health insurance expense charged to business type activities to finance the County's partially self-insured medical plans increased $88,000 or 21% above 2016. Compensation, FTE and health insurance changes are discussed in more detail in the Governmental Activities “Personnel” section. YVRA state and federal revenues are increasing $31,000 and $675,000 from grants to fund capital improvement projects including design of the apron expansion scheduled to happen in 2018 and construction of a cold storage building. Capital increased $663,000 or 38% above the 2016 budget. YVRA capital expenses include a broom for $510,000, a blower for $605,000, apron expansion design for $515,000 and construction of a cold storage building for $309,000. The equipment replacements, design, ‘and construction will be funded 100% from Federal Aviation Administration Airport Improvement Grants, Passenger Facility Charges, and State Aviation System Grants. Conclusion ‘The County continues to analyze the budget wherever po: decrease costs. le to effectively increase revenues and Right now, the long-term forecast projects a balanced budget. The 2017 budget is a snapshot in time based on both known factors and certain assumptions. This financial plan will need to be revised by the County to respond to changing economic conditions. As new financial information becomes available, ‘management will respond in an appropriate manner to maintain the County's overall financial well being. 1,729,000 1,379,000 513,000 514,000 23,000 494,000 425,000 69,000 Governmental Activities revenues are anticipated to increase $1,729,000 or 4% from {$42,063,000 budgeted for 2016 to $43,792,000 budgeted for 2017. Noted below are the primary reasons for the changes in revenues. Business Type Act srease $1,379,000 or 18% from $7,830,000 budgeted for 2016 to $9,209,000 budgeted in 2017. Noted below are the primary reasons for the changes in revenues. Property tax revenue from all sources is anticipated to increase $513,000 to $19,356,000 or 3% over the 2016 budget. The primary changes in property tax areas follows. “The property tax increase, as defined in the following sentences, is split between Routt County ‘base property taxes and voter-approved property taxes. Base property taxes provide revenue for basic services delivered by the General Fund, Road and Bridge, E-911 Communications and . Voterapproved property taxes provide revenue for the Purchase of ights Program, Museums and Developmental Disabilities. ‘The County's base property tax revenue is anticipated to increase $514,000 or 3.5% and is limited to this increase by the Taxpayers Bill of Rights (TABOR). The TABOR property tax revenue limit increase of 3.5% is composed of a 1.3% increase from new construction and a 2.2% increase from inflation. Property tax from voter-approved mill levies, which are not subject to TABOR, increased '$23,000 or 1% due to an inerease in assessed valuation. Overall, Routt County's 2016 net ‘assessed valuation increased $8.1 million to $1 billion or 1%. ‘Sales tax from all sources is anticipated to increase $494,000 to $6,498,000 or 8% above the 2016 budget. Sales tax is composed of a 1% sales tax, a 1% building use tax and a 1% auto use tax. ‘Sales tax is anticipated to increase $425,000 to $5,732,000 or 8% above the 2016 budget. This increase is based on actual 2016 sales tax collections increasing 8% from the 2016 budget. There is some uncertainty with this projection given the possibility of changing economic conditions. Building use tax is not anticipated to change from the $235,000 in the 2016 budget. The 2017 budgeted building use tax of $235,000 is equal to 2010 actual collections. Building use tax is projected to be $595,000 in 2016. The building use tax budget has been projected conservatively fen the uncertainty of the building industry and certain federal revenues such as Payment in Lieu of Taxes (PILT). ‘Auto use tax is anticipated to increase $69,000 to $531,000 or 15% above the 2016 budget. The increase is based on actual auto use tax collections and County residents purchasing cars outside of the County. s (97,000) State revenues are anticipated to decrease $97,000 to $5,380,000 or -2% below the 2016 ‘budget primarily because of the changes in the revenues noted below: 86,000 Road and Bridge Highway Users Tax Funds (HUTF) are anticipated to increase $86,000 to $2,955,000 or 3% above the 2016 budget primarily due to historical trends and low fuel prices. (62,000) Human Services Old Age Pension decreased $27,000 and Aid to Needy Disabled decreased $5,000 both from a decrease in caseload. (26,000) Human Services Collaborative Management decreased $26,000 as the Oversight Group decreased expenses because the incentives are decreasing as more counties are participating in (22,000) Human Services Family Preservation the allocation decreased $33,000 because of lack of utilization resulting in a decrease in state revenue of $22,000. (19,000) Human Services Child Care state revenue decreased $19,000 from a decrease in child care benefits due implementing a wait list and managing to the allocation. (50,000) Detention Center did not reapply for the state Court Security grant as the Jail Administrator was ‘waiting to hear about grants availability. (543,000) Federal revenues are anticipated to decrease $543,000 to $5,765,000 or -9% below the 2016 budget primarily because of the changes in the revenues noted below. (64,000) Community Services federal revenue is anticipated to decrease $64,000 to $0 ot -100%. This is due to not having Council on Aging van grant in 2017. (166,000) Road and Bridge federal air quality grant revenue is expected to decrease $166,000 to $0 or 100% under the 2016 budget. In 2016, a $166,000 air quality grant was received to improve air ‘quality by paving the gravel parking areas at the Steamboat Springs Road and Bridge shop. The shop paving project was completed in 2016 and a 2017 air quality grant was not pursued by Road and Bridge for 2017. (149,000) Human Services Food Assistance revenue is anticipated to decrease $149,000 to $1,383,000 or 10%. ‘The cost of the Food Assistance program is completely funded by the federal government. ‘The benefits paid under this program are anticipated to decrease due to the implementation of the Employment First program which requires those food assistance recipients who are capable of working to engage in “work registrant” activities in order to keep receiving benefits. Those activities can include volunteer work, educational activities, job search activities and work. The umber ot households has fallen from 561 in December 2015 to 450 in September 2016, a decrease of 20% since the implementation of Employment First on January 1, 2016. s (132,000) Human Services Child Care revenue decreased $143,000 as less funding is available after recent changes in the program made by the State legislation. First, the State implemented tiered reimbursement rates which increased the amount paid to child care providers; (2) Counties are now required to keep clients on the program longer; and (3) there was a decrease in the parental co-pay. When combined, these changes have resulted in less funding available for the program. ‘Also, revenue from the Cliff Effect program grant will decrease by $29,000 after a decrease in available funding for the program's second year. This program is designed to assist families when a relatively small increase in their income makes them ineligible for the program. These decreases are offset by a $40,000 transfer from TANF (Temporary Assistance to Needy Families) to Child Care intended to partially cover the decrease in available funding, 78,000 Fees are anticipated to increase $78,000 or 2% to $4,394,000 above the 2016 budget primarily because of the change in revenues noted below. ‘Accounting overhead fees increased $201,000 or 14% to $1,600,000 above the 2016 budget. The increase is the result of changes in the 2015 allocation of overhead charges to various departments, Building Department overhead increased $41,000 or 18% to $267,000 as a result of ‘the implementation of the new Building Permit Software (BPS). The BPS started depreciation and the Geographical Information System (GIS) addressing system was integrated into the BPS. Fair overhead increased $14,000 or 11% to $136,000 and is primarily the result of an inerease in equipment and building depreciation from improvements at the Fair. Human Service’s overhead increased $161,000 or 59% to $432,000. The increase is the result of an increase in Information services, County Attomey services and an inerease in Human Resources due to an increase in the ‘number of staff. Planning overhead increased $62,000 or 25% to $311,000 as a result of an increase in County Attomey services, Information System services and Geographical Information Services (GIS). Attomey Services increased as a result of the Brunton vs. Arroyo zoning/building code violation, Pine Springs subdivision regulations, definition of ‘camping’ and ‘ongoing issues with Hidden Springs Ranch. Information Systems increased due to the new permit software installation. GIS increased from the Stagecoach Area Plan and Affordable Housing planning. Yampa Valley Regional Airport overhead decreased $77,000 or 14% to $454,000 primarily due to a decrease in Information Systems services related to an update of the no fly software, a decrease in help desk requests and a decrease in attomey services related to the negotiation of a land purchase associated with the water system project from the prior year. (90,000) Road & Bridge Twenty Mile Mine special use permit revenue to fund the repair and ‘maintenance costs on County Road 27 related to the hauling of coal between the power plant and ‘the mine is anticipated to decrease $90,000 to $0 or 100% due to the bankruptcy reorganization of Peabody Energy Corporation. The decrease is only for the 2017 budget and the County anticipates payment of fees in the future. (75,000) Road & Bridge Oil and gas permit and study fees are anticipated to decrease $75,000 or 100% due to zero oil and gas permits and studies being submitted so far in 2016. 8 1,284,000 625,000 600,000, Other revenues are anticipated to increase $1,284,000 to $2,399,000 or 115% above the 2016 budget primarily because of the changes in revenues noted below. ‘Community Services other revenue increased $625,000 or 135% to $1,089,000 from the 2016 ‘budget and represents the contributions from the various associations, local governments, and not: for-profit organizations partnering with Routt County to fund a fiber optic project (Project). The County is the sponsoring organization for a $2,169,000 fiber optic project to improve broadband services started in 2016. The County's local partners are the Yampa Valley Electrical Association (YVEA), Yampa Valley Medical Center, (YVMO), Steamboat Springs School District, Colorado “Mountain College and the City of Steamboat Springs. The scope and cost of the Projeet increased primarily after a fiber optic section was added by YVMC and secondarily after cost proposals ‘were received from vendors. The remainder of the Project is being funded by a state grant and a contribution from the County. See the Capital Governmental Activities section for additional details. Building and Plant sale proceeds are anticipated to inerease $600,000 or 100% ftom the sale of land adjacent to the County's Detention Center and Sheriff administrative offices to the City of Steamboat Springs fora joint City of Steamboat Springs and County Public Safety building. s 135,000 125,000 10,000 FUNDDOANIR 5 Interfund loan receipts remain at $135,000 and consist of $125,000 in payments from Yampa ‘Valley Regional Airport (YVRA) and $10,000 from the Milner Sanitation System to the Road and Bridge fund. ‘YVRA's interfund loan is for $1,500,000 and was issued in 2014 and 2015, to finance YVRA's capital contribution for the runway rehabilitation project. Debt service associated with this loan is $125,000 per year over a 15-year term with a 3% interest rate. The outstanding balance on this loan is $1,251,000 at of the end of 2017. ‘Milner Sanitation System's interfund loan was for $120,000 in 2011 to finance costs associated with a discharge line extension, The debt service associated with this loan is $10,000 per year over a 20-year term with a 5% interest rate, The outstanding balance on this loan is $95,000 at the end of 2017. FEDER i ee ee ee 799,000 674,000 8 125,000 State revenues are anticipated to increase $32,000 to $208,000 or 18% above the 2016 budget because of @ change in revenues for Yampa Valley Regional Airport (YVRA) noted below. Yampa Valley Regional Airport budgeted state revenue of $208,000 for 2017. Revenue consists of $26,000 for the replacement of a broom, $30,000 toward the replacement of a blower, $26,000 toward the design of the apron expansion, $15,000 toward construction ofa cold storage building, and $111,000 of State Aviation fuel tax. State aviation fuel tax is anticipated to decrease $6,000 or 5% due to a decrease in fuel costs. Budgeted 2016 state revenue included $555,000 in funding for the replacement of two pieces of snow removal equipment, $5,000 for replacement ofthe airport beacon, and $116,000 of State Aviation fuel tax. Federal revenues are anticipated to increase $799,000 to $2,287,000 or 54% above the 2016 budget primarily because of the changes noted below. ‘Yampa Valley Regional Airport (YVRA) federal revenue is anticipated to increase $675,000 or 46% to $2,148,000 above the 2016 budget. Federal revenue for 2017 of $2,148,000 consists of Federal Aviation Administration (FAA) Airport Improvement Program (AIP) funding of $1,745,000. This revenue funds 90% of the costs related to replacing a blower, a broom, constructing a cold storage building, and designing an apron expansion that is scheduled to take place in 2018. Other federal revenues for 2017 include $387,000 in Passenger Facility Charges (PFC) and $16,000 in Transportation Security Administration (TSA) revenue which partially reimburses YVRA for contracted law enforcement officers. YVRA federal revenue for 2016 of $1,473,000 consisted of $374,000 in PFC revenue, $1,083,000 of federal grant revenue, and $16,000 TSA grant funding. The 2016 federal grant revenue consisted of FAA AIP grant revenue for the replacement of a blower, broom, and beacon, Delivery of the blower and broom is anticipated to take place in mid 2017, so the projects have subsequently been re-budgeted in 2017. Phippsburg Water and Sanitation federal revenue is anticipated to increase $125,000 or 833% to $140,000 above the 2016 budget. Federal grant revenue for 2017 of $140,000 consists of federal grant funding for the wastewater lagoon liner replacement. The liner of the lagoon does not meet federal regulations and needs to be replaced. The 2016 federal grant revenue for Phippsburg Water and Sanitation was $15,000 for the evaluation ofthe lagoon liner. 7 s 383,000 323,000 58,000 14,000 94,000 (89,000) Fees are anticipated to increase $383,000 to $6,395,000 or 6% above the 2016 budget. Noted ‘below are the primary reasons. Regional Building Department fees are anticipated to increase $323,000 or 30% to $1,413,000 ‘above the 2016 budget of $1,090,000. The increase is result of the improvement in the ‘construction industry with more building taking place. Yampa Valley Regional Airport fees are anticipated to increase $58,000 or 1% above the 2016 budget from $4,764,000 to $4,822,000. Noted below are the primary reasons. Restaurant fees are anticipated to increase by $14,000 or 2% above the 2016 budget from $799,000 to $813,000 due to increased prices. Airside Fixed Based Operator (FBO) landing fees are anticipated to increase $38,000 or 31% above the 2016 budget from $124,000 to $162,000 due to an anticipated increase in traffic, Jet fuel flowage fees are anticipated to increase $47,000 or 33% from $140,000 to $187,000 based on the trend of increased traffic and projections that jet fuel prices will raise over the next year. ‘Terminal fees are anticipated to decrease $89,000 or 6% from $1,544,000 to $1,455,000 from the 2016 budget. Joint use rental charges to the airlines are anticipated to decrease by $72,000 or 6% from $1,178,000 to $1,106,000. Exclusive use rental charges are anticipated to decrease $11,000 (or 6% from $172,000 to $161,000. The terminal costs are recovered through rates and charges to the airlines and other businesses at the airport. Cost savings in the following areas resulted in the decrease in joint and exclusive rent that will be paid by the airlines: reallocation of the airport ‘Assistant Director position from the Terminal Department to the Administration Department reduced amount to be recovered from airlines. (20,000) Passenger Services fees are anticipated to decrease $20,000 or 27% from $76,000 to $56,000 37,000 from the 2016 budget. Joint use rental charges to the airlines are anticipated to decrease by $17,000 or 27% from $63,000 to $46,000. Exclusive use rental charges are anticipated to decrease $2,000 or 27% from $9,000 to $7,000, The Passenger Services costs are recovered through rates and charges to the airlines and other businesses at the airport. Cost savings in the following areas resulted in the decrease in joint and exclusive rent that will be paid by the airlines: County overhead charges decreased by $10,000 and airport administration charges decreased by $9,000. Security fees are anticipated to increase $37,000 or 14% from $269,000 to $306,000 from the 2016 budget. Security fees are a cost recovery of expenses that are collected from the airlines. Personnel and contract security expenses have increased to more accurately align staffing with business needs. The increase in personnel and contract security expenses also resulted in an increase in the administration charge that is allocated based on total expenses. 2016 budget. Rental car fees are anticipated to increase $7,000 or 1% from $483,000 to $490,000. For 2017, car rental revenues were budgeted using only the minimum annual agreement (MAG) because business levels have not produced revenues above the MAG for the last couple of years. Car rental contracts will be re-negotiated for the 2017/2018 ski season. Parking, taxi, bus, and limo fees increase $17,000 or 3% from $548,000 to $564,000 due to an increase in enplanements. 2,000 Milner Sanitation System fees are anticipated to increase $2,000 or 5% above the 2016 budget from $40,000 to $42,000 due to a 5% increase in sewer fees from $100 per quarter to $105 per ‘quarter effective January 1, 2017 to partially fund the increase in debt services associated with the lagoon replacement project. 5,000 Other revenues are anticipated to increase $5,000 or 3 ibove the 2016 budget of $154,000 to $159,000. Noted below are the primary reasons. 45,000 Yampa Valley Regional Airport other revenue increases $5,000 or 4% above the 2016 budeet from $147,000 to $153,000. Administrative revenue decreased $2,000 due to decreases in the electric company capital credits. Interest income is anticipated to increase $8,000 or 104% above the 2016 budget from $7,000 to $15,000 due to an increase in reserves... The interest rates are anticipated to remain unchanged at 65 DEBTPROGEEDS z 160,000 Debt proceeds are anticipated to increase $160,000 or 100% above the 2016 budget of $0 to See $160,000. Noted below are the primary reasons. 160,000 Phippsburg Water and Sanitation Systems debt proceeds increases $160,000 or 100% above the 2016 budget from $0 to $160,000. In 2017, Phippsburg Water and Sanitation Systems are anticipated to complete a lagoon liner replacement project to meet federal regulatory requirements that will be partially funded with Energy Impact Assistance Fund (EIAF) grant and a low interest loan from the State of Colorado. The 2017 budget includes grant funding of $140,000 and the loan funding of $160,000 to complete the lagoon liner replacements, s 1,581,000 101,000 Governmental Activities personnel expenses increased $1,581,000 to $21,599,000 or 8% above the 2016 budget. The primary changes in personnel costs are noted below in the Governmental Activities section, Business Type Activities personnel expenses increased $101,000 to $3,463,000 or 3% above the 2016 budget. The primary changes in personnel costs are noted below in the Business Type Activities section, s $46,000 479,000 255,000 145,000 Compensation - The 2017 budget includes a 2% market adjustment across all pay scales, and, for eligible employees, a current anniversary step. The market adjustment and anniversary step increased compensation by $464,000 or 3%. The compensation increases are based on acceptable job performance. In 2015, the State approved through legislation a change in the classification of the county elected official compensation from a Category Ill toa Category Il and also provided the boards of all counties across the state three options to increase the compensation of county elected officals. County elected officials have not had an inerease in compensation since 2007. The compensation increases become effective primarily when county elected officials are sworn in for a new term starting in 2017 and in 2019. The change in category and the increase in compensation are effective for two of the Commissioners in 2017. A. Commissioner's compensation increases $35,750 or 61% to $94,250. The total increase in compensation and related benefits for both Commissioners is $82,000. Full Time Equivalents (FTEs) in Governmental activites increased 7.29 FTEs or 3% to 236.81 FTEs. ‘The total 7.29 FTE increase includes a .94 FTE increase from overtime. The primary changes in FTES are as follows. ‘The County's current Enterprise Resource Planning (ERP) software provider is stopping support of their ERP software as of December 31, 2017. As result the County has hired a consultant to assist in the request for proposal process (RFP) in order to find vendor that will provide the County current best practices and technology. The current time line has selection of an ERP vendor and contract negotiation in December 2016 and January 2017, implementation starting February 1, 2017 and a “go live” date with core ERP functions such as financial statements, budget, payroll, accounts payable, accounts receivable, purchasing, ete. on January 1, 2018. Enhanced ERP functions such as on line vendor payments, online customer payments, capital assets, bid management, applicant tracking, benefit enrollment, work orders, etc, will be implemented throughout 2018. ‘The size of the ERP project and support stopping December 31, 2017 from the current ERP vendor requires additional temporary staff in order to meet the time line mentioned above. An additional 4.0 temporary FTEs for a total cost of $255,000 have been included in the 2017 budget. Accounting has 2 FTEs, Human Resources 1 FTE, and Purchasing 1 FTE. In addition, $99,000 of temporary overtime representing .93 FTEs for the departments mentioned above plus Information Systems has been included in the 2017 budget. Total temporary FTE and overtime costs are $354,000 and total temporary FTEs are 4.93. The cost of the ERP software is currently estimated to be $1,163,000. Total ERP project ‘cost $1,517,000. Funding for the ERP project is being provided from available reserve balances. Commissioners added an Assistant County Manager in 2016 at a cost of $145,000 in salary and benefits. The position was needed to improve the oversight of departments reporting to the County Manager. 10 s s 4,000 27,000 8,000 18,000 16,000 103,000 5,000 1,000 (2,000) 572,000 Building & Plant increased part-time seasonal work by one month or 08 FTE, to make the Courthouse ‘grounds presentable in the spring as opposed to starting in the summer. Building & Plant added a .5 FTE Administrative Assistant at a cost of $27,000 to perform the department's receptionist and order receiving responsibilities, assist with project management support and facilities service requests, manage vendor payments and account reconciliations and copier/phone ‘maintenance. Purchasing added a .3 FTE Administrative Assistant at a cost of $8,000 to cover the additional Workload from an increase in the number of solicitations and purchase orders issued. Ei increased the Fair Coordinator .2 FTE to fll time at @ cost of $18,000 to return the department to full staffing for the first time since the 2009 recession in order to manage the day-to-day grounds ‘operations and facilities rentals, repairimaintenance and capital projects and grant administration. luman Services increased .1 FTE after increasing the number of hours for a part-time Routt to Work ‘coordinator because the program has been so successfl District Attomey has a .19 FTE increase from Routt’s population percent increase of 1% to 47% of the ‘otal population for the three counties. Overtime - Govermmental Activities overtime including benefits increased $103,000 or 56% to ‘$287,000 and includes temporary overtime of $99,000 for the ERP system which represents 93 FTE. Other overtime changes are below. Building & Plant asked for additional overtime for staff based on historical data. Sheriff increased Administrative overtime by $1,000 to $2,000 to complete the data migration from the previous computer aided dispatch and records management system (CAD/RMS) to the new CAD/RMS system. Elections overtime decreased $2,000 or 100% from the 2016 budget which was a presidential election year. Historically election judges have helped staff this position, but due to more technical and training requirements staffing of this position is filled by regular, year-around County employees, Health Insurance increased $572,000 or 21% to $3,400,000 over the 2016 budget. ‘The County's partially self-funded health insurance pool (Pool) had expenses over revenues of $518,000 in 2015 on $3.9 million in claims. The Pool is projected to have expenses over revenues of ‘$482,000 in 2016 on anticipated claims of $3.8 million based on claims experience through August 31, 2016. The net losses in 2015 and 2016 are due to exceptionally high claims experience driven by large claims, which are claims greater than $35,000. ‘There were 26 large claims representing $2.3 million or ‘58% of total claims in 2015 and for the eight months ended August 31, 2016 there are 16 large claims representing $1.1 million or 46% of total claims. The County was able to build a reserve balance of $1.6 million from 2011 - 2014, which was reduced to $1.1 million at the end of 2015 and the projected reserve at the end of 2016 is $.6 million Total revenue in the Pool is anticipated to increase $1.5 million of 41% to $5.1 million in 2017 ‘compared to 2016 budget. In 2016, the County contribution to the Pool increased by $.3 million or 10% without any plan design changes or increases in employee contributions, In 2017, the County contribution was increased, the plan design was changed by increasing deductibles and out of pocket ‘maximums, the coinsurance for the high deductible health plan was decreased and the employee contribution was increased in order to build the Pool's reserves and improve the Pool's sustainability while continuing to offer a competitive health insurance benefit to employees. The County's 2017 contribution to the Pool increased $841,000 or 25% to $4.2 million. Employee contributions to the Pool increased $300,000 or 526% to $357,000 in 2017. Reimbursements from individual specific stop loss insurance increased $332,000 or 124% to $.6 million based on historical information from the past ‘two years " ‘The County's annual contribution for the PPO (preferred provider organization) plan increased for a family by $3,132 or 16% to $22,121 and for a single by $1,882 or 25% to $9,440 and for the HDH (high deductible health) plan the County's annual contribution increased for a family by $3,476 or 179% to $23,621 and fora single by $1,720 or 21% to $9,740. For employees, the annual contribution forthe PPO plan increased for a family by $2,328 or 346% to $3,000 and for a single by $300 or 100% to $600 and for the HDH plan the employee contribution increased for a family from $0 to $1,500 and increased for a single from $0 to $300. The County and employee contributions to the Pool are 92% and 8%, respectively in 2017 compared to 98% and 2%, respectively in 2016. Total expenses in the Pool are anticipated to increase $1.4 million or 44% to $4.7 million in the 2017 ‘budget compared to the 2016 budget. The County was able to decrease the Pool's expenses in 2017 as follows. Plan administration and individual specific and aggregate stop loss insurance premiums decreased $178,000 or 28% to $467,000 in 2017. The most significant change in these costs is a decrease of $121,000 or 23% for individual specific stop loss insurance which resulted from the County accepting an additional deductible of $100,000 before any aggregate stop loss reimbursement is paid by ‘the insurer, The County's individual stop loss insurance covers individual claims over a $75,000 deductible and the aggregate stop oss insurance covers total claims less individual specific stop loss insurance reimbursements over a $3.8 million deductible. This aggregate stop loss deductible was held to.a $20,000 increase or 1% in 2017 compared to 2016 after the 2017 plan design changes. ‘Through a change in plan design, the County anticipates reducing its claims expense by approximately $183,000 or 5% through higher deductibles, higher out of pocket maximums and a decrease in coinsurance for the HDH plan. For example, the out of pocket maximum for a family enrolled in the PPO plan and in the HDH plan increased $4,000 or 67% to $10,000 and $4,500 or 100% to $9,000, respectively. In addition, the coinsurance for the HDH plan was decreased from 100% to 80%. After ‘these plan design changes, the budget for claims expense in 2017 is anticipated to increase $1.6 million ‘or 62% to $4.1 million over the 2016 budget. The 2017 claims expense budget is in line with actual claims experience in 2015 of $3.9 million and projected claims in 2016 of $3.8 million. In 2016, the ‘County's budget for claims expense was set at $2.5 million which represented average claims expense for the years 2011 - 2014. At this time, actual claims are not expected to retum to the lower levels experienced in 2011 - 2014 Budgeted revenues over expenses in the Insurance Pool for 2017 are $461,000 and results in a projected year end reserve balance of $1.0 million. ‘The Poo!'s 2017 aggregate stop loss deductible is $3.8 million, Total 2017 claims of $4.1 million less individual stop loss reimbursements of $.6 million {otal $3.5 million of claims subject to the aggregate stop loss deductible of $3.8 million. ‘The County could expend an additional $.3 million in claims before reaching the aggregate stop loss deductible. ‘The additional $.3 million in claims could be funded by the $1.0 million of reserves mentioned above and the County would still have the remaining $.7 million in reserves available for future years’ claims expense. 13,000 Workers’ Compensation increased $13,000 or 4% to $366,000 due to the 2016 increase in compensation. $-_ (132,000) Other changes in personnel include turnover in staff and related benefit costs such as health insurance and retirement. 2 s s (89,000) Full Time Equivalents (FTEs) in Business Type activities decreased 1.99 F1 (31,000) Building Permit Department F1 (40,000) Workers? Compens: 78,000 Compensation - The 2017 budget includes a 2% market adjustment across all pay scales, and for cligible employees, a current anniversary step. The market adjustment and anniversary step increased ‘compensation by $78,000 or 3%. The compensation increases are based on acceptable job performance. 's or 4% to 47.28 FTEs. ‘The primary changes in FTEs are as follows. (58,000) Yampa Valley Regional Airport (YVRA) decreased 1.65 FTEs or 4% to 39.80 FTEs from the 2016 budget of 41.45 FTEs. The total 1.65 FTE decrease includes a .04 FTE decrease from overtime. ‘The decreases in YVRA FTEs is primarily the result of budgeting reallocation of restaurant hours to ‘other positions within the restaurant to more closely align with business needs, a reduction in passenger services hours primarily asa result of the new parking lot contol system and the expectation that there will not need to be @ live person manning the parking lot booth, reinstating the Assistant Airport Director position to inerease business development at YVRA, and elimination of an administration position to justify cost associated with Assistant Airport Director position. ‘The increases in FTEs are primarily in the passenger services, maintenance, and restaurant departments. The reinstatement of the Assistant Director position and the elimination of the administration position resulted in a cost savings of $6,000. Passenger Services positions have been reduced by 1.35 FTEs with the new parking lot control system installed in 2016. This resulted in a decrease of $38,000. A shared position with the Road & Bridge department was transitioned into a part time seasonal position with no benefits. This resulted in a reduction of FTEs of .06 and cost savings of $12,000. The restaurant has an decrease of .20 FTE to better align stafing with business needs resulting in cost savings of $2,000. Es decreased by .34 or 5% to 7.02 FTEs from the 2016 budget of 7:36 FTEs. The decrease is primarily due to the removal of overlap training time that was included in the 2016 budget for the retiring Permit Coordinator Supervisor position for 33 FTE at a cost of $31,000. ‘The remaining .01 reduction in FTEs was @ minor adjustment fo overtime hours available based on the average wage of the inspectors (3,000) Overtime - The overtime budget for YVRA has been decreased by $3,000 or 5% to $52,000 from the 2016 budget. One employee in the maintenance department was transitioned from an hourly employee to an exempt employee during 2016 and no longer qualifies for the 04 FTE or 80 hours in overtime that hhad been budgeted prior. ‘88,000 Health Insurance expense increased $88,000 or 21% to $432,000 over the 2016 budget. This increase {is $69,000 for YVRA and $19,000 for the Building Permit Department. Please see the Governmental Activities Health Insurance section above for a detailed explanation of the inerease in health insurance, decreased $40,000 or 71% to $17,000 under the 2016 budget. The decrease in workers’ compensation is primarily because both YVRA and the Building Permit Department experienced a significant decrease in claims, 67,000 Other changes in personnel include tumover in staff, reclassifications, and related benefit costs such as health insurance and retirement. 13 (659,000) Governmental Activities operating costs are budgeted to decrease from the 2016 budget by $659,000 or 4% to $14,883,000. The major changes in operating costs are noted below in the Governmental Activities section. 35,000 Business Type Activities operating costs are anticipated to increase from the 2016 budget by $35,000 or 1% to $2,603,000. The major changes in operating costs are noted below in the Business Type Activities section. Department ‘Change Information Systems Public Trustee Road and Bridge Road and Bridge Human Services Human Services (50,000) ‘Comments (50,000) Consulting services decreased $50,000 in 2017 due to the completion of services to assist Routt County with PCI (Payment Card Industry) compliance in 2016. PCI compliance is a security regulation around the protection of credit card information. Advertising decreased $50,000 in 2017 due to a 50% reduction budgeted foreclosures. Foreclosures have been declining significantly year lover year since 2011 when they reached a high of 311 foreclosures. 2015, actual foreclosures were 37. Advertising costs average $1,000 per foreclosure, (176,000) Bridges less than 20 feet decreased $176,000 or 37% to $298,000 for the 2017 budget. The 2017 budget includes the replacement of Fish Creek Bridge on County Road 37 for $213,000 and the replacement of the Coleman Creek Bridge on County Road 56 for $84,000. The 2017 small bridge replacement costs were primarily offset by the completion of the Middle Hunt Bridge, the South Hunt Bridge and the Art Deco Bridge in the 2016 budget. The 2017 budget continues a small bridge multi-year program that totals $915,000 over the next three years. By 2020, the County anticipates being able to plan, fund and replace twelve of the sixteen bridges less than twenty feet needing replacement as a result of a survey completed in 2013. (139,000) Gravel expense decreased $139,000 or 24% to $447,000 for the 2017 budget. The decrease is primarily due to the planned gravel road schedule and fewer miles of shoulder gravelling associated with planned overlays in 2017. (149,000) Human Services Food Assistance benefits paid under this program are anti jpated to decrease due to the implementation of the Employment h requires those food assistance recipients who are to engage in “work registrant” activities in order to benefits. Those activities can include volunteer work, educational activities, job search activities and work. The number of households has fallen from 561 in December 2015 to 450 in September 2016, a decrease of 20% since the implementation of Employment First 8 (120,000) Child Care benefits are anticipated to decrease $91,000 or 20% to '$359,000. The lower funding available for the Child Care program made it, necessary to reduce the child care benefits provided. A wait list has been implemented to manage the caseload. Also, benefits paid by the Cliff Effect Pilot program will decrease by $29,000 as less funding is available for the second year of the pilot program. This program is designed to assist families when a relatively small increase in th ble for the program, “ Yampa Valley Regional § Airport (YVRA) Building Enterprise ‘Comments (4,000) Yampa Valley Regional Airport operating costs decreased $4,000 or 0% {0 $2,193,000 from the 2016 budget of $2,197,000. The major changes are listed below: (77,000) Overhead charges decreased $77,000 or 14% from $531,000 to $454,000 8,000 $7,000 in the 2017 budget. The majority of the decrease in overhead is due to an

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