Peoria Standard

Peoria County Board of Budget Subcommittee met May 23.

Here is the minutes provided by the Subcommittee:

Call to Order

Chairman Fennell called the meeting to order at 3:00 p.m.

Approval of Minutes

A motion to approve the minutes of April 25, 2017 was made by Mr. Salzer and seconded by

Mr. Rand. The motion carried.

Informational Items/Reports/Other Minutes/Updates

• Monthly Financial Report

Mr. Dubrowski provided an overview of 2016 funds, reflecting updated figures as of May 18, 2017. He advised that the FY 2016 adopted budget called for a drawdown of $8.2 million; the revised budget called for $13.2 million and the actual draw was $6.4 million. Detailed highlights of individual funds included:

• Capital Projects Fund - Beginning Balance totaled $3.5 million; Ending Balance was $1.2 million. There was no budget for this fund at the beginning of the year, as originally all funds were coming from the Public Facilities Sales Tax line. After debate in 2016 over funding sources of various projects, staff drew down on the Capital Projects Fund. As a result, the Public Facilities Sales Tax has performed better than anticipated. In Capital Funds as a whole, the balance is often inflated artificially when a project is not completed; however the following year will see a drawdown in deficit.

• Care and Treatment Fund - Fund showing a deficit of $36,000.00 at the end of 2016. Building rental costs and issues resulting from the misclassification of CPPRT contributed to a $36,000.00 deficit in 2016. Rental costs will decrease in 2017 as the lease ends in this year, and the 2017 budget addresses and corrects the CPPRT issue.

• CDAP Fund - Fund showing a $1.1 ending balance, with $9000,000.00 in cash and the remainder in CDAP loans.

• County Clerk Recording Fund - Fund showing a deficit of $96,000.00; however, this figure is prior to a $375,000.00 loan from the General Fund, which will be repaid over a four year period.

• County Highway Fund - Fund showed growth, with an ending balance of $1.8 million, with savings seen in commodities and personnel.

• County/State Capital Improvement Grant (Keystone) - Fund shows an ending balance of $7.9 million. The Fund is owed money through the General Fund, and staff is requesting direction on fund strategy.

• Employee Health Fund - Although the fund saw a draw of $1.1 million, the ending balance at the end of 2016 stands at $10.4 million.

• General Fund - The Fund saw an excess of expenses over revenues of $1.5 million, with an ending balance of $9.7 million. It was emphasized that state did not recognize any revenues for CPPRT due to a lack of direction from the State. Revenues as a whole were down, particularly Intergovernmental revenues and Charges for Services.

• Heddington Oaks - A change in fund balance of -$1.2 million was seen in 2016, with an overall balance of $7.6 million. Approximately $2 million is related to investments and capital and not related to debt. Patient income totaled $14.3 million; operating expenses prior to depreciation totaled $14.2 million. Depreciation of $1.4 million and $1 million in personnel costs result in a $2.3 million deficit. Non-operating revenues (property tax) totaled $2.1 million, while nonoperating expenses totaled $2 million.

Aging Analysis - Gross accounts receivables total nearly $6 million, with over $4 million of that total over 90 days. Mr. Dubrowski indicated that a discussion on policy direction regarding residents who have been denied Medicaid is warranted.

• Matching Tax Fund - The fund saw a $401,000.00 increase in 2016, with an ending balance of $1.4 million. Much of the savings are related decreased capital outlay expenses.

• Peoria City/County Health Department Fund - The Fund saw a draw down of $568,000.00, with a 2016 ending balance of $2.98 million. Budget discussion will include a long term plan for continuous draw down of funds.

• Risk Management Fund - The Fund began 2016 at a negative $498,477.00 due to settlements and flood damage claims. With a positive change in fund balance of $498,856.00, the ending balance is $379.00 to the positive. The 2017 budget anticipates the funding coming within the policy of 8%.

• Budget Discussion

Mr. Sorrel noted that the budget as adopted has substantially reduced what could have been a $4.7 million revenue to expenditure gap by 2021. He recapped personnel numbers, noting a 17.3% reduction in authorized positions in the past nine years.

Mr. Sorrel recapped FY 2016 final numbers, noting a $6.9 million shortfall in Intergovernmental Revenues and Charges for Services in All Funds. On the expenditure side, Personnel, Commodities and Contractuals were $9.2 million under budget. He stated that the change in fund balance for FY 2016 was -$6.3 million.

Mr. Sorrel advised that the FY 2016General Fund saw a $3.5 million shortfall in Intergovernmental Revenues and Charges for Services. General Fund Expenditures were $2.3 million under budget, with the majority of those savings in Personnel and Contractuals.

Mr. Sorrel advised that the FY 2017 spending plan anticipates $125.47 million in revenues, with 34% being General Fund revenues. He noted that the County continues to be heavily reliant on Intergovernmental Revenues. He stated that $131.6 million is budgeted for expenditures in FY 2016, with 31.3% being General Fund expenses.

Mr. Dubrowski advised that staff requests that FY 2018 Revenue requests be submitted to the Finance Department by departments and offices by June 16, 2017 and Expenditures by July 17, 2017. He stated that special Budget Subcommittee meetings for discussion of Revenues and Expenditures are tentatively scheduled for July 13, 2017 and August 10, 2017.

Resolution

• Budgetary Appropriation and transfer of funds from CDAP Fund to Employee Health Fund for Employee Separation Health Insurance Costs

A motion to approve was made by Mr. Mayer and seconded by Mr. Salzer. The motion carried. Miscellaneous

Mr. Morris commended Tom Bride and the Election Commission staff for their work in the recent recount.

Adjournment

The meeting was adjourned by Chairman Fennell at 4:06 p.m

http://www.peoriacounty.org/download?path=%2Fcountyboard%2FCommittee_Agenda_and_Minutes%2F2017%2FJune%2F27+-+Budget+Subcommittee%2FBudget+Subcommittee+Agenda+6_27_16.pdf