Leads/Peoria County Budget Subcommittee met August 10.
Leads/Peoria County Budget Subcommittee met Aug. 10.
Here is the minutes provided by the Subcommittee:
MEMBERS PRESENT: James Fennell - Chairman; Robert Baietto, Allen Mayer, Stephen Morris, Thomas O'Neill, Andrew Rand, Steven Rieker, Paul Rosenbohm, Phillip Salzer, Sharon Williams
MEMBERS ABSENT: James Dillon, Rachael Parker
OTHERS PRESENT: Scott Sorrel - County Administrator; Shauna Musselman - Assistant County Administrator; Jerry Brady, Larry Evans, Julie Dickerson - State's Attorney's Office; Greg Adamson, Brian Elsasser, Brad Harding, Kate Pastucha, Barry Robinson - County Board Members; Eric Dubrowski - Chief Financial Officer; Kim Hudson - Finance; Gretchen Pearsall - Director of Strategic Communications; Angela Loftus - Asst. Director of Human Resources; Monica Hendrickson - Health Department; Rena' Parker, Jennifer Shadid - Courts Administration; Kathi Urban, Andrew Braun - Planning & Zoning; Robert Spears - Circuit Clerk; Steve Sonnemaker - County Clerk; Nicole Demetreas - Treasurer; Amy McLaren - County Highway; Karen Raithel - Sustainability & Resource Conservation; Mark Little - Chief Information Officer; Brian Asbell, Doug Gaa, Randy Brunner - Sheriff's Office
Call to Order
Chairman Fennell called the meeting to order at 5:03 p.m.
• FY 2018 Budget
Mr. Dubrowski provided a brief recap of 2017 budget figures, noting the growing gap between revenues and expenditures. He stated that if no action had been taken to address the situation, a continual draw on reserves in the General Fund would have resulted in a negative fund balance by the year 2020. He commented that the adopted 2017 General Fund created a $1.9 million surplus, which in turn increased fund balance reserves. He added that the revised budget, factoring in rollovers and other appropriations, resulted in a $1.7 million surplus. He stated that 2017 projections for expenditures were slightly less than the revised total; however, Personnel Services was the one area in which projected expenses were higher than the revised budget. In addition, the projections of the State’s Attorney, Coroner and Regional Office of Education were higher than their budgets. Conversely, the Sheriff’s Office and Treasurer projections were noticeably lower than their revised budget. Mr. Sorrel advised that the differential for the three offices exceeding their budgets totals $309,000.00.
Mr. Dubrowski advised that all 2018 expenditure projections and requests have been received from departments and offices. Mr. Sorrel commented that when the 2017 budget was adopted, the planned spend in all funds combined totaled $6.8 million, the majority of which are Highway Funds; the revised budget based on budget amendments increased the spend to $8.2 million; 2017 projections to date have reduced that figure to $2.1 million. He stated that initial 2018 requests have increased the gap slightly to $3.9 million. He stressed that these initial numbers will be significantly revised.
Mr. Sorrel advised that the General Fund Revenue requests total $42.4 million, which assumes 1.1% growth in EAV. He advised that a conservative approach was taken for state shared revenues, sales tax and income tax and used guidance from both the Illinois Municipal League and the County Board Members Association as it relates to the implementation of the new state budget and the impacts upon Peoria County.
Mr. Fennell also noted that 2018 requested revenues of $42.2 million are $788,000.00 less than the $43.1 million 2017 revised revenues. Mr. Dubrowski noted the decrease is largely due to decreasing and fluctuating sales taxes and building and license permits.
Mr. Sorrel advised that the General Fund Expenditure requests total $42.87 million. He noted that the Personnel Services request is 1.3% higher than the current year projected; all other expenditures are comparatively flat, while Contractuals show $800,000.00 growth.
Mr. Sorrel advised that after a review of the 2018 requests, and with an initial request deficit of less than $500,000.00, staff will be presenting a recommended budget that is balanced and will not utilize reserves. He stated that the deficit would be managed by either cutting expenditures or increasing revenues where appropriate or applicable. Mr. Dubrowski advised that the Capital Budget will be thoroughly assessed in order to prioritize projects with limited resources.
Mr. Sorrel advised that staff extrapolated General Fund revenues and expenditures into future years, assuming 1% in revenue growth and 2.5% in expenditure growth. He stated that expenditures will most likely not grow at that rate into the forecast years; although those numbers are difficult to project.
Mr. Rieker noted that revenue growth is forecast in the outlying years after several years of decreases, and asked what factors will contribute to drive the revenue growth. Mr. Sorrel advised that in the aggregate, a number of factors will contribute to sustained growth, including a 1% growth in EAV in years 2019 and 2020, a rebound in Charges for Services in Courts, State Shared Revenues, and strong Corporate Incomes Tax. Mr. Dubrowski advised that the current replacement tax overpayment issues are going to lapse. He also noted that Sales Tax tending is very much an unknown in forecasting future years.
Mr. Sorrel advised that the General Fund will be at or above Fund Balance policy through the end of 2019, based upon 2017 projected numbers and 2018 requested numbers. He stated that forecast projections through 2023 show that although not depleted, the fund will be significantly below policy. Mr. Rand noted that previous budget discussion had indicated that fund balance reservices would be at or near policy through 2020.
Mr. Dubrowski advised that a review of 2018 requests, prior to depreciation, indicates a draw down of $3.3 million. He noted that on the revenue side, Charges for Services decreased from a revised 2017 budget of $13.3 million in 2017 to a projected 2017 $10.3 million in 2017. He commented that the revenue request for Charges for Services in 2018 is $11.5 million.
Mr. Dubrowski advised that on the expenditures side, the 2018 request for Personnel Services of $9.6 million is slightly larger than the 2017 revised figure of $9.2 million. He advised that when preparing the 2018 budget, a significant refinement of the Heddington Oaks budget will be necessary.
Mr. Rand noted the significant difference between 2017 projected expenditures of $13.6 million and $16.9 million in expenditure requests. Mr. Sorrel commented that staff has not yet had an opportunity to thoroughly review the details of the request; staff will have an opportunity later in the month to review and adjust the request.
The meeting was adjourned by Chairman Fennell at 5:37 p.m.