Fy 2021 Capital and Operating Budgets
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FY 2021 CAPITAL AND OPERATING BUDGETS Johnson County, Kansas Board of County Commissioners Ed Eilert Chairman Becky Fast District 1 Jim Allen District 2 Steven C. Klika District 3 Janee' Hanzlick District 4 Michael Ashcraft District 5 Mike Brown District 6 Staff Penny Postoak Ferguson, County Manager Maury Thompson, Deputy County Manager Joe Waters, Assistant County Manager Joseph M. Connor, Assistant County Manager Scott Neufeld, Budget & Financial Planning Director Robin Symes, Assistant Budget Director Ted Clemons, Management and Budget Analyst Mark Dapp, Management and Budget Analyst Jack Habig, Management and Budget Analyst Gayle Kauffman, Management and Budget Analyst Leslie Friedel, Principal Analyst Supervisor Jennifer Cox, Executive Assistant Notice Johnson County Government offers employment and provides services and programs in compliance with the provisions of the Americans with Disabilities Act (ADA) and with all other federal, state and local statutes regarding race, color, national origin, sex, religion, age or disability. Table of Contents A. Executive Summary Budget Message A-2 A Brief Tour of the FY 2021 Budget A-11 Where to Find Answers to Commonly Asked Questions A-13 Additional Information and Quick Reference Guide A-15 B. County Profile County Profile B-2 Comparable Counties B-11 Organizational Structure B-17 Organizational Chart B-19 C. Budget Structure & Policies Financial Policies C-2 Budget Structure C-6 Budget Process & Calendar C-7 Budget Amendments C-8 Budget Revisions C-9 BOCC Strategic Priorities C-11 D. Budget Summary FY 2021 Johnson County Budget at a Glance D-2 FY 2021 Johnson County Budget by Fund D-8 FY 2021 Assessed Valuation and Mill Levy Information D-45 Equipment Reserve and Fleet Fund D-47 E. Personnel & Compensation Workforce Trends E-2 New Positions Included in the FY 2021 Budget E-3 Comparison of Budgeted FTE Positions Since FY 2016 E-4 Benefits and Health Care E-5 Budgeted FTEs by Type E-9 Budgeted FTES by Agency/Department and Strategic E-10 Program Area FY 2019-FY 2021 F. Multi-Year Budget Projection Multi-Year Budget Projection - October, 2020 F-2 Budget Reductions F-9 G. Revenue Summary FY 2021 Revenues by Category G-2 2020 through 2021 Revenue Breakdown G-3 Major Revenue Sources G-5 H. Capital Improvement Program Capital Improvement Program (CIP) Overview H-2 FY 2021 CIP Sources and Uses of Funds H-6 FY 2021 - 2025 CIP Summary H-8 Table of Contents I. Debt Management Debt Management Policies I -2 Outstanding County Debt I -3 Future Debt Planning I -5 Budgeted Debt Service I -6 Summary of Outstanding Debt Issues I -8 Debt Margin Computation I -13 J. Strategic Programs FY 2021 Budget by Strategic Program J-2 FY 2021 Budget - Expenditures by Strategic Program J-5 Classification of Agencies and Departments by Strategic Program J-6 K. Support Services Board of County Commissioners K-2 Budget & Financial Planning K-6 County Building Fund K-11 County Manager's Office K-12 Countywide Support K-17 Debt Service K-19 Economic Development Programs K-20 Facilities K-22 Fleet Services K-39 Human Resources K-41 Legal K-45 Risk Management K-48 Technology & Innovation K-50 Treasury & Financial Management K-58 L. Records & Taxation Appraiser L-2 Election Office L-8 Motor Vehicle L-12 Records & Tax Administration L-15 M. Public Safety, Judicial & Public Safety & Judicial Emergency Services Controlled Substance M-3 Corrections M-4 District Attorney M-15 District Attorney Forfeited Property M-19 District Court Trustee M-20 District Courts M-23 Justice Information Management System M-29 Law Library M-37 Prosecutor Training & Assistance M-40 Public Safety Sales Tax M-41 Public Safety Sales Tax II M-42 Public Safety Sales Tax III M-43 Table of Contents Sheriff M-44 Sheriff Forfeited Property M-55 Weapons Licensure M-56 Emergency Services 911 Fund M-57 911 Wireless Telephone M-58 Emergency Management & Communication M-59 Med-Act M-66 N. Infrastructure Airport N-2 Contractor Licensing N-19 Public Works N-22 Planning, Housing & Community Development N-32 Stormwater N-36 Transportation N-39 Wastewater O & M N-46 Wastewater SRCFP N-53 O. Health & Human Services Alcohol Tax O-2 Developmental Supports O-3 Health & Environment O-8 Aging & Human Services O-16 Mental Health O-23 P. Culture & Recreation Developer Fees P-2 Fair P-3 Heritage Trust P-4 Library Operating P-5 Library Special Use P-13 Park & Recreation General P-14 Park & Recreation Employee Benefits P-22 Park & Recreation Bond & Interest P-23 Park & Recreation Enterprise P-24 Stream Maintenance P-27 Section Executive A Summary This Section Includes: Budget Message (Page A-2) A Brief Tour of the FY 2021 Budget (Page A-11) Where to Find Answers to Commonly Asked Questions (Page A-13) Additional Information and Quick Reference Guide (Page A-15) A-1 Budget Message October 26, 2020 Chairman Eilert and County Commissioners; It is my distinct honor to present the Johnson County proposed operating budget and capital improvement program for FY 2021. The budget is our financial and policy plan for the year. It has been designed to represent the goals and objectives of the Board and to enable the organization to meet them while providing the best possible services to the entire community, whom we all ultimately serve. Experiencing a global pandemic, and witnessing the protests and call for change, have made 2020 a year that we will not forget. The dramatic impact of COVID-19 has been worldwide. Our community and our organization have been no exception. The uncertainty that ensued, combined with existing challenges of increased demand for our services due to a growing population, meeting the needs of our county’s aging population and other ongoing pressures have together created unparalleled challenges in constructing this budget. We have had to rethink our approach and our strategy. COVID-19 forced us to pause work on the FY 2021 budget and focus on the current budget. Early into the pandemic, recognizing the projected millions of revenue shortfall, we acted quickly to make substantial expenditure reductions to avoid utilizing our reserves. Charting a Course Amidst Economic Adversity Putting together a budget in the face of this much uncertainty was challenging but not impossible. We kept our values at the forefront throughout; guiding us as we navigated through 2020 and planned for FY 2021. We started with a focus on what you as a governing body consider priority areas, our core services, what our residents value from county government, and what our organization is capable of. Keeping in mind the old adage, “Hope for the best and plan for the worst," we revisited what it means to budget conservatively in times like these. We looked at what was not only reasonable, but also what was strategic. Ultimately, we determined to frame our baseline projections conservatively based on the current outlook while simultaneously developing contingencies should the economy worsen. What this means is that we built our projections based on a conservative estimate of a one-year downturn in FY 2020 followed by modest recovery in FY 2021 and beyond. We have balanced our budget and five-year financial forecast within these parameters with the ongoing expenditure reductions necessary to bring overall expenditures in line with ongoing revenues. None of the reductions are expected to have a material impact on services. In other words, the FY 2021 Budget is structurally balanced as is our five-year financial forecast and our service capacity has remained intact as well. The economic impact of COVID-19 on the County’s major revenues has been overall negative but also definitely varied amongst the different revenue streams. Early estimates in April of revenue shortfalls for 2020 for our County Taxing District ranged from $18 to $38 million based on predicted impacts on our ad valorem, sales and use tax, and other revenue streams. By mid-May, with more information and a clearer financial picture, we projected a $25 million “first wave” revenue loss for this budget year. In mid-June, after having more revenue come in, we projected a $15 million shortfall. A-2 Looking forward, we have been closely studying our revenue sources: • Ad valorem is based on valuations from the prior year so impacts to assessed valuation will be felt in future years, leaving collection rates as the big question for next year. At this point, the County’s planned uncollectible rate of 2.1% appears to be sufficient, although we won’t know for certain until we get to the December 2020 and May 2021 due dates for next year’s property tax. • Sales tax is the next largest revenue source for the County Taxing District and was also significantly impacted thus far by COVID-19, with our first two impact months of collections down approximately 10% below budget, making our 10% projected decline for the entirety of the year a conservative basis for our 2021 projections. • Use Tax has been up very strongly; 13% higher year-to-date this year compared to 2019, and with April of this year was 18% higher than April, 2019. • The other large loss, although mostly independent of the pandemic impact was to interest income. Repeated reductions of the prime rate by the Federal Reserve Bank drove down our projected revenue for 2021 to $1.2 million for the General Fund; $6.9 less than we earned in 2019. In total, revenues for the County Taxing District in the Proposed FY 2021 Budget are projected to be $3 million less than the original FY 2020 Budget. Contingencies in response to a potential second wave of revenue reductions will be addressed through a variety of methods.