Agenda - 04-08-2010 - 2 - Laserfiche WebLink

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2) FY 2010-11 Budget Activity to Date • Recommended Board Action - The County Manager recommends the Board receive information regarding staff activity to-date in preparation for the upcoming FY2010.11 budget. The FY2010--11 Budget process presents another year of challenges. On the revenue side, we anticipate little or no growth in the county's tax base. The normal growth in the real property valuation will be offset by decreases in motor vehicle valuations, foreclosures and bankruptcies. Additionally, the Commissioners have expressed a continued desire to avoid a tax rate increase. In regards to expenditures, departments have submitted their budget requests. Total projected revenues are expected to be $'174.2 million. Preliminary departmental requests for FY2010--11 total $187.5 million. Thus, we have a $'13.4 million difference between requests and estimated revenues. This is an increase of $7.7 million over our previous projection. It is stressed that this gap is prior to the County Manager doing a formal review of each department's proposal and developing the Manger's recommended budget. Variations from previous estimates are highlighted in Attachment 1. As discussed in prior meetings, the Manager is obligated to provide the county Commission a balanced budget recommendation. Doing so, will involve significant changes in how Orange County approaches many services and programs from past practices. Difficult choices will demand dramatic decisions be made. Revenues • Sales tax losses of $1.9 million. • Reduced impact fees of $1 million. • Losses of intergovernmental revenues of approximately $1 million. Expenditures $1.4 million for new EMS staff to reduce emergency response time. • $1.75 million increase in current expenses for both School Systems. • $1.5 million for new capital equipment and vehicles. a] county Manager FY2010-11 Budget Preparation Directions to Departments In order to balance the FY2010-11 budget goals and meet the anticipated priorities, it will be necessary to decrease future spending levels and programs. Because of this, the County Manager has provided the following direction to department directors as they prepare for their FY 2010-11 budget meetings. Departments should submit FY2010-11 budget requests reflecting core services only. The dollar amount or potential percentage decreases will be 15% in order to balance the FY2010--11 budget. Department heads are expected to look critically at their department and propose reductions in, and in some instances elimination of, programs; non-mandated services and activities to achieve a balanced budget.