Minutes 01-27-2015 - Laserfiche WebLink

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not spent. She said the balance shown for 2015 is an accumulation of 2012, 2013, and 2014, as well as some additional fund balance. Bonnie Hammersley said the state impact for budget assumptions is where the County has the least amount of control and the most amount of uncertainty. She said there are issues with social service and the child care fund. She said there are public safety issues with state inmates and the possibility that they might be pushed into County jails. Bonnie Hammersley said there are issues with school funding, and specifically with drivers' education, which is an unfunded mandate. Bonnie Hammersley said there has been a swing in the property values, and properties in Orange County are currently selling at 1 percent over assessed values. She said staff is looking at a 1 percent growth in property taxes, which would amount to about$1 million more in the budget, but it is still early. Bonnie Hammersley said sales tax is one of the most unpredictable revenue sources. She said a change from point of sale to per capita has been discussed. She said if this change was made, Orange County would benefit from it, as it benefits rural counties. She said current projections give a conservative estimate of 3 to 5 percent, which would be somewhere near $1 million. Chair McKee said he has heard there is going to be a real push from the rural counties on the reallocation of the sales tax. He said it is important to note that this is going to be a major point of discussion. Commissioner Jacobs asked if this has been addressed by the legislative goals committee. Commissioner Pelissier said no. Commissioner Jacobs suggested that this might be a good time to bring it up. Bonnie Hammersley said cost to continue projections will likely come very late in the process. Bonnie Hammersley said the health insurance plan is currently in a fiscally positive position. Bonnie Hammersley said the consumer price index (CPI) has declined .6 percent since July of 2014, due to energy costs. Bonnie Hammersley said actuarial reviews are done on an annual basis to determine the reserve levels for health insurance. She said there is a stop loss requirement of$100,000, after which the health insurance provider kicks in. She said the actuarial review makes sure the reserves are at a level that will allow claims to be paid. Bonnie Hammersley said she has not included the schools in the cost to continue. She said that is part of this budget, but she is waiting to hear from the schools on their requests. Commissioner porosin asked about the past OPEB discussions. Bonnie Hammersley said she will bring a recommendation on this in the next budget discussion. Bonnie Hammersley said she has not had to ask department directors to cut their budgets. She said she has asked the department directors to bring forward additional requests, and she will consider the big picture and determine if there are things that can be done above and beyond the current appropriations. She reviewed the budget schedule, and she reminded the Board that the budget is a plan, and it is good to have contingency plans in place for each department, in case things do not go as anticipated. She said these contingency plans are renewed on an annual basis. Commissioner Jacobs referred to the goal of being creative, and he asked if department heads are allowed to move funding within their budgets to address issues or changes without waiting for the next fiscal year. Bonnie Hammersley said yes.