Houston County Budget Preparation Process Overview

Houston County's budget preparation process, presented by Bill Dempsey, CAO, involves calculating departmental expenses in categories like salaries and benefits, operations, and capital expenditures. The budget comparative analysis and projections provide insights into expenditure variations and budget allocations for various functions in the county. The detailed breakdown includes items like salaries, professional services, office supplies, and capital projects.

• Budget
• Houston County
• Expenses
• Departmental
• Analysis

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1. HOUSTON COUNTY BUDGET PREPARATION PROCESS Presented by: Bill Dempsey, CAO

2. CALCULATING DEPARTMENTAL EXPENSES We divide our departmental expenditures into three different categories: 1) Salaries and Benefits 2)Operations 3) Capital Expenditures

3. Houston County Commission Budget Comparative Analysis & Projections FY 13-14 Amended Budget Total 13-14 Actual / Projected Expenditures $ Variance 14 Budget vs 14 Actual/Proj $ Variance Budget to Budget FY 12-13 Actual Expenditures FY2014-2015 Budget Object Fund Department/Function Number 001 Accounting 51110 Other Salaries and Wages Overtime Retirement Health Insurance Life Insurance Social Security - FICA Worker's Compensation Unemployment Insurance Compensated Absences TOTAL SALARIES & BENEFITS 113 116 121 122 123 124 125 126 140 50,468 52,292 52,060 (232) 54,359 2,067 0 0 0 0 0 0 3,163 9,658 3,629 9,998 3,612 9,928 (17) (70) 3,952 9,998 323 0 3 47 47 50 3 50 3,635 255 4,000 224 3,822 231 (178) 4,158 199 158 (25) 7 0 0 0 0 0 0 0 0 0 0 0 0 67,226 70,190 69,703 (487) 72,716 2,526 170 171 191 192 195 207 211 219 228 233 235 252 253 259 262 264 265 266 273 274 410 425 631 Training/Educational Service Organization & Assoc Fees Other Professional Services New Employee Physical Exams Contract Services Safety Supplies Office Supplies & Minor Office Equipment Other Misc Supplies Copier Service Charge Repairs & Mtce-Office Equipment/Copy Repairs & Mtce-Data Processing Equipment Postage Advertising Long Distance Service Mileage Lodging & Meals Meeting & Conference Fees Gasoline for County Vehicles Surety Bonds Insurance-General Liability/Theft Books and pamphlets Bank Service Charges Long Term Debt - Principal TOTAL OPERATING EXPENSES 0 0 0 0 0 0 0 0 25 2 0 101 25 25 0 0 100 (25) 2,000 (2,000) 2,000 0 0 0 0 0 0 0 0 0 100 100 0 0 0 0 8,506 11,800 11,400 (400) 12,000 200 0 0 0 0 0 0 0 0 0 0 0 0 0 750 1,600 4,800 3,500 1,350 750 100 720 500 1,545 4,080 2,487 1,134 1,500 4,080 3,000 1,350 1,500 4,080 3,000 1,134 (216) 0 0 0 0 0 0 0 0 0 0 0 0 0 304 260 455 535 407 535 (48) 525 555 12 55 1,390 70 20 12 (66) (198) 0 3 0 0 3 61 121 1,588 55 (66) 13 1,787 1,601 0 0 0 0 0 0 0 0 0 0 0 0 0 2,253 0 2,300 28,854 (2,300) (5,014) (2,300) (217) 22,545 23,840 28,637 541 581 583 Equipment & Furniture-Direct Cost Central Processing Units Printers TOTAL CAPITAL PROJECTS 0 0 0 0 0 0 0 0 5,010 5,010 0 0 0 0 0 0 0 0 0 0 0 0 5,010 5,010 Total Expenditures 89,771 99,044 98,553 (491) 101,353 2,309

4. THE BUDGET PROCESS INCLUDES FORECASTING REVENUE & EXPENDITURES FOR JULY SEPTEMBER IN THE CURRENT YEAR AND REVENUES/EXPENDITURES FOR THE NEW YEAR. E/July department heads submit their operations budget estimated expenditures for July ~ September and their coming years operation budget object detail based on their operations budget target. Mid-June we hold our departmental manpower, capital and major expense meeting for the coming year. By early August, prepare first-pass budget. Throughout August we tweak the budget with Commissioners and Department Heads. JUNE SEPTEMBER Around July 10th we hold our departmental operations meeting in which department heads are given their operations budget expenditure target for the coming year. During July, using our revenue data base, departmental input and/or abstract calculations, the CAO determines projected yearly revenues for the current and new year. Target final budget approval the first Commission meeting in September. This step is repeated in late August.

5. EXPENSE CALCULATIONS: Labor & Benefits, Capital and Other Major Expenditures During this mid-June meeting, any department head that seeks to add people, add capital equipment or requests funding for a major spending project (other than normal Road and Bridge projects) presents their detailed justification to the Commission. This is typically the only detailed meeting that the Commission will have with department heads. Due to the nature of the meeting, only a few department heads will meet with the Commission. The final filtered outcome from this meeting will provide the basis for our coming year s labor/benefits and capital expenditure budgets.

6. EXPENSE CALCULATIONS: Departmental Operations Budget Key departments are given a bottom-line operations budget expense target. Within this target each department is expected to allocate their expenses to include departmental spending, property insurance allocation, liability insurance calculations and lease costs. CALCULATING DEPARTMENTAL OPERATIONS BUDGET TARGETS CURRENT YEAR S OPERATIONS TARGET -CURRENT YEAR S EXTRAORDINARY EXPENSES + NEW YEAR S EXTRAORDINARY EXPENSES +/- ADJUSTMENTS FOR INSURANCE, LEASE COST, ELECTRICAL AND OTHER ALLOCATIONS COMING YEAR S OPERATIONS BUDGET TARGET Upon receipt of their operations budget target, department heads allocate their departmental expenditures object-by-object so that their bottom line operations budget does not exceed their allowed expenditure.

7. REVENUE CALCULATIONS We use three sources of information for calculating revenues: 1) Revenue Tracking Data Base 2)Abstract Calculations (from the Revenue Department) 3)Department Head Recommendations Most of our revenue forecasts are done through the use of a Revenue Tracking Data Base.

8. REVENUE TRACKING LOG 111-44190-830 7 cent gas tax 2008/2009 Act. 2009/2010 Act. 2010/2011 Act. 2011/2012 Act. 2012/2013 Act. 2013/2014 Act. Total actual YTD % Oct. 102680.01 111863.97 113551.09 114280.11 108831.53 112348.37 663555.08 0.07 Nov. 133858.17 128314.17 132191.82 132924.02 124077.12 135208.19 786573.49 0.09 Dec. 120921.05 122570.30 125191.80 126957.84 137647.14 126870.28 760158.41 0.08 Jan. Feb. 123950.65 120843.95 116761.00 123576.57 122109.07 123273.92 730515.16 0.08 Mar. 117234.85 119126.18 118119.28 125235.23 118295.02 117745.11 715755.67 0.08 Apr. 120735.65 123498.84 119731.52 124953.64 123791.26 121286.09 733997.00 0.08 May 130581.38 133463.98 127066.01 132563.81 132163.62 134142.46 789981.26 0.09 June 131140.88 137122.49 134918.62 139384.88 140025.48 140325.79 822918.14 0.09 Jly Aug Sept. 131484.34 137237.18 128817.41 139472.15 139426.90 138003.94 814441.92 0.09 Ttl. 118898.64 119460.71 118981.64 121558.53 117886.35 117463.21 714249.08 0.08 125062.07 122375.36 122140.23 124711.58 122208.88 122785.70 739283.82 0.08 137705.85 138925.87 133002.02 136635.98 138168.62 142396.30 826834.64 0.09 1494253.54 1514803.00 1490472.44 1542254.34 1524630.99 1531849.36 9098263.67 1 2014/2015 Budget Actual Received Projected Received Monthly Variance 1534000.00 114613.29 111877.77 2736 141782.38 132619.12 9163 124774.76 128165.44 -3391 122347.30 120424.97 1922 503517.73 1534000.00 -1030482.27 123167.49 -123167 120678.98 -120679 123754.54 -123755 133193.68 -133194 138746.96 -138747 124645.91 -124646 139407.30 -139407 137317.84 -137318 YTD Actual Received YTD projected receipts YTD Variance 114613 111877.77 2736 256396 244496.90 11899 381170 372662.34 8508 503518 493087.31 10430 503518 616254.79 -112737 503518 736933.77 -233416 503518 860688.31 -357171 503518 993881.99 -490364 503518 1132628.95 1257274.86 1396682.16 1534000.00 -629111 -753757 503518 503518 503518 -893164 -1030482

9. IN EARLY AUGUST WE COMPILE ALL EXPENSES AND REVENUES TOGETHER FOR OUR FIRST-PASS BUDGET ESTIMATE Revenues Includes grants, normal revenues and projected unusual or one- time revenues. Expenses Departmental Expenses (Labor/Benefits, Operations/Capital) Agency Donations Long Term Debt Grant Spending (EXAMPLE) Current year beg. FB: $5,000,000 New Year est.FB: $3,800,000 Current years est. rev.: $4,700,000 New Year est. rev: $4,850,000 Current years est. exp.: $5,900,000 New year est.Exp: $5,300,000 Ending FB current year: $3,800,000 New Year est. end FB: $3,350,000 After arriving at a first-pass estimate ending fund balance for the new year we begin tweaking expenses and revenues to arrive at our final targeted ending total FB.

10. FINAL BUDGET BY FUND BALANCE After arriving at the Commission-authorized bottom-line fund balance, we prepare a fund allocation summary sheet. NOTE: All money from all funds are included in one normal checking account (Exception: We have created special flow-through checking accounts for payroll and flex payments). We create the Funds Summary through detailed planned transfer of money between projected ending fund balances.

11. Houston County Commission Funds Summary FY 2014-2015 Projected Beginning Fund Balance 10/1/2014 Projected Ending Fund Balance 9/30/2015 Proposed Revenues -Yearly- Proposed Expenditures -Yearly- $ Variance Expenditure To Revenue NET Net (FB+Rev-Exp) Operating Transfers Fund Fund Name 001 001 003 006 010 015 015 020 020 021 021 030 General General Fund Grants Contingent Fund Special Assessment Fund Farm Center Sanitation Sanitation Collections EMA EMA Grants APCO Rep APCO Grants Revenue Commission 7,012,247 16,615,246 44,399 20,174,316 10,596 12,000 5,000 295,432 2,204,863 257,384 265,977 50,952 82,878 (3,559,070) 33,803 (12,000) (5,000) (264,809) (2,069,472) 1,807,616 (255,096) 47,613 3,453,177 33,803 (7,985) 525,796 (264,809) (2,069,472) 1,807,616 (255,096) 47,850 96,086 1,039,913 4,493,090 33,803 0 0 4,015 530,796 0 0 7,985 0 0 525,796 0 0 0 0 30,623 135,391 2,065,000 10,881 98,565 82,485 264,809 2,069,472 (1,807,616) 255,096 0 0 0 0 237 0 0 0 47,850 96,086 96,479 (393) 0 0 0 0 0 0 0 0 11,776 601,267 623,369 (22,102) (10,326) 10,326 Total General Funds $7,655,550 $19,683,857 $23,982,767 ($4,298,910) 3,356,640 $1,839,985 5,196,625 111 112 113 117 118 119 Gasoline Public Bldgs, Rds & Bridges Public Highway & Traffic RRR Gasoline Tax Secondary Road Special Five Cents Gas Tax 0 0 0 0 0 0 2,921,701 9,716,093 166,000 1,248,000 10,233,222 (7,311,521) 9,716,093 166,000 1,248,000 (7,311,521) 9,716,093 166,000 1,248,000 7,311,521 (9,716,093) (166,000) (1,248,000) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 433,991 433,991 433,991 (433,991) Total Road and Bridge Funds $0 $14,485,785 $10,233,222 $4,252,563 4,252,563 ($4,252,563) 0 115 116 120 125 AL Mineral Severance Tax Capital Improvement Fund Tax Reappraisal Fund Walden Gas Tax (Net) 0 0 7,200 415,000 591,620 97,506 0 0 7,200 415,000 (23,188) 41,402 7,200 415,000 1,743 41,402 (7,200) (415,000) 0 0 24,931 614,808 56,104 0 1,743 0 (41,402) 0 Total Special Revenue Funds $24,931 $1,111,326 $670,912 $440,414 465,345 ($463,602) 1,743 Debt Service Funds Trust Funds 187/ 188 Community Corrections/Wrk Rel 300 136 376,394 20,887 234,212 0 3,513,719 2,500 918,643 (3,513,719) (3,137,325) 21,387 261,145 3,137,325 0 3,000 945,576 500 0 21,387 26,933 (261,145) 0 Total Funds $8,311,974 $36,229,544 $39,321,763 ($3,092,219) 5,219,755 $0 5,219,755

12. The final budget is normally presented for approval during the first scheduled Commission meeting in September. In November we present to the Commission a departmental over/under report indicating any overspending by a department for the prior year and the reason why. Commission authorization is requested to accept the overspending. In November we reconcile the prior year s actual ending fund balance with the projected ending fund balance. If our projected ending fund balance is less than we estimated, we must adjust spending accordingly throughout the expenditure budget. Throughout the year the CAO is authorized to approve budget adjustments between objects within a department so long as the total adjustments do not increase that departments annual approved spending budget.