Central Oregon Intergovernmental Council 2017‐2018 Budget Summary 1‐1 The proposed 2018‐2019 budget is balanced, and represents a slight decrease from the previous year’s budget. COIC is proposing a $21.8 million budget for 2018‐2019. Following is a summary of the budget; the full budget document can be found on the COIC web site: http://coic2.org/about/coic‐board/ 1. Budget Trends The COIC budget had been trending upwards over the past several years. Most of the growth can be attributed to the transportation department; a 30% increase to Bend’s fixed route system was implemented in 2015, and an expansion to the community connector system was implemented in 2016. However this year’s transportation budget is slightly down from the 2017‐2018 budget. The decrease in the 2018‐2019 transportation budget is primarily due to funding cuts, or grant expiration from Oregon Business Development Department, ODOT, the FTA and other funding sources. The Budget for the Economic Development Department is seeing a slight decrease in funding and expenses for the 2018‐2019 fiscal year. The Employment and Training Department is budgeted to have slightly lower resources and FTE next year mostly due to funding cuts from WIOA and DHS. Even though COIC is experiencing budget cuts for the fiscal year 2018‐2019, through diligent work with our funders we believe we will be able to offer great service to Central Oregon while working with a conservative budget. 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 FTE Annual Budget Budget Trends COIC Budget ED budget Transportation Budget E&T Budget FTE
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Central Oregon Intergovernmental Council 2017‐2018 Budget Summary
1‐1
The proposed 2018‐2019 budget is balanced, and represents a slight decrease from the previous year’s budget. COIC is proposing a $21.8 million budget for 2018‐2019. Following is a summary of the budget; the full budget document can be found on the COIC web site: http://coic2.org/about/coic‐board/ 1. Budget Trends
The COIC budget had been trending upwards over the past several years. Most of the growth can be attributed to the transportation department; a 30% increase to Bend’s fixed route system was implemented in 2015, and an expansion to the community connector system was implemented in 2016. However this year’s transportation budget is slightly down from the 2017‐2018 budget. The decrease in the 2018‐2019 transportation budget is primarily due to funding cuts, or grant expiration from Oregon Business Development Department, ODOT, the FTA and other funding sources.
The Budget for the Economic Development Department is seeing a slight decrease in funding and expenses for the 2018‐2019 fiscal year. The Employment and Training Department is budgeted to have slightly lower resources and FTE next year mostly due to funding cuts from WIOA and DHS. Even though COIC is experiencing budget cuts for the fiscal year 2018‐2019, through diligent work with our funders we believe we will be able to offer great service to Central Oregon while working with a conservative budget.
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Budget TrendsCOIC Budget
ED budget
TransportationBudgetE&T Budget
FTE
1‐2
2. Budgets by Department
The following table provides detail on the percentage of budgeted resources per department. The transportation budget makes up 74% of all COIC resources, followed by Employment and Training with 17% and Economic Development with 7%. In addition the Building Fund accounts for 2% of COIC’s resources. Even though resources for all departments have decreased, the percentage’s made up by each department have substantially stayed about the same as the fiscal year 2017‐2018 budget.
Economic Development,
$1,628,746 , 7%
Transportation, $16,151,863 , 74%
Employment and Training,
$3,606,400 , 17%
Building Fund, $501,347 , 2%
Budget by Department
1‐3
3. Expenses
Categories for expenses within the 2018‐2019 budget can be found in the table below.
Personal Services, $8,357,583 , 38%
Materials and Services, $8,170,913
, 37%
Client Services, $272,504 , 1%
Capital, $695,616 , 3%
Debt Service, $138,500 , 1%
Operating Contingency,
$4,253,240 , 20%
Expenses
1‐4
In analyzing trends, we note a slight increase personnel costs and materials and services due to increased personnel related rates even though FTE is down slightly and an increase in the costs of goods. The decrease in capital outlay, is directly related to the transportation department, which has acquired most of the necessary operating capital outlay during fiscal year 2017‐2018. Debt service and client services remains stable.
Economic DevelopmentCommunity Development 5.76 6.24Public Lending 2.31 2.28
TOTAL ECONOMIC DEVELOPMENT 8.07 8.52
TransportationCascades East Ride Center 18.48Cascades East Transit 74.98 54.30
TOTAL TRANSPORTATION 74.98 72.78
Total FTE 113.94 110.14
COLA 2.50% 3.00%
Merit Increase 2.00% 2.00%
Medical Insurance Cost Per Employee (monthly)Standard Plan $1,748 $1,705% Increase/decrease -2.5%High Deductible Plan $1,132 $1,104% Increase/decrease -2.5%
Public Employee Retirement System (PERS)PERS 16.78% 16.78%OPSRP 10.97% 10.97%
City -- Bend, Culver, La Pine, Madras, Metolius, Prineville, Redmond and Sisters
County -- Crook, Deschutes, and Jefferson
Confederated Tribes of Warms Springs
Non-Elected Members:
There are five appointed Private Sector Members generally representative of the following: Timber and Wood products, Agribusiness and agriculture, Unemployed and under employed, Business and industry, Recreation and Tourism.
Board of Directors: Bruce Abernethy, City of Bend Katy Brooks, Deschutes County appointed –
business and industry Connie Briese, City of La Pine Bartt Brick, City of Madras Katie Condit, Deschutes County appointed –
unemployed and under employed Jerry Brummer, Crook County Bart Carpenter, City of Culver Casey Kaiser, Crook County appointed -
agribusiness and agriculture John Chavez, City of Metolius Tony DeBone, Deschutes County Vacant, Deschutes County appointed –
recreation and tourism Wayne Fording, Jefferson County Lonny Macy, Confederated Tribes of Warm Springs
Vacant, Jefferson County appointed – Timber and Wood products
Gail Merritt, City of Prineville Jay Patrick, City of Redmond Chuck Ryan, City of Sisters Officers:
Chair – Wayne Fording, Jefferson County Vice-Chair – Bart Carpenter, City of Culver Secretary/Treasurer – Karen Friend
Executive Director – Karen Friend
3-2
CENTRAL OREGON INTERGOVERNMENTAL COUNCIL 2018-2019 BUDGET COMMITTEE
Council Members: Jefferson County Commissioner - Wayne Fording Crook County Commissioner – Jerry Brummer
Deschutes County Commissioner – Anthony DeBone Non-Council Members: Expiration Dates Representation
Mike Daly – 3 year term 12/18 Employment & Training John Boylen – 3 year term 12/19 Loans Joe Krenowicz - 3 year term 12/20 Business
EVENTS DATE TIME 1. Approve COIC Budget Calendar February 1 2. Appoint Budget Officer / Budget Committee February 1 3. Publish Notice of Budget Committee Meeting * May 24-30 Publish Notice of Budget Hearing ** May 24-30 4. Prepare Proposed Budget (Budget Officer) May 18 5. Budget Committee Meeting June 7 3:30 pm Proposed Budget and Budget Message Work Session / Public Comment Budget Approval (if completed) 6. Budget Hearing (COIC BOARD) June 7 5:30 pm (if completed and approved by Budget Committee) Public Comment Adopt Budget and Make Appropriations 7. Publish Notice of Budget Committee Meeting * June 7-13 Publish Notice of Budget Hearing ** (if needed) June 7-13 8. Budget Committee Meeting (if needed) June 21 3:30 pm Work Session / Public Comment Budget Approval 9. Budget Hearing (if needed) June 21 5:30 pm Special Board Meeting (COIC BOARD) Public Comment Adopt Budget and Make Appropriations 10. File Budget with Oregon Department of Revenue July 13 * Publish not less than 8 – nor more than 14 days prior to scheduled Budget Committee Meeting date. ** Publish not less than 8 – nor more than 14 days prior to scheduled Budget Hearing date.
PROPOSEDBUDGETFY 18 - 19
ACTUAL ACTUAL APPROVEDBUDGET BUDGET BUDGETFY 15 - 16 FY 16 - 17 FY 17 - 18
- - 100,000 Revolving Loan Fund 107,744 3,133 2,818 2,818 Local Job Creation Fund 2,500
204,980 236,108 169,815 Oregon Business Development Corp. 175,206 67,612 67,828 60,000 USDA IRP Revolving Loan Funds 62,953
367,575 394,939 332,633 348,403
Grants/Contracts With Other AgenciesState of Oregon
3,454,857 2,739,545 1,993,542 Dept Human Services 1,914,963 3,067,169 2,697,672 1,927,547 Dept of Transportation 1,763,841
- 200,000 738,000 Oregon Business Development Department - 5,000 7,000 - Dept of Forestry 56,500
- - 34,080 Dept of Community Colleges & Workforce Dev. 70,288 29,571 10,200 24,000 Oregon Youth Conservation Corp -
6,556,596 5,654,417 4,717,169 TOTAL: State of Oregon 3,805,592
County & Local Government628,344 766,031 433,839 Deschutes County 435,460 162,728 185,513 86,182 Jefferson County 82,605 224,267 175,432 87,500 Crook County 132,300
1,790,477 1,802,935 1,804,488 City of Bend 1,322,838 877,805 863,886 786,041 Other Local Government 737,685
139,923 139,924 140,000 TOTAL DEBT SERVICE 138,500
21,549,911 22,165,510 19,234,992 TOTAL GENERAL FUND EXPENDITURES 17,635,116
Transfers, Contingency & Fund Balance1,529,427 1,577,287 3,100,335 Operating Contingency 3,738,896
- - - Ending Fund Balance 514,344
1,529,427 1,577,287 3,100,335 TOTAL TRANSFERS, CONTINGENCY & Fund Balance 4,253,240
23,079,338 23,742,796 22,335,326 TOTAL GENERAL FUND REQUIREMENTS 21,888,356
Note: Amounts are presented in whole dollars. Due to rounding total amounts may vary. 4‐3
PROPOSEDBUDGETFY 18 - 19
3,948,680 274,645 459,831 2,901,042 313,162
Transfers from Other FundsRound 1 Revolving Loan Funds - - - - - Round 2 Revolving Loan Funds - - - - - Round 3 Revolving Loan Funds - - - - - Revolving Loan Fund 107,744 - 107,744 - - Local Job Creation Fund 2,500 - 2,500 - - Oregon Business Development Corp. 175,206 - 175,206 - - USDA IRP Revolving Loan Funds 62,953 - 62,953 - -
348,403 - 348,403 - -
Grants/Contracts With Other AgenciesState of Oregon
Dept Human Services 1,914,963 648,892 - 1,266,071 - Dept of Transportation 1,763,841 - 50,600 1,713,241 - Oregon Business Development Department - - - - - Dept of Forestry 56,500 - 56,500 - - Dept of Community Colleges & Workforce Dev. 70,288 70,288 - - - Oregon Youth Conservation Corp - - - - -
TOTAL: State of Oregon 3,805,592 719,180 107,100 2,979,312 -
County & Local GovernmentDeschutes County 435,460 - - 435,460 - Jefferson County 82,605 - 17,605 65,000 - Crook County 132,300 - 55,300 77,000 - City of Bend 1,322,838 - 39,000 1,283,838 - Other Local Government 737,685 - 29,500 708,185 - COCC 20,000 20,000 - - - Title 1/ JDEP 148,036 148,036 - - - School Districts 1,051,881 1,051,881 - - -
TOTAL: County & Local Govt 3,930,805 1,219,917 141,405 2,569,483 -
Federal GovernmentEconomic Development Administration 115,500 - 115,500 - - US Dept of Agriculture 34,591 - 34,591 - - USDA AGORA - - - - - US Dept of Transportation 1,352,786 - - 1,352,786 - Workforce Investment and Opportunity Act 1,297,826 1,297,826 - - -
TOTAL: Federal Govt 2,800,703 1,297,826 150,091 1,352,786 -
Other Grants & Contracts
4,862,880 - - 4,862,880 - Oregon Community Foundation 41,828 - 41,828 - - Discover Your Forest 65,720 - 65,720 - - Meyer Memorial Trust 93,511 - 93,511 - - Ford Family Foundation 15,000 - 15,000 - - Central Oregon Council On Aging 60,000 - - 60,000 - COFS Foundation 65,000 - 65,000 - - High Desert Food & Farm Alliance - - - - - Nature Conservancy 5,652 - 5,652 - - LLI Governance 601 - 601 - - CO Health Council 44,000 - 44,000 - - Foundations/Non-Profits 85,104 - 85,104 - -
TOTAL: Other Grants & Contracts 5,339,296 - 416,416 4,922,880 -
15,876,396 3,236,923 815,012 11,824,461 -
Other RevenueMisc. Job Training Income/Projects 90,000 90,000 - - - Rental Income 188,185 - - - 188,185 Bus Fares 710,278 - - 710,278 - Misc. Transportation Income 91,584 - - 91,584 - Charges for Services 604,176 - - 604,176 -
1,684,223 90,000 - 1,406,038 188,185
Investment Revenue Interest on Investments 30,654 4,832 5,500 20,322 -
30,654 4,832 5,500 20,322 -
17,939,676 3,331,755 1,168,915 13,250,821 188,185
21,888,356 3,606,400 1,628,746 16,151,863 501,347 TOTAL RESOURCES
TOTAL GENERAL
FUND
EMPLOYMENT & TRAINING
ECONOMIC DEVELOPMENT
Beginning Fund Balance
TOTAL: Transfers from Other Funds
TOTAL: Grants/Contracts With Other Agencies
TOTAL: Other Revenue
TOTAL: Investment Revenue
TOTAL REVENUE
Pacific Source
BUILDINGFUNDS
CENTRAL OREGONINTERGOVERNMENTAL COUNCIL
RESOURCES BUDGET
TRANSIT
Note: Amounts are presented in whole dollars. Due to rounding total amounts may vary. 4‐4
Client Services Workforce Innovation and Opportunity Act 195,018 42,939 152,079 GED Fees 39,899 - 39,899 Department of Human Services 6,637 6,637 - State of Oregon Work Experience 30,950 30,950 -
***SUB-TOTAL*** 272,504 80,526 191,978
TOTAL MATERIALS AND SERVICES 804,362 260,507 543,855
3,331,755 1,448,761 1,882,994
Transfers, Contingency & Fund Balance Operating Contingency 274,645 - - TOTAL TRANSFERS, CONTINGENCY & FUND BALANCE
3,606,400 1,448,761 1,882,994
TOTAL GENERAL FUND EXPENDITURES
TOTAL GENERAL FUND REQUIREMENTS
Note: Amounts are presented in whole dollars. Due to rounding total amounts may vary. 5‐3
CENTRAL OREGON
INTERGOVERNMENTAL COUNCIL
ECONOMIC DEVELOPMENT RESOURCES
ACTUAL BUDGET
ACTUAL BUDGET
APPROVED BUDGET
FY 15-16 FY 16-17 FY 17-18
446,133 446,133 452,626 459,831 57,943 401,888 Transfers from Other Funds
- - 100,000 Revolving Loan Fund 107,744 - 107,744 3,133 2,818 2,818 Local Job Creation Fund 2,500 - 2,500
204,980 236,108 169,815 Oregon Business Development 175,206 - 175,206 67,612 67,828 60,000 USDA IRP Revolving Loan Funds 62,953 - 62,953
367,575 394,939 332,633 TOTAL: Transfers from Other Funds 348,403 - 348,403
State of Oregon82,704 75,204 32,538 Oregon Dept of Transportation 50,600 50,600 -
5,000 7,000 - Oregon Dept of Forestry 56,500 56,500 - 87,704 82,204 32,538 TOTAL: State of Oregon 107,100 107,100 -
County & Local Government15,823 15,823 - Deschutes County - - - 26,513 27,513 21,182 Jefferson County 17,605 11,500 6,105
6,682 5,432 10,500 Crook County 55,300 55,300 - 37,306 61,306 35,000 City of Bend 39,000 39,000 - 14,346 14,346 30,534 Other Local Government 29,500 29,500 -
100,670 124,420 97,216 TOTAL: County & Local Government 141,405 135,300 6,105 Federal Government
75,000 75,000 75,000 Economic Development Administration 115,500 115,500 - 228,212 258,300 242,452 US Department of Agriculture 34,591 34,591 -
- 22,500 6,500 MCEDD Agora - - - 303,212 355,800 323,952 TOTAL: Federal Government 150,091 150,091 -
Other Grants & Contracts
- - - - - - - - - Oregon Community Foundation 41,828 41,828 - - - - Discover Your Forest 65,720 65,720 -
208,063 178,000 184,000 Meyer Memorial Trust 93,511 93,511 - - 16,408 11,203 Ford Family Foundation 15,000 15,000 - - 15,000 - Harburton Foundation - - -
COIC was awarded $300,000 in Department of Commerce, Economic Development Administration funds in 1984 to establish a revolving loan fund. Then in 1987 the Department of Commerce increased the funding by an additional $450,000, and then again in 1990 by $600,000 for a total amount of $1,350,000. The following conditions were required by EDA.
1) Participation to include Crook, Deschutes, Jefferson, Lake, Harney and Klamath Counties.
2) Local match at $25,000 per county or $100,000 for the first loan fund, then
$45,000 per county or $225,000 for the second loan fund and $200,000 from the third loan fund of which State Regional Strategies provided $150,000, Harney County provided $25,000 and COIC provided $25,000.
For the fiscal year beginning July 1, 2016, the COIC board with approval from the EDA has combined the three rounds of funding into one loan fund. Since the establishment of this fund, $4,347,858 in program income has been earned with $2,660,034 or 61.2% utilized for fund administration. The budget reflects an anticipated charge for services of 91.4%. COIC administration charges for services are limited to actual expenditures.
9-3
STATEMENT OF HISTORY USDA RURAL DEVELOPMENT
INTERMEDIARY RELENDING PROGRAM
COIC successfully obtained the USDA Rural Development relending program. In 1996, a commitment was made to COIC for $2,000,000. In 1999, an additional commitment was made to COIC of $572,000. Participation includes Deschutes, Crook, Jefferson, Harney, Klamath, Lake, Wasco, and Sherman Counties. These are funds borrowed from USDA, of which COIC pays an annual interest rate of 1% on borrowed funds and principal repayments began in 2001. The first principal payment was made in March, 2001. As of March 31, 2018, $1,572,614 had been repaid of the $2,572,000 borrowed, leaving a note payable balance of $999,386. COIC was required to establish a loan loss reserve significant enough to secure funds to be borrowed from USDA. The Local Job Creation fund balance was committed to the IRP fund for that reserve. The amount transferred, as of 6/30/99 was $136,218.27. In 1999, USDA informed COIC that the loan loss reserve commitment had been met and it became unnecessary to transfer any additional funds. Since establishment of this fund, $2,726,347 in program income has been earned with $1,460,764 or 53.6% being utilized for fund administration. Cumulative interest expense on funds lent for the period ended March 31, 2018 was $366,351. The budget reflects an anticipated charge for services of 91.6% COIC administration charge for services are limited to actual expenditures.
9-4
STATEMENT OF HISTORY COIC REVOLVING LOAN FUND LOCAL JOB CREATION
1/86 - 3/18
COIC established a locally funded revolving loan fund in 1986 in anticipation of serving businesses unable to meet more stringent federal requirements. The initial amount was $250,000. Participation has been based upon case-by-case council decisions. To afford maximum flexibility and utilization, no limitations have been established. COIC dedicated $25,000 from this portfolio to match RLF Round 3 recapitalization. Since establishment of this fund, $284,485 in program income has been earned with $259,094 or 91.1% being utilized for fund administration. The budget reflects an anticipated charge for services of 100% of program income. During 1997, the board reserved the portfolio balance of this fund to establish a loan loss reserve required to acquire funds from the USDA intermediary relending program. The cash balance held in this fund was transferred to the IRP fund and all principal payments made against the outstanding note receivable in this fund were transferred as they were received. After transferring $136,218.27 to the IRP fund, COIC was notified that our commitment to the USDA relending program was met, and in 1999, the Board resolved to leave the remaining funds in the Local Job Creation fund. During 2010-11, the board approved a loan to the Intermodal Center from Local Job Creations funds in the amount of $114,000. Interest rate on the loan is 4%
10‐1
RESERVESFUND2018‐2019ProposedBudget
This statement is included in this section of COIC’s budget document as part of the board oversight of the reserve fund.
The actual balance of the Reserve Fund going into next fiscal year will not be known until we officially close out the year,
so we have shown the estimated activity and the “preliminary balance” as of the date of the Budget Committee
Meeting.
The preliminary balance of the reserve fund is calculated to be $3,948,680. All of the increase in reserves for fiscal year
2017/2018 is projected to come from the Transportation Department, the Economic Development Department (Loan
Program) and the Building Fund. Even though COIC has managed to increase its reserve fund throughout the years,
these funds are committed funds, and belong to and can only be used by the departments that generate them.
The Transportation Department’s reserve fund balance is committed for such projects as the Redmond Hub, service
expansion for the Bend and Rural service areas, capital outlay and potential retirement of long term debt. The
Transportation Department’s reserve balance is also necessary to cover the period between expenditure and
reimbursement, with that cycle being about five to six months. Most of the transportation funding sources are
reimbursement grants or contracts. COIC’s Transportation Department also makes large capital purchases that must be
paid for up front and then reimbursed. Therefore, it is necessary that at all times the Transportation Department have
at least six months of cash flows available for operations. Six months of operation expenses for the Transportation
Department based on 2018‐2019 budget is $6,500,965, leaving a deficit in necessary operating contingency of
$3,351,032.
For the Economic Development Department’s break down of operating contingency and fund balance see page 6‐3 of
the budget. Of the programs contained in the Economic Development Department, the Community Development
Activities program only has $57,943 in operating contingency, and should have $269,769, therefore that program is
$211,826 short of achieving its operating contingency goals. The Public Lending Activities program has an operating
contingency of $117,875, and additional fund balance of $289,997, therefore this program is over in its operating
contingency goals by the ending fund balance of $289,997. The majority of the Economic Development Department’s
grants and contracts are expense reimbursement grants and contracts, and the billing cycle for this department is about
four months. Therefore, it is necessary for the Economic Development department to have four months of cash
reserves available to cover operating expenditures at all times. Four months of operating expenditures based on the
2018‐2019 budget in total is $387,644. Total projected operating contingency at year end for the economic development
department is $465,815, therefore leaving an excess of $78,171, however all the necessary excess relates to the loan
department, as mentioned above.
The Employment and Training department’s billing cycle is about two months, and most of that departments grants and
contracts are expense reimbursement contracts, therefore it is necessary for the Employment and Training department
to have two months of operating contingency reserves on hand at all times to cover operating costs. Based on the 2018‐
2019 budget, the necessary operating contingency needed on hand is $555,293, therefore leaving a deficit in necessary
operating contingency of $280,648.
For COIC as a whole, the organization’s necessary operating contingency need is $7,582,402. Based on the 2018‐2019
budget, the estimated operating contingency is only 52% of total operating contingency needed or deficient of
$3,329,162.
COIC TotalEmployment &
TrainingEconomic
DevelopmentTransportation
Building Fund
Fund Balance 6/30/2016 1,781,849 208,922 448,517 910,810 213,600
Fiscal Year 16/17 Activity 2,043,925 65,723 6,388 1,922,033 49,781
Fund Balance 6/30/2017 3,825,774 274,645 454,905 2,832,843 263,381
Fiscal Year 17-18 Activity (estimated) 122,906 - 4,926 68,199 49,781
Fund Balance 6/30/2018 (estimated) 3,948,680 274,645 459,831 2,901,042 313,162
Fiscal Year 18-19 Activity (estimated) 304,560 - 5,984 248,891 49,685
Fund Balance 6/30/2019 (estimated) 4,253,240 274,645 465,815 3,149,933 362,847
Necessary operating contingency by department 7,582,402 555,293 387,644 6,500,965 138,500
Excess or (Deficency) in operating contingency (3,329,162) (280,648) 78,171 (3,351,032) 224,347
Percent of Necessary Operating Contingeny 52% 49% 119% 45% 226%
CENTRAL OREGON INTERGOVERNMENTAL COUNCILRESERVES FUND