OfficeoftheCountyManager

Friday,May26,2017
FiscalYear2018ProposedBudget&BudgetMessage
FinancialRealityCheckUp

ChairmanAlbertJ.Scott,BoardofCommissioners
&theCitizensofChathamCounty:

AsIsendyoutheproposedbudgetforFiscalYear(FY)2018,itisagoodtimeforaCounty
Financial Reality Checkup. First, I can report the Countys financial position has been
strong; however, costs of Tropical Storm Hermine and Hurricane Matthew lowered our
financialpositionbyreducingourreservespredominantlyintheSpecialServiceDistrictand
SolidWasteFund.TheCountyhasanAAbondrating,whichplacesChathamCountyinamid
levelpositionascomparedtomorethan3,000countiesnationwide,butreducedreserves
coulddiminishourabilitytoaimforabetterbondrating.WiththeBoardsdirection,we
haveimplementedpoliciesthatestablisha90dayreservefundinouroperatingfunds,set
asidefundsforCIP(CapitalImprovementProjects),andsetacourseofactiontotargetan
AAA bond rating. This will not only define Chatham County as a financially sound local
governmentbutwilladditionallydemonstratethatwearefollowingplanssetforthfinancially
withoutmajordeviation.TheseactionsalsomakeChathameligibleforlowercostfinancing
as we become an attractive risk to investors. Our actions will prove that our
administration/managementisstronginthefieldoffinance,planningandimplementation
offinancialpolicies,placingChathamCountyoncourseforapotentialupgradeinthebond
rating,savingtheCountymillionsinfuturedebtcosts.
Taking the preceding actions enabled the County to financially handle the storm crisis;
however,theCountyhasslippedinitsfinancialpositionandneedstoutilizetheadopted
policiestoreestablishitspreviousfinancialstanding.Thiswillrequireexaminingreserve
levels in several areas, considering fee restructuring for solid waste and looking at major
areassuchaspublicsafetyandtransportationneeds,specificallyourparatransitprogram.

Economy
In order to understand where we are headed, it is important to understand the regional
economicimpactsinourcountyandcommunity.Ourrevenuesandexpendituresaredriven
byhousing,manufacturing,retailsales,etc.,andweaslocalgovernmentmustunderstand
these complex issues in order to develop long term plans to meet the needs of the
community.Therefore,incooperationwithArmstrongStateUniversity,aneconomicimpact
analysishasbeenpreparedcovering20172018andbeyond.Withoutamap,directionor
plan,wewillwasteprecioustimeandinvestmentopportunitiesforourcommunity.Planning
isthekeytoourpotentialsuccessbyexaminingrecenteconomichistoryandfutureeconomic
driversandtrends.
Themetropolitanstatisticalarea,includingChathamCounty,hasexperiencedmoderatejob
growthpredominantlyintheprivatesectorwithslowergrowthinthegovernmentsectorfor
thepastseveralyears.Thegrowthtrendispredictedtocontinuebutpossiblyataslower
pace depending on manufacturing output and, specifically in our region, the growth or
changesattheGeorgiaPorts.TheexcitingandpositivenewsfortheregionandCountyisthe
reductionofvolatilityindiversificationofeconomicdrivers.DiversificationinvolvingGeorgia
Ports, health care, manufacturing, military missions and activities, increasing realestate
development in single and multifamily homes, retail development and sales, small
businessesandofcoursetourism,createsamuchmorepositiveenvironmentofjobsecurity
lessimpactedbypotentialeconomicdownturnsinthefuture.TheU.S.DepartmentofLabor
reports a continued slow reduction in the regional unemployment rate with a predicted
employmentgrowthofnearly3%overthenexttwoyears.Theforecastforpersonalincome
growthisestimatedbeatleast4.2%overthenext3yearsandapopulationgrowthofnearly
23%withinthesametimeframe.
Planning,Priorities&Operations
ChathamCountycannotproperlystayoncoursewithoutappropriatelydevelopingfuture
plansandpolicies.Implementingthoseplansandpoliceswithcommunityinvolvementto
establishindicatorsfortheregionandforChathamCountyasanorganizationareparamount
forapositivefutureforourCountyandCommunity.
Thisproposedbudgetcontinuestoprovideanapproachtobalancingcompetingpriorities,
madepossiblebyourcommunitydriversandindicators.ContinualguidancefromtheBoard
ofCommissionersisrequiredindirectingCountymanagementinthisproposedbudgetto:
o FundservicesthatmeettheareasdeterminedthroughtheongoingChatham
Blueprintprocess:
Economy
Education
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Health
QualityofLife
o Presentabalancedbudgetthatincreasesservicesinareasor,ataminimum,
keepserviceslevelthroughbetterefficiency.
o PresentoptionstotheBoardforbudgetconsideration.
o Secure other revenue resources through grants, State & Federal assistance
whenavailable.
o Increase and reestablish the Countys financial position, financial planning
effortsandBondrating.
o Developing organizational indicators and performance measures within all
Countyserviceareasproducingdatagivingthepublicquantifiableindicatorsof
successorfailuresofthoseservicesmeetingthedemandfortransparencyin
localgovernmentoverthenexttwofiscalyears.
TheproposedbudgetisbalancedbutwillrequireactionfromtheBoard.Increasedcostsand
ridershipfortheTelerideparatransitprogramareincludedintheGeneralFund,utilizingmost
oftheprojecteddigestgrowth.DryTrashFeeincreasesareincludedfortheunincorporated
areaintheSolidWasteFundtoreplenishreservesfromthepastyearsstormsandprovide
capitalitems.TheSSDmillagerateisincreasedby1.6millstoimplementtherecommended
cost formula from the Berkshire Report for the SavannahChatham Metropolitan Police
Department,bothonanongoingandlookbackbasis.Programexpansionsareincludedin
variousfundswhereanactualROI(ReturnonInvestment)weredeterminedandjustified.
Ongoingfundingisprovidedtoaddressbudgetissuesinafewstrategicareasdenotedinthe
CountyBlueprintvisionstatements,objectivesandultimateactionstepsincluding,butnot
limitedtorecreation,lawenforcementandcourts,jobdevelopment,transportation,etc.Of
course,theZeroBasedorNeedsBasedBudgetapproachwasparamountindevelopingthis
budgetasournewBudgetTeamrequiredjustificationofeveryitem,projectandposition
bothexistingandnewtoensureinvestmentoftaxfundswereappropriatelyallocated.Total
fundamountsaswellasrecommendedchangesaredenotedinthetablesprovidedatthe
endofthismessage.PleaseseeTable2(GeneralFundHighlights),Table3(SpecialService
DistrictHighlights),Table4(SSDSolidWaste),Table5(OtherFunds),andTable6(Special
Appropriations&OtherCommunityServices)below.Pleasereviewthetablesasindicated
astheygivetheoverallrecommendations,changesandalternativesofeachCountyfund.
Notallbudgetrequestshavebeenrecommendedforfunding,anddepartmentheadsand
constitutional officers are eager to come before you to present their unmet needs. It is
recommendedthattheBoardsetaworkshopdatetoheartheserequests.Ihavealready
askedChathamAreaTransitstafftoprovideyouwithanoverviewoftheparatransitprogram
asweconsideroptionstointegrateitmorefullyintoacountywideserviceareamodel.

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CapitalInvestments&SPLOST
Again,thisyearemphasiswasplacedonestablishingarealCapitalPlanfortheCountythat
takesstepstobudgetforcapitalneedsofexistingbuildingandstructureprojects.Thisisan
areathatiscriticalinourquesttosecureastrongerfinancialfuture.In2016acomplete
analysisofallCountybuildingswasperformedtodeterminefuturereplacementneedssuch
as chillers, boilers, HVAC, roof systems, etc., based on their life expectancy. This formal
analysisalsodeterminedexpansionoftheFacilitiesMaintenance&OperationsDivisionwas
necessary to more adequately service the existing facilities to include two additional
personnelmembersandvehicles.Thefacilityanalysisalsorecommendsabetterworkorder
and tracking system to ensure more efficient completion of repairs and to bring about a
higher level maintenance program giving the County maximum life of equipment and
systems. I would like to commend the Facilities Department as it was noted that the
departmentisoperatingatahighlevelregardingrepairsandmaintenance.Severalofthese
itemsarerecommendedwithintheproposedbudgetwithobviousshorttermneedssuch
asbetterrepairandreplacementofagingequipment,whilelookinglongtermtobudget
reserve funds for major activities without having to impact the general operating budget
regularlyashasbeeninthepast.PleaseseetheTABLE1belowoutliningprioritizedcapital
projectsrecommended.
ThenewTrialCourtBuildingandSPLOSTprojectscontinuetobemajorpriorities.Currently
the anticipated TrialCourt Building project is being reviewed bythe County management
team. We are researching alternatives for financing and maintaining the facility, such as
Public/Private Partnership, conventional financing, bonds, etc. We anticipate reviewing
possibleoptionslaterthissummerwiththeCountyCommissionersinaworkshop.Muchof
these discussions will be in reference to future revenues, future SPLOST funds and debt
serviceoptions.
SPLOSTprojectsarenotincludedthisyearforadoptionduetoreclassificationofallSPLOST
projectstoProjectBudgets.Thisaccountingreclassificationdoesnotchangeprojectsas
adoptedbytheBoard,butallowsprojectsandconnectedbudgetstobasicallycarryoverfrom
fiscalyeartofiscalyearforbudgetandcashflowpurposes.Anyrecommendedchangesto
projectshavetobeapprovedinadvancebytheBoard.
Asweapproachthisyearsbudgetprocess,wedohavechallenges.Theyareadirectresult
ofoursuccessasavibrant,growinganddiversecommunity.Firstamongtheseismeeting
the demands of a growing population, which presents challenges to Chatham County
infrastructure,aswellasCountyparks,libraries,PublicWorks,BuildingSafety,Engineering,
HumanServices,Transportation,etc.Wefacedemandsforinfrastructureinvestmentand
serviceimprovements,especiallyinrelationtogapsoutlinedintheCommunityBlueprint.

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Wealsofacedemandstokeepupwithcoreservicedeliveryandprogramexpansioninpublic
safety and SCMPD contract negotiations (SavannahChatham Metropolitan Police
Department),tosupportthepoorestandmostvulnerableinourcommunityallsupportedin
the Chatham County Blueprint, shoring up County reserves, continuing to offer quality
servicesatthelowestcostpossibleandmaintaininganopenandhonestlocalgovernment.
TherearemanychangesinrevenuesandexpendituresthattheBudgetTeamandIwouldlike
tohighlightfortheBoardandthecitizensasdenotedinaworkshoptobescheduledbythe
Board.ThisyearasCountyManager,Iamtakingapositionofbeingvigilantandcautious
aboutfuturerevenues.Therefore,weagainhavebeenveryconservativeinestimates.We
areinhopesthatgrowthinourregionwillbedemonstratedinrevenuesoverthenextfew
years.Weasacommunityarefeelingthegrowingpainsofanexpandingregion;therefore,
we must be prepared for the increased demand of public services in areas of recreation,
transportation,health,lawenforcement,etc.Thisbudgetrecommendationkeepsthecourse
ofbeingpreparedforthefuture.Asourcommunityexperiencednaturaldisastersin2016,
beingpreparedfinanciallykeptourorganizationsafe.
Allofthesedemandsmustbebalancedagainstthetaxburdenimpactsonourresidentsand
businesses.Wemustachievethisbalanceaswefaceanincreasinglycompetitiveeconomic
environment. We want to keepthe Chatham County community as one that peopleand
futureindustrywanttocometo,tolive,work,playandbesuccessful.
IwanttoextendmythankstoallofTeamChathamandtheCountyBudgetTeamwhohave
workedsodiligentlytopreparethisproposedbudget.CountyTeammemberscontinueto
perform at high levels despite added workloads. This proposed budget stays true to the
communitysvaluesandtotheCountysCommunityBlueprintasdirectedbytheBoard.Our
vision of Chatham County as a diverse, vibrant and inclusive community, with a mix of
programsandservices,continuestoberecognizedbothstatewideandinternationally.
Last,IwouldliketopersonallythanktheChairmanandtheBoardforyourcontinuedsupport,
inputandguidance.Ilookforwardtothecontinuingdialoguewiththecommunityandthe
BoardofCommissionersaswemovetowardsbudgetadoption.Andaswesayattheendof
allTeammeetings,GoTeamChatham!
Respectfullysubmitted,

WilliamLeeSmith,III
CountyManager
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UpcomingEventsontheBudgetCalendar
TBDbyChairmanandBoard1stBudgetWorkshop
June9,2017PublicHearingontheProposedBudget
June15,2017TwoPublicHearingsontheProposedMillageLevyat1st9:30a.m.and2nd
6:00p.m.
WerecommendaBudgetWorkshopwithdepartmentsafterthe9:30a.m.millagelevypublic
hearing
June23,2017ThirdPublicHearingontheMillageLevyat9:30a.m.&BudgetandMillage
LevyadoptionbytheBoard

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CapitalImprovementFunding
TABLE1
GeneralFundTransfer$2.8million
PriorYearFunds$1.3million
ICSRadios $250,000
GFVehicles 1,200,000
CNTVehicles 300,000
MaintenanceReserve 250,000
TaxCommissionerIasWorldProduct 507,388
FuelSystemUpgrades 300,000
MunisTimeEntry/Fleet/Facilities 375,000
RadioEncryptionSheriff 300,000
ICSEquipment 300,000
ZortecReplacement (jurysoftware) 211,000
AnimalControlFloor 125,000
Total $4,118,388

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TABLE2
GeneralFundHighlights
BelowyouwillfindhighlightsoftheGeneralFundproposedbudget.

Totalbudget$184,296,176
Nochangetothemillage11.543mills
$1.2millionformeritpay
$4.9millionforCATTeleride\Paratransit(Oneoptionforconsiderationischanging
theCATmillagetoabsorbthisserviceinCATsbudget.TheBoardcouldexpandthe
CATDistrictcountywidetoabsorbthisservice,whichisprovidedthroughoutthe
county.Further,thiswillenabletheCountytolookatutilizationofthosefundsfor
alternativepurposesintheGeneralFund.)
YouthInterventionProgramcontinued(formerlygrantfunded)$218,000
$2.8millionincapitalequipment(notedinTable1)
$380,000inSpecialAppropriationsincludingBlueprintgrants(seeTable6)
Lasergradingofsoccerfieldsandmaintenancelights
SafetyNetfundingforhealthinsuranceenrollmentprogram(formerlyatDFCS
Dept.ofFamily&ChildrensServices)
IncreasedfundingforDropOffCenterstotheSolidWastefundof$1.1million
FundingfortheoperationoftheHendersonGolfCourse
DefundedDFACS($916,595)Statefundshandlethisagency
9NewPositionsandsomepositionreclassifications
o 2ParalegalsDA
o 1AssistantDAreimbursedbytheCity
o 1Attorney
o 1CashierforProbateCourt
o 1AssistantClerkofCommission
o 1AdministrativeAssistantforAnimalService
o 1VeterinarianforAnimalServices
o 1deputyinStateCourt1FTposition
PositionsReclassifications:
2PTpositionsinBoardofEqualization
ReclassificationofkeypositionsfortheDA
1Videographer

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TABLE3
SpecialServiceDistrictHighlights

Totalbudget$34,285,823

Proposedmillage5.73millsanincreaseof1.6millstocoverhigherSCMPDCosts
o 4.13millscurrentmillage
o 1millfundsthe2016and2017LookbackPeriodCostsof$4.9million
(proposedforoneyear)
o .6mills2018increaseforPolicebudget
ProjectedDigestgrowth1.5%
2newpositions:
o 2CourtDeputiesforRecordersCourt(fundedthroughtheRecordersCourt
agreement)
IncreaseinPolicecostsof$2.69million
Maintain3monthsfundbalancereserve

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TABLE4
SSDSolidWaste
IncreaseannualDryTrashFee(CurbsidePickup)to$143
o Increasedfrom$43tocovercostsofcurrentyearstorms.
o Reservesreplenishedwithin19months.
o Revisitfeeagainnextyearafterreservesarereplenished
IncreaseGeneralfundtransferfortheDropOffCenters$1.1million
RegistrationprogramatDropOffCenters
Includescostfora5yearequipmentleasetopurchase$4millioninreplacement
equipment
o ProposedfundingthroughaGeneralFundloanat2%
2newpositionsEquipmentOperatorII

TABLE5

OtherFunds
RiskManagementFund:
o IncreasedfundingfromGeneralFundof$250,000
o IncreasedfundingfromSpecialServiceDistrictof$100,000
o 1AdministrativeAssistantII
BuildingSafetyFund:
o 1ClericalAssistantII

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TABLE6

FY2018SpecialAppropriations
Requestedandrecommended(in$)
1005560OtherCommunityServices
GeneralFundM&O Type Requested Recommended Notes:
Southchase Dues 7,000 EasementHomeownerDues
MentalHealth Event 8,000 Annualevent
Symposium
SilverCheetahs MOU 22,000 2ndyearof5yrcontract
GatewayMental BPG
HealthInitiative
PeerEmpowerment BPG 125,000 125,000
andPSRProgram
SuicideIntervention BPG 130,560 43,000 PhaseI
andPrevention
HomelessVeterans BPG 68,500 0
SavannahEarly BPG 100,000 (1) 25,000 $25,000DecreasefromFY17
Childhood funding
Foundation
RockandRoll Event 50,000 Lastyearofcontract
Marathon
ChathamHomeless BPG 246,800 0 ForTinyHouseproject
Authority
HarambeeHouse Comm 20,000 0 NoBPGApplicationsubmitted
Reqst
EastsideConcerned Comm 25,000 0 NoBPGApplicationsubmitted
Citizens Reqst
SEDASavannahFilm BPG 100,000 100,000
Office
815,860 380,000

OtherRelevant:
GetExcited&Move BPG 49,030 30,000 IntheParks&RecBudget
Program
Greenbriar BPG 399,600 369,600 InGreenbriarDept.
DFCSEmergAssist, 741,595 (2) InDFCSDept.
Fostercare,CPS
DFCSIndigentHealth 175,000 ProgrammovestoSafetyNet
SafetyNet BPG 432,818 77,326 Healthcareenrollment
program
(l)SECFamendedtheirinitialrequestof$50,000.
(2)FundsmovedtoYouthInterceptPrograminVictimWitnessDept.$218,000

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