This is loser -- manager Robert -- on W I'll take good morning mr. -- thanks for joining us. Well thank you for the opportunity -- an area appreciate. Sure you speakerphone I can you put the phone up. That's got it just sounds better for radio so sure. Could you please sit and since you broke released this yesterday and you know did the details and a very very well can you just lay it out to the budget. In in a way where residents can understand it. Sure. In fiscal year fourteen. We are are requesting an additional. Date percent tax increase to cover seriously declining revenues -- to explain what's happened since last year. Last year we had. 104. Million dollars in property tax related revenue. End of fiscal year. Fourteen we are not monetizing and so there is can we lost four million dollars because we don't monetize. See your tax revenues but what's that mean well it's monetizing means taking. The unpaid taxes he accumulated unpaid taxes from prior years. And selling those accounts receivable if you well they're they're pats do bills. They get so all you get the cash up front rather than waiting for that money to some day finally materialize. It's not money that were supposed to receive tomorrow it's and say we should have received yesterday but never came on board. And where is that money coming from. Well that money comes from the property tax -- under saved those front page property taxes. They accumulate. Monetization is a process where you basically sell your accounts receivable to an outside entity they give you cash up front. And and you walk away from the transaction. Okay but if you don't you don't have that right so now we've got a 104. Down 200 in property tax revenues. And and this year we've seen certain costs. About certain revenues just completely dry up. There is it's almost a million dollars in state aid that we used to receive for domestic relations. And it turns out that we were being overmatched by the state. And that's money we will not get in the future so there's a million dollars. The press secretary's office had previously overstated their revenues by 300000 dollars that I discussed that in mid year. That's not going to be here next year. 7700000. Dollars in reimbursements. That we will no longer receive in fiscal year fourteen so revenues are going to be down. By six million dollars. So just stick it even just said the same amount in revenues so we had last year. That's six million dollars it has to come from someplace other than. Our previous sources. On the expense side there -- some expenses over which we have no control. So the insurance costs are projected to go up by two million dollars for for all county employees. And we can negotiate that that's. That's for actuaries are telling us that I think the two million dollars schism is a very conservative figure. Can cost based upon the studies actuarial so HR pension system. Are a million and half. Going to go up by about a million and a half -- The -- wage increases adopted under previous. Contracts. That's going to be one point five billion dollars since the tour 3% raise is that. Are already in the books were not talking about negotiating. Future racist. In fact the budget does not include. Any salary increases for future years that are already in a contract. And sooners -- that service cost increased one point seven million. We have no control over we have to pay those bills those were. The cost of the past administrations borrowing. And the total for that every year's 27 million dollars a year that comes right off the top. Before any other money. So the -- so we have no discretion over this brought up by six point -- million. So it -- twelve point seven million dollar gap. That we need to sell now or might you last year the attack site flashier -- expense -- down and last year we had layoffs or getting. So where where we knew we were very responsible last year. Leave the would -- revenue Imus calling out for reasons that we really can't control them this year. And because so we don't have discretion over those are growing up -- point seven million dollar gap. The -- the the tax increase. Would be eight million dollars of that. And indeed. Remaining we've taken about two million dollars out in other reductions. And at least two point seven million dollars on the table to be resolved. The -- just -- solution. Would of course be truly eliminate positions. And they wouldn't be ten it wouldn't be taught me. It would probably be without without any revenue increases at all bomb we're probably talking in excess of 200 positions here the -- -- all worked up about thirteen hundred we have about 300 management. About a thousand represented in collective bargaining units. And once you start to consider. Some of the areas so for example -- just run separately that they could have big chunks. We've got about 300 people who work with the county correctional facility and we went through that place last year like a hot knife through warm partner. I think we've got the personnel costs and deeply control and the operating cost deeply control. We've got about 75 people. Are emergency 911 center. And there are. You know those positions are already that -- minimal level. Public safety generally -- district attorney's office to come. Our emergency -- tradition not those are not places that have a lot of people a lot of opportunity for reductions. Are human services department. Functions primarily on. Federal and state grants so I have ninety million dollars and 85 million dollars. Let's -- and they've actually eight million dollars is general fund. And many of those departments like the officer of the age and there's no general fund cost to. This is like children in Utah where -- where the bulk of our matching funds go about six million dollars. Ready very ready reduced I think this car is as safe. For our children. I think -- member of the controversy last year when I eliminated ten vacant positions. From the caseworkers -- children in years. So do you you've got about half of our workforce. Would eat there are in a public safety position or eliminating their positions would have minimal to no effect. -- saving general fund money. So they -- into places like places rather Rio and proprietary office. -- securities that are. And get our course of course services. -- it's. -- we're gonna have to go if the only solution available slave auctions. You mentioned the he had 300 people in management in a thousand and then the collective bargaining realm. Just like a lot of management does some of them in the people who are rank and file on the courthouse and indicated to me. That they feel very vulnerable to make a lot of money some of the people McCord Nasrallah make him like you know in the mid 20000 dollar range twenty to 2324. How will manage Mandy looked at very very seriously in this. I think mansion it's going to look very seriously indeed and you have to remember. And the Catholic council recently adopted. A -- about thirty half hour work week. And while that has not yet impact of folks who work. Virginia union positions it will impact on January 1 people who work for who work in management positions so. We will have to lose approximately. Fifty management employees. Simply to make up for the 37 and a half hour work week. General fund at all that would just keep the and the management salaries where they are. So. That's 300. Flights -- six is probably going to be on May be more. To make the to make the council some 37 -- half hour work week so I think if folks in any way believe that we were gonna hold management. Sacrosanct. And apart from these collective bargaining folks simply not a possibility. -- can happen. In your opinion. To change this dynamic it just seems to me to be very very very Graham. And a situation where you're so far short does something needs to be done is there anything you can see that that might yet change that's. Well -- mean it's it's hard for everything in perspective before we can look forward we need to look back for a minute. We have a very stable tax -- not a good thing in the sense that tax revenues are falling off. That's relatively stable and consistent. But the downside is we don't see a lot of growth. In -- in the in the eight tax collections to get to -- our tax rebates are taxable tax base has been about a hundred million dollars. The last three or four years since reassessment has been very little change. Since reassessment. At the same time the cost of everything else in county government has continue to go up whether it's step cerberus. That was contract about a prior administrations rather its collective bargaining. Whether it's the other cost of employees that we can't control of course the course of our vendors of people that we do business with. That's that's a very tough position for us to be -- Furthermore there's been history here all of these humble tax increases. And -- even occasional. Small ones there's -- history here minimal tax increases. Made possible. By the old scoop and -- that's one of the reasons we have a 400 million dollar debt to pay down. This because if this situation -- happened say ten years ago. We would've heard the bond issue we would have paid off the debt service for the proceeds of that bond issue. And we took a little by little walking around money left to fill the gap in this year's budget. And nobody -- raised taxes and and you know you move out. Right now. We have no borrowing in this budget. There's no. No foreign sources -- revenue from this system money we have to do business and the only place we can go. It's too. Our user fees which we which we increased in places like the course. And our and our proprietary officer clerks office you know people who come in and do business. They'll be paying more in 2014. Go to this is not the only stated now in place we've -- isn't just for taxes we decreased crossing many departments. But we are worst hit by the inevitable. Costa benefits. And the costs of having county employees. It's mathematical solution and I don't I don't enjoy being the guy who brings system. But this is a mathematical solution revenues are down and there's no way for me to hold on a -- out of perhaps. There's no money to borrow there's no hidden sources there's no hidden funds that were holding back on. And we had significantly higher cost. -- and the mansion but it mentioned before this is an opportunity though. -- opportunity for us to. Reshape the county and I'm looking forward to visiting -- the leaders -- collective bargaining units are. There are some solutions and that would help address longstanding problems I give me examples of things that that we can do. Insurance. You can carry employees who do participate in the cost of paying for. Their health insurance. However. The way they do it differs. From generation situation airport departure is collective bargaining unit. Some people -- F five C hundred dollars a month or maybe more 130. Other people pay a percentage. Com health insurance and that sounds good that they pay 10% they paid 12%. And the county it's the caddy council has recommended. 40% match which is which is safe standard. In private industries actually. Here's the problem the folks who paid the ten in the twenty -- -- and -- fifteen -- 1012%. Saying it on health insurance rates that were published in 2008. So in 2008. Gave. Single. Single planned personal purchase 500 dollars just took about. Just -- 10% to 500 dollars they paid that 10% on 500 dollars and 200820092010111213. Still and on the 500 dollar raid. Right now our rate is 700 dollars 750. And if you're passing 10% and 750. U detained 75 dollars a month not fifty. And if you paid two point 8% under 750 dollar plan. You'd be paying a 150 -- be sharing the cost of health insurance if we've brought a county employees. Up to 20%. Half of the true -- that the health insurance. Would bring end to two million dollars a year. We. Look at our pension system but lifelong tensions. -- carrying employees currently participate. To the extent of a percent contribution. Toward their actions. In the past up until I think 19920. They paid as much as 8%. But there are very salaries toward the pension. Here in 1992. The commissioners decided they're gonna give his side to give them back that money and they went from 8% to 5%. Married ever I wish we had more talking. I like you know what. I'm I'm glad do you you open the door and let you explain to our audience what's going on and of course I will tell them in in the coming -- minutes about how they can come out and participate in the budgetary. So we have a lot we have more work to do internally. More work to do with the council this this is I think this is not the checkered flag this as the starting gun. And he where are we going to be fiscally responsible so we have to pay this here's bills with this year's money we Walt. And anymore is -- and for the county. And I -- and I really appreciate your your time here. We have been grace is that we have abruptly increased taxes lightly or easily we've we've consolidated. We're saving money in this budget all over the place but it is just overtaken. But -- revenue losses and they and the fundamental cost increases. Thank you have a Radford lot -- we will speak to again in the future thanks to Bob.