HomeMy WebLinkAbout840962.tiff CAPITAL FUNDS
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CAPITAL PROJECT FUNDS
Capital Project Funds are established to budget for financial resources
used for the acquisition or improvement of the capital facilities of the
County.
A detailed Long Range Capital Plan for 1984 - 1988 is presented in this
section and relates to the
specifics of the 1984 capital project
budgets.
The Public Works fund accounts for various capital improvement projects.
on County buildings. In 1983 the total amount budgeted is $915,960
funded by property tax of $186,000, SOT $14,000, and an anticipated fund
balance of $715,960. Details of the 1984 projects are in the Lcng Range
Capital Plan that follows.
The Hospital Capital Fund accounts for the revenue and related capital
expenditures as required by the North Colorado Medical Center Board of
Trustees, an autonomous board responsible for administering the
operations of the hospital. The 1984 budget provides for a budget of
$685, 162 with property taxes of $545, 162. The funding level is a
continuation of the historical level.
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WELD COUNTY
LONG RANGE CAPITAL PROJECTS
FIVE-YEAR PLAN
1984 - 1988
Presented By: Donald D. Warden, Director
Finance and Administration
September, 1983
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LONG RANGE CAPITAL PROJECTS
FIVE YEAR PLAN
1984 - 1988
INTRODUCTION:
Section 14- 3 of the Weld County Home Rule Charter provides:
"The Board may require that the Director of Finance and
Purchasing submit, at the time of submission of the annual
budget, a five-year capital improvements program and budget.
Such program shall include recommended projects, construction
schedule, estimate of cost, anticipated revenue sources, methods
of financing, and such other information as may be required."
This five-year plan projects capital projects for 1984 - 1988.
The recommended program for capital construction is intended as a guideline
to be adjusted by the Board of County Commissioners on an annual basis. It
represents flexible goals for organizing solutions to county program needs,
and it is intended to provide the Board of County Commissioners with the
perspective for making fiscal policy decisions. Annual modifications in
the plan will reflect necessary adjustments and priorities, changes in
programs, and readjustments of other county fiscal requirements.
This report has four (4) sections:
1. Introduction
2. Financing Alternatives
3. 1984 -- 1988 Five-year Plan
4. 1984 Budgetary Impact
The Section on financing recommends a program for financing the next five
years' capital construction. This section lists the various sources of
revenue currently available to the county, and the alternatives available
for financing the remainder of the capital projects program. The 1984 -
1988 five-year plan section provides a list of recommended projects and the
time schedule for the next five fiscal years. Additionally, it provides
justification for the recommendation and attempts to enumerate problems and
recommended solutions for the capital improvements program over the next
five years. The project section describes each recommended project, and
provides information on the existing situation, the proposed solution, and
the financing plan for each project.
The last section of the report provides a recommended 1984 budget for the
capital construction program. It provides specific detail regarding each
recommended project and the impact on the 1984 county budget.
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FINANCING ALTERNATIVES
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FINANCING
Overview:
There are a number of ways to finance capital improvement projects. Some
of the most common methods of financing capital improvement projects are:
1. Pay as you go:
Pay as you go is a method of financing capital projects with
current revenues -- paying cash instead of borrowing against
future revenues. Pay as you go has several advantages. First,
it saves interest cost. Second, pay as you go protects borrowing
capacity for unforeseen major outlays that are beyond any current
year's capacity. Third, when coupled with regular, steady
completion of capital improvements, and good documentation and
publicity, pay as you go fosters favorable bond ratings when long
term financing is undertaken. Finally, the technique avoids the
inconvenience and considerable cost associated with marketing of
bond issues, advisors, counsel , printing, etc.
However, there are practical and theoretical disadvantages to a
pay as you go policy. First, pay as you go puts a heavy burden
on the project year. Second, it creates awkward fluctuating
expenditure cycles which do not occur with extended financing.
Third, a long life asset should be paid for by its users
throughout it's normal life rather than all at once by those who
may not have the use of it for the full term. And finally, when
inflation is driving up construction costs, it may be cheaper to
borrow and pay today's prices rather than wait and pay
tomorrow's.
2. All borrowing policy:
An all borrowing policy or a substantial reliance on debt
financing is one approach. The annual available resources could
be used entirely for debt service with the size of the annual
resources setting the limit upon the amount that could be
borrowed.
3. Capital reserve:
A capital reserve plan is an approach where the annual resources
available could be accumulated in one or more capital reserve
funds, the amounts invested, and when any funds become adequate
to pay for a proposed project, the fund could be expended. This
Is a good approach when a county has a capital requirement which
can wait. Accumulation of the necessary capital funds over a
period of time is a feasible approach, assuming a relatively
stable construction dollar. HB 111 passed in 1982 specifically
provides for a capital improvements trust fund for capital
reserves.
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4. Partial pay as you go policy:
A partial pay as you go policy is a common approach. Some of the
annual resources would be used to finance capital improvements
directly, and the remainder would go for supporting a debt
program. Even if a local government pursues a borrowing policy,
an initial down-payment out of current revenues is a possibility.
A customary 5 - 10% down is a limited pay as you go policy, and
assures that the voters authorizing the approval will make a cash
contribution that all of the burden will not be postponed.
5. Joint financin1:
An ever increasing number of cities and counties are finding that
there is benefit to both jurisdictions for joint development of a
project. The construction of a city/county office building and
recreational areas are examples. This avenue of funding and
planning capital projects normally is advantageous to both
jurisdictions.
6. Lease/Purchase:
Local governments can utilize lease/purchase methods for needed
public works projects by having it constructed by a private
company or authority. The facility is then leased by the
jurisdiction on an annual or a monthly rental. At the end of the
lease period, the title to the facility can be conveyed to the
jurisdiction without any future payments. The rental over the
years will have paid the total original cost plus interest. This
method has been used successfully in a number of jurisdictions.
The utilization of a building authority would fall under this
category of financing.
Numerous considerations are involved in the selection of the foregoing
patterns, or some combination thereof:
1 . Political realities may preclude utilization of one or more of
the above alternatives. For example , the passage of general
obligation bonds as a debt financing mechanism has not met recent
success at the polling places in most jurisdictions.
2. The pay as you go concept has three distinct advantages.
a. It preserves great flexibility to the county for future
periods of economic recession or depression but not
piling up large fixed charged costs.
b. It avoids the payment of interest charges.
c. It imposes upon public officials the full political
responsibility for levy of the taxes necessary to pay
the local share of such projects.
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3. The debt financing approach has the advantage of permitting the
cost to be spread over a generation of current users of public
facilities, thereby imposing upon each a significant portion of
the cost of each project.
4. In an inflationary period, one must take into account the extent
to which prepayment for capital outlay is warranted, when the
opportunity for repayment of the principal and interest in
dollars that are less expensive can be arranged.
5. During periods of rapid price rise, the time delay necessary to
accumulate downpayments or full pay as you go resources invites
higher costs which may wipe out most, if not all, of the
advantages of non-payment of interest.
In the five-year capital projects plan, a combination of funding methods
will be recommended to finance the capital construction in the next five
years in an attempt to balance the economy of a payment in full program
with the fairness of sharing the burden among present and future taxpayers.
This recommended financial program reflects consideration of many factors,
including the availability of cash, anticipated interest rates at the time
of construction, and projected inflationary cost increases that would
result from project delays.
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DEBT FINANCING
Before discussing specific types of borrowing, it is appropriate to review
some of the basic constitutional statutory provisions which generally are
applicable to debt financing.
Article XI, Section 6 of the Colorado Constitution provides that no debt
may be created by a political subdivision of the State, unless the question
of incurring such debt has been approved by a majority of the qualified
electorate voting. Any obligation paid, or contracted to be paid, out of a
fund that is a product of a tax levy is a debt within the means of the
Constitution (Trinidad vs. Haxby, 136 Colorado 168, 315 p 2d 204 -- 1957) .
In addition to voter's approval, Article XI, Section 6 requires the debt be
incurred by adoption of a legislative measure which is irresponsible until
the indebtedness is fully paid or discharged. The ordinance must:
1. Set forth the purpose for which the bond proceeds will be
applied, and
2. Provide for the levy of the tax which, together with such other
revenues as may be pledged, will be sufficient to pay the
principal and interest of the debt.
The Constitution delegates to the Legislature the duty to establish
statutory limitations on the incurrence of debt. The total amount of debt
which a county may incur may not exceed 3% of the assessed value in the
county, which is slightly over twenty-two million dollars in Weld County.
In addition to the State Statute, Section 14-6 of the Weld County Home Rule
Charter specifies:
"The incurring of indebtedness by the County and the issuance of
evidences of such indebtedness shall be authorized, made and
executed in accordance with the laws of the State, including the
borrowing of money to fund County projects, the pledging of
project revenues and repayment thereof, and the issuance of
revenue warrants, or revenue bonds, or other forms of evidence of
such obligations."
Before discussing particular types of bonds, it is appropriate to review
some of the general characteristics of bonds. Bonds mature serially, that
is, a portion of the principal is retired over the entire term of the bond
issue. interest on municipal bonds is free from Federal Income Tax which
is an important feature to prospective purchasers. The term or the length
of time to maturity of municipal bonds can vary considerably. Generally,
the last maturing bond comes due from between ten to thirty years from the
date of issue. Normally, the longer the maturity of the bonds, the higher
he yields or return on investment , demanded by the market price. Thus, a
bond issue that runs thirty years will pay a higher net effect interest
rate than a bond issue that runs twenty years.
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General Obligation Bonds:
General obligation bonds are secured by a pledge of the full faith, credit
and taxing power of the County. The County is obligated to levy sufficient
taxes each year to pay the principal and interest of the bond issue.
Consequently, general obligation bonds are a debt subject to the
constitutional and statutory provisions discussed earlier. Because the
issue of general obligation bond pledges its full faith and credit and
agrees to levy the ad valorum taxes necessary to repay the principal and
interest of the bond, they are generally agreed to be a more secure
investment than other types of bonds. Thus, the major advantage of general
obligation financing is the low rate of interest as compared to the
interest of other types of bonds. The law permits general obligation bonds
to have a thirty year term; however, general obligation bond issues usually
have terms of twenty years or less.
General obligation bonds, in addition to being secure by full faith and
credit of the issuer, may provide additional security by pledging certain
available revenues.
The major disadvantage of general obligation bonds is the fact that it does
require voter approval prior to issuance. Voter resistance to increased
taxes may prevent a successful bond election.
Revenue Bonds:
Revenue bonds are not a debt in the constitutional sense. They are secured
by the revenue derived from the project to be constructed and not by pledge
of the full faith, credit, and taxing authority of the County. Projects
typically financed by revenue bonds include airports, stadiums, and park
facilities.
Although it may seem possible to pledge any nontax revenues for payment of
revenue bonds, there should be a relationship between the type of revenue
pledged for payment of the bonds and the project to be financed. Although
revenue bonds need not comply with the constitutional statutory provisions
generally applicable to a debt , there are several statutory provisions
which may affect the issuance of certain types of revenue bonds and the
statutes should be consulted for specific provisions regarding to the issue
of revenue bonds if ever this is explored.
Revenue bonds are considered to be less secure than general obligation
bonds because of the inability of the issuer to levy taxes to assure the
payment of principal and interest. Thus, there is normally a higher
interest rate on revenue bonds. The term of revenue bonds is often beyond
twenty years, frequently as long as thirty.
The concept of issuing revenue bonds is based on the theory that certain
projects which benefit only certain individuals should be self-supporting
'nd should be paid for by the user of that project rather than the populace
a5 a whole. Thus, airport revenue bonds are paid for by air travelers and
airline and parking revenue bonds are paid for by parkers, etc.
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In order for a County to issue a revenue bond, the system which generates
the revenues to repay the principal and interest of the bond must:
1. Have a good operating history documented by audited figures, or
2. Reflect good debt service coverage through use of a feasibility
study done by a recognized expert in the field.
In analyzing a revenue bond issue for underwriting, an investment banker
will look not only at operating statistics and coverages, but also at more
basic elements, such as the necessity of the service, control over
competition, and delinquency procedures. Revenue bonds are becoming more
popular because they do not require voter approval and do not apply in
statutory debt limits.
Leases:
A less traditional means of financing County facilities is through a lease
arrangement. A lease is executed with the County, which gives the County
the option to purchase the equipment or facility during the term of the
lease. All or part of the lease payments may be applied to the purchase
prices.
A bona fide lease option agreement is not a debt; however, an installment
purchase program is a debt. A bona fide lease/option agreement is
characterized by two factors:
1. Annual rental payments with automatic renewal of the lease unless
terminated by either party, and
2. No obligation on the part of the local government to purchase the
property if the lease is terminated.
Also, some court cases indicate the annual rental must be paid from
non-property tax revenues to avoid the conclusion of the lease as a
general obligation. Upon exercise of the option, the local government
obtains full legal title to the property. Leases of this nature are
distinctively different from more conventional means of financing. Of
primary importance is the security which underlies the lease period.
It is not a promise to levy taxes or a pledge of revenues from the
system. Rather, it is a promise to pay most always only from one year
at a time with an implied intention to continue payment until
ownership is transferred. As ultimate security, the holder of the
lease may look to the asset which is being leased in the event of a
default.
There is little statutory or judicial guidance in the area of leases
of this type, and the obligation to continue lease payments until
title transfers is a moral, rather than a legal obligation. As a
nonsequence, the underwriting or placement of a lease is more
u Zficult than the underwriting of conventional bonds. The term of
the leases generally are short, usually from 7 - 10 years. Because
the security underlying the lease is not good compared with
conventional financing, interest rates on leases are much higher.
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Building Authority:
A building authority is a non-profit corporation which is formed
generally at the prompting of the governing body of the County or
local jurisdiction which also appoints the Board of Directors of the
corporation. The directors usually are elected officials, employees,
or other public spirited citizens.
The building authority issues its own bonds to finance a facility. To
achieve the same lower interest rates that the traditional municipal
bonds enjoy, the building authority must obtain a ruling from the
Internal. Revenue Service that the interest on the authority's bonds is
exempt from Federal Income Tax. Such an exemption is granted if the
IRS finds that the authority's bonds are issued on behalf of a
political subdivision, which is determined based upon the following
factors which are detailed in IRS Revenue Ruling 63-20.
1 . The authority engages in activities which are essentially
public in nature.
2 . The corporation is not organized for profit.
3. The corporate income does not inure to the benefit of any
private person.
The political subdivision has a beneficial interest in the
corporation, while the indebtedness is outstanding, and it
obtains full legal title to the property on the retirement
of the debt.
5. The corporation has been approved by the political
subdivision which has approved the specific obligation of
the corporation.
Like municipal bonds, bonds issued by a corporation usually are subject to
registration and other requirements of the Securities Act of 1933 and the
Security Exchange Act of 1934. After receiving a favorable ruling from the
IRS, a no "action" letter should be secured from the Security and Exchange
Commission, exempting the authority's bonds from these requirements. The
authority then issues bonds pledging the annual rental payments as security
after issuance of bonds and construction of acquisition of the facilities,
the authority leases the facilities to the County. Again, this must be a
bona fide lease and possess all the elements discussed under
Lease/Purchase.
The bonds of a building authority are similar to municipal leases in the
manner in which they are viewed by investors. As with a simple municipal
lease, building authority bonds are less secure than general obligation or
revenue bonds. As a result, bonds issued through a building authority bear
higher interest than more secure issues.
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BUILDING AUTHORITY FINANCE
The Philosophy:
Tax-exempt financing is available through a building authority with the
issuance of bonds when the facilities financed are for public purposes and
the benefit is to the sponsoring public entity.
The Building Authority:
A building authority is a Colorado non-profit corporation created by the
County itself. The County adopts a resolution calling for the creation of
the Building Authority and directing counsel to draw Articles of
Incorporation and By-Laws in compliance with Colorado Statutes. A board of
directors is formed. The board may consist of County Commissioners or
administrative personnel or individuals not associated with any public
entity.
Tax-Exemption of Interest:
Once the non-profit corporation is created the tax-exempt nature of
interest paid on the corporation's bonds must be assured. A revenue ruling
is requested from the Internal Revenue Service on the non-profit status of
the corporation pursuant to Internal Revenue Code, 103(a) 1 and Revenue
Ruling 63-20, and on the tax-exempt status of interest paid.
Such an application involves considerable work and a detailed analysis of
the situation is presented to the Internal Revenue Service. Among other
things the application includes information as to public purpose, the
County, the agency using the facilities, the proposed lease terms, terms of
title reversion to the County and the proposed method of financing.
Corporate Bonds and the S.E.C. :
As corporate bonds, as opposed to purely municipal bonds, are subject to
registration requirements of the Securities and Exchange Commission, a
no-action letter must be obtained from the S.E.C. In essence the S.E.C.
says that no action will be taken if the bonds of the building
authority/non-profit corporation are not registered.
The Purchase Contract:
Once the Building Authority is created with powers to act it may enter into
a contract to purchase the facility. The contract should be subject to:
1. A favorable revenue ruling from the Internal Revenue Service.
2. Receipt of an S.E.C. no-action letter.
D. Finalization of financing.
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The Bond Issue:
When all legal and tax questions are answered the Building Authority
may issue bonds for the purchase of the facility. Normally the bonds
are sold directly to an underwriter who then resells the bonds to the
ultimate investor.
The Bonds that are issued will be an obligation of the Building
Authority only and not a debt obligation of the County.
Summary of Steps and Timetable
The steps involved in this financing and the timetable for
accomplishing these steps are as follows:
Step Approximate Dates
1 . Receipt of proposals, decision
to proceed. Retention of under-
writer 6 counsel. 3 weeks
2. Incorporation process 2 months
3. Contract negotiation 2 months
4. Request for revenue ruling 3 months
5. Request for S.E.C. no-action 4 months
letter
6. Bond resolutions, bond closing, 1 month
purchase closing
The County Lease:
Upon the issuance of the bonds and the purchase of the building by the
building authority, the County would lease the building from the authority.
The lease would be from year-to-year with automatic renewal unless
otherwise terminated. A county lease for any period in excess of one year
constitutes a debt and must be approved by voters.
The Bond Security:
The security of the bond holders may be only in a pledge of lease revenues
byay also rst on
thet buildinghe . The c mbi a Lion of they. The bon holersm two results ein aimore secure bond lien bondand
a correspondingly lower rate of interest.
Partial Seller Financing:
Depending on factors such as the seller' s motivation, whether or not there
is an existing loan on the building and negotiations, an alterattlyc
presents itself. It may be possible for the authority to issue bonds i -
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in an amount necessary for a down payment. The sellers could carry back
the balance, receiving installment sale tax benefits on the capital gains.
A revenue ruling would be required but interest paid on a promissory note
to the seller may also be tax exempt. The total cost, then, to the County
and the building authority may be substantially lower on this basis.
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COMPLETED CAPITAL PROJECTS
1979 - 1983
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COMPLETED CAPITAL PROJECTS
1979 - 1983
Actual Actual Actual Actual Budget
Requirements Total 1979 1980 1981 1982 1983
Telephone System $ 189,336 $ 189,336
504 Compliance 9,071 9,071
So. Weld Svc. Center 286,073 $286,073
Sheriff Lab 11 , 108 11, 108
Grader Sheds 61 ,000 21,000 $ 20,000 $ 20,000
Island Grove 80, 132 $ 80,132
Youth Shelter 2,624 2,624
ARRC 51,722 51,722
Exhibition Elevator 46,908 9, 119 37,789
Exhibition Roof 19, 148 19,148
Ambulance Facility 97,542 97,542
HRD/Health 12,291 4,351 7,940
Airport 234,241 29,241 50,000 75,000 40,000 40,000
Library 593,082 593,082
Court House Elevator 50,351 50,351
Court House
Miscellaneous 42,924 1,835 2,764 3,750 34,575
Court House Exterior 68,540 68,540
Energy Efficiency 244,494 54, 191 151 ,687 38,616
Miscellaneous 27,625 27,625
Computer Air
Conditioner 25, 182 25, 182
Road Headquarters 25,000 25,000
Downtown Development
Parking 325,000 325,000
Social Services 137,025 137,025
Communications 37,493 27,944 9,549
TOTAL $ 2,677,912 $ 702.455 $ 361,41i1_6„112590 $ 311,921 $ 690.512
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1984 - 1988
FIVE YEAR
CAPITAL PROJECTS PROGRAMS
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PUBLIC WORKS CAPITAL FUND
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RESOURCE CAPACITY
*****************
FUNDING SOURCES
*****************
CASH FLOW ANALYSIS
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PUBLIC WORKS CAPITAL FUND
RESOURCE CAPACITY
1984 - 1988
FUND PROPERTY SALE *
BALANCE TAX PROCEEDS TOTAL
1984 $ 715,960 $ 200,000 $ 915,900
1985 200,000 1, 115,960
1986 200,000 1,315,960
1987 200,000 1,515,960
1988 200,000 1,715,960
* Any sale proceeds from surplus county property should be transferred
and appropriated into this fund. Note Health Building under Hospital
Capital Fund.
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CASH FLOW ANALYSIS
CASH
REVENUES EXPENDITURES RESOURCES
BEGINNING ENDING
FUND CAPITAL FUND
BALANCE FUND CONSTRUCTION BALANCE
1984 $ 715,960 $ 200,000 $ 915,960 -0-
1985 200,000 200,000 -0-
1986 200,000 200,000 -0-
1987 200,000 200,000 -0-
1988 200,000 200,000 -0-
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JAIL MODIFICATION
Existing Situation:
The Weld County jail is currently experiencing limitations on its capacity
to handle the number of inmates being detained. As the pressures of
limited capacity grow, the Sheriff's Department may be faced with
eliminating areas that currently house the work release program and inside
recreation area, so that the facility can be used for securing other
inmates.
Proposed Solution:
In 1984 in the long range projects plan, it is recommended that the inside
recreation area be converted to a minimum security facility and
modifications be made to establish an outside exercise area architecturally
compatible with the complex. This approach avoids additional staffing, as
well as, satisfies the concern that the jail does not have an outside/fresh
air recreation area.
Financing:
It is recommended that renovation costs of approximately $100,000 should be
paid on a cash basis out of the 1984 budget.
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WALTON BUILDING
Existing Situation:
Currently, the Social Services Department of Weld County is housed in the
Walton Building. The Social Services Department has a lease agreement for
the Walton Building that costs $82,776 per year, and will expire March 31 ,
1984. The Walton Building has a gross base of 25,088 square feet, and has
approximately 146 parking spaces to accommodate employees and clients. The
number of employees currently housed in the facility is approximately 100.
In occupying the Walton Building, the County has had a constant struggle
with the State Department of Social Services concerning full State
participation in the funding of the facility. The reimbursement in recent
years has not been the 80/20 match, and as a result the County has
experienced approximately $43,878 per year over match in this particular
area.
Proposed Solution:
The Walton Building currently is a very adequate facility for the functions
served and the client population in Weld County. The Board exercised the
purchase option price on January 24, 1983 for $707,300 for purchase on
April 1, 1984.
Financing:
It is recommended that the county use the excess fund balance in 1983 to
purchase the building outright under the purchase option exercised in 1983.
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COURTHOUSE
Existing Situation:
The Weld County Courthouse is an old facility that has undergone a great
deal of renovation in the last four years in order to maintain the
structure and accommodate the contemporary space needs that it houses. The
Courthouse has had rewiring, plumbing corrections, energy efficient
measures, new elevator installed, painting, and renovation of the exterior.
Although many of the renovation needs have been satisfied in the last four
years, the facility is facing growth pressures from the expansion of a
number of court functions needed for the District Court. It is anticipated
over the next five year period that two courtrooms will be required to
accommodate either new judges or referees.
Proposed Solution:
In analyzing the situation at the Courthouse , it must be appreciated that
the basic maintenance or major maintenance needs to continue in order to
retain the Courthouse as a viable facility. This maintenance will be
required on a continual basis over the next few years in order to correct
basic deficiencies caused by age. In addition, the county must be in a
position to accommodate future court expansion of that facility to avoid
the ultimate outlay of an additional facility.
It is proposed that $50,000 be budgeted in the Capital Projects Plan to
accommodate the renovation of the Courthouse for a courtroom. In addition,
there are funds provided over the five year period for basic maintenance
such as carpet.
Financing:
It is recommended that in the five years of the Long Range Plan that
$50,000 be budgeted to accommodate the courtroom renovation and
furnishings.
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ROAD BUILDING/WAREHOUSE
Existing Situation:
In 1982, the county acquired property on 1lth Avenue to become the site for
all Road and Bridge functions. The site, as purchased, included an office
area and a preventive maintenance shop, as well as, one adjacent building.
It is proposed that this site be developed to become the Road and Bridge
Headquarters to house all Road and Bridge operations, the Main Shop, and
storage facilities for the county.
Weld County's Road and Bridge operations are currently spread out at the
Main Shop and the three branch shops located in Johnstown, Ault and
LaSalle. The Main Shop, space—wise, is inadequate to truly accommodate the
maintenance of all Road and Bridge equipment and to provide proper parking
facilities for county equipment. The Main Shop also is deficient in
meeting OSHA standards and it is estimated that for rewiring, proper
ventilation, proper storage area and overhead hoist requirements, as well
as other miscellaneous improvements required for OSHA and fire safety , that
approximately $200,000 would have to be spent on this facility to put it
into a condition that meets OSHA standards and properly accommodates the
functions being performed in the garage.
Certain efficiencies could be achieved by having a central location of all
Road and Bridge functions which would enhance the management control and
effectiveness of the Road and Bridge Department. In addition, the county
currently does not have adequate facilities for central warehousing for all
office supplies, maintenance parts for Buildings and Grounds, parts and
supplies for garage operations, and other general storage requirements for
the Road and Bridge operation. As a result of this, the benefits of volume
buying and inventory control cannot be practically taken advantage of by
Weld County due to the lack of the proper warehouse area and warehouse
function.
Proposed Solution:
It is proposed that the 11th Avenue Road and Bridge Headquarter site be
developed into a centralized Road and Bridge area. It is proposed that a
facility be developed that would provide adequate garage area, ranging from
70,000 - 90,000 square feet, warehouse area of approximately 7,000 - 10,000
square feet enclosed as well as 5 - 10 acres of storage yard, and adequate
fenced parking for all county equipment . If a facility of this nature can
be developed by the county, it would mean that the current county garage
and three outlying shops could be eliminated in addition to the space gains
that have been made by relocating Road and Bridge administration and
preventive maintenance shops to the new site.
A warehouse facility would enable Weld County to develop a proper supply
and warehouse function and also free some space in the Centennial Complex
iur further expansion to cope with the growth pressures the Centennial
Complex is experiencing.
—225—
It is proposed that the development of this site be on a gradual basis over
the Five-Year Long Range Capital Plan. In addition to the current
facilities located at the 11th Avenue site, it is proposed that in 1983 a
site plan be developed that would encompass all of the above functions. As
funds are made available during the five year period, it is proposed that
the site plan be gradually developed year by year. In the event that the
county shops could be sold as surplus property, the proceeds could be put
into the Capital Projects Fund to assist in the financing of the new
facilities. At the end of the five year period or during the five year
period, if the opportunity presents itself, the Board should consider
utilization of the Building Authority to complete the project and the site
plan.
Financing:
It is recommended that the county utilize current funding during the five
years of this Long Range Plan with the possibility of utilizing the
Building Authority funding mechanism to complete the project during the
five year program when county finances and the bond market permit. There
should also be consideration give that, as the site plan is developed
gradually, some of the smaller facilities such as the warehouse area and
auxiliary garage areas are built that the utilization of the Aims student
program in the building trades be considered for cost reduction.
-226-
GRADER SHEDS
Existing Situation:
The county currently has 18 grader sheds throughout Weld County, to
accommodate the road maintenance function in all sectors of the county.
The grader sheds are in various conditions, ranging from good to need for
replacement. Three have recently been replaced, Nunn (1981) , Gwonda
(1982) , and Vim (1983) .
Proposed Solution:
An analysis of existing grader sheds has been done the last three years to
determine which are required for the operational functions of the road
maintenance operation in Weld County. In the process some have been sold,
others consolidated, and some identified for replacement. In cases where
existing grader sheds will accommodate the maintenance function, it is
suggested that there be attention given to those sheds that need to have
maintenance of major improvements done to them. Where necessary,
replacement sheds have been identified.
Financing:
It is recommended that the county budget $20,000 per year over the next
five years to construct, maintain, and upgrade the numerous grader sheds
throughout the county. The funding mechanism should be a pay as you go
function out of the Capital. Projects Fund.
-227-
ENERGY EFFICIENCY
Existing Situation:
With the rise of utility costs and the energy crisis, it is essential that
Weld County continue to be in a position to properly respond to the energy
conservation programs that will be required during the next few years.
Much has already been done in the area of energy efficiencies, and efforts
on a smaller scale must continue.
Proposed Solution:
In order to avoid high energy and utility costs in county buildings, it is
suggested that the county continue to identify energy conservation
opportunities in all county facilities that are owned and continue to take
corrective action to make county facilities as energy-efficient as
possible. The cost of this particular capital project could be recovered
substantially in a few years due to the pay back in energy savings.
Financing:
It is recommended that the county budget $5,000 for the energy efficiency
program each year. Where cost effective payback opportunities exist,
additional funds should be considered with offsets to the operating utility
budgets impacted.
-228-
MISCELLANEOUS PROJECTS
Existing Situation:
Each year in the county there are several small projects to update or
renovate county facilities, provide for new county programs, remodel to
accommodate changing programs or meet new legal standards. An approach to
provide miscellaneous funds of this nature can assist the county in
avoiding the postponing of remodeling of facilities that will avoid cost or
delay potential savings to the county and the taxpayers. In addition, an
approach like this can also make better utilization of existing facilities
in order to avoid the acquisition of new space and facilities. Carpet
replacement should be included in this category.
Proposed Solution:
It is recommended that an amount of $10,000 per year in the Long Range
Capital Projects Plan be set aside for such projects.
Financing:
It is recommended that the county budget $10,000 per year for small.
projects.
-229-
ACCUMULATIVE CAPITAL OUTLAY/CONTINGENCY
Existing Situation:
If Weld County is to embark upon a number of ventures in capital projects
over the next five years, it is suggested that the county proceed very
cautiously and very conservatively in the area of financing. In order to
do this, it is suggested that a contingency be set aside each year on a pay
as you go basis to accommodate unanticipated cost increases or emergency
situations that cannot be foreseen at this time. If the contingency amount
is accumulated over the next five years, it can be used as a reserve for
the capital projects program in future years, or it can be used as a
funding mechanism in years beyond 1988.
Proposed Solution:
Budget any carry-over amount each year as a contingency basis that
ultimately could be used to meet any contingency or emergency situation, or
could be used as an accumulation of capital outlay funds for funding of
projects beyond 1988.
Financink:
It is recommended that the county budget fund balance carry-overs in the
capital fund each year as a contingency.
-230-
HUMAN SERVICES CENTER
Existing Situation:
The Health Department and Human Resources are currently housed in the
Health Building. If the Hospital acquires the building, the other
departments would have to be relocated.
Proposed Solution:
It is recommended that the proceeds from the sale of the Health Building be
used to replace comparable space in a Human Services Center located in the
area of the Walton Building. This site would consolidate human service
programs allowing better coordination of services. In addition, it would
offer flexibility in office space management of these programs as they
expand and collapse over time as funding levels and emphasis change.
Financing:
It is recommended that the funding come from the sale proceeds of the
Health Building, in the event the Hospital acquires the building.
-231-
MISCELLANEOUS FUNDS
-232-
HOSPITAL CAPITAL FUND
Requirements Total 1984 1985 1986 1987 1988
Hospital
Phase II $1 ,680,324 $280,324 $700,000 $700,000
*Family
Clinic/
Auxiliary 1,750,000 $645, 162 $685, 162 419,676
TOTAL $3,430,324 $645,162 $685,162 $700,000 $700,000 $700,000
* Hospital proposes purchasing the Health Building at the replacement cost.
The building would be used for the Family Practice Clinic and auxiliary
offices. Proceeds of the sale of the building would be used to build a
comparable structure to house the Health Department and Human Resources
Department in a Human Services Center.
-233-
HOSPITAL/FAMILY CLINIC
Exiting Situation:
The North Colorado Medical Center has recently completed a twenty-one
million dollar expansion funded by Revenue Bonds that will be liquidated
through patient charges. The resolution creating the Weld County Public
Hospital April 15, 1944, authorized up to one mill for hospital purposes
for medically indigent citizens. In recent years the subsidy has come in
the form of capital fund contributions of approximately $700,000 per year.
The hospital is now planning Phase II of the capital development program.
Included in the plan is the possibility of acquiring the Health Building
for the Family Practice Clinic and auxiliary offices.
Proposed Solution:
I . In the event the hospital acquires the Health Building, it is
recommended it be sold at a value to replace an equivalent
building near the Walton Building to create a Human Services
Center. Funding would come from the Hospital Capital mill levy.
2. The Board needs to re-affirm their commitment to provide SOT,
interest and a mill levy equivalent to $700,000 per year for the
hospital.
Financing:
Funding for the Health Building should be by the use of the hospital mill
levy to purchase the building with the proceeds going to the county for
replacement of the building at the Walton Building site to house HAD and
the Health Department.
The Board needs to address the policy issue of future hospital capital
construction.
-234-
CONSERVATION TRUST FUND
Existing Situation:
With the passage of SB119 (The Colorado Lottery) , 40% of the proceeds of
the lottery are earmarked for Conservation Trust Funds in local
governments. The earning potential of the lottery is unknown but the
estimated potential of $100 million gross revenues indicates that Weld
County's share (1. 22% of state population -- 35,542 unincorporated
residents) would equal $190,000 - $250,000 in revenue. The funds would
have to be used for "the acquisition, development and maintenance of new
conservation sites or for capital improvements or maintenance for
recreational purposes on any public site". (Section 29-21-101, CRS, 1973) .
The first allocations were in September, 1983, in the amount of $194,698 it
would become a planned revenue source beginning in fiscal year 1984.
Proposed. Solution:
The Board has the option to use the funds in the following ways:
1 . Maintain and improve Island Grove.
2. Maintain and improve Missile Site park.
3. Participate in the performing arts center in Greeley.
4. Reclaim gravel operation for recreational purposes.
5. Share funds with municipalities.
Policy issue.
-235-
ISLAND GROVE
Existing Situation:
Weld County and the City of Greeley currently have certain joint ventures
and commitments to develop the Island Grove facility. Some discussion has
been held regarding the creation of an Island Grove Park Authority for
development and management of the facility.
Proposed Solution:
If it is the determination of the Board of County Commissioners to continue
to participate in the development of the Island Grove facility, it is
recommended that beginning in 1984, Conservation Trust Funds from the
lottery be used.
Financing:
It is recommended that the county finance any Island Grove enhancements
with Conservation Trust Funds resulting from the lottery.
-236-
GENERAL FUND
AIRPORT:
The Board has committed General Fund monies to the FAA ADAP airport
enhancements. The county's share under the current program is 5% of the
development costs. Estimated costs are approximately $40,000 per year over
the five-year life of this capital plan.
-237-
AIRPORT
Existing Situation:
The Weld County Board of County Commissioners, with approval of the Airport
Master Plan, committed to participate in certain enhancements at the
Airport facility, especially enhancements that will insure the safety of
the Airport operation. If it is the decision of the Board to continue to
participate in the joint funding of the Airport facility with the City of
Greeley, funds should be provided for in the Long Range Capital Projects
Plan to accommodate the FAA ADAP program during the next five years.
Proposed Solution:
It is proposed that $40,000 per year be earmarked in the long Range Capital
Projects Plan from 1984 through 1988 to accommodate capital improvements at
the Weld County Airport, with emphasis being safety features and other
essential enhancements for the current operation.
Financing:
It is recommended that the county budget $40,000 per year from General Fund
resources.
-238-
BUDGET UNIT REQUEST SUMMARY
FISCAL YEAR 1984
AGENCY/DEPT. NAME : North Colorado Medical Center - Capital
BUDGET UNIT TITLE AND NO . : Hospital Capital -- 311944
DEPARIMcNT Maximum
DESCRIpTIOR:
Mill levy to fund capital improvement of North Colorado
Medical Center. mill levy is 3 mills.
The budget unit shown above is broken down into the following activities:
n/a
Actual Last Requested Recommended
RESOURCES Complete Allowed Current Next Next
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Gross County Cost $862,505 $645,162 $685,162 $685,162
Revenue 196,593 100,000 140,000 140,000
Net County Cost $665,912 $545,162 $545,162 $545,162
Budget. Positions -- -- -- --
SUMMARY OF CHANGES :
Funds are at the level of funding of $545,162 property tax, $40,000 specific ownership,
and $100,000 interest. Funding for Phase II of the hospital long range capital
plan and purchase of Health Building.
FINANCE/ADMINISTRATIVE RECOMMENDATION :
Continuation of hospital capital at the level of $685,162 per year for the next
five years is a policy issue for the Board in consideration of the Long Range
Capital Plan for 1984 - 1988 for Weld County. See Weld County Long Range Capital
Plan for 1984 - 1988.
Payment of interest to the hospital operating funds should be considered in conjunc-
tion with this budget. Payment would reduce interest earnings in the General Fund
and increase county resource contribution to the hospital. Recommend that if interest
is credited to the hospital, an offset in property tax revenue in this fund be made.
Policy issue.
-239-
BUDGET UNIT REQUEST SUMMARY
FISCAL YEAR 1984
AGENCY/DEPT. NAME : Public Works Building
BUDGET UNIT TITLE AND NO . : Public Works - County Buildings -- 331944
DEPARTMENT DESCRIPTION: Capital projects for general county use.
The budget unit shown above is broken down into the following activities:
n/a
Actual Last Requested Recommended
RESOURCES Complete Allowed Current Next Next
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Gross County Cost $257,780 $1,252,334 $915,960 $915,960
Fund Balance 42,489 1,031,732 715,960 715,960
Revenue 15,223 14,000 14,000 14,000
Net County Cost $200,068 $ 206,602 $186,000 $186,000
Budget. Positions -_ -- -- -_
SUP1MA1Y 4F CHANGES:
Budget reflects the 1984 funding level of the Proposed Long Range Capital Plan for
1984 -. 1988. The actual plan is on the pages immediately following.
F I NAJVCI;JADMI NI STRATIYE RECOMMFNDAI I ON :
Recommend adoption of the Proposed Long Range Capital Plan for 1984 - 1988. The
only consideration for funding is the 1984 portion of the plan. The remaining years
are policy direction for planning purposes. The plan should be reviewed annually
by the then current Board for appropriate amendments.
It is recommended that the special projects requested be screened and only critical
and cost effective ones be approved. An attached list itemizes them.
-240-
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-241-
P.
IGS FUNDS
INTERNAL SERVICE FUNDS
Internal Service Funds are established to account for goods and services
provided to other departments of the County on a cost-reimbursement basis.
The Motor Vehicle Fund accounts for the revenue and costs generated by
equipment and vehicles rented to the Road and Bridge Fund and to various
departments of other County funds. The gross operating budget amounts to
$2,872,339 in 1984 with $994,685 budgeted for new capital equipment. Road and
Bridge uses $2,297,662 of the total operating budget, or 80.0%.
Printing and Supply provides printing services and the supply and stores
function of the County. The total budget is $122,036 with $20,000 being cost
of supplies. The remaining is the printing functions and the labor for mail
and supply function.
The Data Processing Fund accounts for all computer services provided to the
County and other agencies on a cost-reimbursement basis. The gross budget is
$1,454,678. Staff remains constant at 36 FTE. Salary increases of $94,475
are included to keep parity with the profession in the area. Final
adjustments to the budget may be required after determining the maintenance
and development effort required for each user during the budget hearing
process.
The Insurance Fund accounts for all insurance costs for the County. The
program is a combination of insured risks and protected self—insurance risks.
Gross budget costs are $595,495 in 1984 with a property tax levy of $486,757.
Details of the program are provided under the specifics of the fund summary.
The Health Insurance Fund provides for the costs associated with Weld County
employee's self-insured health fund. The total for expenses and anticipated
revenues is $988,038. Coverage is estimated for 667 employees with 207 having
dependent coverage. Premiums are up 5% at $90.05 for single and $107.60 for
dependent coverage.
-242-
BUDGET UNIT REQUEST SUMMARY
FISCAL YEAR 1984
AGENCY/DEPT. NAME : Is — Motor Pool
BUDGET UNIT TITLE AND NO. : Motor Pool Administration -- 61801
DEPARTMENT DESCRIPTION : Centralized motor pool support for Weld County.
The budget unit shown above is broken down into the following activities:
n/a
Actual Last Requested Recommended
RESOURCES Ccmplete Allowed Current Next Next
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Gross County Cost $2,618,352 $2,887,951 $2,872,339 $2,872,339
Revenue 2,770,043 2,952,824 2,963,889 2,963,889
Net County Cost $ (151,691) $ (64,873) $ (91,550) $ (91,550)
Budget. Positions 23 21 21 21
SUMMARY OF CHANGES :
PM program continues to reduce costs for parts and supplies ($8,703) . Depreciation
is up $59,459 due to new equipment purchases. Motor pool is up $7,780 for pool
cars. No funds are included for water augmentation ($75,000) . Other line items
are stable, such as fuel, tires, etc.
FINANCE/ADMINISTRATIVE RECOMMENDATION :
Polic.y.Issues:
1. Elimination of pool cars ($20,000) and require individuals using them to
drive private vehicles. The cars are not kept clean and safety complaints
have been raised due to lack of anyone feeling responsible for use or care.
2. It is recommended that with the implementation of the automated fleet manage-
ment and inventory system that management studies be done in 1984 to reduce
inventory costs and a determination be made as to the cost effectiveness of
doing certain repair work in the shops. Areas where it is not cost effective
to do in-house should be contracted to outside firms.
3. Policy decision such as whether or not to remain in the gravel mining operations
versus contracting for crushing could impact this budget and reduce costs,
since the crushing operation requires a great deal of time and parts.
4 . Equity transfer of $43,781 from Cenernl Fund to pay I lokestrn lease Is Included:
only $1 remains after 1984.
-243-
BUDGET UNIT REQUEST SUMMARY
FISCAL YEAR 1984
AGENCY/DEPT, NAME : IS - Motor Pool
BUDGET UNIT TITLE AND NO , : Motor Pool Equipment -- 611945
DEPARTMENT DESCRIPTION: Use of funded depreciation to acquire vehicles
for county use.
The budget unit shown above is broken down into the following activities:
n/a
Actual Last Requested Recommended
RESOURCES Ccmplete Allowed Current Next Next
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Gross County Cost $1,157,194 $1 ,077,267 $1,006,685 $ 994,685
Revenue -0- -0- -0- -0-
Net County Cost $1,157,194 $1,077,267 $1,006,685 $ 994,685
Budget. Positions _- -- _- --
LUMMARY OF CHANGES:
See attached list. Recommended budget falls within resource capacity of budget.
The replacement plan is consistent with the policies developed in 1979 and up-
dated annually.
FINANCE/ADMINISTRATIVE RECOMMENDATION :
Recommend approval of all requested equipment listed on the following pages except
Communication van which is not necessary with other emergency vehicles available
and is not consistent with the Board's policy on vehicle assignment. Not
recommended. This has been denied before by the Board in 1982.
Policy of recommended equipment replacement guide on the following pages should be
continued.
-244-
IGA EQUIPMENT
Request Recommended
Shop Equipment
1 One-ton truck $ 14,000
Shop Equipment $ 14,000
19,055 19,055
Buildings and Grounds
1 Tractor w/broom/blade 17,824 17,824
1 Compact pickup 6,000 6,000
1 Used forklift 4,000 4,000
Extension Service
2 One-ton weedspray trucks 20,000 20,000
Building Inspection
1 Compact pickup 6,000 6,000
District Attorney
1 Sedan 7,000 7,000
Communications
1 4 wheel drive 12,000 -0-
Ambulance
1 Ambulance 50,000 50,000
Road and Bridge
See List 850,806 850,806
GRAND TOTAL .L12006,685 $ 994,685
-245-
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BUDGET UNIT REQUEST SUMMARY
FISCAL YEAR 1984
AGENCY/DEPT. NAME : IS - Printing & Supplies
BUDGET UNIT TITLE AND NO. : Printing & Supplies -- 641155 _
DEPARTMENT DESCRIPTION: Provides printing & supply support services to
the County.
The budget unit shown above is broken down into the following activities:
Printing; supply; postage.
Actual Last _
RESOURCES Complete Allowed Current Requested Recommended
Fiscal Year caxt Next
Fiscal Year Fiscal Year Fiscal Year
Gross County Cost $123,231 $107,473
$122,036 $122,036
Revenue 124,248
101,878 122,036 122,036
Net County Cost $ (1,017)
$ 5,595 p_
Budget. Positions 2
2 2.SDVMARY QF CHANGES:
Certain equipment repair cost previously paid out of General Fund have been roved
to this budget. Additionally, the copy revenue of $8,000 has been included in this
budget that was previously used to offset the printing costs in General Fund. The
printing rates are to be modified slightly only to simplify the billing process and
eliminate judgment errors. Budget includes salary adjustments.
FINANCE/ADMINISTRATIVE RECOMMENDATION :
Recommend approval as presented.
This function was reorganized under Word Processing within Finance mid-1983.
Board should reaffirm restructure during the 1984 budget hearings.
Survey and quotes from outside printing firms indicate that our in-house print
shop is cost effective and best handles county needs, such as rush orders.
Recommend continuation of operation.
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BUDGET UNIT REQUEST SUMMARY
FISCAL YEAR 1984
AGENCY/DEPT, NAME : IS - Data Processing
BUDGET UNIT TITLE AND NO. : Data Processing -- 65-1191
DEPARTMENT DESCRIPTION: The data processing center provides data processing
support services to Weld County and a few outside agencies.
The budget unit shown above is broken down into the following activities:
Programming & systems; operations; administration; technical services.
Actual Last Requested Recommended
RESOURCES Complete Allowed Current Next Next
Fiscal Year Fiscal Year _ Fiscal Year Fiscal Year_
Gross County Cost $1,501,322 $1,364,382 $1,454,678 $1,454,678
Revenue 1,501 ,322 1,364,382 1,454,678 1,454,678
Net County Cost
Budget. Positions 42 36 36 36
alklbAftY OF CHANGES : Proposed salary increases of $94,475 are included in the
budget amount. Supplies are down $9,394, purchased services are down $19,
and with the buy-out of equipment, equipment rental is down $35,434. Computer
equipment is budgeted at $122,009, up $24,014.
FINANCE/ADMINISTRATIVE RECOMMENDATION :
Recommend final approval based upon level of maintenance and new development
approved by Weld County.
A special work session for 1984 data processing project requests and funding is
scheduled during the budget hearing process.
Recommend using excess fund balance to purchase equipment to reduce future costs.
Funds are included to upgrade the main IBM 4341 computer to a Model 12 from the
current Model 2. During 1984 staff and the Board will need to address the future
hardware capacity of the computer center. As more and more cost effective systems
are added and growth in utilization increases, the capacity of the current IBM 4341
system is being taxed. The system in 1984 needs to plan to migrate from the current
DOS/VSE environment to a MVS operating system. This should prepare Weld County
(OVER)
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BUDGET UNIT REQUEST SUMMARY (Continued)
Data Processing -- 65-1191
FINANCE/ADMINISTRATIVE RECOMMENDATION:
to move to an upgraded higher capacity computer in 1985. The planning, studying
of options, and fiscal impact on the 1985 budget needs to take place in 1984.
The following equipment purchases are recommended:
IBM - Model Group 12 Upgrade $30,000
Displaywriter Memory Upgrade (Chartpack) 1,031
XT Personal Computer 10,905
1 Displaywriter (2 CRT's and 1 PRT) Sheriff 16,500
1 Displaywriter (2 CRT's and 1 PRT) Health 16,500
10 3178 CRT's @ $1,720/each 17,200
2 3287 Printers @ $5,466/each 10,932
Displaywriter Connect to 4341 (DA)
$1,442 + $550 2,002
Displaywriter Connect to 4341 (HRD)
$1,442 + $550 2,002
Other Hardware 14,938
*Adjustments could be required in this account after the October budget
meeting on data processing requests.
With Computer Services assuming the functional responsibility for Word Processing
all Word Processing equipment has been budgeted in this budget unit.
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BUDGET UNIT REQUEST SUMMARY
FISCAL YEAR 1984
AGENCY/DEPT . NAME : IS - Insurance
BUDGET UNIT TITLE AND NO . : Insurance Fund -- 669020
DEPARTMENT DESCRIPTION : Central fund to provide county wide insurance
coverage. Administered by Finance and Administration budget unit in the Ceneral
Fund.
The budget unit shown above is broken down into the following activities:
n/a
Actual Last Requested Recommended
RESOURCES Complete Allowed Current Next Next
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Gross County Cost $512,610 $580,228 $595,495 $595,49
Revenue 487,948 580,228 595,495 595,495
Net County Cost $(24,662) -0- -0-
Budget. Positions -- -- --
SUMMARY OF CHANGES :
Loss fund remains at $300,000 and estimated claims are budgeted at the full amount.
Professional services for claim adjustments and administration are budgeted at a
7% increase ($68,025) , excess premiums are budgeted with a 7% increase or $167,400.
Other miscellaneous items are constant for 1984 except added funds for safety
training ($3,700) and membership in the Colorado Safety Council($1,000) . Unemploy-
ment costs have been reduced to $50,000. County costs have increased $24,179 or 5%.
FINANCE/ADMINISTRATIVE RECOMMENDATION :
Recommend approval of continuation of self-insurance program as depicted on the
following page. In accordance with Section 8--44-110, CRS, 1973, it is recommended
that a mill levy be used to fund the self-insurance program for local County
activities and only a chargeback mechanism be used for programs funded by State
and Federal funding sources.
All losses are fully reserved in this fund.
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9. Excess 10. Excess
Specific Worker's
Property Compensation
$7,000,000 $5,000,000
5. Public 7. Excess Centennial Occurrence
Official Liability Center and and
and Law Enforcement Aggregate
Employees Center
Liability
$4,000,000
Occurrence 8. Excess
and Property
$5,000,000 Aggregate
Each Loss CSL
and
Aggregate
Note:
Standard Form $5,500,000
does not follow Any One
Package Layer Occurrence
4. Excess 6. Excess
Liability
Note:
$200,000
Checks S.I.R. $750,000
Occurrence
$1,000,000 and
Aggregate
CSL
3. Package Layer - Excess Limits
A. Property - $400,000 Occurrence
B. Liability - $150,000 Occurrence CSL
C. Errors and Omissions -- $100,000 Aggregate
D. Flood - $150,000 Aggregate
E. Worker's Compensation - $100,000 Occurrence
sub limits - see below -
xcess I 1. Loss Fund - s300,000
agregate I Self Insured Retention - $100,000 Occurrence
Sub Limits
100,000 A. Employee Dishonesty - $100,000 per loss
B. Money & Securities - $100,000 per loss
Board of County Commissioners of Weld County, CO
1984 - Protected Self Insurance
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BUDGET UNIT REQUEST SUMMARY
FISCAL YEAR 1984
AGENCY/DEPT. NAME : IS - Health Insurance
BUDGET UNIT TITLE AND NO . : Health Insurance Fund (83)
DEPARTMENT DESCRIPTION : Provides for the costs associated with Weld County' s
self-insured health program.
The budget unit shown above is broken down into the following activities:
Actual Last Requested Recommended
RESOURCES Complete Allowed Current Next Next
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Gross County Cost $1,068,163 $988,038 $988,038
Revenue 1,068,163 988,038 988,038
Net County Cost -0- -0- -0-
Budget. Positions -- -- --
SUMMARY OF CHANGES: Budget reflects the following changes:
1983 1984
Administration $38,363 $39, 140
Printing & Supplies -0- 1,000
Aggregate Excess Policy 19,336 18,089
Individual Excess Policy 19,850 26,013
Loss Fund 990,614 903,796
TOTAL: $1,068,163 $988,038 (OVER)
FINANCE/ADMINISTRATIVE RECOMMENDATION :
Recommend approval of the continuation of the self-insurance health program
started January 1, 1983 with the rates as depicted below for 1984. No program
changes are recommended in the summary of benefits provided on the following pages.
The program thus far has been successful in achieving the objects of changing
utilizations patterns and cost containment through sharing of costs between
employer and employee in the areas of premiums, deductibles, and co-insurance.
1083 ending reserves should be $300,000 thus allowing only a 5% premium increase.
(OVER)
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BUDGET UNIT REQUEST SUMMARY (CONTINUED)
Health Insurance Fund (83)
SUMMARY OF CHANGES:
1983 budget was based on 713 participants versus 667 in 1984. Program requires
only a 5% premium increase.
FINANCE/ADMINISTRATIVE RECOMMENDATION:
The 1984 program is calculated with current participation as follows::
Single Coverage: 667 Dependent Coverage: 207
Annual
Administration Fee 667 X $4.89/month = $ 39,140
Individual Stop-Loss 667 X $3.25/month = 26,013
Aggregate Stop-Loss 667 X $2.26/month = 18,089
Administrative Operating 1,000
Fixed Costs $ 84,242
Loss Fund 903,796
TOTAL $988,038
REVENUE:
Single 667 X $90.05/month = $720,760
Dependent 207 X $107.60/month = 267,278
TOTAL $988,038
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1984
HEALTH INSURANCE FUND BUDGET
83-9020
EXPENSES
6210 Office Supplies and Materials 1,000
6320 Print/Duplicate 1,000
6338 Other Publicity Subscrib & Dues -0-
6350 Professional. Services 36,363
6510-HLTH Insurance - Health 39, 186
6740-HLTH Losses 990,614
6599 Clearing -0-
TOTAL EXPENSES $1,068,163
REVENUES
3418 Charges for Services $1,068, 163
TOTAL REVENUE $1 ,068,163
6740-LIFE (Reserve) 42,000
Pool:
Aggregate Excess 713 x $2.26 x 12 = $19,336.56
Individual Excess 713 x $2.32 x 12 = 19,849.92
Admin/Consultation 713 x $4.25 x 12 = 36,363.00 + $2,000
startup
Individual Stop Loss $50,000
Aggregate $990,614
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INSURANCE
1983 1984 Self-Insured
SINGLE $85.76 $90.05 (5%)
FAMILY 102.48 107.60 (18%)
PROGRAM:
SINGLE $100 DEDUCTION - 20%/80% TO $2,000 THEN 100%
FAMILY $200 DEDUCTION - 207/80% TO $4,000 THEN 100%
CONCEPT:
SHARING COST (PREMIUMS/DEDUCTIBLE/CO-INSURANCE)
CHANGE UTILIZATION PATTERNS
COST CONTAINMENT
LIFE:
7,000 @ 39c/$1 ,000 = $2. 73/MONTH
12,000 @ 39C/$1,000 = $4.68/MONTH
1983 1983
OVER 5 YEARS 1984 UNDER 5 YEARS 1984
SINGLE EMPLOYEE:
HEALTH $ 85. 76 $ 90.05 $ 85.76 $ 90.05
LIFE 4.68 4.68 2.73 2.73
SUB-TOTAL. 90.44 94.73 88.49 92.78
COUNTY CONTRIBUTION (74.44) (78.73) (72.49) (76. 78)
EMPLOYEE SHARE $ 16.00 $ 16.00 (0%) $ 16.00 $ 16.00 (0%)
DEPENDENT INSURANCE $102.48 $107.60 (5%) $102.48 $107.60 (5%)
$118.48 $123.60 (4.3%) $118.48 $123.60 (4. 3%)
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SUMMARY OF BENEFITS
FOR EMPLOYEES AND DEPENDENTS
Supplemental Accident Benefit: 100% of the first $500.00 per accident ,
per person, not subject to the $100.00
deductible.
Pre-Admission Testing: Covered at 100% of Usual, Reasonable
and Customary medically necessary
expenses.
Birthing Centers: Covered at 100% of Usual, Reasonable
and Customary medically necessary
expenses..
Major Medical Benefit:
Maximum Lifetime Benefit: $1,000,000 each Covered Person.
Deductible: $100.00 per person each Calendar Year,
not to exceed $200.00 combined
(aggregate) per family each Calendar
Year.
NOTE: The Family Deductible may be
comprised of any combination of
eligible medical expenses among covered
family members.
Co-Insurance: After the deductible has been met, 80%
of the next $2,000 (80% of $4,000 per
family) , and 100% thereafter of Covered
Expenses will be paid per Covered
Person each Calendar Year, but not to
exceed the maximum lifetime benefit.
Rooma nd board charges shall not exceed
the semi-private, ICU and CCU room
rates. All charges are subject to the
"General Limitations" of this plan.
In-Hospital "Well Baby" Benefit: Hospital Nursery charges and one
Physician vist covered as any other
illness subject to the deductible and
co-insurance.
Out-patient Pediatric "Well Baby"
Benefit : Pediatric well baby care is available
until the child's second birthday;
limited to a maximum of $90 per
dependent child per Calendar Year.
This "well baby" care includes lab and
X-ray services. Routine immunizations
are available until the child's second
-256-
birthday, not limited to the Calendar
Year maximum.
Treatment of Alcoholism, Drug Abuse,
Nervous and Mental Illness:
In-Hospital : 45 days maximum per Calendar Year.
NOTE: Partial hospitalization -- the
lesser of 1) the number of days of
patient hospitalization, or 2) 90 days
in any Calendar Year. (Each two
partial days will count as one full
hospital day.)
Out-patient: 50% of each visit, not to exceed usual,
reasonable and customary, up to a
maximum payment of $1,250.00 per
Calendar Year.
The eligible charges for out-patient
services are the reasonable charges for
the care and treatment of mental ,
psycho-neuroticand personality
disorders furnished 1) by a hospital
(other than in-patient or partial
hospitalization services) ; 2) by a
Physician; 3) under the direct
supervision of a Physician by a
comprehensive health care service
corporation, a community mental health
center, or other mental health clinic,
which is licensed or approved to
furnish mental health services by the
state where rendered; or 4) by a social
worker registered or licensed by the
state where rendered, if furnished
under the direct supervision of a
Physician.
Chiropractic: $30.00 maximum consideration per visit.
$500.00 maximum payment per Calendar
Year. $5,000.00 maximum payment per
lifetime for each Covered Person.
Covered Expenses (Up to Usual,
Customary and Reasonable) Examples
A. Doctor's services.
B. Prescription drugs.
C. Blood and blood plasma.
D. Ambulance service.
E. Artificial limbs.
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F. Rental of wheel chairs, braces,
crutches, etc.
G. Physical therapy and out-patient
oxygen therapy.
H. Intensive care unit room charges.
I. Emergency room services.
J. Hospital room and board.
NOTE: This is a partial listing of
covered major medical expenses. Items
specifically excluded are shown
elsewhere in the Plan.
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