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Special Meeting Minutes Wednesday, January 17, 2018 Board Members 10:30am Steve Chucri, Chairman, District 2 Bill Gates,Vice Chairman District 3 BOARD OF SUPERVISORS Denny Barney, District 1 Maricopa County, Arizona Clint Hickman, District 4 (and the Boards of Directors of the Flood Control Steve Gallardo, District 5 District, Library District, Stadium District, Improvement Districts, Housing Authority of Maricopa County, Housing Authority of Maricopa County and/or Board of County Manager Deposit) Joy Rich Clerk of the Board "The mission of Maricopa County is to Fran McCarroll provide regional leadership and fiscally responsible, necessary public services Meeting Location to its residents so they can enjoy living Supervisors'/Sullivan Conference Room in healthy and safe communities” 301 W. Jefferson, 10th Floor Phoenix, AZ 85003 BOARD OF SUPERVISORS The Board of Supervisors of Maricopa County, Phoenix, Arizona, convened in Special Session at 10:30 AM on Wednesday, January 17, 2018, in the Supervisors' Conference Room 301 W. Jefferson, 10th Floor Phoenix, AZ 85003, with the following members present: Steve Chucri, Chairman, District 2; Bill Gates, Vice Chairman, District 3; Denny Barney, Supervisor, District 1; Clint Hickman, Supervisor, District 4; Steve Gallardo, Supervisor, District 5. Also present: Fran McCarroll, Clerk of the Board; Amy Goodloe, Minutes Coordinator; Joy Rich, County Manager; and Andrea Cummings, Legal Counsel. OTHER OFFICE - DEPARTMENT 1. PRESENTATION REGARDING THE FY 2019 BUDGET Presentation regarding the FY 2019 Budget from Elected Officials. (C-06-18-231-P-00) Maricopa County Sheriff’s Office Paul Penzone, Sheriff Stephanie Cherny, Chief of Staff Russ Skinner, Acting Chief Deputy Sheriff Maricopa County School Superintendent’s Office Steve Watson, School Superintendent Marc Kuffner, Assistant Superintendent for Economic Management Maricopa County Treasurer’s Office Royce Flora, Treasurer Russell Pearce, Chief Deputy Richard Greene, Deputy Treasurer Maricopa County Constable’s Office Kevin Jones, Presiding Constable Kenneth Sumner, Constable Tim Moder, Constables’ Administration Special Meeting Minutes Wednesday, January 17, 2018 Page 2 of 12 Sheriff’s Office 2017 Budget Presentation Paul Penzone, Maricopa County Sheriff, introduced Russ Skinner, Acting Chief Deputy and Stephanie Cherny, Chief of Staff. He stated his number one objective a year ago was to spend the next year reviewing the organization to determine were they can find efficiencies and necessary cuts, and reinvest in the organization to become fundamentally sound. MCSO Detention-Related Funds Completed zero-based budget which means there are no above base requests Returned $3 million to the County Contingency fund Utilized $4.3 million from Tent City Closure Mr. Penzone explained the positions listed in the chart were created or upgraded due to having extra revenue from closing Tent City. He recently reinstated the special response team (SRT) and these individuals respond when violence occurs. The team had been reduced to save cost. Supervisor Hickman asked when the SRT team was eliminated. Mr. Penzone responded in 2016 the SRT was eliminated due to budget cuts. In order to comply with the Prison Rape Elimination Act requirements, three additional officers were added to assist with supervision. He mentioned the need for tasers and this will be a reoccurring cost. Supervisor Gates asked if the FY18 budget is on track to save $4.3 million. Mr. Penzone responded that the budget is on track. MCSO Inmate Services Fund Increased canteen sales offer more revenue and expenditures Used fund balance of $66 thousand to acquire: Washing and vending machines at Work Furlough/Work Release locations to replace aging equipment Van for canteen Special Meeting Minutes Wednesday, January 17, 2018 Page 3 of 12 MCSO General Fund Base & Compliance FY17 close, returned $4.2 million from the General Fund- $2.4 million operating, $1.8 million compliance First half of 2017 had a 50% increase in overall Melendres compliance Supervisor Hickman asked if the numbers came from the Monitor. Mr. Penzone responded that the numbers are from the Monitor. Chairman Chucri noted that the Board stands with the Sherriff’s office to make sure that they are in compliance and the compliance is noted. MCSO General Fund Requests Mr. Penzone discussed all the requested general fund items. Supervisor Hickman asked if RICO funds may be able to handle some of these expenses. Mr. Penzone responded that RICO monies are down and may not be able to cover some of the requests. He stated that seizures are down which could be the cause of the decrease to RICO funds. Special Meeting Minutes Wednesday, January 17, 2018 Page 4 of 12 MCSO Compliance Requests Mr. Penzone explained that body cameras will be coming to the Board to renew and extend the contract. Supervisor Hickman asked if there were more competitors from which to purchase body cameras. Mr. Penzone responded that it could be an option in the future. Chairman Chucri questioned how off-duty body camera footage is handled. Mr. Penzone responded that they have someone in charge of auditing off-duty practices and are able to log any and all County equipment. 20-Year Cumulative Earnings Mr. Penzone explained that there must be competitive wages in order to recruit and maintain employees. He provided information about salaries in a number of cities and towns. MCSO Deputy Pay Over Time At most agencies, deputies/officers reach maximum after six to eight years MCSO deputies reach maximum at 20 years. As a result, our deputies are paid approximately 13% below market 12-Year Step Plan The Sheriff recommended a step plan which would raise deputies’ salaries more quickly in order to be more competitive. First year salary implementation costs for the plan is approximately $4.5 million The costs will diminish over time as deputy pay is equalized Special Meeting Minutes Wednesday, January 17, 2018 Page 5 of 12 Five-Year Projection and 12-Year Step Plan Mr. Penzone stated the department will not be based on number of tickets but based on the quality of work. The idea is to implement a Merit System that allows quality work. MCSO Efficiencies Mr. Penzone explained the different areas where the Sheriff’s office was able to realize savings. Total Budget Requests Mr. Penzone stated the $10,521,640 million is only the starting place. Reviews will be done to determine how much can be absorbed in the current budget and what will be needed outside of the budget. Chairman Chucri thanked the Sheriff for his presentation. Special Meeting Minutes Wednesday, January 17, 2018 Page 6 of 12 Maricopa County School Superintendent’s Office Budget Presentation Marc Kuffner, Assistant Superintendent for Economic Management, explained their goal is shifting to provide support to teachers more than administration. Focusing efforts on: Teacher Supports STEM Pro Live (puts professionals in the classroom) Solve it STEM 360 (Students are transported to the location to learn) Communications and Social Media Data Collection and Dissemination Reducing Efforts on: Professional Development English Language Assistance Math Administrator and Leader Opportunity Youth (ASU is the lead agency) Youth Education Engagement Services (YEES) Service Highlights Nov 2017- All bond and overrides passed (750 million in bonds) Communications to over 40,000 teachers Cadre of 240 teachers providing feedback and helping shape policy decisions School Finance 561,847 processed transactions ($1.3 billion expenses) $11.4 million in garnishment pay warrants $1.5 billion in school district revenues processed Mr. Kuffner explained that Steve Watson, Maricopa County School Superintendent, meets with over 200 teachers to discuss and shape policy decisions. FY 2017-2018 Fiscal Recap General Fund ($2.765 million) Special Revenue ($2.2 million) Grant Fund ($33 million) 114 full time employees FY 2018-2019 Budget General Fund: FY2019 will remain at current level of $2.765 million Special Revenue Funds: Revenues and expenditure are decreasing Focus shift 8 full time positions were reduced through a phase out of the Professional Development program Special Meeting Minutes Wednesday, January 17, 2018 Page 7 of 12 Grant Fund I-13/Opportunity Youth grants expired 2015 Teacher Incentive Fund ends in FY2021 and may ask for a no cost extension through 2022 Detention Fund 3rd year of pilot for Youth Education Engagement Services (YEES). This program helps to reduce recidivism FY2018 Budget is $650 thousand ($398 thousand is Forest Fee carry forward) The results are favorable and the Mentor Scale is working so it would be best to increase the fund. The teachers are offered supportive school training and it’s a one-time funding for a two year project at $875 thousand. The teachers are learning how to help children from a troubled situation and avoid transferring them to detention. The program is in 1/3 of the schools and funding for two more years could assist the other 2/3 of schools. Financial Software Maintenance was reduced in 2009 and then eliminated as a budget saving issue. There are three renewal options that include: 3 month carry to FY 2020 budget year with a cost of $80 thousand 5 year one-time payment for $1.8 million Return to operating budget for $390 thousand FY 2018-2019 Budget Summary General Fund $2.765 million Special Revenue $1.7 million Grant Fund $13 million 90 full time employees The total for all funds is $19.16 million and that does not include software maintenance. FY 2018-2019 Budget Maintains Office of Enterprise and Technology partnership Maintains Communications staff Invests in Data Collection and Research Forest Fee Revenue is still unknown Lease will run through 2023 FY2019 Budget Considerations Investment in Technology for a mobile and connected workforce -Apps -Device Use and Types Continue IT infrastructure projects to support service delivery Performance-Based Compensation for employees Look for cross departmental program efforts that optimize service delivery -MCAO, Air Quality, Environmental Services, Public Health, Flood Control, MCDOT, Library District and others all impact schools and teachers Mr. Kuffner mentioned that citizens are asking for mobile applications for the county systems. He noted that OET is working on getting Apple computers and are close to receiving them. It is an item that the teachers utilize. He stated that he hopes the Board will continue performance-based compensation for employees. Chairman Chucri thanked the Superintendent and his staff for the presentation and noted it was a responsible budget. Special Meeting Minutes Wednesday, January 17, 2018 Page 8 of 12 Maricopa County Treasurer’s Office Presentation Royce Flora, Treasurer, mentioned there will not be an increase in the budget request. Russell Pearce, Chief Deputy Treasurer, stated the Treasurer’s Office has done a lot with a little but will make that effort for one more year in order to maximize the budget. He thanked the Board for their vision of moving government faster. Investment Portfolio Earnings (MM) Richard Greene, Deputy Treasurer, explained they are starting to see interest rates increase. The current Fed rate is 1.4% and is projected to reach 2% in 2019. Supervisor Barney asked if the investment strategy had been changed. Mr. Flora responded there has been no change in investment policy, but there have been changes in investment strategy and there was a change in the Federal Government Regulation Agency which has allowed them to earn more money. Mr. Pearce noted that the projection is a 300% increase which is a 55 point base increase. This is a significant climb and would be helpful to quantify the information. Mr. Pearce stated the extra money will go back to the schools to use. Supervisor Gates asked the distribution of property tax monies. Mr. Flora responded that the largest percentage goes to schools. Special Meeting Minutes Wednesday, January 17, 2018 Page 9 of 12 General Fund Revenues Compared to Appropriation (MM) Mr. Green explained the chart and noted the comparisons of the operating budget relative to general fees and fines, and the investment earnings. 2016 Property Tax Distributions (MM) Tax Percent Distributions: 57.87% Schools 12.62% County 11.42% Community College 11.21% Cities 6.88% Other Supervisor Barney noted the special districts are included in the County’s percent. Research Request Volume Every lien redemption must be verified pursuant to ARS 42-18151 Population growth Increased real estate activity Supervisor Barney noted that the Treasurer’s Office is focused on technology but wanted to know how this compares to the decrease in the number of full time employees from 65 to 57. Mr. Flora responded that the employees are managing but are working multiple jobs at once. He stated the technology will help reduce the need for additional hiring. New Activities, More Workload Extensive research to clear a total of 7,663 tax records totaling $2.9 million of mobile homes and equipment that cannot be located pursuant to ARS 42-19118. 115 tax deeded land sales to clear orphan parcels off the tax rolls and protect property Special Meeting Minutes Wednesday, January 17, 2018 Page 10 of 12 owners’ rights Mr. Pearce explained that people who own older mobile homes can receive a one-time registration and no longer have to renew every year. Liens Decoupled (SB 1135) Taxpayer can pay the oldest single lien instead of cumulative liens Partial payments for a single year for tax liens This was effective January 1, 2016. Lien sales dropped from 16% to the Bid rate per HB2653. Taxpayer Focused Initiatives Redesigned tax bills to include phone numbers for each taxing jurisdiction The use of a new tax comparison tool: 1,2,3s of Who’s Taxing My Property Sponsoring legislation to create new class to cut elderly homeowners taxes by half Chairman Chucri questioned the reason of why people would not pay their taxes. Mr. Royce responded that there is not enough data to reach a conclusion. He stated the recession may have been part of the reason. Mr. Green stated the assistance programs have helped to decrease the number of liens foreclosed. Mr. Barney noted the combination of the programs’ assistance and the market will help keep the foreclosures down. Mr. Pearce pointed out that from 2009 through 2015 there was a 1300% increase in foreclosures. He noted Senate Bill 1135 helped property owners to maintain ownership of their home. E-Notice Subscriber Growth Mr. Greene explained that property owners are receiving a tax bill by e-notices instead of receiving their bill in the mail. He noted that 41,000 property owners receive e-notices. Mr. Greene stated they reached a milestone with more individuals using the Chase Branch to make payments. The Chase services are offered at no expense to the County or property owners. Mr. Greene wanted to acknowledge that the Treasurer’s office received an Arizona Association of Counties Award for Customer First Initiative and a National Association of Counties Award (NACo) for Credit Line Grace Period. Mailing Budget Reliance on technology has led to cost and time savings Undeliverable rate decreased from 12% to less than 2% Estimated mailing budget savings for FY18 are substantial Mr. Greene noted that 170,000 pieces of mail were not sent. Budget Request Mr. Greene explained that eliminating the line item appropriation for the mailing budget would allow the Treasurer freedom to invest savings generated from innovation and policy changes in staff and other strategic initiatives. Supervisor Hickman asked if the expectation for a savings is to be returned to the general fund. Mr. Flora stated he asked for the line item restriction to track the amount spent. He mentioned some of the employees’ salaries are paid out of the project budget. He wanted the budget to stay in structural budget and thought the mail budget could help with this goal. He stated the estimated amount of money to be returned this year is $300,000. Special Meeting Minutes Wednesday, January 17, 2018 Page 11 of 12 Maricopa County Constable’s Office Presentation Review of Calendar Year 2017 Writ of restitution evictions went up 9% from previous year: 28,236 Orders of Protection went up 15% from previous year: 24,380 Order to show cause went up 56%: 1,849 The warrant program totaled $266,890 of money brought into Maricopa County. Kevin Jones, Presiding Constable, explained that statute requires the Constables to develop standardized daily logs to balance workload. In January of last year they created new standardized logs and accounted for 28,236 total cases served or attempted. Supervisor Barney asked what the average amount of time spent on a writ restitution. Tim Moder, Constables’ Administrator, explained that currently there is no requirement regarding time in the log. The only requirement on the log is a date. Mr. Jones responded that the time can vary depending on the situation. Supervisor Barney noted that it would be helpful to know the average and does recognized the ranges of different situation. Supervisor Barney wanted to clarify if 2 of the 6 deputies work in the warrant program. Mr. Moder responded that 6 deputies work on civil and 2 deputies work in the warrant program. Supervisor Gates asked why there was an increase in evictions. Kenneth Summer, Associate Presiding Constable, explained there is an increase due to housing cost increasing. Mr. Jones responded as the economy goes up the writs of restitution actually increase. FY 2018 Service fees are $46,000 over budget through December 2017 The Constable Ethics, Standard and Training Board has funded 2 grants this year: Training Grant is $46,649 Equipment Grant is $12,106 Chairman Chucri asked if there is a correlation between the $46,000 service fees and evictions. Mr. Moder responded that it is due to the increase in workloads. He explained that having a presiding constable has been a good decision and allowed them to oversee the other constables. FY 2019 Election Year FY 2019 is an election year and 13 precincts are included in the election cycle. Anticipate two Constables retiring at the end of current term of December 2018 * Kevin Jones/San Marcos Precinct * Alfredo Gamez/ Agua Fria Precinct FY 2019 Budget Personal Services were up 91% due to the help with Maricopa County Budget Office, MCBO determining current deputy staffing is correct. Service and supplies is at 8.7% Equipment and Training is at 0.3% Supervisor Hickman noted when he first joined the Board there were many issues surrounding the constables. He wanted to know if the training with the Constable Ethic Board helped to decrease issues. Mr. Sumner stated that Mr. Jones made sure the new constables had all the resources they needed and they did receive numerous days of shadowing another constable to learn. He stated it has been a tremendous help. The Board thanked the constables for their hard work. Special Meeting Minutes Wednesday, January 17, 2018 Page 12 of 12 MEETING ADJOURNED There being no further business to come before the Board, the meeting was adjourned. _____________________________ Steve Chucri, Chairman of the Board ATTEST: ____________________________ Fran McCarroll, Clerk of the Board