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MEMORANDUM DATE: March 18,1998 C~-- FROM: Ken Roudybush, County Administrator TO: Marion County Commissioners RE: Impacts on County Budgets of Courthouse Square Project My office has worked closely with the county General Services Department to calculate the additional rental costs of moving county departments to the anticipated Courthouse Square building (please see Attachment A ). Our analysis indicates that at $1.30 per SF, the general fund will incur an additional $235,569 in annual rental costs as a result of moving to Courthouse Square. My study did not include costs appearing in the Melvin Mark Company pro-forma; i.e., moving expenses. This represents a worst case scenario. Our project development team believes that it may yet reduce the square footage costs to an amount less than $1.30 per SF. Under these conditions, the non-general fund departments will incur an additional $395,757 in rental costs. Assuminb that the Courthouse Square project continues, the building will be ready for occupation in FY 2000/2~01. Therefore, additional costs to both general and non-general funds will not be incurred until the 2000/2001 fiscal year. As the county's budget officer, I have reviewed the county's total revenues and I am in the process of reviewing county expenditures for the upcoming fiscal years as shown in Attachment B. I have charted the expenses and revenues of the county's FY 96/97 and FY97/98 budgets, and show the FY 98/99 expected revenues. Please note that the projected `Budgeted StafP and `Budgeted $' column (shaded) for FY98/99 is a duplication of the prior fiscal"year. My example is merely to illustrate all of the different departments and category funding levels which will need to be negotiated through the budget process. Some departments and some non- departmental categories may not change, others may increase and some may decrease. The final budget for FY98199 cannot be stated until the budget is adopted by the Board of Commissioners in June of 1998. I have illustrated past significant budget reductions which the county has weathered, including the impact of Ballot Measure 5 and Ballot Measure 50, which resulted in losses of $2,655,000 and $5,446,262 respectively. These losses primarily impacted the Marion County general fund. ~ To overcome these financial challenges, we balanced our budgets through a process of group collaboration, strategies and decision making.