Presentation and Discussion on the 2017 Budget.

Mr. Sergio Cruz noted some changes to the summary that was reviewed last meeting. Pointing out that the due to the certification of the tax roll, done by the Appraisal District, the estimate revenues changed increasing to $191,300,000 
Previously using the estimated certified values provided in April, at 3.8% evaluation increase. The certified values increased about 5%. Mr. Cruz stated that these are their projections and expect similar certification from the Auditor's Office. 

Mr. Cruz objective was to receive concurrence by Commissioners Court for the Cost of Living Adjustment (COLA). Advising that as of right now, no cost of living is recommended. Regarding the consumer price index and the cost of living adjustment,  from 2007 to 2016 the increase to the consumer index has been 17.184%. Nonetheless, the county has provided a cost of living adjustment of up to 15% at at an estimated lag of -2.184%. Mr. Cruz emphasized that the county has been able to keep up with the cost of living adjustments. Once again requesting the court to not consider any cost of living adjustments for the next fiscal year. He ensured that they'll keep an eye on the lag for future years. 

Additionally, Mr. Cruz reminded the court that currently they're looking into implementing Step and Grade Pay Plan, and prefers to use those monies for merit pay. 

Commissioner Palacios voiced his desire to see more efforts regarding living wage, as well as the off set for the health insurance cost. He acknowledged the possible increase to the health insurance for employees, and stated these issues to be his main priority. 

On the other hand, Commissioner Flores questioned any further information regarding any cost of living adjustment. With regards, Mr. Cruz pointed out that on page 3 of the backup, they exposed scenarios for COLA increases from 2%, 2.5% to 3%. If court was to consider 2%, they'll be looking at $2.1 million dollars of the general fund, plus road and bridge for another $282,000 for a grand total COLA of about $2.5 million dollars. 

Commissioner Cantu advised his position to be the same as that of Commissioner Palacios. However, the commissioner expressed intentions to see COLA  be considered for next year. Mr. Cruz explained to the commissioner that with the Step and Grade, they'll allocate funding for merit increases. 

Mr. Cruz informed that they'll need to provide notices to the elected officials regarding their salaries for next fiscal year. All salaries will stay the same for the exception of Constable Pct.2, due to the allowances for certification pay. Mr. Cruz requested action by the court to provide notices to all elected officials regarding their salaries, and to keep same salaries from last year. 

Regarding the provided COLA, offered last year, Commissioner Palacios commented that due to some irregular acceptance by several elected officials, this created an uneven parity as to the salary of others. Thus, asking if court could even consider leveling the rest of the eelcted officials to have parity amongst. Mr. Cruz acknowledged that some elected officials chose to accept it however, for those who did not sent out notices the increase was implemented. Mr. Cruz informed the court that they could chose to approve what was adopted last year, those elected officials that didn't accept their COLA could grieve on it or the court could chose to place everybody on parity. 

Judge Garcia stated their consensus to consider the parity argument. Mr. Cruz noted that the parity would be for Justice of the Peace Judges and Constables. Commissioner Palacios articulated that there was no parity issues amongst the court members since none of them took it. Mr. Cruz restated that they'll be providing parity for those selected and will provide notice tomorrow for those elected officials and provide them with time for any grievances. 

Judge Garcia recognized the same concerns voiced by Commissioner Palacios and Commissioner Cantu regarding the lowest paid employees. Mr. Cruz informed that working with Mr. Raul Silguero they determined a living wage analysis for county employees. They considered $15.00 for minimum wage however, reducing the health insurance paid by the county for all employees. Once reduced, they ended up with a $12.00 living wage for all county employees. Currently 128 county employees are under the living wage of $12.00 per hour. The proposed budgeted salaries would be about $3 million dollars. If they were to increase everyone to $12.00 per hour, it will be an estimate of about $3.2 million dollars, also considering fringe benefits for $218,457. Commissioner Palacios stated that the court concurred with the minimum living wage of $12.00 per hour. Mr. Cruz informed that they'll include the consideration into the budget. 

Mr. Cruz informed that the county does have a pay plan for law enforcement and jail. Basically, the plan calls for annual increases depending on years of service and position. Mr. Cruz mentioned that last year they amended the pay plan for sheriff and constables. Likewise, the jail plan was adjusted by 3% COLA. He informed that as of now, they all qualify for a step increase, other than those recently hired. The estimate for the step increase is about $1.1 million dollars. Mr. Cruz recommended another step increase for this fiscal year, and then look at it again next year. 

Regarding the health premiums, 13 bids have been placed for the health network. Mr. Cruz explained that the numbers presented today are based on the actuarial study conducted by a firm. According to Mr. Cruz, the firm recommended to increase the premiums. He explained that the Basic Plan is subsidizing the Buy-Up Plan due to the claims. Further, the firm is also recommending increases to the spouse plan under the Tier subsidization. Regarding retirees, they'll be doing an actuarial study to find out what the cost will be. He specified that there was an increase on liability therefore, providing 100% will increase that same liability even more. Mr. Cruz noted to Commissioner Flores, that the State pays for retirees and other counties do as well.

Mr. Cruz explained that the total by object of expense will be review later due to some submitted requests. He informed that so far, there's about $1.8 million dollars in requests for new positions. They'll be working with Human Resources to bring recommendations to the court. 

Court Recessed Budget Workshop and Convene Drainage District #1 Meeting at 9:52 a.m.

Court Reconvene Budget Workshop at 9:52 a.m.

Lastly, Mr. Cruz informed that they'll be sending notices to the elected officials regarding salaries. With reference to the personnel requests, they'll provide better detail information for the court's decision. 

Regarding the health insurance cost, Commissioner Palacios questioned Mr. Cruz as to other alternatives for employees that are having more claims versus employees who hardly use the plan, as it is not very objective to just increase all costs across the board. Mr. Cruz suggested that they could apply penalties on certain groups. The commissioner clear that he is not looking into penalties, but hopes to be more aggressive as to those who use the plan more aggressively. Mr. Cruz advised the commissioner that he would be meeting with Mr. Looney as to finding options. In relation to the same subject, Commissioner Cantu suggested to instead of penalizing for constant usage, to discount or award those who don't use it as much. 

Mr. Cruz assured Commissioner Palacios they'll be discussing Road and Bridge, and other items as soon as they have the other certified numbers.

Court proceeded to Reconvene Drainage District.