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Home My WebLink AboutCBC 012017 MinutesCITIZENS’ BUDGET COMMITTEE Meeting Date July 15, 2016 Conference Room 3 MEMBERS PRESENT: Dan Kurek Richard Pancoast William Donovan Barry Mucklow Jerry Buechler Gwen Morris Steven Weaver Carl Hensley Patrick Campion Clarence Kearney MEMBERS ABSENT: Jay L. McBee Craig Mundt Ed Lounds John Culverhouse OTHERS PRESENT: Howard Tipton Mark Satterlee Asheley Hepburn Jennifer Hill Gee Chow Doug Barber Don West Bob Adolphe Betty Jackson Beth Ryder George Landry Ed Matthews Laurie Waldie CALL TO ORDER Mr. Kurek called the meeting to order at 7:34 a.m. PUBLIC COMMENT No member of the public spoke. APPROVAL OF JUNE 24, 2016 MINUTES Mr. Pancoast made a motion to approve the minutes. After a second, they were unanimously approved. OVERVIEW OF BUDGET Mr. Hepburn gave the attached presentation. Mr. Kurek started discussion on the reduction and possible needs. There was conversation on the shortage of attorneys in the Public Defender’s office. Mr. Citizens’ Budget Committee July 15, 2016 Page 2 Hensley started discussion on total budgets of Constitutional offices. Court Administration, Clerk of the Court, other Judicial agencies and non-profits were mentioned in the next discussion. Ms. Morris asked about Tradition Field. There was conversation on debt service and the economic impact. BUDGET RESOLUTION DISCUSSION Different views were expressed regarding the Committee’s recommendation. Mr. Campion made a motion to recommend to the Board the numbers that were presented. Mr. Buechler seconded the motion. There was further discussion. The result of the vote was Mr. Mucklow, Mr. Campion, Ms. Morris, Mr. Donovan, Mr. Weaver and Mr. Buechler in favor. Mr. Pancoast, Mr. Kurek, Mr. Kearney and Mr. Hensley were opposed. OTHER ISSUES There was conversation on the Fire District assessment. Mr. Hepburn thanked the Committee for their sound discussion and recommendations during the budget process. ADJOURNMENT The meeting was adjourned at 9:09 a.m. Respectfully submitted by: Brenda Marlin The next CBC meeting will be held on Friday, October 21, 2016, at 7:30 a.m., in Conference Room 3, of the St. Lucie County Roger Poitras Administration Annex. 1/13/2017 1 CITIZEN BUDGET COMMITTEE JULY 15, 2016 1 Today’s Detailed Agenda Budget Summary Debt Factors for Budget Direction Reserves and Deficit Spending Recommended Budget (Overall) Recommended Budget (General Fund/Fine & Forfeiture) Property Appraiser Valuations FY 17 Recommended Millage Changes 2 1/13/2017 2 Today’s Detailed Agenda Revenue Outlook Incremental Revenue & Expenses Five Year Forecast (model) Capital Enterprise Funds Outside Agencies Next Steps 3 Budget Summary The FY 2016‐17 recommended budget is $504.7 million which represents a decrease of $2.3 million or 0.5% from the prior fiscal year amended budget 4 1/13/2017 3 Health Insurance Fund Revenue Vs. Expenses $11,445,547 $15,138,520 $13,210,000 $16,449,176 $14,854,551 $10,000,000 $11,000,000 $12,000,000 $13,000,000 $14,000,000 $15,000,000 $16,000,000 $17,000,000 FY 2016 FY 2017 Revenue Expenses Budget 5 Note: 2016 Expenses are based on most current projection of health insurance experience Budget Stabilization Fund (Reserves) Current Conditions. Operating expenses in the General Fund/Fine & Forfeiture Fund are exceeding operating revenues. FY 2010 thru FY 2015 the County has utilized $49.1 million of the General Fund and Fine Forfeiture fund balance. Expenses exceed revenue annually during the same period of time, averaging $7.2 million. Future Direction. Changing our condition requires discipline through fiscal year 2020. If we remain disciplined, it is possible that we can reverse the trend so that our operating revenues cover our operating expenses. 6 1/13/2017 4 Reserve History FY 2010 –F Y 2016 $105.50 $45.30 $44.20 $6.80 $24.20 $19.00 $53.60 0 20 40 60 80 100 120 FY 2010 Beginning Bal. FY 2014 Ending Bal. FY 2015 Ending Bal. FY 2016 Ending Bal. Gen. Fund Fine & Forfeit Combined Combin ed $69.5 M Combine d $112.3 M Combin ed $63.2 M •52% of the 112.3 million will be spent by the end of FY 2016 •Leaving 53.60 million of which: •36.5 million is set aside as part of our reserve balance •$16.5 million for emergency reserves •$14 million for budget stabilization •$6 million for Transportation Infrastructure reserves Strategic Priorities for 2016‐2017 8 Strategic Priorities –I n f r a s t r u c t u r e Objective: Design, Construct & Maintain Infrastructure Goal: Critical Infrastructure Investments •Airport expansion •Runway connector •Customs building •Logistics •Seaport expansion •Second street improvements •Fisherman’s wharf •Roadway, drainage and sidewalks •Improve capital planning and project management •Negotiate gas tax interlocal agreement with cities Description Fund Amount Airport Expansion ‐Runway Connector ‐Customs Renovation Grants Grants $4,030,206 $1,882,780 Seaport Expansion ‐Fisherman’s Wharf ‐NorthEntrance to Port Grants Grants $760,000 $5,994,827 Roadway ‐Midway Road ‐Kings/Indrio Drainage ‐Orange Ave Culvert ‐Indian River Estates Drainage Sidewalks Impact/Financing Impact/Financing Stormwater MSTU Gas Tax/Stmwtr Gas Taxes $13,042,807 $8,571,691 $1,765,020 $1,656,983 $250,000 1/13/2017 5 9 Strategic Priorities – Public Safety Objective: Provide for a Safe Community Goal: Critical Infrastructure Investments •800mhz radio system implementation •Inmate security system implementation •Jail facility upgrades (i.e.‐plumbing) Strategic Priorities for 2016‐2017 Description Fund Amount 800mhz radio system 800 MHz Fund $8,967,201 Inmate security system Jail Security Upgrade Fund $2,668,745 Jail facility upgrades ‐ A/C handler Replacement ‐ Water Storage Tank Cleaning ‐ Fire Alarm System ‐ Grill Duct Maintenance ‐ Medical Wing Fine & Forfeiture Fine & Forfeiture Fine & Forfeiture Fine & Forfeiture Impact Fees $421,834 $ 25,000 $400,000 $ 25,708 $250,000 10 Strategic Priorities –E n v i r o n m e n t Objective: Protect the Natural Resources Goal: Leverage Partnerships to create improved access to preserved lands •Wesley’s island improvements •Water quality initiatives •Connectivity to existing greenway and trails •Recertification as a green government •Green taskforce sustainability initiative Strategic Priorities for 2016‐2017 Description Fund Amount Wesley’s island improvements General Fund $50,000 Water quality initiatives ‐Indian River Estates ‐Paradise Park Grants/Gas Tax Grants/Stormwater $1,656,983 $1,166,367 Greenways and TrailsMaster Plan Env. Land AcquisitionFund 15,000 Recertification as a green government None 0 Green taskforce sustainability initiative None 0 1/13/2017 6 11 Strategic Priorities – Community & Economic Development Objective: Promote Economic Development Goal: Improve Business Environment •Establish business process standardization with cities •Expand use of the “St. Lucie Works” brand •Implement business retention and expansion initiatives Goal: Develop Strategic Assets •Facilitate development of the Port of Fort Pierce •Implement Treasure Coast International Airport Business & Marketing Plan •Assist EDC to implement the EDC Corridor Initiative & Strategic Plan Strategic Priorities for 2016‐2017 Description Fund Amount Establish business process standardization with cities None TBD Expand use of the “St. Lucie Works” brand Unincorporated MSTU $125,222 Implement business retention and expansion initiatives General Fund $372,294 Facilitate development of the Port of Fort Pierce Various TBD Implement Treasure Coast International Airport Business & Marketing Plan General Fund TBD Assist EDC to implement the EDC Corridor Initiative & Strategic Plan General Fund Econ Dev Trust $244,634 $ 55,366 12 Strategic Priorities –C u l t u r e & Recreation Objective: Maintain a High Quality of Life Goal: Maximize Partnerships to Leverage Resources •Complete the remodel of the new library at Rosser Road for an opening of date by the 3rd quarter of 2017 •Continue as an MLB spring training destination •Expand the quality of resort hotels •Maximize amateur sporting events •Maintain St. Lucie County as premier destination for Boating, Fishing and Golfing Strategic Priorities for 2016‐2017 Description Fund Amount Rosser Library Renovation Impact Fees General Fund $2,037,236 $84,900 Spring Training Destination Future Financing $55 Million Expand the quality of resort hotels None 0 Maximize amateur sporting events Tourism Dev. Fund $185,000 Maintain St. Lucie County as premier destination for Boating, Fishing and Golfing Tourism Dev. Fund $200,000 1/13/2017 7 13 Strategic Priorities – Management Services Objective: 1. Innovation 2. Provide Transparent & Accountable Financial Management 3. Develop and Train Workforce Goal: Eliminate Deficit Spending by 2020 and Build Internal Capacity •Financial Reports •Monthly Budget Vs Actual •Capital Report •Develop High level Strategy Map/Scorecard •Leadership Development Training •Customer Service Training •Implement an IT Leadership Council Strategic Priorities for 2016‐2017 Description Fund Amount Financial Reports General Fund $3,500 Develop High level Strategy Map/Scorecard General Fund TBD Executive Leadership Program General Fund $20,000 LEAP Program General Fund $50,000 FY 17 Budget GF/FF $221,111,866 44% Special Revenue $104,885,944 21% Debt $17,935,414 3% Capital $71,183,385 14% Enterprise $54,474,736 11% Internal Service $30,461,847 6% Trust/Agency $4,608,705 1% FY 2017 Total Recommended Budget $504.7 Million 1/13/2017 8 GF/FF $202,201,291 91% GF/FF Subfunds $18,910,575 9% FY 2017 General Fund/ Fine & Forfeiture Fund Budget $221.1 Million Operating $162,725,376 80% Non‐Operating $39,475,915 20% FY 2017 General Fund/ Fine & Forfeiture Fund Budget $202.2 Million 1/13/2017 9 General Fund / Fine & Forfeiture Operating Expenses $162.7 Million Board Departments 63,896,792 39% Constitutional Officers 87,117,808 54% Community Service Mandates 8,856,909 5% Aid to Other Agencies 1,567,693 1% Judicial Agencies 1,286,174 1% 17 General Fund/Fine & Forfeiture The County’s main operations are located in the General Fund/Fine & Forfeiture Fund portion of the FY 16‐17 Recommended Budget, which amount to $162.7 M for County operations. This represents an increase of 3.88% or $8.0 M. 18 1/13/2017 10 Taxable Property Values 17.5 24.4 25.6 21.6 17 15.2 14.4 14.2 15.1 15.6 16.3 17.5 0 5 10 15 20 25 30 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Bi l l i o n s Year Taxable Value 2017 % Change in Property Appraiser Property Valuation 20 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% Percentage Change in Property Value 10.00% 7.32% 6.40% 4.83% City of Port St. Lucie St. Lucie County Wide City of Fort Pierce St. Lucie County Unincoroporated Area Taxing Authority Property Value City of Port St. Lucie $7.900 Billion St. Lucie County – County Wide $17.500 Billion City of Fort Pierce $2.115 Billion St. Lucie County – Unincorporated $7.472 Billion 1/13/2017 11 Recommended FY 2017 Millage Changes Recommended Millage Millage Change Taxes @ 95% General Fund 4.1077 ‐0.0196 $ (325,003) Fine & Forfeiture Fund 3.2838 0.0139 $ 230,487 Mosquito Control Fund 0.2164 ‐0.0249 $ (405,554) Unincorporated MSTU Fund 0.3840 ‐0.0540 $ (383,340) Port Property Bond 0.0000 ‐0.0154 $ (258,502) Erosion Control 0.0925 0.0000 $ 0 Stormwater MSTU 0.3497 0.0000 $ 0 Law Enforcement MSTU 0.5103 0.0000 $ 0 Parks MSTU 0.2313 0.0000 $ 0 Transit MSTU 0.1269 0.0000 $ 0 Total 9.3026 ‐0.1000 $ (1,141,913) FY 2017 Total Revenue (General Fund/Fine & Forfeiture) Account Name Amount Ad Valorem Revenue (Prop. Tax) $129,014,919 Communication Service Tax 900,000 FPL Franchise Fee 3,988,464 State Shared Revenue 3,262,650 Local Government Half Cent Sales Tax 4,353,906 All Other Operating Revenue 8,187,202 5% Statutory Reduction (7,340,971) Non‐Operating Revenue 4,250,538 Total Revenue $146,616,708 22 1/13/2017 12 FY 2017 Incremental Changes Incremental Recurring Revenues Property Taxes $7.9 M State Shared $0.1M Half Cent Sales Tax $0.3M Franchise Fees $0.1M Total Increment $8.4M Total Available $8.4M FY 17 Recommended Funding GF/FF BOCC Group Insurance $ 1,577,832 Transfers/New Debt $ 713,149 BOCC Departments $ 1,515,641 2% COLA $ 457,643 Increase Attrition Budget (4%) ($ 494,455) Juvenile Detention ($ 266,032) Utilities ($ 203,689) Medicaid $ 353,637 Sheriff $ 3,115,508 Supervisor of Elections ($ 202,050) Clerk $ 168,197 Tax Collector $ 200,000 Property Appraiser $ 374,753 Medical Examiner $ 171,645 EDC $ 50,000 Wesley Island Improvements $ 50,000 Health Department $ 200,000 Additional CRA Payments $ 477,000 Staffing Mosquito Control Passive Parks $ 100,000 Total Increment $8,358,779 1/13/2017 13 BOCC Departments Information Technology $1,208,642 Parks $ 87,256 Marine Safety $ 90,000 Veteran Services $ 52,538 Extension $ 52,205 Oxbow $ 25,000 Total $1,515,641 Major Changes The County’s Health Insurance Fund continues to be structurally imbalanced. In FY 15, expenses outpaced revenues by $4.8M. For FY 17, the County is increasing premiums by 35%, which impacts the GF/FF by $1.6M. Sheriff’s Office increase $3.1M: Continue with step plan Operational and capital increases Capital Improvements: Jail Security System $3.3M 800 MHz System $9.0M Enhancement to BOCC Departments $1.5M 1/13/2017 14 Five Year Forecast FY 2015 to FY 2020 $141.64 $153.21 $160.34 $167.71 $172.64 $179.05 $149.62 $162.72 $164.77 $168.23 $171.76 $175.38 2016 2017 2018 2019 2020 2021 125 135 145 155 165 175 185 Revenue Expenses 27 Five year Forecast Assumptions: Revenue: Property Taxes are estimated based on increases to projected property value of 7.32%‐FY 2017, 5.00%‐FY 2018, and 4.25% FY 2019 thru FY 2021 Local Communications Service Taxes are estimated to remain flat, Other Major Revenues grow at an annual growth rate of 2.1% 28 1/13/2017 15 Five year Forecast Assumptions: Expenses: 2% Salary increases in FY 2017 thru FY 2021 across all Board of County Commission departments and Constitutional Offices Florida Retirement System contribution for regular class employees are based on the proposed rate as set by the Florida legislature Health insurance increases in FY 2017 of 35% and 9% annually thereafter 29 Five year Forecast Assumptions: Expenses: Constitutional Officer expenses increase in FY 2017 $3.5 million as follows: Sherriff’s Office increases for salary increases, $2.4 million and an increase in benefits ($121K)operating ($216K), Capital Outlay ($103K) and an additional ($200K) for court security expenses from the elimination of the private security contractor. An adjustment of excess fees from the Tax Collector $200K impact on the GF/FF An adjustment of fees for the Property Appraiser, with the net effect of these changes being a $375K impact on the GF/FF An increase in poll workers salaries associated with the need to establish an additional early voting site due to the high expected voter turnout and $64K in increased capital outlay for a new Electronic Voter Identification Unit Funding of $100,000 for the Clerk of Circuit Court’s contractual services for planned internal audit work 30 1/13/2017 16 Five year Forecast Assumptions: Expenses: Model applies a 4% attrition to base year FY 2017 salary and wages Includes debt service beginning in FY 2018 for 800 MHz (360,000) and Airport Hangar ($300,000) All other expenses grow at CPI 1.06% 31 ENTERPRISE FUNDS 32 1/13/2017 17 Budget By Fund –E n t e r p r i s e Funds 33 GENERAL GOVERNMENT 0.03% PUBLIC SAFETY 3.76% PHYSICAL ENVIRONMENT 56.74% CULTURE & RECREATION 2.36% CAPITAL OUTLAY 2.47% DEBT SERVICE 2.68% INTERFUND TRANSFERS 2.93% RESERVES 29.03% Solid Waste The Solid Waste and Recycling Division FY17 requested budget of $30,369,969, is an increase of $3,473,747 or +12.92%. Personnel increased by a net total of $915,450 (+25.64%) Capital decreased by a total of $5,000,000 (‐93.72%), Other Uses increased by a total of $6,787,487 (+131.23%) 34 1/13/2017 18 Water & Sewer District The Water & Sewer District FY17 requested budget of $17.8 million, is a decrease of $359,723 or ‐1.98%. Personnel increased by a net total of $56,173 (+7.47%) Capital decreased by a total of $362,437 (‐26.42%) Other Uses increased by a total of $81,337 (+0.94%) 35 Building & Code Regulations The Building & Code Regulation Division FY17 requested budget of $5,212,690, is an increase of $706,283 or +16.67%. Personnel increased by a net total of $226,225 (+12.42%) Operating increased by a total of $753,131 (+165.07%), Other Uses decreased by a total of $273,073 (‐12.25%) 36 1/13/2017 19 Fairwinds Golf Course The Fairwinds Golf Course Division FY17 requested budget of $1,383,633, is an decrease of $429,000 or ‐23.63%. Personnel increased by a net total of $18,895 (+2.52%) Operating decreased by a net total of $12,963 (‐2.32%) Capital decreased by a total of $434,932 (‐85.63%), 37 DEBT 38 1/13/2017 20 Debt Notable Facts 39 Overall Debt: •The County’s overall outstanding debt is estimated to be approximately $153,322,232 as of 09/30/2016. This is $12,349,727or 8.76% greater than last year’s, $140,972,505. The increase is mainly attributed to 21.8 Million in new outstanding debt. Rating/Conservative Approach: •Maintaining strong reserves and prudent borrowing are necessary for favorable bond ratings, which ultimately reduce borrowing costs •Conservative in budget for high bond ratings and credit worthiness •Must maintain compliance with bond covenants FY 2017 Capital Improvement Plan 40 1/13/2017 21 Capital Improvement Projects 41 Department FY 2017 CIP ‐ Funded Projects Funded Project Distribution by Percent Public Works $44.83 42.9% Parks, Recreation, and Facilities $19.45 18.6% County Administration $10.31 9.9% Public Safety $8.97 8.6% Solid Waste $7.43 7.1% Constitutional Officers (BOCC) $6.80 6.5% Community Services $2.41 2.3% Environmental Resources $2.05 2.0% Water and Sewer $1.79 1.7% Mosquito Control and Coastal Management $0.46 0.4% Statutorily Mandated and Non‐County Agencies $0.00 0.0% Total CIP Budget ‐ Funded Projects $104.50 100.0% Approximately $600 Million Deferred Request & Capital Needs Category Description Amount Public Safety Projects that improve public safety services to the resident of St. Lucie County $12,800,000 Environmental Projects which enhance our natural environment either through preservation or mitigation of our natural resources air, land or water $79,350,000 Transportation Infrastructure Projects that improve our transportation system of roads, intersections and bridges $283,700,000 Economic Development Projects that improve our ability to retain or attract businesses and increase employment in the region $217,900,000 1/13/2017 22 CONSTITUTIONAL OFFICES 43 Constitutional Officers Funding $90.742 Million 44 Supervisor of Elections $3,029,651 3% Clerk of Courts $1,963,737 2% Property Appraiser $5,277,828 6% Sheriff Office $75,036,367 83% Tax Collector $5,434,229 6% Note: ‐Excludes excess fees 1/13/2017 23 OUTSIDE AGENCIES 45 Outside Agencies Funding $15.029 Million 46 Judicial Services $5,810,030 39% Outside Gov't Agencies $4,160,798 28% Non‐Profits $1,149,230 7% Community Mandates $3,909,320 26% 1/13/2017 24 Judicial Services Funding $5.810 Million 47 Court Administration $3,510,527 60% Guardian Ad Litem $371,340 6% Medical Examiner $633,757 11% Public Defender $438,725 8% State Attorney $855,681 15% Note: Medical Examiner to be reduced on Errata currently budgeted at $689,099 ‐CA & GA: This represents the total cost of these services. However, some of the costs are reimbursed to County from Indian River, Martin County and Okeechobee County. Judicial Services $5.810M Note: ‐Medical Examiner to be reduced on Errata per revised budget, Recom. Budget currently reflects $689,099 48 Description FY 2016 Budget FY 2017 Recommended Budget Difference Court Administration $3.159 M $3.510 M $.351 M Guardian Ad Litem .400 M .371 M ‐.028 M Medical Examiner .517 M .634 M .116M Public Defender .443 M .439 M ‐.004 M State Attorney .859 M .856 M ‐.002 M 1/13/2017 25 Non‐Profit Agencies $1.149 Million 49 ARC of SLC $56,554 5%Boys and Girls Club $0 0%COA $143,130 12% Healthy Start $51,840 5% 211 Info Services $17,750 2% New Horizons $687,078 60% Executive Rountable $48,200 4% Executive Rountable Gang Model $40,000 3% Treasure Coast Homeless Srvs $22,500 2% Special Olympics $32,178 3% SELF $25,000 2% Life Builder Program $25,000 2% Non‐Profit Agencies Funding Budget $1.149 M 50 FY12-13 Adopted Budget FY13-14 Adopted Budget FY14-15 Adopted Budget FY15-16 Adopted Budget FY16-17 Recomm. Budget Diff % Change ARC of St. Lucie County 65,554 65,554 65,554 65,554 56,554 (9,000) -13.73% Boys and Girls Club 0 15,000 15,000 15,000 0 (15,000) -100.00% Council on Aging 148,617 148,575 143,130 143,130 143,130 0 0.00% Healthy Start 51,840 51,840 51,840 51,840 51,840 0 0.00% 211 Information Crisis Services 15,750 15,750 17,750 17,750 17,750 0 0.00% New Horizons 673,606 673,606 687,078 687,078 687,078 0 0.00% Executive Roundtable 43,200 43,200 48,200 48,200 48,200 0 0.00% 1/13/2017 26 Non‐Profit Agencies Funding (cont.) Budget $1.149 M 51 FY12-13 Adopted Budget FY13-14 Adopted Budget FY14-15 Adopted Budget FY15-16 Adopted Budget FY16-17 Recomm. Budget Diff % Change Executive Roundtable Gang Model 0 0 40,000 40,000 40,000 0 0.00% Treasure Coast Homeless Services 22,500 22,500 22,500 22,500 22,500 0 0.00% Special Olympics 32,178 32,178 32,178 32,178 32,178 0 0.00% SELF 0 0 25,000 25,000 25,000 0 0.00% Life Builder Program 0 0 0 0 25,000 25,000 100.00% Total 1,053,245 1,068,203 1,148,230 1,148,230 1,149,230 1,000 0.09% Outside Agencies $4.161 Million 52 Juvenile Detention $911,589 22% Public Health Dept. $1,122,647 27%Soil & Water Conservation $71,192 2% Transportation Planning Organization (TPO) $1,755,370 42% Economic Development Council (EDC) $300,000 7% 1/13/2017 27 Outside Agencies and Funding $4.161 M 53 Description FY 2016 Budget FY 2017 Recommended Budget Difference Juvenile Detention $1.178 M $.9116 M $‐0.266 M Public Health Dept..923 M 1.123 M .200 M Soil & Water Conservation .066 M .0712 M .005M Transportation Planning Organization (TPO)1.755 M 1.755 M .000M Economic Development Council (EDC)*.250 M .300 M .050 M Note: *EDC included in Dept. budget Next Steps 54 CBC Resolution to BOCC Setting Maximum Millage September Budget Hearings 1/13/2017 28 CITIZEN BUDGET COMMITTEE JULY 15, 2016 55 Key Factors for Budget Direction Compensation Health Insurance Budget Stabilization Fund (Reserves) Economy Unfunded Capital Projects Economic Development Projects 56 1/13/2017 29 Compensation Personnel Costs Compensation Proposed budget includes a 2% increase in salary for BOCC employees and Constitutional Offices except the Sheriff Proposed budget includes an average 5% increase in salary for SLC Sheriff employees FRS rates Regular rate will increase from 7.26 to 7.52% Federal Fair Labor Standards Act Rule changes Expected to be issued July 2016 Impact will be that more employees will be overtime eligible Financial impact is indeterminate at this time 57 Health Insurance Fund The health insurance fund must maintain sufficient reserve levels in the fund to remain compliant with Florida State Statutes. The 2016 Adopted Budget this fund would increase premiums 70% over a two year period beginning with FY 2016 and again in FY 2017. Both the employer and employee share will increase by 35% in FY 2017 10% of the health insurance is paid by the employee and 90% is paid by the employer. Cost to the employee per plan is: Employee only ‐ $56.02 Employee Plus 1 ‐ $141.20 Family ‐ $208.49 58 1/13/2017 30 Guidelines No new positions or reclassifications. The budget should be preparedusing the existing level of service. No increases in operating as compared to FY 16 budget unless there isan offsetting decrease. In the event that budgets need to be increased to reflect uncontrollable costs (e.g. utilities), the increase needs tobe thoroughly justified. Consider areas based on economic conditions today that can bereduced (i.e. fuel). No new or replacement equipment funded from ad valorem taxes. OMB will be working with departments on updating the equipment replacementp l a n . Requests for vehicle replacement must be coordinated through Facilities. Equipment that is approved for replacement as a result of this process will be added to the budget. Exceptions to the guidelines may be made for items consistent withthe strategic priorities and for self sufficient operations whensubmitted as a budget proposal with justification (i.e. EnterpriseFunds). Health Insurance rates are expected to go up significantly for theemployer and employee. 1/13/2017 31 General Fund/Fine Forfeiture Ad Valorem Revenue Outlook FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget Recom'd General Fund 66,422,844 89,283,888 92,799,699 68,317,080 41,761,889 39,581,523 38,717,272 38,649,115 41,084,701 55,325,841 67,342,634 71,697,840 Fine & Forfeiture 46,458,642 49,699,061 42,456,311 48,116,842 51,206,203 54,737,368 53,394,176 53,114,075 55,816,807 47,905,480 53,352,962 57,317,079 112,881,486 92,968,092 129,014,919 $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 62 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Fine & Forfeiture Millage 3.3178 2.3778 1.9352 2.5478 3.3957 3.9699 3.9699 3.9699 3.9699 3.2699 3.2699 3.2838 General Fund Millage 4.1248 4.2734 4.2299 3.6173 2.7694 2.8707 2.9221 2.9221 2.9221 3.7764 4.1273 4.1077 7.4426 6.1651 7.3915 $0 $1 $2 $3 $4 $5 $6 $7 $8 General Fund and Fine & Forefiture Millage Rates Millage Rates 1/13/2017 32 Non‐Ad Valorem Major Revenue Outlook FY11 FY12 FY13 FY14 FY15 FY16 FY17 Electric Franchise 2,175,511 2,640,942 2,795,968 3,692,114 3,811,131 3,879,800 3,988,464 Local Communications Services Tax ‐ ‐ ‐ 927,660 972,835 925,000 925,000 Half Cent Sales Tax 901,155 2,394,816 2,715,578 3,642,779 3,661,193 4,068,468 4,353,906 State Revenue Sharing 2,504,804 2,642,335 2,840,796 3,070,595 3,302,635 3,195,544 3,262,650 2,504,804 2,642,335 2,840,796 3,070,595 3,302,635 3,195,544 3,262,650 901,155 2,394,816 2,715,578 3,642,779 3,661,193 4,068,468 4,353,906 ‐‐‐927,660 972,835 925,000 925,000 2,175,511 2,640,942 2,795,968 3,692,114 3,811,131 3,879,800 3,988,464 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% State Revenue Sharing Half Cent Sales Tax Local Communications Services Tax Electric Franchise FY 2017 CIP ‐Funding by Department In Millions 64 $44.83 $19.45 $10.31 $8.97 $7.43 $6.80 $2.41 $2.05 $1.79 $0.46 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 1/13/2017 33 FY 2017 Top Dollar Capital Improvement Projects Midway Road (Seitz Road to 25th Street) $13.00 M 800 MHz Radio Infrastructure $8.97 M Kings Hwy/Indro Rd. Intersection 8.57 M Tax Collector Bldg. at Traditions $6.8 M Port 2nd Street Entrance $5.99 M Landfill Phase 4 Cell Construction $4.8 M Parallel Runway Taxiway Connector $4.03 M 65 Constitutional Officers $90.742 M 66 Note: ‐Excludes excess fees, ‐Additional Property Appraiser and Tax Collector Fees are included in the Dept. budget ‐Excludes Constitutional BOCC funding ‐FY16 adopted budget reflected estimated COLA increases for the Constitutional Officers, however, the budgets were amended during FY16 to the actual Description FY 2016 Adopted Budget FY 2017 Recommended Budget Difference Supervisor of Elections $ 3.231 M $ 3.030 M ‐$ .201 M Clerk of Courts 1.796 M 1.964 M .168 M Property Appraiser 4.890 M 5.278 M .388 M Sheriff’s Office 71.921M 75.036 M 3.115 M Tax Collector 5.432M 5.434M .002 M 1/13/2017 34 Benchmarking of Debt Net Direct Debt Per Capita1 2013 2014 2015 2016 Benchmark $400 $400 $400 $400 BOCC $307 $282 $273 $270 $400 $307 $282 $273 $270 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2013 2014 2015 2016BenchmarkBOCC 67 1. Includes all General Fund debt for Port general obligation, Transportation Refunding, Half Cent Sales Tax Refunding and Capital Improvement Refunding Bonds Net Direct Debt Per Capita as % of Income per Capita 2013 2014 2015 2016 Benchmark 2.00% 2.00% 2.00% 2.00% BOCC 1.00% 0.89% 0.88% 0.79% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2013 2014 2015 2016 Benchmark BOCC 68 1/13/2017 35 Net Direct Debt As % of General Government Expenditures 2013 2014 2015 2016 Benchmark 10.00% 10.00% 10.00% 10.00% BOCC 3.5% 4.47% 3.78 3.64% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 2013 2014 2015 2016 Benchmark BOCC 69 Not Funded Information Technology Replace grant funding for position $76,896 ERP Replacement $1,625,000 Human Resources Wage Survey $65,000 Housing Reclass funding for position $27,602 Environmental Resources Land Management Position $79,115 Emergency Management Replace grant funding for position $66,132 RESOLUTION 2016-002 THE CITIZENS BUDGET COMMITTEE OF ST. LUCIE COUNTY, FLORIDA RECOMMENDATION ON THE PROPOSED FY2017 BUDGET IN ST. LUCIE COUNTY, FLORIDA WHEREAS, the Citizens Budget Committee of St. Lucie County, Florida, has made the following determinations: 1. The St. Lucie County Citizens Budget Committee (“Committee”) met on July 15, 2016 to review the budget recommendations presented to the St. Lucie County Board of County Commissioners. 2. As a result of these discussions, the Committee has the following concerns: A. The Committee remains concerned about the use of reserve funds in the amount of $9.5 million to balance the budget. The County Administrator and the Management and Budget Director have a plan to discontinue this practice in the next several years. However, the expectations for county provided services are increasing every year as the County grows. NOW, THEREFORE, BE IT RESOLVED by the Citizens Budget Committee of St. Lucie County, Florida: 1. The Committee recommends a budget of $504,661,897, which includes a reduction of the millage rate by 0.100 mills or an estimated reduction of $1.10 million in St. Lucie County, Florida as follows: A. General Fund (0.0196) B. Fine & Forfeiture Fund 0.0139 C. Mosquito Control Fund (0.0249) D. Unincorporated MSTU Fund (0.0540) E. Port Property Bond (0.0154) 2. A copy of this resolution shall be provided to the Board of County Commissioners, the County Administrator and the Management and Budget Director. PASSED AND DULY ADOPTED this 15th day of July 2016. CITIZENS BUDGET COMMITTEE ST. LUCIE COUNTY, FLORIDA BY: Daniel J. Kurek D A N I E L J . K U R E K , C H A I R M A N