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Home My WebLink AboutCBC 6.20.15IN R Meeting Date: June 20, 2014 . Conference Room 3 MEMBERS PRESENT: Ron Knaggs, Chair Ed Lounds John Culverhouse Carl Hensley William Donovan Richard Pancoast Patrick Campion Craig Mundt Stephanie Morgan James Clasby Gwen Morris MEMBERS ABSENT: Marty Laven Jay L. McBee TELEPHONE: Dan Kurek, Vice Chair Jane Bachelor OTHERS PRESENT: CALL TO ORDER Robert Bentkofsky Jennifer Hill Laurie Waldie Shane DeWitt Beth Ryder Don West Heather Young Paul Sisilli Mr. Knaggs called the meeting to order at 7:30 a.m. PUBLIC COMMENT No member of the public spoke at the meeting. APPROVAL OF May 16, 2014 MINUTES Marie Gouin Garry Wilson Ed Matthews Mark Satterlee Dale Armstrong Jennifer Evans George Landry After a motion by Mr. Pancoast and a second by Mr. Campion, the minutes were unanimously approved. FY15 PROPOSED BUDGET Citizens' Budget Committee June 20, 2014 Page 2 Mr. Bentkofsky thanked the Committee for the opportunity to make the attached PowerPoint presentation. CBC - Budget Presentation and Discussion (see attached) was reviewed. Mr. Bentkofsky also distributed the attached report showing the Departments/Divisions funded by the General Fund and the Fine & Forfeiture Fund. Mr. Lounds asked about the Debt Service no longer being taken from impact fees. Ms. Hill and Mr. Bentkofsky explained the situation. Mr. Lounds asked about the Gas Tax. The difference was explained. Ms. Gouin added information. Ms. Morris asked about sources & Mr. Knaggs joined the conversation. Mr. Knaggs started discussion on one-time/repetitive costs and comparing FY14 with FYI recommendations. Mr. Lounds asked about lease purchases. Mr. Knaggs asked about the comparisons. Mr. Bentkofsky explained the process. Mr. Kurek clarified Mr. Bentkofsky's position. Mr. Knaggs asked about the cost of the jail and Mr. Lounds asked about State mandates. Mr. Bentkofsky told about Juvenile Detention costs. Ms. Hill gave the jail expense numbers Mr. Knaggs requested. Mr. Mundt started discussion about the new buildings for the Tax Collector and Supervisor of Elections. Mr. Lounds asked about Economic Development Council (EDC). He and Mr. Bentkofsky gave their opinions. Mr. Satterlee gave an update from an EDC meeting held the day before. Mr. Donovan started discussion on doom, gloom, kicking the can down the road and conservative assumptions. Mr. Pancoast expressed his concern about the Emergency Reserves. REVIEW OF OTHER FUNDS: Mosquito Control, Stormwater MSTU Mr. Bentkofsky continued his presentation, suggesting_ the Board reduce the Mosquito Control millage and increase the General Fund by the same amount. Because their hands are full with current projects, they are not asking for an increase in Stormwater funding. They plan to ask the City of Fort Pierce to help fund future projects that are in the City. Mr. Knaggs began a conversation about the BOCC Budget Workshops. After discussion, two recommendations for the Board were passed. The Citizens Budget Committee would recommend reducing the millage rate for Mosquito Control by 0.1543 and increasing that amount to the General Fund. The Citizens Budget Committee has concerns about our financial position in FYI and would like the Board of County Commissioners to evaluate how they would close that gap, by a reduction in expenses, an increase in the millage rate or a combination. Citizens' Budget Committee June 20, 2014 Page 3 Sales tax was discussed. Administration is to get information to the members. Appreciation was expressed for the presentation and work done behind the scenes. The subject of the presentation at the Informal Meeting was the same as what was presented to the Committee. OTHERISSUES Mr. Lounds asked about the Sheriff's Medical Wing and Research Park funding. Ms. Gouin explained the history. Mr. Bentkofsky added information. The schedule for the Budget Workshops was discussed. Mr. Lounds asked if they wanted to discuss wage adjustments. It was decided not at that time. ADJOURNMENT Mr. Knaggs adjourned the meeting at 9:21 a.m. Respectfully submitted by: Brenda Marlin The next CBC meeting will be held on Friday, August 15, 2014, at 7:30 a.m., in Conference Room 3, at the St. Lucie County Roger Poitras Administration Annex. Board of County Coinmissioners �..� Community Services Housing Library Resident Support Services Veterans Program County Administration Administration Business & Strategic Inititatives Business & Strategic Inititatives-Grants Media Relations Research & Education Park ComityAttorney County Attorney Criminal Justice Environmental Resources Cooperative Extension Environmental Education Land Management Human Resources & Support Services 4 Human Resources Office of Management & Budget Management & Budget Purchasing Parks, Recreation & Facilities 4 Facilities J Fairwinds Golf Course 4 Parks & Special Facilities 4 Regional Parks & Stadiums 4 Tourism & Venues Planning & Development Services � Planning . Public Safety & Communications Information Technology Emergency Management Marine Safety Constitutional Officers Clerk of Circuit Court Property Appraiser Sheriff Supervisor of Elections Tax Collector Statutorily Mandated & Non -County Agencies Non -Profits Public Defender Public Health Soil & Water Transportation Planning Organization Community Redevelopment Agency Q� County Attorney 4 Criminal Justice Parks, Recreation & Facilities Facilities Public Safety & Connnunications Q � Central Communications 800 MHz �y Constitutional Officers Property Appraiser Sheriff Tax Collector Statutorily Mandated & Non -County Agencies Court - Other Court Related Medical Examiner Public Defender State Attorney Comununity RedevelopinentAgency CBC a Budget Presentation and Discussion June 20, 2014 ® Operating Budget (General Fund & Fine and Forfeiture Fund) o FY14 Budget Outlook - Mid Year Budget Update o 2014 Tax Base Summary and Property Tax Revenue Impact o Revenue Estimates (available recurring revenue and review of major revenue sources) o Expenditure Summary and Composition (BOCC, Constitutional Officers, mandated costs, debt service). ® Comparison of FY15 to FY13 actuals and FY 14 budget ® FY15 Proposed Budget: Summary of Above Base Requests vs. Recommendations ■ Use of Constitutional Officer Excess Fees o Structural imbalance -Reserves needed to bridge FY15 operating gap and use of health insurance reserves o 3-Year projection and use of reserves (FY15 - FY17) o Tax Rate recommendation and Homeowner Impact ® Mosquito Control Fund - Reserve level and FY15 tax rate Stormwater MSTU Fund - 5 Year CIP and funding gap 7/2/2014 4:01 PM Citizen's Budget Committee FYI 5 Budget Presentation • Discussion FYI Budget Presentation Operating Budget (General Fund & Fine & Forfeiture Fund) • FY14 Budget Outlook — Mid Year Budget Update • 2014 Tax Base Summary & Property Tax Revenue Impact • FY Revenue Estimates (available recurring revenue) • Expenditure Summary & Composition • Operating Budget Gap and Use of reserves to Balance • 3-Year Projection and Use of Reserves • Tax Rate Recommendation & Homeowner Impact Mosquito Control Fund - Reserve Level and-FYl5TaxAate- Stormwater MSTU Fund - 3 Year CIP and Funding Gap . 1 7/2/2014 4:01 PM o $millions) Budget Estimated Revenues: • Property Taxes $ 97.9* $100.1 • Non -Ad Valorem $ 17.8* $ 19.2 • Transfers In 3.5 3.3 Total Revenues $119.2 $122.6 +$3.4 or 2.9% `@95% Expenses: • Operating $133.3 $127.9 • Capital 3.4 4.4 Total Expenses $136.7 $132.3 -$4.4 or 3.2% Use of Fund Balance $ 17.5 $ 93 3 Change in Fund Balance Revenues (est.) 1 122,600,594 Operating Expenses (est.) � 127,865,885 Ending Fund Balance-(est)--$47,543,496 (9/30/2014) 2 7/2/2014 4:01 PM 2014 Tax Base Summary Countywide Values: +$378M 2014 Est $151501,466,163 2013 Final $15,123,381,622 Increase $ 378,084,541 or +2.5% Real Property* Up 3.9% Personal Prop. Down- 3% *includes $68.7 million of new construction Prop. Tax Revenue Impact* FY 2015 $106.8 million FY 2014 $104.2 million Increase $ 2.6 million @ current tax rate of 6.892 mills 2014 Taxable Value is $2 billion or 11,6% below the 2006 tax base of $17 billion. FY15 Total Revenue $123.6 million @95% • Ad Valorem $101.5 M • Non Ad Valorem$ 15.5 M • Indirect Costs $ 2.8 M • Transfers $ 3.8 M Compared to FY14: • The only significant revenue growth is in property taxes due to the change in the tax -base, State -Revenue- Sharing and the - Half Cent Sales tax. • Other revenues show declines or little growth. 3 7/2/2014 4:01 PM Y15 Expen - rmmary FYI Proposed Budget $140.1 million FY14 Adopted Budget* $136.7 million *Restated for costs supported by Excess Fees previously reflected in a sub -fund. Significant Changes Compared to FYI Adopted Budget: • 3% wage increase + $1.9 million (BOCC &.Constitutionals) • Debt Service + $3.2 million (Transp. Bond - shift from impact fees) • Constit. Officers + $1.8 million • Judicial/Medicaid + $878K • Above Base Items + $795K (vs. $1.8 million requested) • BOCC Oper. Exp. - $2.1 million Capital Improve. - $2.2 million 8 4 7/2/2014 4:01 PM - it111'eS P ed) 1401 Million Judicial & Other State Mandated 7.3% Outside Agencies & CRA Contribution 3.1 Transfers to/CIP's & Debt Service Other Funds Airport Match 3.0% 0.9 /° 1.4%- 9 ons Excess Fees FYI Excess Fees - Estimate: • Based on prior 2-year avg. $3.6 million FY15 Uses: • Non -profits & human service agencies $1,083,230 • Maintenance Improvement Projects $ 840,199 • EDC Contribution $ 141,900 • Operating Budget Support $1,000,000 Total $3,065,329 10 5 7/2/2014 4:01 PM �Dera 'ng m get FY15 Estimated Expenses- $140.1 million FY15 Estimated Revenue $123.6 million Budget Shortfall $ 16.5 million 11.7% of budget would be supported by reserves The FY15 budget will also be supported with $3.5 million of reserves from the Health Insurance Fund that is subsidizing current premiums. N • �' Estimated Pro e - µ " o ected L s untl ` s Balances Revenue 122.6 123.6 124.1 126.9 Expenses: Operating (127.9) (138.9) (141.3) (141.8) Capital (4.4) (1.1) (2.5) (0.9) Shortfall Variance 3.0 3.0 2.9 Use of Fund Balance $9.7 $13.4 $16.7 $12.9 Ending Fu�tl 0 7/2/2014 4:01 PM Take an incremental approach - Phase the corrective actions over the next 3 years through a combination of increased revenues and expenditure reductions. Revenues: • Natural.growth in tax base • Small incremental increases to tax rate Expenditures: • Maintain or reduce current levels of service? • Compare in-house costs to outsourcing for certain services • Reduce/revise wage adjustments 13 7 7/2/2014 4:01 PM Mosquito Control Fund FY 14 Budget FY 14 Estimate FY 15 Budget FY 16 Forecast FY 17 Forecast Beginning Fund Balance $2,773,574 $2,773,574 $5,224,244 $4,868,540 $4,871,374 Tax Rate 0,4065 0.4065 0.2522 0,2522 0.2522 Revenues $5,709,593 $5,855,567 $3,655,855 $3,747,143 $3,840,703 Expenditures Operating $3,567,633 $3,061,341 $3,537,653 $3,602,628 $3,632,028 Capital 208,192 343,556 473,916 141,681 161,709 Reserve* $1,933,768 0 0 2,833 46,965 Total Expend, $5,709;593- $3,404,897 $4,011,569 $3,747,143 $3,840,703 *budget surplus Ending Fund Balance $4,707,342 $5,2241244 $40868,530 $4,868,540 $4,871;374 15 Stormwater M5TU Fund Beginning Fund Balance Revenue Ad Valorem Revenue Other Revenue Less 5% Total Revenue Expenditures Maintenance Operations Replacement equipment/vehicles Culvert Replacements Neighborhood Improvements Other Misc Improvements Total Expenditures Ending Fund Balance FY15 FY16 FY17 u13 dget Budget Budget $ 4,817,095 $ 515, 535 $ 338,674 2,414,521 2,414,521 v 2,414,521 54,552 32,733 25,000 (123,454) (122,363) (121,976) 21345,619 2,324,991 2,317,545 1,699,247 1,649,985 1,673,844 19,384 75,000 540,000 2,691,668 575,000 1,050,000 2,211,233 200,000 800,000 25,648 1,767 1,767 6,647,190 2,501,752 4,065,611 $ 515,535 $ 338,674 $ (1,409,392) 16 7/2/2014 4:01 PM CBC ® Budget Presentation and Discussion June 20, 2014 • Operating Budget (General Fund 8a Fine and Forfeiture Fund) o FY14 Budget Outlook - Mid Year Budget Update o 2014 Tax Base Summary and Property Tax Revenue Impact o Revenue Estimates (available recurring revenue and review of major revenue sources) o Expenditure Summary and Composition (BOCC, Constitutional Officers, mandated costs, debt service): ■ Comparison of FY15 to FY13 actuals and FY 14 budget ® FY15 Proposed Budget: Summary of Above Base Requests vs. Recommendations • Use of Constitutional Officer Excess Fees o . Structural imbalance - Reserves needed to bridge FY15 operating gap and use of health Insurance reserves o 3-Year projection and use of reserves (FY15 - FY17) o Tax Rafe recommendation and Homeowner Impact • Mosquito Control Fund- Reserve level and FY-15 tax rate • S4ormwater MSTU Fund - 5 Year CIP and funding gap Excess Fees Policy ® Resolution No. 10-263 states that: "Effective with the Fiscal Year 2013 budget beginning October 1, 2012, all funding for nonprofit organizations shall be determined based upon excess fees received from the St Lucie County Property Appraiser and the St Lucie County Tax Collector two years prior to the effective date of a budget i.e. funding for nonprofit organizations for Fiscal Year 2013 shall be based on.the excess fees received at the end of Fiscal Year 2011" Current Items Funded From Excess Fees • Non -profits $1,053,203 • Maintenance Improvement Projects $1,000,000 • Economic Development Council $ 100,000 • Operating Budget $1,000,000 Total $3,153,203 Tax Collector Building • Tax Collector Building is estimated to cost between $6.1 M and $6.8 M. ® Property, two appraisals: $670,000 and $580,000. ■ Estimated construction of a 19,715 s.f. building: $5,584,620 ($215/sf) and $6,109,642 ($240/sf) ■ Annual payments on a 20 year/$6.8 M loan are approximately $515,000. History of Excess Fees "WE IF} � A' 001 _ Excess Fees -Sheriff 4,976 Q09 iComm +& Fees -Excess Tax Collector 3,958.167 -�.M -2,696,645' I. -2,917,660 1852,305 2177 982 jQQ1 Fo01 - - Comm & Fees -Excess Pro�Appraiser 821,894 Excess Fees-Supu flf Electrons-10,000 _928,551 -49,966 -912,200'---238,701 37.013� - 1Q 448 ___----_.--� -83,357 y-62,268 001 _. _ -- Excess Fees -Clerk of Circuit Court-108,393 _ _ . _ 85,3 -423,916 643,862 -767,774f 001 Total .._......_______._.. 4 943,._._ �._= 0645 3,766,564f -4,295,53fi� 2,851,aTGl-3,096,358� Excess Fees Sheriff -79306 11,843 _-8,802 -10,793t34 9133 107 Excess Fees Sherrff _ 01 _ 0, -781 i _ -966I -8211 Comm & Fees -Excess Tax Collector -845 521 � _ � i_ 196,429 -971 136+ 634,205 -751,48s� 107 }Comm & Fees Excess Prop Appraiser 908 913f 161,01 �i _ 215,11t1) -62;851 107 1t?7 Total 3Ecess Fees -Clerk of Circuit Court I �_.1033,7401 f 369.283 1,195,8371 -708,814 y-'r.2�280 - 783,723 various Y Comm &Fees -Excess Tax Collector r -309 878( A 229,709( 312,625� 230,124 -243 905{ various Gomm &Fees -Excess Prop Appraiser `_.._ .66,593 73735I 76,1841 20,700 830 Various Total -37 6471 303 443( -388 800 a _ 25Q 824 _ _6 -250 T : 35 flf ! -�. � j - � ! JGrand Total-6,353,275 -4,439,290 -5,880,182i -3,610,714,-4,130,8161 GF/FFPortion-6,976,804 -4,135,846-5,491,373-3,369,890'`-3.880.080'