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HomeMy WebLinkAboutCitizen's Budget Committee 3-20-15Meeting Date: March 20, 2015 Conference Room 3 MEMBERS PRESENT: Ron Knaggs, Chair Ed Lounds Patrick Campion Jay L. McBee Steven Weaver Carl Hensley Gwen Morris Richard Pancoast John Culverhouse Craig Mundt James Clasby MEMBERS ABSENT: Jane Bachelor Stephanie Morgan William Donovan Dan Kurek, Vice Chair OTHERS PRESENT CALL TO ORDER Robert Bentkofsky Chris Lestrange Beth Ryder Asheley Hepburn Ed Matthews Don Pauley Mr. Knaggs called the meeting to order at 7:31 a.m. PUBLIC COMMENT No member of the public spoke at the meeting. APPROVAL OF FEBRUARY 20, 2015 MINUTES Jennifer Hill Don West Laurie Waldie Michael Quinn Mark Satterlee After a motion by Mr. Pancoast and a second by Mr. Clasby, the minutes were unanimously approved. ENTERPRISE RESOURCE PLANNING — PROJECT WORK PLAN & APPROXIMATE TIME LINE Mr. Knaggs asked if Mr. Bentkofsky he would be at the next meeting. Mr. Knaggs thanked Citizens' Budget Committee March 20, 2015 Page 2 Mr. Bentkofsky for his efforts for the Committee. Mr. Bentkofsky expressed his appreciation to the Committee for their time. Mr. Bentkofsky introduced Mr. Hepburn. Mr. Hepburn outlined the topics planned for the meeting. Starting with a definition of ERP, Mr. Bentkofsky gave history and the future plan of the process. The Executive Summary, attached, was sent to the members. There was discussion on the strengths and weaknesses of the Banner system. REVIEW OF CAPITAL PROJECT FUNDS & RELATED ISSUES ® Stormwater MSTU Fund Mr. Hepburn presented the attached PowerPoint. Mr. Knaggs started discussion about the definition of underspent and multi -year projects. Mr. Lounds commented on cost. Mr. Knaggs asked about needs and five-year plan. Mr. West informed the Committee of the State mandate and credit. Mr. Mundt asked about baseline and other counties. Ms. Morris asked about the sewage treatment plant and Indian River Lagoon. Mr. Weaver inquired about benefits of South Water Florida Management and measurements. Mr. Knaggs asked about other Counties and recommendations. • Parks MSTU Fund Mr. Lounds asked for an explanation of Capital Improvements, Fairgrounds and the contract with the Fair Association. Mr. Knaggs started discussion about the date of the Constitutional Officers' budget submittals. Mr. Lounds inquired about any of the enterprises being able to support themselves. Mr. Lounds started discussion on the Stadium. Mr. Knaggs asked about the golf course repaying a loan from the County. Mr. Mundt asked about the debt and bond repayment of the stadium. Mr. Knaggs inquired about sharing revenues and expenses with the Cities. Mr. Matthews added background information on the questions asked and Americans with Disabilities Act (ADA). Mr. Knaggs started discussion on the total dollars and millage recommendation. Mr. Hensley asked for clarification about timing. Mr. Knaggs reviewed the expectations. • Transportation Trust (Gas Tax) Funds Mr. Knaggs asked about the plan for the fuel tax that expires August 2015 and if it is at the max. Mr. Lounds asked about fuel efficiency affecting the revenue, natural gas and propane. Mr. Hensley asked for history. Mr. Knaggs clarified that the 5th cent is shared with the City and what is shown is the County's share. Mr. West gave an update on current projects. Mr. Pauley answered Mr. Lounds' question on savings from a dirt road being chip sealed. Mr. Knaggs started discussion on multi -year projects and an estimate of need. Mr. West explained the process. Mr. Mundt started discussion on grants and Citizens' Budget Committee March 20, 2015 Page 3 the stability of the list. Mr. Clasby asked about the Jenkins Road project. OVERVIEW OF LOCAL OPTION SALES TAX Mr. Knaggs confirmed the numbers were per year, how the revenue could be spent and asked about a recommendation. Ms. Morris asked about the current bed tax and what percent would have to approve a vote. Mr. Clasby asked if an increase has to have a specific use assigned to it. Ms. Hill clarified the process. Mr. Knaggs reviewed the numbers. Ms. Morris started discussion on other Counties' taxes. INFORMAL BOCC MEETING UPDATE Mr. Knaggs reported on the last two meetings which were not budget related. OTHER ISSUES No other issues were brought up. ADJOURNMENT Mr. Knaggs adjourned the meeting at 9:33 a.m. Respectfully submitted by: Brenda Marlin The next CBC meeting will be held on Friday, April 17, 2015, at 7:30 a.m., in Conference Room 3, at the St. Lucie County Roger Poitras Administration Annex. 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W.2 LL, ! w Lu w W aEi T taL 0 0 i CL Us 0 cl CL a Z :-6 CL) 4 M �b 0 4f z m a Lu IM C14 cv) I- t0 I- I- I- C'j m County of St. Lucie ERP Needs Assessment Executive Summary April, 2014 Table of Contents 1 Executive Summary................................................................................. 2 1.1 Project Scope.................................................................................................................................2 1.2 Project Approach............................................................................................................................ 3 1.3 Summary of Observations..............................................................................................................4 2 System Assessment................................................................................. 7 2.1 Identification of key strategic options.............................................................................................. 7 2.2 SWOT Analysis...............................................................................................................................9 3 Cost Analysis.......................................................................................... 10 3.1 Overview.......................................................................................................................................10 3.2 ERP Replacement Project Costs..................................................................................................11 4 Recommended Next Steps 4.1 Recommended Strategic Approach..............................................................................................12 1 Page County of St. Lucie ERP Needs Assessment Executive Summary April, 2014 f. Executive Summary The County of St. Lucie, FL implemented Banner approximately 20 years ago as the County's primary Enterprise Resource Planning (ERP) system that provides support for Financial Management and HR/Payroll business processes. The County recognizes that its existing ERP system is deficient in supporting certain business needs as many of the constitutional officers have slowly moved away from system. Currently, only the Board of County Commissioners (BOCC) and the Clerk of the Circuit Court operate on the Banner system as their primary software solution for supporting the various financial business processes of their departments. The remaining departments have been voicing their concerns with the lack of functionality in the Banner system as well as the vendor's primary focus in being committed to the higher education sector. As a result, the County engaged Plante Moran to conduct a comprehensive assessment of current back office systems and business processes to determine the feasibility and practicality of replacing Banner with a new ERP solution. 1.1 PROJECT SCOPE The intent of this project was to perform an assessment of the BOCC and Clerk's current financial, utility billing, and personnel systems and business environment and identify key strategic options and recommendations. Discussions with the Sheriff, Property Appraiser, Supervisor of Elections, and Tax Collector were also in scope to identify needs for integration to a central County ERP system. In addition to looking at Banner's functionality, the project included an assessment of all shadow systems used by the BOCC and the Clerk to perform the financial, utility billing, and personnel processes. Specifically, the project scope for phase 1 of the project included the following major tasks to develop this ERP Needs Assessment report: • Conducting project management tasks • Reviewing documentation • Conducting interviews • Assessing the County's technical environment The following functional areas were included within the scope of the project: • Accounts Payable • Human Resources • Bank Reconciliation • Misc. Billing and Accounts Receivable • Budgeting • Payroll • Cash Receipting • Projects & Grant Accounting • Contract Management • Purchasing • Fixed/Capital Assets • Utility Billing • General Ledger 2 1 P a g e County of St. Lucie ERP Needs Assessment Executive Summary April, 2014 1.2 PROJECT APPROACH The following chart illustrates the approach that was taken in performing the ERP Needs Assessment: 1. Initiation -Define Project Organizational Structure • Develop Project Charter • Develop Project Plan -Establish Project Collaboration Center 2. Needs Assessment • Review County Documentation • Conduct Interviews • Conduct Cross Functional Sessions • Assess Technology Environment 3. Draft Report -Compile Findings • Prepare Draft Report • Present Draft Findings 4. Finalize Report • Review Draft ERP Needs Assessment •Update Draft Report • Finalize Report The process for implementing new technology not only focuses on the technology itself, but also aims to enhance existing business processes performed by individual departments across the County. Technology is intended to enhance departmental business processes by: • Making them more efficient • Making them more effective • Improving decision -making Providing enhanced customer service to both internal and external customers •- Improving access to information • Streamlining processes to reduce costs. The overall goal of this needs assessment was to define a future course of action for the County's ERP environment to include software and supported business processes. The project was conducted using a participative and inclusive approach with significant input from County management and staff to ensure accuracy, completeness, and ownership of the resulting recommendations. Participation was obtained through the following activities: • Developing a Project Charter, working with the County staff to identify needs, making decisions about the project, and reviewing and providing feedback on project deliverables. • Facilitating project management status meetings to manage project activities and provide status updates. • Conducting interviews with the County departmental end users and process owners to evaluate current systems and business processes. Departmental management was encouraged to participate and invite team members. 3 1 P a g e County of St. Lucie ERP Needs Assessment Executive Summary April, 2014 • Conducting cross functional sessions where staff from all departments was invited to discuss issues, current processes and opportunities in the following areas: Projects & Grants, Budgeting and Contract Management. • Collection and review of numerous documents provided by the County as well as completed questionnaires by the departments. • Soliciting input from participating departments that included an evaluation of the following items: o Identification of current systems o Duplicate entry/re-keying of information o Issues with/shortcoming of current systems o Strengths of existing systems o Unused features/functionality of current systems o Opportunities to interface systems o Unique County business rules o Vendor interaction o Current technology project initiatives / future technology projects • Requesting and collecting data which was used to develop a return on investment analysis (ROI) relative to recommendations presented herein. • Development of the Needs Assessment Report. 1.3 SUMMARY OF OBSERVATIONS The approach Plante Moran followed in developing the Needs Assessment report focused on identifying how the current technology applications support the County's business goals and denoting opportunities for improving the effectiveness of business processes performed at the County in the future. While the County has a significant number of shadow systems to address the financial, procurement, and human resources functions across the organization (further detailed in the System Inventory section), the primary systems in use to centrally manage these functions are as follows: Table: Current Primary County Applications 4 1 P a g e County of St. Lucie ERP Needs Assessment Executive Summary April, 2014 1.3.1 Key Findings Below are the key findings and opportunities: Aging Financial System Recent advances in ERP systems, which the County's Banner system Lacks Functionality Found in does not fully utilize (either because they are not available or were Many Modern ERP Systems never implemented); include electronic workflow and self-service functionality. These functions significantly enhance efficiencies, as they enable end -users to complete and route transactions to the appropriate decision makers leveraging the use of notifications and queues which allows for greater organization and less redundancy. Limited Access to - _... The ...0 .... __.... _ , ... .... ..,... ,,...... ., ..__,.... , ._..., ._.._ . ounty's past policy of denying access to core financial and human Information resources functions caused departments to create many Excel spreadsheets that duplicate all transactions that are entered into the Banner system in order to access necessary detailed information in real-time. This causes significant delays, manual processes, and reconciliations, to keep these shadow systems updated. Lack of Training Some departments do have access to their financial data but do not have the training on how to report or inquire on the information. Therefore, they rely on Excel spreadsheets and Access Databases to store duplicate information so that they can have real-time information accessible to them. Chart of Accounts (COA) The County currently manages grants and projects by assigning them a Design new fund. When a grant or project is completed all of these accounts must then be inactivated. This has made the COA very large and cumbersome to manage. A redesign of the COA is needed and a change in processes on how to manage this change is required to improve reporting capabilities. Manually Intensive Stand- Many of the shadow systems consist of individual Microsoft Excel alone "Shadow Systems" and spreadsheets, Access databases, and paper files that require Processes excessive time to use and maintain. Incorporating the information and calculations from these shadow systems into an integrated ERP system can reduce the effort required to maintain the information, make information more accessible to others, eliminate redundancy and manual reconciliation and reduce the risk of human error. 5Page County of St. Lucie ERP Needs Assessment Executive Summary April, 2014 1.3.2 Key Opportunities There were a number of consistent themes of unmet needs that were identified across each of the functional areas. The unmet needs, which County management and staff expressed as opportunities for improvement, are summarized as follows. 1. Full integration between all modules, allowing for the elimination of shadow systems. 2. Real-time, immediate update and access to additional financial and human resources information. 3. Single entry of data and reduction in manual processes and shadow systems. 4. A consolidated modern system with user-friendly features (e.g., easy navigation, drop down boxes, drill down functionality, validation of data upon entry, etc.) that offers on-line help functions and customized system documentation. 5. User -driven, user-friendly, and flexible reporting tools that support the information needs of staff and the County Commissioners including tracking and reporting of performance metrics. 6. Elimination of paper -based processes and replacement with automated, online workflows and approvals. 7. Streamlined business processes incorporating established best business practices. 8. Self-service capabilities and other "e-government' opportunities such as employee and vendor self-service and mobile workforce capability. 9. Improved reporting capabilities including dashboard capability. Overall, the majority of the unmet needs that are listed above could be met by a public sector based ERP system with a single, integrated database that allows integration with other existing applications. 6Page County of St. Lucie ERP Needs Assessment Executive Summary April, 2014 2.1 IDENTIFICATION OF KEY STRATEGIC OPTIONS Based on the analysis of information provided by the County, there are three primary options in regard to the strategic direction for a future enterprise resource planning (ERP) systems environment. The graphic below illustrates these options and the table that follows provides more specific information relative to each option. 1. Do Not Change Existing Environment Strategic Options ` = ° Evaluated 2. Further �� �3. Replace Deploy & Current Integrate i Systems w/ Current y 'k Integrated Systems „ ERP Option 1:Do Not Change the With this option, the County would not elect to proceed with the Current Application acquisition and implementation of a new ERP system and would Environment instead retain the existing Banner system, standalone systems, MS Office applications, and manual processes. It is possible that some of the manual re -keying of data between systems could be avoided by developing incremental new interfaces (as per Option 2); however, this option would not seek to promote additional integration for the County. In addition, training for all of the staff on the existing functions and features of the system could eliminate a small amount of work and frustration. 7 1 P a g e County of St. Lucie ERP Needs Assessment Executive Summary April, 2014 Option 2: Further Deploy and Through a structured process, the County has the potential to better Integrate Current Systems access functionality within its existing Banner systems by purchasing additional software and implementing some existing software, re - engineering its account structure, as well as developing/revising custom technical integrations between the various systems to link, associate, or sending transaction data between the systems. In order to successfully realize the benefits of the future integrations, the County would need to simultaneously consider the impacts of each integration point and plan for optimization of each of the systems affected by the integration. This option would require a capital investment and necessitate additional ongoing investment compared to costs required to maintain the existing environment. ._--_-------- Option 3: Replace Current The County can purchase an integrated financial management, Systems with an Integrated procurement and personnel software suite from an ERP software ERP provider which would be intended to replace the existing Banner applications as well numerous shadow systems and manual processes. An ERP solution would not replace all the County applications. A strategy would need to integrate or interface the purchased solution with some existing County applications using advanced tools. The system selection should be a competitive procurement with stakeholder input to define requirements and measure vendors against them. It would require a capital investment and necessitate ongoing sustained investment through software maintenance and continued internal technical support. 8 1 P a g e County of St. Lucie ERP Needs Assessment Executive Summary April, 2014 'i11911r_11,11TA [+W The following is an analysis of the key strengths, weaknesses, opportunities, and threats based on the County of St. Lucie's current systems environment, ERP system selection project status, and implementation considerations/plans to date: 1. IT support and other County staff have created significant workarounds to address user reporting needs 2. County commitment to engaging stakeholders in change process 3. County -wide desire to reduce paper - based processes whenever possible 4. New County staff have experience using newer ERP systems 5. Growing interest in participating in selection of new technology 6. Pent up demand: Users crave system changes to improve their work processes 7. IT staff gearing up for implementation phase 1. Stronger standard system reports in a new system supplemented by a report writer 2. Transition to an information self-service environment 3. Growing belief that process re -design will be critical during implementation to take advantage of new systems 4. Leverage lessons learned from other County technology implementations 5. Grass roots project involvement strengthens likelihood of implementation success 6. Vendor solutions incorporate public sector best practices 7. Large County -wide project is conducive to phasing, prompting incremental change and spreading resource requirements 8. Improved integration with other County systems 9. Shared database for reporting 10. Automated electronic workflows 91Page 1. Limited tools to develop reports for access to critical information 2. Lack of integration between Banner components 3. Vendor has moved focus from Public Sector to Higher Education 4. Limited knowledge of the Banner system frustrates users and discourages use of current systems 5. Significant shadow systems exist to assist with departmental tracking of data in multiple functional areas 6. Several staff expressed frustration due to limited access to data. 7. Banner inquiry feature limitations and limited reports make access to information challenging 8. Limited ongoing training available. As a result, new staff members may not be receiving enough training to fully utilize 1. Managing staff expectations that future system may not provide all requested features 2. Managing expectations that system functions will solve problems - will require process redesign, procedure & policy changes and changes to roles and responsibilities 3. Managing expectations re: balance of robust data tracking capabilities vs. simple interface 4. Strong institutional/current system knowledge concentrated in staff nearing retirement 5. General anxiety about change 6. Users entrenched in established systems and processes since Banner was implemented 7. Need for ongoing system support staffing 8. Inherent complexity with data conversion and integration 9. If single vendor solution is not selected, County's integration goals may be challenged 10. Managing change required when moving from paper -based processes to electronic processes County of St. Lucie ERP Needs Assessment Executive Summary April, 2014 3.1 OVERVIEW The following represents the cost benefit analysis for five scenarios. The five scenarios are summarized below. If the County decides to go with Option 3 — New ERP, two choices for each option are provided. The two choices for each option show a traditional and cloud solution. A traditional solution would have the hardware onsite at the County (similar to the current Banner system) and the software license purchase as part of the one-time cost. A cloud solution would not include hardware (this would be housed and maintained by the vendor) or a software license purchase. Instead an annual fee (roughly three times the cost of traditional software maintenance) is charged for the use and maintenance of the software. Option 1 - Status Quo This represents costs for maintaining the status quo, including maintenance and support for Banner and the additional systems that could be replaced with a new ERP system. Option 2 - Invest in Banner This represents estimated costs for purchasing additional functionality for Banner, including the current (status -quo) costs plus an estimated $181,215 one-time cost for new functionality and $20,490 in additional annual support costs. ACS quoted an annual cost increase of 10% which has been included in this estimate. Option 3 - New ERP • Low Estimate (Lower -end Tier 2). This represents a lower cost scenario based on Plante Moran's experience, along with more conservative estimates of cost savings (based on the low end of the expected cost savings range). This scenario would involve process redesign and implementation of a Tier 2 system with a lower degree of complexity, thus maintaining lower cost and implementation effort. The multiplier used is .75 and costs are based on market data obtained and analyzed by Plante Moran. • Medium (High Tier 2) Estimate. This represents the most realistic scenario based on Plante Moran's experience, along with an expected estimate of cost savings (based on the mid -point of the expected cost savings range). This scenario would involve process redesign and implementation of a Tier 2 system with a high degree of complexity, thus driving up cost and implementation effort. The multiplier used is 1 and costs are based on market data obtained and analyzed by Plante Moran. • High Estimate (Tier 1.5 Scenario). This represents a higher cost scenario based on Plante Moran's experience, along with more aggressive estimates of cost savings (based on the high end of the expected cost savings range). This scenario would involve process redesign implementation of a Tier 1.5 system with a higher degree of complexity, thus maintaining higher cost and implementation effort. The multiplier used is 1.25 and costs are based on market data obtained and analyzed by Plante Moran. 101Page Q County of St. Lucie ERP Needs Assessment Executive Summary April, 2014 Recommended Next Steps 4.1 RECOMMENDED STRATEGIC APPROACH While many incremental improvements could be made or added to the current fragmented applications which would mitigate the investment required by changing systems, the primary challenge with maintaining the status quo would be the inefficiencies, lack of recent advances in ERP systems (e.g., workflows), duplicate and triplicate entry with the excel spreadsheets and very little confidence in the current software by the majority of the users. When Ellucian took over the Banner product in 2012, the strategic focus is only on the education community. Staying with a vendor that is not focusing their software development on the municipal sector would not be recommended. Should the. County conclude to remain with the twenty year old Banner software and current shadow systems, the complexities of the decision process could be delayed; however, it would be likely that the County would conclude to change its ERP system in the future at a time which is more reactionary than strategic and planned. Remaining with the current environment does not appear feasible in the long term and inappropriate as a future strategic direction in context of the County's strategic goals and concerns of the current financial, procurement and personnel applications environment. While current inefficiencies were difficult for the County staff to quantify, there is a common. belief amongst.staff that the Banner system and processes are inefficient and there is a universal acknowledgement that current information is not accessible or reportable, therefore, all departments have created several shadow systems for tracking budget, financial transactions and calculations. The same data is being entered intomultiple spreadsheets as well as in the Banner application. Given this inefficient environment and negative attitude toward the Banner system, the County may be best served to move. toward procuring a new ERP via a competitive bid process. Should the County move with this recommendation, they should investigate both a vendor -hosted solution as well as an on premise (i.e., County -hosted) solution. 121Page 'D 75 Ilk r �cli Q u n CL 0 M m @ E E C O N U N N � O N 7 7 L Rf N M 'C 2 a LL. LL In I! €� t tn Lc) ;� t� itn Iuf ;uf i� :b !� � :Ht� ;b :N , it° n :Lp ice' t< So !t0 MhN N _ 0N C° `LL O '_ _O LLL , C LL LL ?c fO I O LL ELfLOL� ILL-'LL" , i ` ` i. --........ ` in :L: •i i. 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I> Ia I'O 'O icA c o !� 'C LL( p�j i� i� W ;Q iQ W y `� `:W i� E:: Id ;y O 7 i ip '� !W 10 'C ¢ Iw U IC �i `�N N o ; �, 'p IO j0 0 `a Li 4CfZ4 'tN ;C ;v iN t.N `.° IT N i7 !N -0 iN y tau j C i crS o N� n N a a a Fm (� •a fei � m � — rr, — N M - N (O t` 00 — O (V N m N fV a County of St. Lucie ERP Needs Assessment Executive Summary April, 2014 4.1 RECOMMENDED STRATEGIC APPROACH While many incremental improvements could be made or added to the current fragmented applications which would mitigate the investment required by changing systems, the primary challenge with maintaining the status quo would be the inefficiencies, lack of recent advances in ERP systems (e.g., workflows), duplicate and triplicate entry with the excel spreadsheets and very little confidence in the current software by the majority of the users. When Ellucian took over the Banner product in 2012, the strategic focus is only on the education community. Staying with a vendor that is not focusing their software development on the municipal sector would not be recommended. Should the County conclude to remain with the twenty year old Banner software and current shadow systems, the complexities of the decision process could be delayed; however, it would be likely that the County would conclude to change its ERP system in the future at a time which is more reactionary than strategic and planned. Remaining with the current environment does not appear feasible in the long term and inappropriate as a future strategic direction in context of the County's strategic goals and concerns of the current financial, procurement and personnel applications environment. While current inefficiencies were difficult for the County staff to quantify, there is a common belief amongst staff that the Banner system and processes are inefficient and there is a universal acknowledgement that current information is not accessible or reportable, therefore, all departments have created several shadow systems for tracking budget, financial transactions and calculations. The same data is being entered into multiple spreadsheets as well as in the Banner application. Given this inefficient environment and negative attitude toward the Banner system, the County may be best served to move toward procuring a new ERP via a competitive bid process. 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CL m cq 1-- a. a 4/10/2015 Enterprise Capital Project• Overview of LocalOption Surtax Citizens Budget Committee Meeting March 20, 2015 Agenda • Enterprise Resource Planning - Project Work Plan • Review of Capital Project Funds & Related Items • Stormwater MSTU • Parks and Recreation MSTU • Transportation Trust (Gas Tax) 5th Cent Gas Tax • Overview of Local Option Sales Tax 1 4/10/2015 Capital Project Funds Stormwater MSTU Fund • A dependent special taxing district that comprises the unincorporated area only. • Provides a financing mechanism to fund stormwater maintenance operations and stormwater capital improvements. • Current millage rate is set at .3497 mills which generates property tax revenue of $2.4. million. • $1.3 million is dedicated to recurring maintenance operations. Approximately $i.oi9 million is available for capital improvements. 4 4/10/2015 Stormwater MSTU Beginning Fund Balance @ io/oi/i3 $6)154)784 Plus: FY 13-14 Operating Revenues $2,431,355 FY 13-14 Grant Revenues $212,327 Less: FY 13-14 Operating Expenses $1,333,128 FY 13-14 Capital Expenses $2.050,g3q Ending Fund Balance @ 09/30/14 $5,415,299 3,000,000 215-o,000 2,000,000 11500,000 1,000,000 500,000 0 2014 Stormwater MSTU Capital Projects Bud vs Actual$2.050 Million 2,681,oi3 Culverts 1,346 Neighborhood Improvements Small Projects 0 Bud. ❑Act. 3 4/10/2015 Stormwater MSTU Fund — Budget Projections ® The 5-year CIP identified priorities for both culvert replacement and neighborhood infrastructure improvements. ® In FY17 and FY18, significant budget shortfalls are projected based on the proposed capital improvements scheduled in those years. ® The projected budget includes increased property tax revenues from shifting millage of .1234. mills back to the Stormwater MSTU fund over a 2-year period in FY17 and FY18. Stormwater MSTU — Unmet Needs • 5 Neighborhood Improvement Projects ($70 Million) • Projects are divided by phases and each includes land acquisition, design and permitting and construction • Land acquisition represents the element with highest priority. It is estimated land acquisition for all 5 projects will cost $2.3 Million 4 4/10/2015 Parks MSTU Fund - Overview • Municipal Service Taxing Unit - A Countywide Ad Valorem millage currently set at .2313 mills. • MSTU millage can be levied up to .25 mill. Expires on 12/31/2023. • Ad Valorem revenue is shared with SLC's 2 cities & St. Lucie Village. Annual County share of revenue net of fixed costs is approximately $552K. • Sole purpose of MSTU funds is to provide "Recreation Facilities' to all residents of St. Lucie County and to pay debt service on outstanding or refunded bonds. Parks & Recreation MSTU Beginning Fund Balance @ io/oi/13 $3)745,467 Plus: FY 13-14 Operating Revenues $3,451,941 FY 13-14 Reimbursement (Ft. Pierce) $282,618 Less: FY 13-14 Operating Expenses $3,075,103 FY 13-14 Capital Expenses $2.266,94.o Ending Fund Balance @ 09/30/14 $2,137,983 5 4/10/2015 1,000,000 gogoo. .... ... .. ... 3A�358 z86,4i8 ......_ .- ... z6�,000 .........._. _...... ...._ .__.. .-._.... ...... _.. z64 800 n zu,om 86,219 ®�1_._. >gr,48o N.,n._ o .,.®I I_.. _._..z6�3�5 _ .. _. ..._ ., .. __._ Golf Coastal Special Fac. Reg. Parks & Stadiums Tourism ■Bud. ❑Act. Parks MSTU Fund — Budget Projections The CIP has identified priorities FY 15 to FY 18: • Golf Course ($587,000): • Restroom Renovation - Clubhouse A/C • Enclose Pavilion/Storage/Gazebo • Parks & Special Fac. ($510,000): • River Park Marina (ADA Improvements) • Paradise Park (Playground) • Pool Resurfacing/Equipment • Regional Parks & Stadiums: • Tradition Field - Stadium Improvements • Concession Equipment, sound System, Batting Cages, Parking Lot Resurfacing and Green Sports Lighting 10 4/10/2015 Transportation Trust Funds -Overview • Local Option Fuel Tax: • ist cent to 6th cent tax, expires Aug. 2015 • 9th cent supports operating and maintaining the County's transportation system. Expires Aug. 2015: • Acquisition • Construction and Reconstruction • Maintenance of Roadways • Constitutional Gas Tax: • 2 cent tax authorized by the Constitution and the State and allocated to each county. • Can be used for the acquisition, construction, and maintenance of roads • County Gas Tax: • 1 cent tax authorized by the State and allocated to each County • Can be used for transportation related expenses 5th Cent Gas Tax - Overview Local Option Fuel Tax: • 5th cent tax, its use is restricted to construction which increases capacity. Expires Aug. 2015: • New roads • Reconstruction • Resurfacing existing paved roads 4/10/2015 Transportation Trust Fund Beginning Fund Balance @ to/oi/i3 $10,439,290 Plus: FY 14 Operating Revenues 7,142,522 Less: FY 14 Operating Expenses 7,814,728 FY 14 Capital Expenses/Transfers 1,666,899 Total Expenses 9,481,627 Ending Fund Balance @ 09/30/14 $8,100,185 5t" Cent Gas Tax Fund Beginning Fund Balance @ io/oi/i3 Plus: FY 14 Revenues Less: FY 14 Capital Expenses Ending Fund Balance @ 09/30/14 $2,524,356 1,054,242 i,o36,761 $2y541,837 0 4/10/2015 2014 Transportation Trust Capital Projects Bud vs Actual $1.667 Million 41500,000 _.._. _...... .....,__ ._.._.. .. _._ __.__._ ____... ....__.... .-__............ 4,—,000 ._.__._ ..... ... ........_.,_.. _,....3!93!.76Z.......... ..... .__._...... ...................._. 31500,000 .. .... ._... ....... ._. ... .,.....�..... .... _... ._.... .._.._ ___... 3,000,000 ..__.,....._ ...... .:_ _..._..... ._.._........... .............__.... z,000,000 _. -. ..._ .. __ _... _ .. _.._. ... _. ... ._ _.. 11500,000 _. ............. _... ._..__.....,.._...._._ ......__.._. _. .,___.__....._...... ,iz6,7z7 r,000,000 .. ..... . ._ 79 ,950 . p6,5zo 500,000 r32,693 _. 259,898 z49,966 ro5,552 56,26r 51,96r Road & Bridge Drainage Equipment Sidewalk Other Transfers ■Bud. ❑Act. 2014 5th Cent Gas Tax Capital Projects Bud vs Actual $1.037 Million 1,600,000 ........... ._........_ ... _._._ ___. _.... ............ ...__.. r510;128 ..._.......... ._... ..... .. _......_. _. ......, 11400,000 _...,___. ... .._.__...... .. __--.._. ...____.__ .. ...._..,____ ......__.. 1,000,000 ..._, __..... .........._.. ..........._. ...,............. 819,801 800,000 ._............ ......_........_...._......_.:. .. .._. _......._... ._. .. .._...._.....,.. __ .. 600,000 .__...,.._... _._.___._ ..,........_. _..........._ 400,806 400,000 _. ..,...__. ..._._.. ............... ......__........ _.......... .....__.._. 295,805 203,131 Gt,r78 60 68r 95,102 o n Stormwater/Drainage Culverts Roads Bridges ■Bud. ❑Act. 91 4/10/2015 Roadway Projects— Unmet Needs ROADWAY WIDENING NEEDS (,$95.5 Millions ® (Priority i) West Midway Road (Selvitz Rd to Glades Cut-off Rd) ® (Priority 2) Kings Highway & Indrio Rd Intersection Expansion ® Jenkins Rd (Midway to Edwards Rd) ® Jenkins Rd (Edwards Rd to Orange Ave) ® Lennard Rd (Walton Rd to US Hwy i) ROADWAY MAINTENANCE NEEDS (i.5 MillionnL&. • (Priority 3) Pavement Resurfacing Program (ongoing) Overview of Local Option Sales Tax M1 4/10/2015 Local Government Infrastructure Surtax • Amount Levied: • Each county may levy a discretionary sales surtax of 0.5% or 1% • Referendum: Two Methods • Enacted by a majority of County Commission and approved by the majority of the voters by referendum. • Municipalities representing a ma ority of the county's population may initiate the surtax by adoption of resolutions calling for a countywide referendum and approved by the majority of the voters by referendum. • Length: • Surtax Referendums enacted after July 1, 1993 do not have a limit on the length of levy • Distribution: Two Methods • Local agreement to determine the distribution of the surtax • Formula provided in Florida Statute 218.62 (based on the Local Government Half -Cent Sales Tax formulas) • 50.02% - County 49.98% - City Authorized Uses of Proceeds • To finance, plan, and construct infrastructure • To acquire land for public recreation, conservation, or protection of natural resources • To provide loans, grants, or rebates to residential or commercial property owners who make energy efficiency improvements to their residential or commercial property, if a local government ordinance authorizing such uses is approved by referendum Per Section 212.005(2) Florida Statutes 11 4/10/2015 Infrastructure Examples Infrastructure related investment with a life expectancy of least 5 years. Examples are: • Roadway Improvements • Stormwater Drainage • Equipment and Vehicles • Building and Facility Improvements • jails • Parks/Special Facilities • Other: • Energy Efficiency Improvements • Court Facilities • 15% can be allocated to Economic Development Estimated Proceeds • $14,574,218 (based on the Local Government Half -Cent Sales Tax formulas 50.2% to County) Bonds • May pledge the proceeds of the tax for the bonds • Counties and municipalities may join together for the issuance of bonds County Comparison • 18 Counties in the State of Florida levy the Infrastructure Surtax • Neighboring counties that levy the Infrastructure Surtax and effective date: • Okeechobee (Oct 1. 1995) • Indian River (Jun.1989) 12 4/10/2015 Capital FundsOverview of LocalOption Citizens Budget Committee Meeting March 20, 2015 13