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Home My WebLink AboutInformal Packet - 1/13/2026 BOARD OF COUNTY COMMISSIONERS AGENDA ST. LUCIE COUNTY BOCC Informal Meeting Tuesday, January 13, 2026 9:00 AM Commission Chambers 2300 Virginia Avenue 3rd Floor of Roger Poitras Building Fort Pierce, FL 34982 BOARD MEMBERS District No. 4, Chair JAMIE FOWLER District No. 2, Vice-Chair LARRY LEET District No. 1 JAMES CLASBY District No. 3 ERIN LOWRY District No. 5 CATHY TOWNSEND Mission Statement Committed To Service, Focused On Our Future, Grounded By Tradition *Final on 1/7 Page 1 of 35 BOCC Informal Meeting Tuesday, January 13, 2026 9:00 AM 2 | P a g e 1. CALL TO ORDER - JAMIE FOWLER, CHAIR BOARD OF COUNTY COMMISSIONERS 2. PLEDGE OF ALLEGIANCE 3. DISCUSSION ITEMS A. Reserves and FY 2027 Budget Outlook B. Beach Discussion 4. COMMISSIONER COMMENTS 5. ADJOURNMENT NOTICE: All Proceedings before this Board are electronically recorded. Any person who decides to appeal any action taken by the Board at these meetings will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made. Upon the request of any party to the proceedings, individuals testifying during a hearing will be sworn in. Any party to the proceedings will be granted the opportunity to cross-examine any individual testifying during a hearing upon request. Anyone with a disability requiring accommodation to attend this meeting should contact the St. Lucie County Human Resources Department at (772) 462-1546, humanresources@stlucieco.org or TDD (772) 462-1428 at least forty-eight (48) hours prior to the meeting. Page 2 of 35 INFORMAL ITEM REQUEST DATE: 1/13/2026 TO: Board of County Commissioners PRESENTED BY: Jennifer Hill, Office of Management & Budget Director Jennifer Garrity, Budget Manager SUBJECT: Reserves and FY 2027 Budget Outlook BACKGROUND: The Office of Management and Budget (OMB) will present fiscal outlook data related to the FY 2027 County Budget and the County's reserve policies while obtaining preliminary guidance from the Board in order to engage in setting budget guidelines desired by the BOCC as departments submit their budget requests. Guidance from the BOCC will help the OMB and County Administrator review departmental requests, identify issues/topics for consideration, and develop the budget in consideration of a BOCC millage target. The guidance will allow the County Administrator to prepare a fiscally responsible budget recommendation in consideration of economic factors resulting in upward financial pressures and operational service demand increases. PREVIOUS ACTION: N/A FINANCIAL IMPACT: N/A BOARD DIRECTION: Staff will provide data and obtain general, preliminary guidance from the Board for the preparation of the FY 2027 Budget. Page 3 of 35 1 Page 4 of 35 2 •Reserves •Reasons Reserves Needed •GFOA Reserve Recommendations •Comparisons •FY 27 Budget Outlook •Strategic Plan Alignment •Financial Review & Economic Forecast •Challenges & Considerations •FY 27 Calendar Page 5 of 35 3 Page 6 of 35 4 •Debt Ratings: Strong reserves can contribute to high credit ratings which reduce the cost of borrowing for County projects. •Cash flow: In the beginning of the fiscal year, approximately $50 million in cash is needed to support operations before property tax revenue starts coming in. •Fluctuations in revenue: Changes in the economy, interest rates, and other factors can have negative impacts on our revenue collections which could result in budgetary shortfalls. •Emergencies: The County’s expenses for the 2004 Hurricanes (Frances and Jeanne), exceeded $100 million. While most of this was eventually reimbursed by FEMA, Insurance, FHWA, etc. The County had to pay the expenses up front. Not all expenses are reimbursable and if they are, reimbursement can sometimes take over a year to receive. •Covering temporary County needs until alternatives can be found such as the purchase of property from Tropicana and the Liberty Medical Building. Page 7 of 35 5 •Moody’s: •Economy/Tax Base 30% •Finances 30% •Management 20% •Debt/Pensions 20% •Standard and Poor’s (S&P): •Economy 20% •Financial Performance 20% •Reserves and Liquidity 20% •Management 20% •Debt and Liabilities 20% Page 8 of 35 6 •St. Lucie County has an estimated $144 million in outstanding debt obligations. •St. Lucie County has strong credit ratings: •Moody’s: Aa2 •“Judged to be of high quality and are subject to very low credit risk” •Standard and Poor’s (S&P): AA •“Very strong capacity to meet financial commitments.” Page 9 of 35 7 •General Fund/Fine & Forfeiture Fund •Target: 25% of budget •Excess reserves transferred to capital improvements, capital facilities, capital maintenance •Other County Funds •Various reserve levels based on funding availability with no established minimum threshold. •Mosquito Control Fund: $4 million target •Capital Funds (Impact Fees, Infrastructure Surtax, County Capital, Campus): Funding available for year 2-5 of the CIP is budgeted in reserves and allocated in future years’ budgets. Page 10 of 35 8 •Martin County: Estimated 35% General Fund Total •Designated Reserves •Budget Stabilization Reserve: 10% •Separate funds will be appropriated to mitigate natural disasters. •Other operating funds will strive to maintain similar designated reserves •Undesignated Reserves •Will be limited to an amount that is consistent with previous years (approximately 25%) •Indian River County: Estimated 30% General Fund Total •Emergency and Disaster Relief Reserve: 5% •Budget Stabilization Reserve : No less than 5% •Unassigned Fund Balance: 20% •Okeechobee County: 25% Page 11 of 35 9 Page 12 of 35 10 Risk Factors: •Extreme Events •Revenue Stability •Expenditure Volatility •Leverage •Liquidity •Other Funds (that rely on General Fund) •Growth •Capital Projects Guidance: •Minimal Risk: 16.6% •Low to Moderate Risk: 17-25% •Moderate to High Risk: 26-35% •High Risk: >35% Page 13 of 35 11 Clerk CBC Extreme Events 5 5 5=Very Important Revenue Stability 4 5 4=Important Expenditure Volatility 5 4 3=Neutral Leverage 3 5 2=Unimportant Liquidity 4 5 1=Very Unimportant Other Funds 3 4 Growth 4 5 Capital Projects 5 3 Subtotal 33 36 Government Size -4 -4 Budget Practices 0 0 Borrowing Capacity -2 -2 Net 27 30 Page 14 of 35 12 Your Score Analytical Guidance 8 - 16 You face minimal risk to retain through reserves. Consider a target equal to the GFOA minimum recommended reserve of 16.6% of revenues/expenditures. 17-24 You face a low to moderate level of risk to retain through reserves. Consider adopting a reserve target somewhat higher than the GFOA minimum (e.g. 17-25% of revenues/expenditures). Since risk is low, do not invest excessive analytical effort in determining an exact target amount. Consider a short, informal benchmarking study with peer agencies to provide guidance. 25-31 You face a moderate to high level of risk to retain through reserves. Consider adopting a target amount of reserves significantly higher than the GFOA recommended minimum (e.g., 26 -35%). Consider a short, informal benchmarking survey as a starting point, but then analyze your most significant risk factors to make sure they are adequately covered by what the survey suggests is reasonable. 32 - 40 You face a high level of risk to retain through reserves. Consider adopting a much higher target than the GFOA minimum (e.g., greater than 35%). Consider performing a more in-depth analysis of the risks you face to arrive at target level of reserved that provides sufficient coverage. Page 15 of 35 13 •Consider increasing General Fund/Fine & Forfeiture Fund target to 30% consistent with CBC assessment & Clerk of Court assessment of GFOA Reserve Recommendations and surrounding Counties policies. •Begin to establish minimum thresholds for other County funds. Page 16 of 35 14 Page 17 of 35 Strategic Plan Alignment Financial Review & Economic Forecast 15 Challenges and Considerations FY 2027 Calendar Page 18 of 35 16 Page 19 of 35 •Urban Service Boundary Planning Studies •Stormwater Master Plan •Resiliency Plan •Mobility Infrastructure Plan/ROW Protection Map Update •Facilities Master Plan •Solid Waste- Cell V and exploration of Waste to Energy 17 •Strategic Plan •Infrastructure Surtax Process •Port Master Plan •Parks Master Plan •Utilities Master Plan •Evaluation & Appraisal Review of the Comprehensive Plan Page 20 of 35 18 Page 21 of 35 19 Page 22 of 35 20 State Revenue Sharing Proceeds Half-Cent Sales Tax Infrastructure Sales Tax Tourist Development Tax County Gas Tax Combined FY23 $8,537,505 $15,348,736 $15,250,290 $6,749,305 $10,109,829 FY24 $8,238,543 $14,982,104 $15,614,489 $6,148,354 $10,077,266 FY25 $8,547,978 $14,880,841 $16,447,514 $6,707,683 $10,144,345 % Change 0.1%-3.0%7.9%-0.6%0.3% $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 FY 23 - FY 25 Actual - % Change FY 23 - FY25 Page 23 of 35 21 Page 24 of 35 22 Page 25 of 35 23 Page 26 of 35 24 •As of 1/5/26, approximately 32 bills have been filed that would affect property taxes (expect more to be filed). •Many of these bills would significantly limit St. Lucie County’s ability to collect property taxes to support the budget. Some features of these bills include: •Prohibition of reductions in local law enforcement funding •No provisions for replacement revenues •A significant portion of the property taxes SLC BOCC collects goes to fund other agencies as mandated by the State. This leaves limited funding available for BOCC operations. Page 27 of 35 25 Bill Description 1st Year Recurring (6th Year) HJR 201 Elimination of non-school homestead $202,890,986 $286,446,501 HJR 205 Non-school homestead elimination for seniors over 65+$85,814,569 $121,155,126 HJR 211 Eliminate Save-Our-Homes Portability Cap for non-school homestead $807,659 $6,510,381 HJR 209 Additional 100,000* exemption for insured properties on non- school homestead value $63,867,028 $89,863,814 HJR 203 10-year sunset of non-school homestead taxes $84,722,424 $246,480,182 HJR 207 Additional 25% exemption for non-school homestead taxes $51,464,279 $72,658,540 HJR 213 Modifications to the assessed value growth rates $12,483,380 $61,545,476 HB 215 Combined Save-Our-Homes differential for married couples $502,933 $1,297,817 Source: Florida Association of Counties/State of Florida Revenue Estimating Conference *Amended to $200,000. Calculations reflect original $100,000 version. Page 28 of 35 26 • HJR 787- County and School District Ad Valorem Taxing Authority- proposes a constitutional amendment to eliminate the authority of Florida counties and school districts to levy ad valorem property taxes, leaving only municipalities and special districts with this taxing power. •HB 789- Ad Valorem Tax Levies - eliminates county and school district ad valorem (property) tax levies for general and school purposes in Florida, shifting funding responsibilities to the state and special districts, and will take effect only if a related constitutional amendment is approved by voters. Page 29 of 35 27 With significant projected growth over the next 20-30 years, the County needs to be preparing for the infrastructure needed to support a growing community. Source: University of Florida Bureau of Economic and Business Research (BEBR) Population Estimates Page 30 of 35 28 With a projected population of over 600,000 living in St. Lucie in the next 30 years, we need to be thinking about: •Water Quality •Public Health •Resilient Infrastructure •Affordable/Workforce Housing •Advancing Economic Opportunities •County Facility needs •Balancing the impacts of development •Preservation of natural resources •Waste management •Parks/recreational facilities/trails •Homelessness •Efficient Transportation & Transit •Education & Workforce development •Fiscal responsibility & Economic stability •Technology advances & cybersecurity •Preparedness & Public Safety •Quality of life Page 31 of 35 29 •Based on Feedback received during the FY 26 Budget Process, the following are being implemented for the FY 27 Budget Process: •CBC Subcommittee: In line with the duties identified in BOCC Resolution 91-221 that established the CBC and direction from the BOCC, the CBC has formed a Subcommittee that will be reviewing the Environmental Resources Department Budget and Operations in detail. •July Budget Workshops to be held in the BOCC Chambers. •Line-Item Budgets will be discussed during these workshops. Page 32 of 35 January CIP/ Operating Budget Kickoff Due February April Admin. Budget Reviews April-June Const. Budgets, Judicial Agencies submit budgets May/June Admin. Develops recommendati ons Page 33 of 35 June 26: County Admin. Recd. Budget Distributed to Board July 8-15: BOCC Budget Workshops July 21: TRIM Millage Rates Approved Sept. 3: Tentative Millage Rates and Tentative Budget Approved Sept. 17: Adopt Final Millage Rates and Budget Page 34 of 35 32 Page 35 of 35