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HomeMy WebLinkAboutStrategic Minutes 05-28-2010BOARD OF COUNTY COMMISIONERS ST LUCIE COUNTY, FLORIDA STRATEGIC PLANNING SESSION 2010 Date: May 28, 2010 Convened: 1:15 p.m. Adjourned: 5:00 p.m. Commissioners Present: Chairman, Charles Grande, Dough Coward, Chris Craft, Chris Dzadovsky, Paula A. Lewis Others Present: Faye Outlaw, County Administrator, Lee Ann Lowery, Asst. County Administrator, Marie Gouin, OMB Director, Millie Delgado-Feliciano Opening remarks were made by the Chairman of the Board of County Commissioners. The County Administrator recapped the remainder of the questions that had been asked previously. She advised the Board they will putting the questioned as a report format. She stated there was a question regarding the amount of funding that they would have with the AIPPI Project. The County Administrator stated that they have been approved projects in prior years and will be moving forward. They were already funded and the 2% from those projects that are in the general fund in County capital totaled $114,069. She also stated that the current FTE level with the lay-offs that have been taking effect puts their current FTE level at 708 employees which is the 1999-2000 staffing levels, and the County's population at that time was 192,000. The potential lay-offs for October 15t of 45 employees will place the FTE count at 663 which will be at the 1992-1993 staffing level when the population at that time was 158,937. Com. Lewis advised those present the current population in Saint Lucie County is 272,000. The County Administrator stated the reductions that are recommended, the County's budget is being reduced another 17% having to build in the 3 million dollars increase in anticipation of the increase for inmate medical. If they did not have to increase their budget to accommodate the projected increase, it will then be a 20.7% reduction in the County's budget. If the board were to approve the recommended budget they are going through in July budget reviews, the budget would be further reduced 17%. Although the board has not provided direction, she built in the 3 million to accommodate the increase being anticipated for inmate medical. Based on what is going to be recommended, puts the County's budget at about 43% of the general funds and fine & forfeiture. The Constitutionals at 52% of their budget. The statutory mandated additional support about 1.6% of the budget. Also the statutory mandated state agencies at about 1.3% of the budget. The non-county agencies will be the non-profits represent about 1.2% of the budget. The CRA Agencies for the two respected cities which will be 2.5% of the budget and the other agencies that include economic development council, the Solar water conservation and the TPO funding at .2% there is a breakdown in turn of the percentages of the County's general fund and fine & forfeiture budget. Com. Coward stated that he has figured out the question when he was asking the Sheriff on why the budget has doubled 2.5% times, the population increased during the same time frame. One of the things was the jail expansion, and he also mentioned the figure from seven years ago where the increase was about 2 million which led into a discussion of 20 to 28 million and never answered the question. He stated that he found the memo from 2003 and the answers to the specific questions and it states that the annual estimating expenses are estimated at 1.8 million. That's the additional operating expense that was estimated. It would be 3.8 million for the two combined. Utilizing the second part for the federal inmates to show the income. The County Administrator addressed the Board and presented her proposal regarding the Sheriff's budget. She also stated that she had not articulated to the board exactly what she is proposing to the Sheriff understanding the policy making body of the board they have the discretion to do otherwise. She stated that it is very important that the board clearly understand what it is that she is proposing and it is obvious that the Sheriff's budget is perhaps the biggest challenge that they have to deal with. Given critical importance of law enforcement within any County and trying to balance the level of priority when they are facing a 1/3 loss of the upcoming revenue. The County Administrator stated this is an entity (the Sheriff's department) that consumes a large percentage of the operating budget. She questioned, how do you balance and compromise with the Sheriff and what will help the board and also be part of the solution to help them to get to that point? She stated she has placed a starting point of a 10% reduction and would recommend to the board, based on discussions with the Sheriff, to allow a portion of that reduction to betaken in FY11 given that they are balanced for FY11. This would give him time for his union negotiations and then come FY12 and take the balance of reductions. Budget. She stated she would support that approach and the 10% was a starting point. It could be a starting or a stopping point; this is something the Board must decide. Com. Dzadovsky stated he does not have a problem requesting 10% for FY 11 and does not have a problem asking for another 10% reduction in FY 2012. His budget is the largest in the county and he needs to take every step to protect this county as he did years ago when his budget was 28 to 32 million. It is the Sheriff's responsibility to cut his budget where he feels fit and he should take and manage his budget as the county has done. The County Administrator stated she is recommending the 1.6 million in onetime money, there seems to be the thought that this was going to be in addition to the operating budget and the Board has never stated so. The County Administrator stated the Sheriff requested that she make it clear that the increase in his budget was due to the onetime money and if one time money is clear in the front end, then she wishes to make it clear that it was one time money on the back end, and she cannot take credit for that. She also stated that whatever the Board decides on how much of the cut the Sheriff's budget will have, and if they go forward with the two steps, part now (2011) and part in 2012 she would ask the Board to cut the budget for that amount for 2011 and take the difference and put in a reserve fund so that in 2012 no one can say the operating budget was left at that level and have him come back in mid year or quarter and draw down whatever that difference is. We are at a point that whatever has to be reduced it has to be reduced and in 2012 they cannot say their budget was not cut. Com. Craft stated at the end of the day they are not going to agree but they need to understand what the best number is they can reach. He asked if the Sheriff was willing to take another 7.5% away next year from the $65.1 million this year. This year he proposed a 2.5% reduction over last year. A total of 10% over two years. The County Administrator stated no, the difference was they had not come to an agreement on an actual percentage cut. He is stating they have an 4.8% cut because he is building in credit for the onetime money and she cannot concede to that, the Board approved that as one time money and she cannot agree he is cutting his operating budget. Com. Grande questioned given the 2.5% cut this year and talking about amulti-year solution, he is going to cut another 7.5% for a total of 10% provided that is the figure the Board agrees with. The County Administrator stated they had not agreed to the percentage, but in concept yes. 2 Com. Craft stated in 2012 the Sheriff's budget should be $59 million. Com. Coward stated he would like to have more information as to privatization of any jails in other areas. Com. Grande stated they needed to look at all options for the jail. He believes the SRO program is another discussion for the 7th, they may need to put the SRO into the Law Enforcement MSTU or a separate MSTU for the SRO's but clearly they need to fund them this year and next year. If we come to an agreement that he will cut 10% by 2012, then there is no need to put anything in reserves. Com. Lewis stated they need to look at the the additional money comes to, if the sheriff pays for it, we pay for it. The 1.6 we funded last year is not what is needed this year due to the fact Port St. Lucie is funding, however she does not know the figure. There are quite a few questions she has for the 7th. There are some issues that need to flush out from his side. Com. Craft stated the Board has not determined where they are heading. This was a recommendation made by the County Administrator. The bottom line is they are sitting with $104 million in revenues with $154 million in expenses. He stated, if we are not getting something back from everybody, and the easier it is to spread the pain, he stated he is supporting the Board, but he felt they needed to make specific recommendations on what they need and want to look at. He stated he would like an itemized detailed analysis of his budget. Com. Dzadovsky stated he would like to see by June 7th the affects of Amendment 1 on the county. The County Attorney addressed the MSTU and stated it is only in the unincorporated area and is a result of a double taxation lawsuit. It was settled a few years ago with an agreement. It consists of road patrol and farm or citrus control which is minor component. They staged it from 3% to 24% and it has been 24% for some time. He stated if they create a new MSTU it would need to be done by July 15t and if it was to be countywide, the cities would have to approve by Ordinance. Com. Coward asked how many people has the county let go in the past few years. The Human Resources Director stated in the area of 300. Com. Coward stated this should not be directly affecting the sworn officers but should also affect the Sheriff's administration staff. He stated he has a lot of Administrative staff that should share the pain. Com. Craft stated looking at the budget, it tells him there is a lot more that can be done with this budget. The County Administrator stated that in her opinion they have focused on the discussion on law enforcement and the measure that can betaken. She does not believe that they should stay behind based on what the statue says in terms of mandating the board fund it. The Sheriff is a respected official of our community and suggested they have a discussion with the board about the details of their budget. As part of the board's session, she suggested to have a discussion of what the Sheriff has said regarding the next Strategic Planning session based on whether they wanted to save money on the budget. Given that they are looking at everything, she stated they have to at least explore whether or not there is another who can operate the jail. She advised the Board they have done a survey around the state, and in most counties the sheriff operates the jail. There are some counties that operate the jail themselves and there are some counties that operate the jail thru a private contractor. She believes that they have to explore every option and possibility, based on what decisions need to be made by being able to balance in FY12. 3 The County Administrator asked whether there were any questions from the Board. Com. Coward questioned the fact there were two counties in the state that operate the County jail. The County Administrator stated that she believes that there are three, but she did not have the survey with her at this time. Com. Coward asked whether they have a preliminary number such as the cost per inmate from those agencies. The County Administrator stated that they have quite a bit of information and stated that she does not remember the cost per inmate. She did not wish to go public with the information until she had discussed it with the board. The County Administrator requested the Law Enforcement Discussion and the millage discussion be handled separately. The Board concurred. The County Administrator requested the Board indicate support or non-support on the sustainability measures narrative. The County Administrator addressed the 7% salary reduction for herself plus the 5% she did not take, and in addition to the furlough days. Com. Coward recommended discussing this issue under furlough days. Com. Grande stated they would need to go back and forth from line to line. The furlough plan he is not sure this is the best approach although the goal is to save 1.4 million which is necessary. It represents a 9.2% pay cut for employees. His sense is if they did a 10% pay cut and eliminate the first 25,000 in salary from the 10%, or for example a $100,000 employee would get a $7,500 cut or 7.5% and a $25,000 employee would get zero cut from their salary. What they would not do is have any reduction in services if they did this opposed to furlough days. He believes they need to change the proportionate percentage from the top to the bottom and not do it across the Board. A 9.2% pay cut for someone making $35-$40,000 is devastating opposed to those making $100,000. The Human Resources Director stated salary cuts and furlough are different. A salary cut has an effect on retirement and social security and affects an employee for a longer period of time. This amount could not be put back once things get better. If you do a furlough, the salary stays the same except the pay is less and they are not working on that day which is a benefit to the employee. Com. Grande stated the impact on the public and the staff, he does not feel this is the way to save money and they could re-cap the salaries if they choose to. The County Administrator stated the Assistant County Administrator informed her employees prefer a furlough plan. Com. Craft stated he was in favor of the furlough plan due to the fact it is easier to phase in and there will be fewer services to the public and he explains this to the Homeowners Associations due to budget cuts and he is inclined to support the County Administrator. Com. Lewis stated she received information that they county has employees making less than $20,000 a year and she cannot support a 9.2% cut on the employees. She stated those making more than $164,000 a 9.2% reduction would not affect their standard of living as much. 4 She understand the retirement concept and she supports Com. Craft's concept and believes it is time to look at diminishing some services since they have worked so hard to keep services intact for a tong time. She cannot support a 9.2% across the Board pay cut. The County Administrator stated they have had 17 employees (management) with pay cuts, the high of which was $18,000 in cut of salary. Com. Dzadovsky stated in looking at the information, there have been 1.8 million in total employee cuts. The County Administrator addressed this issue and how the downgrade in positions as part of the re-alignment took place. Com. Coward stated the across the Board cut affects someone who is living just above the poverty level opposed to those who may $90,000 + and they need to consider this as they move forward. The County Administrator stated they had 11 employees making $100,000 or higher and as part of the re-alignment, eliminated 3 positions due to the retirement of the Directors and one position was downgraded and significantly reduced. Com. Coward stated he had a problem with furloughing the County Administrator and the County Attorney. He would like to keep them in the office. Com. Grande stated he would not restrict that to just those two employees. He stated Com. Craft was correct there will be service reductions but he believes the public will be looking for them to minimize the reductions as much as possible. If they do the furlough they will be looking at a big decrease in services. If they take the furlough off and talk about a salary adjustment they would maintain a good level of service and this would eliminate the concept of the County Attorney and the County Administrator being furloughed also. He stated he has not heard a good reason yet why having the staff work 9% fewer days, this does not make sense to him. The County Administrator stated furlough is very popular amongst municipalities especially when budget constraints are present. Also the employee survey showed the employees would prefer furlough over salary cuts. Com. Craft stated there are additional savings with furlough days for example the fuel saved with the road and bridge department closing one day. Com. Coward stated he did not wish to give any direction today due to the fact he would like to wait to see what the other entities are willing to do to their employees. He will entertain this idea only if they share the pain. Com. Dzadovsky stated he concurred but also felt the five Commissioners should also equally share in whatever the employees do, they should be doing in the salary cuts. The County Administrator asked if they wished to discuss the unpaid holiday, or if she should dispose of this issue. Com. Craft stated he would like to have further discussion and deliberation on the holidays; he is not fully there in eliminating all the holidays. They have not been able to give the employees any raises and felt they should be able to keep some holidays in there. Com. Grande concurred with Com. Coward's comments regarding the fact that all those who participate in the county budget will also participate in this sacrifice. He believes the Board should sit with them individually. The County Administrator stated she has learned that it is very difficult to self mandate cuts to other officials. She has put forth an approach for them to come back with a sustainable measure and this was "dead on arrival". She informed them of the information she would be presenting to the Board and they still are not there yet. She does not have the ability to mandate it and it may have to come from the Board. Com. Grande stated he believes she has done the best that she could extremely well and believes they need to handle the questions with the Sheriff separately, not differently. They need to advise them individually and make sure they have a full understanding where the budget is and the level of participation needed. Com. Coward asked if they were made aware of the parameters of what the Board is attempting to do. He stated they need to mirror what the Board is doing collectively. Com. Craft stated he agreed however there may be different angles on how to get there. Com. Lewis stated defending the constitutionals, she had not heard the full extent of this plan and she does not believe the constitutionals had the information when they discussed their budgets. In all due respect they did not have the information when they started, they were asked to cut the 10% and today the Board has not made a decision yet as to what they will be doing and they cannot ask them to do anything until the Board makes a decision on what it will be. Com. Coward stated he believes this should be laid out what their intended cuts are and they should be made apprised that they are expected to mirror what the Board may be doing in their budgets. Com. Grande stated he is hopeful they will be able to discuss the issue of the budget numbers without bringing in editorializing and playing things out in the press and eliminate personal comments. Emergency Reserves: Discontinuation of the annual $1 million funding for emergency reserves is proposed. Further, it is proposed the Board reduce the current Emergency Reserve fund of $17.7mil.lion to $15 million and modify policy to maintain the reserve funding at 5% of the County's operating budget. Com. Lewis stated she believed this was a respectable level and is happy and comfortable with what is being recommended and proposed. Com. Dzaodvsky questioned the calculation came in for FY 11 and FY 12. The County Administrator advised the Board for FY 11 based on what has been submitted; the operating budget for all funds $313 million at 5% or $15.6 million we would be slightly under that. If the Board wanted to keep it to the 5% with the first threshold of all funds, you could make it the $15. 6 million and then $2 million on contingency as opposed to 2.6 million and this would put them at the threshold. Com. Grande asked if the norm is to put one million into contingency and if they were to do the 5% based on the new budget figure, they would be putting $2 million into contingency. The County Administrator stated he was correct. The lowest amount the staff was comfortable with was $12 million in the reserve. Com. Coward stated he believes this is the Cadillac version of an emergency fund. If we have the ability to pull out some of the reserve and leave it at an amount that staff is comfortable with, and he understands its one time money, but they need to plug the one time shortfall until 6 the recovery fully occurs. They should consider the use of one time money so they can afford to provide services and not raise taxes. He believes 15.6 million is a lot but this is an issue for discussion. Com. Craft stated he would like to have a better number than what there is. He would not support raising taxes and would not support what it being recommended until he can review those figures. The County Administrator stated she would contact the rating agency and provide the information for the June 7th meeting. Quality of life Programs and Services Operations Reductions Com. Grande stated he would like to group them. Com. Dzadovsky stated on the Housing and Community Services he wanted to reiterate Veterans Services would not be hindered. Com. Craft stated he would like to see a presentation from the non-profits and justify the matches they have, i.e. volunteer hours etc. The County Administrator stated the Community Services Director is working on that item. Com. Dzadovsky asked the Board consider placing the Special Olympics in that non-profit group. Also, he stated he had made it clear that the county would not be able to fund the Zora Neal Festival for the next few years. He stated they were disappointed but will be working to get the funds with their foundation. Com. Coward stated in looking at the figures in front of him, he does not wish to fire people without knowing there are others sharing in the sacrifice. He believes they do not need to make a decision today; he would like time to digest and then make a recommendation. The County Administrator asked Com. Coward his position on moving two positions into grants. Com. Coward stated he did not have a problem with that. Com. Lewis stated she was not willing to base her decisions on what goes on elsewhere, especially since the Board has not made a decision. She believes they need to step out as a leader on this. Com. Coward stated he suggested they use this as a frame work as to what they are prepared to do so they can mirror it. Com. Dzadovsky asked regardless of whether the Board does what is proposed and if the others don't come in, would she support an across the Board 10% reduction in their budgets from the Board funds and not have to worry about the issue going forward. Com. Lewis stated she was not sure that would productive because the Board has certain responsibilities to the community and stated she was not comfortable just moving ahead with a 10%. She would like to make a decision and ask them to join in and she does not believe that if they slash and burn, everyone else should do the same. Com. Craft stated there are 5 opinions and the County Administrator has made a recommendation, he believes they should look at the figures and see what they can afford and that is what they should write the check for. He will do what has to be done and he promises when it comes down to the vote, he will do the right thing. Com. Dzadovsky addressed moving the Arts in Public Places into the Arts in Cultural Alliance. He asked the Arts in Public Places group be able to join the Cultural Alliance group. The County Administrator stated they will look at that recommendation and consider expanding the group and will come back to the Board. Libraries Com. Lewis stated she supported the recommendation made. Com. Dzadovsky addressed the Hurston Library and the fact it is in a community where many people do not have vehicles and he is concerned with the possible cut in bus service. He would like the information requested for the June 7th meeting. Parks The operational budget calls for the reduction effective October 15t. They have 14 unfilled and eliminated positions and this is the reduction. History Center The proposal is to close the facility. Com. Craft stated this facility is mostly field trips and the school district is cutting back on these trips. This facility is something they will be putting on hold for a year or two and once the revenue comes back they can gradually add them back. Com. Coward addressed the fact they are placing the wants on hold for a short term until this economy recovers. He asked those who sent him a-mails to consider volunteers to help solve the problem. Health and Safety Com. Craft requested to have a sign posted at each facility whether it is guarded or not and which beaches are guarded. The Public Safety Director stated he will be looking at the numbers on the Beaches as per Com. Dzadovsky's request. Economic Enhancement Torrey Pines Com. Craft stated this is another one of those funds that changes the 5°/u and he concurs with the County Administrator's recommendation. The County Administrator stated it would change the number they would need to back out of the operating and come back with the new 5% number. The Board advised the County Administrator this was what the Board had agreed on. Mosquito Control District The County Administrator stated the continuation of using reserves for 2011 would be 270,000 if the Board concurs with the operational reductions, if not they would need to higher. Com. Coward stated he would like more details on the reserve account and schedule for discussion in June. 8 Transit Combination of operational and personnel changes. There was a total of 23 driver laid off and 18 personnel and reduction in routes and operating hours, and a proposed increase in fees. The personnel are not county employees. Com. Dzadovsky addressed the route being affected to the Hurston Branch Library. The Community Services Director stated this was a popular route and it would not be affected. Further information is pending and will be brought back in June. Airport Information will be coming back to the Board. The $975,000 is the match amount from the general fund. Sports Complex looking to change from an enterprise fund to a revenue fund as part of Parks and Recreation. Com. Coward stated they should look at the number and the fact that it is growing. They need to look a the agreement and see if they can go back to where they were 5 years ago and figure out what is happening and what can be done to move that number down. This is not an acceptable number to him. $839,000 subsidy is not an acceptable number to be paid by the taxpayers. They need to have a discussion with the MET's. Com. Craft stated he would like to review the line items in the budget. Com. Dzadovsky requested a copy of the agreement and line items. There being no further issues to discuss, the meeting was adjourned. 9