HomeMy WebLinkAboutStrategic Minutes 05-26-2010BOARD OF COUNTY COMMISSIONERS
ST. LUCIE COUNTY, FLORIDA
STRATEGIC PLANNING SESSION
2010
Date: May 26, 2010 Convened: 1:00 p.m.
Adjourned: 5:00 p.m.
Commissioners Present: Chairman, Charles Grande, Doug Coward, Paula A. Lewis, Chris Craft,
Chris Dzadovsky
Others Present: Faye Outlaw, County Administrator, Lee Ann Lowery, Asst. County
Administrator, Marie Gouin, Director, Management and Budget, Millie Delgado-Feliciano,
Deputy Clerk
The Chairman of the Board of County Commissioners made the opening remarks and thanked
all those department heads present today. He stated the problems they will be discussing will
take effect in fiscal year 2011/2012. He indicated they will be starting to discuss these issues
and take action this coming fiscal year in order to minimize the impact. The budget of today is
balanced.
The County Administrator proceeded with the scheduled agenda.
A representative from the Property Appraiser's office provided an update on the Property
Value Projections for St. Lucie County. She stated as of May 4th the 12% reduction in property
values remains the same. Mr. Vince Rahal, Director of Assessments from the appraiser's office
will continue to refine the numbers and will inform the Board if there are any significant
changes. She advised the Board 50% of the residents in St. Lucie County owe more on their
homes than what they are worth and the unemployment rate remains at 14%. Florida has the
second highest foreclosure rates in the nation. St. Lucie Count has one of the highest millage
rates in the state. The consumer price index is 2.7% for 2010 and this indicates that those who
have not had their market value drop below assessed values, they will have a 2.7% increase in
their taxes. She stated the Property Appraiser is aware of the situation and will attempt to
follow the county's lead if possible.
The County Administrator addressed the schedule for the next two days and advised the Board
they have scheduled three additional days should this be necessary. She advised the Board
their goal is to have a consensus plan for a sustainable budget.
She advised the Board of the three measures:
1. Expenditure reductions
2. Revenue increases
3. A combination of the two above
She stated in July 2009 during budget reviews, the Board realized it was a balanced budget;
however it was not a sustainable budget. Discussions continued during the November Strategic
Planning Sessions. In February 2010 the Board approved a re-alignment of departments for
county operations.
The total deficit FY 12 projected was $63,679,157; bulk of the deficit is in the General Fund and
the Fine and Forfeiture Fund.
The storm water fund $394,000 is the property value revenue drop and they brought projects
forward to the level of the revenue so this issue goes away.
The Erosion, bring forward projects to the tune of what they have in revenues, this issue also
goes away.
The MSTU is also bringing projects forward and this issue will also go away.
The Transportation Trust, the number presented we had one time maintenance project built
into the budget and once taken out, this issue also goes away.
The Unincorporated MSTU, due to the re-alignment many positions were affected and this fund
was reduced to $700,000 which balances fund 102.
They may be close to balancing fund 491 for the building operations. This deficit began to
increase close to $700,000 this year and they started laying off in the building operations and
some positions had pay reductions. Based on where they are now and if they can hold the line
for 12, this fund will be balanced. If it continues to drop, she will come back to the Board to
discuss contracting out this service all together. The Sports Complex fund had been omitted
but will added back into the list.
These funds were the discussed back in February and the remaining funds will be discussed
during this session. The numbers presented in February were based on 11.5% property value
drop. This value projection is now at 12% and they have not gone back and adjusted those
figures. For example, the 56.5 million deficits for the general fund will be 56.8 million.
MOSQUITO CONTROL DISTRICT/COASTAL MANAGEMENT
The Mosquito Control Director gave the history of the district and why it was established.
The Mosquito Fund (145) is an ad-valorem fund and the average expenditure for this fund on a
yearly basis is $4.3 million for the past 5 years. At this time the FY 2011 deficit is projected to
be $1,144,821 due a continuing short fall of ad-valorem tax, current millage is 0.2036. They will
betaking sustainable reduction measures totaling $837,312. He advised the Board they have
trimmed much of the FY 11 requesting operating budget to the FY 09 austerity expenditure
levels. Now that the Bear Point Mitbank is in its maintenance phase it is possible to shift its
operational funding to the Perpetual Maintenance Account which is funded from credit sales.
Department staffing levels, including Inspection staff and Fogger positions that are vacant
funded positions, are proposed to be cut. Grants, Extension and IT staffing subsidies are
proposed to be cut. In addition, they propose eliminating student field trips. They are also
proposing limiting aerial adulticiding to emergencies and reducing aerial larviciding treatment
acreage. The project reimbursement revenue from the Parks and Erosion District programs
that are being absorbed into their new Department.
Level of Service Impacts: The main areas of impact resulting from the reduction in the
operating accounts are in the upland parks management effort, where outside services for
exotic removal, permitting activities, etc., will no longer be funded. The FCT Education and
Outreach field trips are proposed to be cut, and replaced by maintenance signage and
brochures at the parks; no longer achieving the original District education goals of reaching
9,000 participants, or serving 6,000 elementary students, per year. The loss of Inspection Full-
time and Part-time staff reduces responsiveness, coverage and treatment capability in the
areas of larval control and fogging. Limiting the aerial adulticiding program to disease
outbreaks only, reduces our adult control flexibility and response time with regards to the
control oflate-season mosquito broods along the District's western boundary. Reduction of
aerial larviciding treatment acreage reduces larval control effectiveness along unmanaged
coastal wetlands.
Com. Coward stated he did not wish to cut a budget that the Mosquito Control Director feels
would endanger public health.
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The Mosquito Control Director stated it would increase the risk of disease transmission without
some of these treatments.
Com. Craft requested the Board realize that this is only a temporary situation. The programs
would need to betaken out before they would discuss the millage rate.
Com. Lewis stated she concurred with Com. Craft and she is not prepared to make a decision
until everything is reviewed. The questions do need to be asked and as hard as it gets there will
be some things they will need to let go.
Com. Dzadovsky stated he requested information on millage rate and roll back so that they
would know what the impacts would be on the homeowners and stated he appreciated the
questions being asked.
Com. Grande stated while these questions are pertinent and important they do not have the
urgency that other local governments have for this upcoming year. They need to be identified
but this is not the time to make the decision.
Com. Coward stated he would like the maximum figure used in reserves.
The County Administrator stated she would pull the information and bring it back to the Board
as well as millage information.
Com. Coward stated he would not consider raising taxes for education purposes, however if it
entails public safety issues in the county then they would need to consider and find a way to
resolve the problem concerning the needed chemicals. Public Safety is the key if they have to
choose.
Com. Grande stated he is starting to see an increase in home sales and raising the millage rate
would be the last resort in his mind.
Com. Lewis stated they needed to see what happens with the values in the future.
The Mosquito Control District reserves are presently at 2 million dollars indicating $400,000
reserves per year for the next 5 years.
Com. Coward questioned if there was a standard for reserves.
The County Administrator stated she was not aware of a standard on the percentage of
revenues.
Com. Coward stated he would like to know if there is a maximum.
The County Administrator stated she would obtain and provide the information to the Board.
Com. Craft requested the have the standard in writing so that they will not have to go through
the same issue every year.
Housing and Community Services/Transit- Beth Ryder, Community Services Director
Fund 130 Transit MSTU Fiscal Sustainability Narrative
Projected Deficit: $1,305,000
Proposed Reduction: $1,305,000
For FY 11 the projected deficit for the Transit MSTU is $1,305,000. The cause of the deficit is
that two and perhaps three sources of funding for the transit system have been significantly cut
or are non-existent:
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FDOT is no longer funding the US 1 Regional Transit Corridor grant which provide service
from Avenue D in Ft. Pierce south to Martin Memorial Hospital. This grant has been
100% funded since 2002. A Service Development Grant for limited service has been
approved in the amount of $86,906 and requires a 50% match, but no other grant funds
are available to extend the service.
The MSTU millage rate began at .09 in 2003 and due to the voter approved State
Amendment # 1 and the County adopting the rollback rate in subsequent years, the
current rate is .0833. The property values decreased by 20.85% for FY10 and have an
anticipated decrease of 12% for FY 11 with an additional decrease of at least another 5%
for FY12. No reserves remain to assist with the decrease in revenue.
For areas with populations greater than 200,000, Congress must annually reauthorize
the use of a portion of the total transit allocation for operations ($600,000). Without
this reauthorization, the grant would only fund capital expenses and therefore, cannot
be considered a sustainable operating funding source. The authorization is usually
published in the Federal Register sometime in April or may for the following year.
Proposed Reduction/Revenue Measures:
The contracted provider of transportation for the County is the Council on
Aging/Community Transit. Both County staff and transit staff have worked to identify
ways of preserving the greatest amount of service through other grant opportunities.
Due to the above issues the following measures would be necessary:
Funding for the transit system must be reduced by $1,305,000.
A fare increase from $1.00/$.50 to $2.00/$1.00 per trip and advertising on the
buses would be used to assist with operating the system.
Level of Service Impacts: Presented by Mr. Drummond, CEO Council on Aging
All proposed reduction measures would severely decrease the level of transit services.
The service hours of operation would be reduced from lam-6pm to Sam-4pm with one
hour closure for lunch, causing a transit personnel reduction from 66 to 41 staff. The
shorter hours of operation will decrease ridership. It will severely limit the ability for
riders to utilize the bus to go to work or college. This will begin in conjunction with the
county's fiscal year of October 1.
The US 1 Fixed Route would end at the Treasure Coast Mall, rather than Martin
Memorial Hospital and Martin County would be required to provide the service
from the mall to Martin Memorial Hospital. The impact of this is riders would
have to transfer from one system to another there would be delays.
Mr. Drummond stated he had discussion with Martin County in April and them
stated they would no longer participate in the system and will handle it on their
own.
Com. Coward stated he has a problem with providing service for another county
and community to work and shop in that area after they are pulling out. We may
need to go to a skeletal system north and south abandoning east and west
routes. He would be more inclined to get rid of the southern portion whether
desirable or not and keep in the east west segment to support our local
businesses.
For FY12, services would revert to a demand response system, if Congress does
not reauthorize operating expenses and no other funding sources are identified.
If the federal operating funds are not available, then the system would revert to
2001 levels of service and provide only demand response for medical trips. In
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2001, there were 172,551 demand response trips and in 2010, the projected
total number of trips is 295,730, of which 127,664 are demand response and
168,066 are fixed route. Demand response trips cost three times as much as a
fixed route trip. As fixed route ridership increases the cost per trip decreases.
The impact on riders would result in inconvenience and service would be
limited to prioritization of medical and fife sustaining trips. All other needs
for transportation would not be met.
The demand response only system would subsequently lead to the intermodal facility
being used as a park and ride until the fixed routes are re-established.
Mr. Drummond stated when the county was under the 200,000 population, all of the
funds received from the federal government were being utilized for the demand
response and since that has gone away this was when the MSTU was put in place.
Com. Coward asked how many counties utilize a private entity to perform the service as
opposed to a quasi- governmental entity.
Mr. Drummond stated he would obtain the number from the state.
Com. Dzadovkky asked if there had been an increase in ridership in the fixed route due
to the economy.
Mr. Drummond stated there has been a 41% increase and this is part of bringing in two
new fixed routes.
Com. Coward stated he would like to save the money and retain the east/ west routes
and the backbone north/south routes and eliminate sending the people to Martin
County to spend their money, this may bring them to the table.
Com. Dzadovsky asked what would be the rollback rate.
The Community Services Director stated it would be .0947 and she does not believe this
would get them where they needed to be. The cut in hours would also impact what
would be coming in.
Mr. Drummond stated if there is no fixed route the Avenue D facility would not be
utilized as intended.
Com. Grande questioned if they had advertising on the buses.
Mr. Drummond stated they did not and explained why they had previously not
advertised on the buses. He advised the Board his Board has discussed this issue and
has decided this may be a way of providing revenue.
Com. Dzadovsky addressed school bus shelters and asked if there was any background
available for shelter advertising.
The Transit Coordinator addressed Com. Dzadovsky's question and stated a local
marketing group could advertise on the shelters. The FDOT provided the bus shelters
for the City of Ft. Pierce.
Mr. Drummond stated during 2005/2006 they had a proposal for advertising and it was
estimated around $300,000 could be generated annually, however with today's
economy he is not sure what it would be today.
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Com. Coward the salary adjustment noted and requested clarification on this item with
the Council on Aging.
The County Administrator stated she would provide the information in an upcoming
session.
Utilities- Fund 471 North County Utility District Sustainability
Projected Deficit: $400,000
The Utility has a deficit of $400,000. Revenues have been affects as the Utility has seen
a reduction in usage as a result of vacant homes and the effects of conservation efforts.
In addition, the customer base has not grown as projected.
The proposed revenue measures are as follows: The Utility will receive a $400,000 loan
from the General Fund for both FY 10 and FY 11. Implementation of the rate study
results by the BOCC at the June 1 public hearing would cover the projected FY 12 debt
service deficit. Revenue of approximately $658,000 will be provided from increased
water and waste water user fees and repayment of the $800,000 General Fund loan
could then start in FY 13 with full repayment by FY 17.
The County Administrator advised the Board the Citizens Budget Committee had
provided their recommendations and actions to her and she would be providing this
information to the Board at the end of this session.
Com. Dzadovsky requested that the utilities department make sure they have a
mechanism in place to make sure any new developments pay for this service from the
beginning in a developer's agreement.
Com. Coward stated the developers need t pay for the full brunt of this cost if they wish
to have utility services.
Com. Dzadovsky requested information on the roll back rate be provided.
The County Administrator provided the information received from the Management and
Budget Director regarding the roll back rate as requested.
After no further discussion, this session was recessed until 5/27/2010.
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