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HomeMy WebLinkAboutBudget Minutes 07-17-2009BOARD OF COUNTY COMMISSIONERS ST. LUCIE COUNTY, FLORIDA BUDGET WORKSESSION Date: July 17, 2009 Convened: 2:00 p.m. Adjourned: 4:15 p.m. Commissioners Present: Chairperson, Paula A. Lewis, Charles Grande, Doug Coward, Chris Dzadovsky, Chris Craft Others Present: Faye Outlaw, County Administrator, Lee Ann Lowery, Asst. County Administrator, Christopher Steers, Asst. County Administrator, Marie Gouin, OMB/Purchasing Director, Millie Delgado-Feliciano, Deputy Clerk The County Administrator gave a power point presentation on the potential General Fund/Fine and Forfeiture Fund Savings for 2009/2010. $908,747 Reoccurring Revenues $102,560 GPS $ 10,270 Group Insurance $1,021,577 Total Other Potential Savings $1,000,000 T & T Property Settlement 811,482 Airport West Industrial Park 498,055 Group Insurance (General Fund/Fine and Forfeiture portion) Com. Coward commented on the State Attorney's budget reduction to make it flat. The County Administrator requested direction regarding the $16,000. Com. Coward stated the State Attorney had the unfilled position for a total of $68,000 and questioned if they were requiring the State Attorney to come back to the Board for these funds. Com. Craft stated he heard the State Attorney state he would be filling the position but would wait a couple of months before doing so. Com. Coward recommended not placing it in the budget in case he did not need it and placing it in the lump sum and have him come back to the Board. The Management and Budget Director addressed the $14,000 ($2.00 technology dollars) and stated the fund keeps becoming less due to recording fees. Com. Coward stated he had indicated he was not filling the position and would prefer to have him come back to the Board. Com. Craft stated he would like to give the County Administrator the authority to fund it and keep it in a separate account and if he does decide to fill it that it does not exceed last years budgeted amount. The County Administrator questioned the amount for the emergency reserves. The Board advised the County Administrator they wished to keep the emergency reserves at the current level and place the $1 million normally allocated from this budget to the carryover section of the budget. Com. Coward questioned if the amount needed to be pulled out for the Airport had been taken from the $811,482. Staff indicated they had not taken that portion out. The Airport Director stated they had the second phase of the sanitary sewer project to fund and it would need to be taken out from that budget. They have a potential for a grant also. Com. Craft stated they do not have any idea what will be left over from the T & T property and the Airport. Com. Coward stated they needed to identify the 20% match. The Airport Director stated they were looking to utilize tourism dollars. Com. Craft stated they are committed however reiterated they did not know what would be left over from the T & T property. The County Administrator clarified for the Board that she would not have any discretion on the funds and would need to come back to the Board. The Airport Director stated they also needed the justification for the increase in weight for the runway. She will be having further discussions with the Asst. County Administrator on this item; they are still working on it. Com. Coward stated he did not wish to incur a higher cost than the 20% match for the runway. Com. Dzadovsky stated the difference in the overlay is between $200,000 and $300,000. Com. Grande recommended not charging ahead until they had an actual cost and what the benefits would be. The Airport Director stated she had the project re-evaluated by the Consultants and the difference was for a quarter inch it was $180,000 and for a full inch the cost was $600,000. Com. Coward stated if they were going to make a change to the Master Plan they needed public input and this is where the committee comes in. The Airport Director stated they looked at it and it came back as "no justification". The justification is that the FAA must approve it if the new rate is published. Com. Dzadovsky stated if it was about publishing, they could do this afterwards. The Airport Director stated the Engineers estimate was $4.1 million and now the bids came in at $2.1 million. Com. Coward stated he felt the justification should be for the county as well. He does not agree with the path Com. Dzadovsky is attempting to take. Com. Dzadovsky stated he was looking to save the county money down the road and was looking to have more businesses come into the county; however they would need the gross weight capacity on the runway. Com. Coward stated he felt strongly about the Master Plan and felt if they wished to change it they needed public input as well as the business community. 2 Com. Lewis stated there are many more issues to consider and recalled the "airport wars" of the past. Com. Grande stated any changes being made to the Airport should have the community input. Com. Dzadovsky stated he does not wish to have the community out of it; he only wishes to make sure the funds are available. The County Administrator continued with her power point presentation and reviewed the potential group insurance savings. Full Year 9 Months BOCC-General/F & F $ 664,073 $498,055 BOCC-Other Funds 498,927 374,195 BOCC Totals $1,163,000 $872,250 Constitutionals $ 893,000 669,750 Totals $2,056,000 $1,542,000 Board Direction for One-Time Funding Proposed 2009/2010 $ 5,613,702 previously proposed to go toward FY 2010/2011 ($1,620,000) One-time funding for Supplemental School Resource Officers ($ 150,000) One-time Tourism Stimulus funding $3,843,702 new balance proposed to go toward FY 2010/2011 GeneraUFine and Forfeiture Funds Advanced to Other Funds ($5,062,045) Balance $101,301,106 Projects/Operating carryovers/Grants ($4,360,106) Balance $ 96,941,157 Emergency Reserves ($16,691,624) Balance $80,249,533 Base Fund Balance Amount in Fiscal Yr. 2008/09 ($50,067,086) Total above Base Fund Balance for Allocation $30,182,447 The County Administrator addressed the following Static/No Change Revenue Scenario Assumptions These figures take into account the following: 20.85% property devaluation for 2009/2010 Assumes no further drop in property devaluation for 2010/2011 Takes into account conservative revenue projections in other major revenues in General Fund; e.g. State Revenue sharing, %2 cent sales tax, etc. Assumes no further drop in other major General Fund revenue for 2010/2011. The following is the General/Fine and Forfeiture Fund FY 2010/2011 Projection 3 ~~ ~~ ~~ 20.85% reduction in property value for FY 2009/2010 and no change for FY 2010/2011 Above Base Fund Balance Amount Base Fund Balance Amount Revenues Subtotal Expenses Total Ending Fund Balance Amount Above Base Fund Balance Set Aside Base Fund to carry to the next year FY 2009/10 FY 2010/11 Projected Proposed Budget $ 24,568,745 $ 3,843,702 $ 58,867,342 $ 40,627,096** $ 115,451,997 $116,274,509 $ 198,888,084 $ 154,417,286 $ 44,470,798 $ 3,843,702 (2010/2011) $ 40,627,096 (2010/2011) $ 160,745,307 $ 160,572,118 $ 173,189 (2011/2012) undetermined (2011 /2012) Does not include sub funds, does not include emergency reserves. *$5,613,702 is set aside for FY 2010/2011 ** The base amount of fund balance needed to balance FY 2010/2011 is $40,453,907 The County Administrator reviewed the Non-Static/Changing Revenue Scenario Assumptions This takes into account no further drop in other major General Fund revenues for 2010/2011. Assumes revenues collected will be at the same level as 2009/2010. Takes into account Property Appraiser's out-year potential property value devaluation for 2010/2011 ofmid-teens. Assumes a potential 10% property devaluation for 2010/2011. Assumes a potential 15% property devaluation for 2010/2011. 2010/2011 Property Value Scenarios- General/Fine and Forfeiture Fund FY 2010/11 Property Value Decrease 0% 10% 15% Change in Property Taxes $ 0 - $ 9,994,181 - $ 14,991,27? FY 2010/11 Amount out of balance $ 173,189 - $ 9,820,992 - $14,818,083 The County Administrator stated for every percentage point in loss of property value, the county would equate a $1 million loss in revenue. The work in fund balance account is starting to shrink. The County Administrator advised the Board of an experience she encountered at a prior county where the outcome was of a greater loss than anticipated due to not keeping track of the fund balance. She advised the Board the attrition rate of positions has just about closed and this is of concern. She believes they need to start repositioning how they budget and plan. Com. Coward stated he was proud of everyone due to the fact they prepared amulti-year budget in preparation for this downfall. He is proud of the fact they took drastic steps to 4 be where they are today and not having to raise the tax rate. They have all made sacrifices and he wished to thank everyone. Com. Grande stated he would rather not see us do the next year on a cash flow basis, but rather on a budget basis. The County Administrator stated she would like to have operations more reliance on revenues brought in and not on unspent revenues (carry forwards) and this is what she meant by repositioning. Com. Grande recommended taking the budget process and bring it one year forward. Com. Dzadovsky recommended advising the public of the discretionary portion of the budget. There is only 21.5% of the county's budget that is derived from tax dollars. He believes the taxpayers should know they are not paying 100%. Com. Craft recommended working with the Property Appraiser in sending out a pie chart so that they have a better understanding of what they are getting for their money and sending this information out with the trim notices. The Board members thanked all staff for their assistance and continued support in the operation of the County offices especially at a time when staff has been reduced and everyone is taking on more responsibilities. The meeting was adjourned.