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HomeMy WebLinkAboutCBC0616MinutesCITIZENS' BUDGET COMMITTEE Meeting Date June 24, 2016 Conference Room 3 MEMBERS PRESENT: Dan Kurek William Donovan Barry Mucklow Jerry Buechler Gwen Morris Craig Mundt Carl Hensley Patrick Campion Ed Lounds Clarence Kearney MEMBERS ABSENT: Jay L. McBee Richard Pancoast Steven Weaver John Culverhouse OTHERS PRESENT: Howard Tipton Mark Satterlee Asheley Hepburn Jennifer Hill George Otero Ron Roberts Kyle Croce Bob Adolphe Toby Long Beth Ryder George Landry Ed Matthews Ceretha Leon Laurie Waldie John Wiatrak Ron Parrish Allison Macdonald Leslie Olson Michelle Franklin CALL TO ORDER Mr. Kurek called the meeting to order, when a quorum was established, at 7:33 a.m. PUBLIC COMMENT No member of the public spoke. APPROVAL OF MAY 20, 2016 MINUTES Mr. Lounds made a motion to approve the minutes. After a second by Mr. Mundt, they were unanimously approved. There was a moment of silence for Mr. Ron Knaggs, former member and Chair of the Committee. 6/30/2016 Citizens Budget Review Presentation of the FY 2017 General Fund/Fine Forfeiture Recommended Budget COUNTY . Agenda • Accomplishments • Property Values • Millage Rates • Revenue Outlook • FY 2017 Budget (Department Requested) • General Fund/ Fine & Forfeiture 1 6/30/2016 FY 2016 Accomplishments W-- ccomplishments FUNDING AND ACQUISITION OF 800 RADIO pyy 7f J/p - � +�� '�• �_ �'� ,� � 1 ^" �q1 �-- it _ COUNTY . 'Co4�w 6/30/2016 Accomplishments JAIL SECURITY SYSTEM 1 e. i 5 Accomplishments CONSTRUCTION OF THE 2ND STREET RECONSTRUCTION PROJECT a 3 6/30/2016 Accomplishments COMPLETION OF THE BECKER HOUSE NATURE/ECOTOURISM CENTER COUNTY . Accomplishments RENOVATION OF THE ROSSER BLVD BRANCH LIBRARY 4 6/30/2016 omplishments MIDWAY ROAD (SELVITZ ROAD-25T" STREET) WIDENING PROJECT MIDWAY ROADpow re f � 7+rflV6Y ..ti C01J NZ Y Accomplishments FUNDING AND IMPLEMENTATION OF FPL ENERGY EFFICIENCY PROJECTS k14 5 6/30/2016 Accomplishments INSTALLATIONTHE OPERATION OF s. � k COUNTY complishments • Implemented phase I of a paperless permitting process • Successful in securing close to $126 million in State appropriations directly and indirectly to St. Lucie County • In collaboration with the Clerk of the Court, work began on the initial internal audit review and a survey tool was developed to gauge future audit review projects • Deployment of the Employee Engagement Survey with management action plans to address the feedback provided • Public Safety investment in the Sheriff's Office: Step Plan ($2.3 million) Health Insurance ($2.1 million) 12 A 6/30/2016 Property Values COUNTY . Average St. Lucie slues $190,000 $185,000 $179,252 $179,000 $180,000 $175,000 1 $171,94 70,562 _ $175,000 $170,000 $164,707 ��i6CQ�s $163,50 $165,000 � $161,000 $165,000 $160,000 � $160,000 $I55,000 $1 $155,500 $1so,000 $155,000 $150,259 $151,357 $145,000 $140,000 11 11 ;, 1y 1y 11 1y 1y ll 1, 1y 1y 1 ;Yy ;1y 16 1b 1b 1b O� �, Oe 19p F¢ �,s< PQt �,a� 1J0 1J1 PJ� S¢Q Oc<' �4 Qyc �O Qe �q< PQ< Average SmgI, Family Home Values I Y � 7 6/30/2016 Taxable Property Values Taxable Value 30 24.4 25.6 25 \1.6 20 17 17 - o \,=5.2 14.4 14.2 15.1 15.6 _ 15 -• w 10 5 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year o a nge ' ty✓ Appraiser Property Valuation Taxing Property 9.00% Authority Value 6/30/2016 Revenue outlook COUNTY . Millage Rates General Fund and Fine & Forefiture Millage Rates 5.0 4.1248 42734 4.2299 3.9699 3.9699 3.9699 4.1273 _ 3.9699 4.0 .6173 33957 3.2838 �3.2699 3.0 3.3178 3.2699 29221 2.7694 2.8707 2.9221 2.9221 . 2.1478 2.0 11778 1.9352 1.0 0.0 FY FY FY FY FY FY FY FY FY FY FY FY 2017 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 General Fund Millage Fine & Forfeiture Millage 6/30/2016 mineral Fund/Fine or ure Ad Valorem Revenue Outlook 80,000,000 70,000,000 OZ 67,34 60,000,000 55;816,807 54,737,3681 53,394,176 53,114,075 58,734,103 50,000,000 57,317,079 39,581,523 38,717,272 38,649,115 50,856,542 53,352,962 40,000,000 41,084,701 30,000,000 20,000,000 - 10,000,000 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Gen. Fund Fine/Forf. Fund - a ore Revenue Outlook Chart Title 100% 90% 80% 2, 11 2, 42 2, 68 14 31 (W 70% 60% 9 0 9 5 9 0 9 0 50% 901,1 5 2 H4, 16 2, 15, 78 40% 3, 42, 79 3, 61, 93 4,. 68, 68 4 539 6 30% 20% 2, 04 10°/u 2 35 2, 96 3, 95 3, 35 3, 44 3 0 0% FY11 FY12 FY13 FY14 FY15 FY16 FY17 ■ Electric Franchise 2,175,511 2,640,942 2,795,968 3,692,114 3,811,131 3,879,800 3988464 ® Local Communications Services Tax - - - 927,660 972,835 925,000 925000 ❑ Half Cent Sales Tax 901,155 2,394,816 2,715,578 3,642,779 3,661,193 4,068,468 4353906 l .:rate Revenue Sharing 2,504,804 2,642,335 2,840,796 3,070,595 3,302,635 3,195,544 3262650 ■ State Revenue Sharing ❑ Half Cent Sales Tax ®Local Communications Services Tax ■ Electric Franchise 10 6/30/2016 FY 2017 Recommended Budget COUNTY . 11 6/30/2016 _ Ek2017 General Fund/ Fine & Forfeiture un Budget $220.8 Million GF/FF Subfunds $18,910,575 9% 2.17 General Fund/ _ Fine & Forfeiture un Budget $201.8 Million Non -Operating $41,111,922 20% 12 6/30/2016 General Fund / Fine & Forfeiture Operating Expenses $160.7 Million Judicial Agencies Aid to Other Agencies 11286,174 2,046,203 1% 1% Community Service Mandates Board Departments 7,759,320... 62,525,167 39% Constitutional Officers 87,117,808 54% FX neral Fund Fine & Forfeiture Account Name Account Name Amount Ad Valorem Revenue (Prop. Tax) $129,014,919 Communication Service Tax 900,000 FPL Franchise Fee 3,988,464 State Shared Revenue 3,262,650 Local Government Half Cent Sales Tax 4,353,906 All Other Operating Revenue 8,001,292 5%Statutory Reduction (7,301,739) Non -Operating Revenue 4,250,538 Total Revenue $146,470,030 13 6/30/2016 General Fund/Fine &Forfeiture The County's main operations are located in the General Fund/Fine & Forfeiture Fund portion of the FY 16-17 Recommended Budget, which amount to $160.7 M for County operations. This represents an increase of 3.88% or $6.0 M. 27 FY 2017 Incremental Changes Incremental Recurring Revenues Property Taxes $7.9 M State Shared $0.1M Half Cent Sales Tax $0.3M Franchise Fees $0.1M Total Increment $8.4M Total Available $8.4M 14 6/30/2016 GF/FF BOCC Group Insurance $ 1,577,832 Transfers/New Debt $ 713,149 BOCC Departments $ 1,590,641 2% COLA $ 457,643 Increase Attrition Budget (4%) ($ 494,455) Juvenile Detention ($ 266,032) Utilities ($ 203,689) Medicaid $ 353,637 Sheriff $ 2,915,508 Supervisor of Elections ($ 202,050) Clerk $ 168,197 Tax Collector $ 200,000 Property Appraiser $ 374,753 Medical Examiner $ 171,645 EDC $ 50,000 Health Department $ 200,000 Additional CRA Payments $ 330,000 Staffing Mospito Control Passive Parks $ 100,000 Total Increment $8,036,779 Major Changes • The County's Health Insurance Fund continues to be structurally imbalanced. In FY 15, expenses outpaced revenues by $4.8M. For FY 17, the County is increasing premiums by 35%, which impacts the GF/FF by $1.6M. • Sheriff's Office wage increase $2.9M to bring their reserves into compliance with State requirements. • Transfer to Debt Service to fund initial investment in FPL Energy Efficiency Improvements. Future savings will fund outstanding debt obligation $1.3M. • Enhancement to BOCC Departments $1.5M 15 6/30/2016 Deferred Request & Capital Needs Category Description Amount Public Safety Projects that improve public safety services to $12,800,000 the resident of St. Lucie County Environmental Projects which enhance our natural $79,350,000 environment either through preservation or mitigation of our natural resources air, land or water Transportation Projects that improve our transportation $283,700,000 Infrastructure system of roads, intersections and bridges Economic Projects that improve our ability to retain or $217,900,000 Development attract businesses and increase employment in the region Citizens Budget Review Presentation of the FY 2017 General Fund/Fine Forfeiture Recommended Budget 16 SALES -TAX PROPOSAL Jerry Buechler, Poa St. Lucie Many benefits would come from sales tax No one wants to pay more taxes, but who wants crumbling roads, missing sidewalks or septic tank runoff into our waterways? Recently the St. Lucie County Commission put a half -cent sales tax increase proposal on the Nov. 8 ballot. If approved by voters, it will raise the county sales tax from 6.5 cents to 7 cents for 20years. Twenty percent to 30 percent of the tax would be paidby tourists and visitors. Indian River and Okeechobee counties are already at 7 percent. This taxis for infrastructure projects. sidewalks are needed near schools; our roads need repaving every 25 years, and current shortages allow repaving only every 75 years. It takes $300,000 to repave one mile of road, but if severely, eroded it can take $2,000,000 to rebuild one mile. water quality is a top issue for citi- zens. The county has around 3,500 septic systems near waterways. Florida ranks 49th nationally in per capita taxation. St. Lucie County has experienced a 22 percent drop in tax revenues since 2007 due to the reces- sion, which has depleted reserves. The half -cent tax would generate a projected $15.5 million in the first year alone. Half of the revenue would go to the county, and the other half woukl go to cash -strapped cities like Fort Pierce and Port St. Lucie. Oversight commit- tees would ensure its use for roads, sidewalks, and water improvement projects. Our population is expected to increaseby70,000 by 2025, creating greater impact to existing roads. This stable source of revenue can be lever- aged with bonds and grants. The tax does not apply to essentials like food or medicine. It willhelp us improve the quality of ourroads, sidewalks andwa- terways.I can support this. How about YOU? Citizens' Budget Committee June 24, 2016 Page 2 BOCC BUDGET • Review of Major Budget Drivers o Staffing Levels by Department o Budget Composition • Salary and Wages - Impact of wage increases • Health Insurance Premiums and Other Benefits • Operating Expenses - Fixed costs and other major expense items Mr. Hepburn gave the attached PowerPoint presentation. Mr. Kurek started discussion on road projects, Solid Waste funds and the Health Insurance requirements. Mr. Campion asked about details of the budget projections, Cost of Living Adjustment (COLA) for Constitutional offices and fund balance. Conversation on the radio upgrade was started by Mr. Lounds. Mr. Parrish and Mr. Adolphe provided information. Mr. Buechler asked about the Fine & Forfeiture Fund. Mr. Donovan started discussion about fund balance. Sport tax was the subject of Ms. Morris' question. Mr. Lounds started discussion on small businesses. Ms. Olson mentioned a report from her office. She and Mr. Satterlee gave details about growth. Mr. Mundt asked if lost business was tracked and about Economic Development. The sales tax was briefly discussed. Mr. Kurek asked Mr. Tipton for an update on the'/2-cent sales tax. Mr. Tipton began with expressing appreciation for Mr. Knaggs. He reported on a meeting with the Cities, how well the County and Cities are working together, and Board approval to put it on the ballot. They are working on a plan to educate the public. INFORMAL BOCC MEETING UPDATE The June 14t" informal meeting was canceled. OTHERISSUES Mr. Buechler mentioned the attached letter he sent to the newspaper. Mr. Tipton thanked Mr. Buechler and addressed the issues. Citizens' Budget Committee June 24, 2016 Page 3 Ms. Morris asked about repaving. Mr. Tipton reported on the number of miles of roads and paying for the paved roads. Members of the Committee discussed the fairness of the tax. A July meeting was discussed. Mr. Adolphe shared information and started discussion on water testing. Ms. Morris asked about extra efforts by Mosquito Control and the virus. Mr. Tipton explained the situation. After more discussion, it was decided to have a meeting on July 15, 2016. ADJOURNMENT The meeting was adjourned at 8:47 a.m. Respectfully submitted by: Brenda Marlin The next CBC meeting will be held on Friday, July 15, 2016, at 7:30 a.m., in Conference Room 3, of the St. Lucie County Roger Poitras Administration Annex.