Agenda 06/16/2016 Agenda Index BCC
BUDGET
MEETING
AGENDA
June 16 & 17, 2016
ro osed Budget Book
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FY 2016-17
BudgetWorkshops
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Collier County, Florida
MEMORANDUM
TO: Board of County Commissioners
Leo Ochs, County Manager
Nick Casalanguida, Deputy County Manager
Tim Durham, Executive Manager, County Manager's office
County Manager Agency Department Heads and Directors
Jeff Klatzkow, County Attorney
Chuck Rice, Court Administrator
Stephen B. Russell, State Attorney
Debbie Stanbro, State Attorney
Kathleen A. Smith, Public Defender
Delroy Blake, Public Defender
Kevin Rambosk, Sheriff
Abe Skinner, Property Appraiser
Larry Ray, Tax Collector
Jennifer Edwards, Supervisor of Elections
Dwight Brock, Clerk of Courts
Neil Dorrill, Pelican Bay
Jean Jourdan, Bayshore/Gateway CRA
Christie Betancourt, Immokalee CRA
FROM: Mark Isackson, Director - Corporate Financial & Management Services, OMB
DATE: June 10, 2016
RE: FY 2017 Board of County Commissioners Budget Workshop Schedule
The attached schedule is for the FY 2017 budget review sessions with the Board of County Commissioners.
The workshops are scheduled from 9:00 a.m. to 5:00 p.m. on Thursday, June 16, 2016 and if necessary on
Friday, June 17, 2016 and will be held in the Commission meeting room on the third floor of the W. Harmon
Turner Building. (See attached schedule).
Constitutional Officers budget reviews will take place on Thursday, June 16, 2015 beginning at 1:00 p.m.
Public comment will occur at the end of all budget reviews unless otherwise designated by the Board Chair.
This presentation format will require greater flexibility on staffs part because as you will note in the attached
schedule there are not definitive times outlined for each department/division. Please have the appropriate
members of your staff on call as review times will fluctuate.
The Proposed FY 2017 Collier County Budget (BCC Workshop version) is available on the Collier County
Internet Site at the following link:
http://www.colliergov.net
If you have any questions or comments, please contact the Office of Management& Budget at 252-8973.
NOTICE OF PUBLIC MEETING
Notice is hereby given that the Board of County Commissioners of Collier County will conduct
Budget Workshops on Thursday, June 16, 2016 and Friday, June 17, 2016, if necessary, at 9:00
a.m. Workshops will be held in the Boardroom, 3rd Floor, W. Harmon Turner Building, Collier
County Government Center, 3299 East Tamiami Trail, Naples, Florida to hear the following:
COLLIER COUNTY GOVERNMENT
BOARD OF COUNTY COMMISSIONERS
FY 2017 BUDGET WORKSHOP SCHEDULE
Thursday, June 16, 2016
9:00 a.m.: General Overview
Courts and Related Agencies (State Attorney and Public Defender)
Growth Management
Public Services
Administrative Services
Public Utilities
Debt Service
Management Offices (Pelican Bay)
County Attorney
Board of County Commissioners
1:00 p.m.: Constitutional Officers:
Elections
Clerk of Courts
Sheriff
Other Constitutional Officers requesting to address the BCC
Public Comment
roti ,
g„;474-_, Office of the County Manager
• � § Leo E. Ochs, Jr.
OUN'S 3299 Tamiami Trail East,Suite 202•Naples Florida 34112-5746•(239)252-8383•FAX:(239)252-4010
To: Board of County Commissioners
0DateFrom: Leo E. Ochs Jr., County Manager —0-
Date:
: June 10, 2016
Subject: FY 2017 Budget Workshop Documents
Introduction:
I am pleased to submit the proposed FY 2017 budget for your review and endorsement. As presented,
this requested budget, absent expanded service requests, substantially meets budget guidance that was
adopted by the Board in February of this year. It reflects the best efforts of your staff and the
Constitutional Officers to maintain, and in appropriate circumstances, restore former unique programs
and service levels within funding guidance for the benefit of our residents, visitors and the general
community while continuing to fund high priority public health and safety programs, equipment and
systems. Also included is a substantial commitment of limited discretionary resources to funding general
governmental asset replacement and maintenance which has been deferred since FY 2007 due to the
economic recession. Addressing this important capital infrastructure initiative is of critical importance and
will continue for the foreseeable future as the County strives to replace and repair general governmental
and enterprise assets. The format of this budget document remains consistent with prior years and
includes a high level overview section followed by specific departmental and agency budget detail.
The FY 2017 budget was prepared within a stable local and regional economic environment where all
housing, employment and demographic indicators point to continued modest growth. Taxable Value
County wide including the 2016 tax year(FY 2017) has increased for five (5) consecutive years. Median
home prices are increasing at a pace higher than state and national averages; consumer spending
continues to grow; visitation to the destination —while slowing somewhat- remains high; all permitting
categories continue to increase—albeit at a slower pace; and the County's unemployment rate is
dropping. Understanding the County's regular recurring revenue mix and the heavy reliability on property
taxes underscores the significance of balancing resources allocated toward deferred asset replacement
and maintenance with funding recurring and expanded operations. Limiting the County's exposure should
the economy begin to slow or regress remains an important objective as resources are allocated.
The FY 2017 proposed budget strikes a reasonable balance between funding for continued and
expanded programs and operations driven by growth, service demands and policy initiatives with the
need to fund replacement capital infrastructure and maintenance as well as new capital initiatives.
Continued pressure will be placed on the General Fund as the primary appropriation engine for
intergovernmental grant cash flow, general governmental program implementation, and capital funding.
Renewed and increasing pressure will also be placed on the Unincorporated Area General Fund to not
only fund appropriate operations on an enhanced level but also assume a much greater role as a capital
repair and replacement funding source going forward. The budget document must continue to remain
flexible -a key component of the budget management process. Anticipating and planning for potential
new Board policy initiatives is also an important part of FY 2017 budget planning. This is on top of the
continuing need to fund deferred high priority asset maintenance and equipment replacement items.
Budget policy was adopted assuming a 7.0% increase in county-wide taxable value. A 2.5% component
of this taxable value increase was allocated to recurring current general governmental departmental
operations meaning the net cost to the General Fund and Unincorporated Area General Fund before
funding expanded service requests were not to exceed 2.5%. Regarding expanded service and program
requests for general governmental operations, departments were restricted to one half of one percent
(.5%). The remaining 4.0% taxable value increase was devoted to general governmental capital repair
and replacement needs. Budget guidance placed a premium upon allocating competing resources to
address the backlog of asset repair and replacement.
Taxable Property Values:
Preliminary taxable value numbers provided by the Property Appraiser at the end of May revealed a
county wide taxable value increase of 9.85%. The following table depicts taxable values since FY 2008
for the General Fund and the Unincorporated Area General Fund. Fiscal year 2008 represented the
highest county-wide taxable value recorded for Collier County. Preliminary June 1 taxable value is 6.7%
below the FY 2008 high representing a tax base gap of$5,548,930,561.
General Fund Percent MSTD Unincorporated Percent
Tax Year Taxable Values Change General Fund Taxable Values Change
2007(FY 08) $82,542,090,227 $53,397,231,747
2008(FY 09) $ 78,662,966,910 (4.7%) $50,860,023,424 (4.8%)
2009(FY 10) $69,976,749,096 (11.0%) $44,314,951,279 (12.8%)
2010(FY 11) $61,436,197,437 (12.2%) $38,146,886,403 (13.9%)
2011 (FY 12) $58,202,570,727 (5.2%) $36,013,774,963 (5.6%)
2012(FY 13) $58,492,762,303 .50% $36,026,786,779 .04%
2013(FY 14) $60,637,773,315 3.67% $37,207,018,234 3.28%
2014(FY 15) $64,595,296,747 6.53% $39,634,174,211 6.52%
2015(FY 16) $70,086,389,131 8.50% $43,075,586,559 8.68%
2016 (FY 17)June $76,993,159,666 9.85%
Taxable Value $47,373,441,498 9.98%
While five (5) consecutive increases in county wide taxable value is good news, it is still prudent to
employ a conservative and prudent budget philosophy going forward. This means continuing to grow
general governmental reserves while striking a balance between enhanced recurring operating
appropriations necessary to service an expanding population and the necessity to replace, maintain and
expand the County's capital infrastructure. Release of the December 2015 State Ad Valorem Estimating
Conference data projects that Collier County will continue to experience county-wide taxable value
increases of approximately 7.5% annually over a five(5) year period through FY 2021. At this rate of
increase, taxable value for FY 2018 (2017 tax year) will total approximately $82.8B eclipsing the value
achieved in FY 2008. Trying to predict future taxable values is risky especially over a five (5) year period.
Local conditions will be monitored closely and conservative fiscal practices will continue to govern our
budget practices thus ensuring that the services and infrastructure enjoyed by our residents, businesses
partners and visitors remains the signature of our first class destination. This is especially important given
our heavy reliance upon property tax revenue. Tax rate policy will be visited each year by the Board and
policy guidance will be determined in the context of desired operating service levels, continued efforts to
maintain and replace infrastructure as well as new initiatives which may arise.
2
In total, budget guidance provided for a 2.5% component current operational expense increase at the
department level, a .5% allocation for expanded requests, coupled with a 4.0% increase devoted to
infrastructure maintenance and replacement and operating capital. This meant that the current service
net cost to the General Fund (001) and Unincorporated Area General Fund (111) as well as related
operating transfers out of these funds were not to exceed 2.5%. In the front of each departmental
summary tab is a budget guidance compliance table which depicts net cost impacts within the General
Fund (001) and Unincorporated Area General Fund (111).
Applying a millage neutral tax rate in FY 2017 to this taxable value increase resulted in additional General
Fund (001) ad valorem dollars totaling $24,373,100. Unincorporated Area General Fund (111) taxable
value increased 9.98% and resetting the millage rate to $.8069 raises and additional $7,336,800 of which
$3,035,300 will be devoted to operations and $4,301,500 will be earmarked for restarting the median
landscape capital improvement program pursuant to Board direction. .
General Fund ad valorem collections for FY 2016 are forecast at 96% which is consistent with prior
collection history. Sales tax and state shared revenue collections are growing and receipts are trending
above current budget as we approach the beginning of FY 2017.
General Fund and Unincorporated Area General Fund Revenue and Expenses:
The FY 2017 General Fund (001) current service budget increased $24,008,100 or 6.9% over the prior
year. The Unincorporated Area MSTD General Fund (111) current service budget increased $7,115,800
or 16.4% from the prior year.
The following tables identify FY 2017 General Fund (001) and Unincorporated Area General Fund (111)
current service revenue and expense changes when compared to FY 2016 by significant category.
General Fund(001) (Current Service Only)
Variance between June
Workshop FY 2017 vs.
FY 2016 Adopted Budget
Revenue Variances:
Ad Valorem Taxes $24,373,100
Delinquent Taxes $0
State Revenue Sharing $800,000
Half Cent Sales Tax $1,800,000
Other Intergovernmental Revenues ($30,000)
Enterprise Fund PILOT $817,500
Indirect Cost Reimbursement $638,000
Department Revenues ($73,700)
Interfund Transfers ($192,800)
Board Interest $200,000
Constitutional Officers Excess Fees/Turn Back ($30,400)
Carryforward ($2,941,700)
Less 5%Required by Law ($1,351,900)
Total Revenue Increase $24.008,100
3
Variance between June
Workshop FY 2017 vs.
FY 2016 Adopted Budget
Expenditure Variances:
BCC Operations&Other G&A $518,400
County Manager Operations $2,883,100
Courts $48,000
County Manager Operating Transfers
Road and Bridge(101) ($193,300)
EMS Operations(490) $144,700
Deepwater Horizon Settlement(757) $1,981,700
Helicopter Replacement(491)(funding delta) $0
Replacement(Backlogged)Vehicles(523) ($100,000)
Other Operating Funds $2,478,600
Transfers to Debt Service Fund(298) ($4,500)
Transfer to Roads Capital(310,313,312,425) ($415,900)
Transfer to Stormwater Capital(325,324) $975,400
Transfer to Capital Project Funds(301,306, 314,496-499)
Sheriff Substation—Orangetree(funding delta) ($640,000)
Sheriff Accounting System (funding delta) ($1,000,000)
Sheriff Facilities&Jail Repairs $395,300
800MHz Replacement(delta in funding) ($2,675,000)
Bldg Repair and Maintenance,increased funding $2,590,500
Boardroom&Webpage Upgrades $100,000
Library Books $100,000
Loans to Impact Fee Funds ($2,459,600)
Other Misc Projects(General Gov'tal Capital Fund 301) $509,200
Park&Recreational Facilities(306) $850,700
Museum(314)(funding delta) $0
Airport Grants Capital(496-499) ($13,100)
Constitutional Officers
Clerk of the Circuit Court $180,500
Property Appraiser $173,200
Sheriff $10,682,500
Supervisor of Elections ($374,200)
Tax Collector(estimate) $1,233,300
Paid by Board $113,900
Reserves $5,924,700
Total Expenditure Increase $24,008,100
Unincorporated Area General Fund(111) (Current Service Only)
Variance between June
Workshop FY 2017 vs.FY
2016 Adopted Budget
Revenue Variances:
Ad Valorem Taxes—Operating $3,035,300
Ad Valorem Taxes—Median Landscaping Capital Restart $4,301,500
Communication Service Tax $150,000
Department Revenue $3,500
Transfer Revenue $51,300
Interest and Other Miscellaneous Revenue $60,000
Carryforward(Fund Balance) ($108,300)
Less 5%Required by Law ($377,500)
Total Revenue Increase $7,115,800
4
Variance between June
Workshop FY 2017 vs.FY
2016 Adopted Budget
Expenditure Variances:
Landscape Operations&Maintenance $109,000
Road Maintenance $62,500
Parks $366,600
Other GM Division,CM Agency and Public Service Ops $94,900
Transfer to Parks(306) $250,000
Transfer to Median Landscape Capital(112) $4,301,500
Transfer to Transportation Network(313) $872,700
Transfer to Storm-water(325) $160,200
Replacement(Backlogged)Vehicles(523) $100,000
Other Transfers $233,100
Transfer to Tax Collector/Property Appraiser $30,500
Reserves $534,800
Total Expenditure Increase $7.115.800
Particularly noteworthy on the revenue side is the heavy reliance on property taxes, the managed
reduction in budgeted fund balance, increases in sales tax and state shared revenues and the modest
increase in the communication services tax.
The expenditure side reflects an increase in dollars devoted to recurring operations continued support of
constitutional officer operations which represents about one half of the General Fund increase, reduction
in loans to the impact fee trust funds and continued funding for capital asset replacement and
maintenance, equipment replacement and new capital initiatives. The substantial Unincorporated Area
General Fund increase is due to restarting the median landscape capital program.
General Governmental Cash Position and Reserves:
General Fund cash position at year end is always a top financial priority and to that end continued
attention must be given to reserve levels, mid—year budget management and the status of transfer dollars
out of the General Fund and Unincorporated Area General Fund. For the third consecutive fiscal year, no
mid-year operating cuts were initiated (FY 2014, FY 2015, and FY 2016). This does not mean that budget
management stops. To the contrary, close expenditure controls are always in place and monitored
continually. Likewise, execution patterns are scrutinized along with transfer dollars to make sure that
project appropriations are executed in a timely fashion and spent for the intended budgetary purpose.
It is imperative that the General Fund beginning cash and cash equivalent balance (fund balance or
carryforward) on October 1, 2016 remain sufficient to pass rating agency credit quality standards and be
sized to ensure a positive cash flow during the months of October and November. This fund balance
planning number is $55,000,000 or approximately 15% to 20% of actual expenses. Beginning cash
position is an essential component of Collier County's overall management strategy and a key factor in
external agency measurement of the County's financial strength.
A critical ingredient in achieving this beginning fund balance (carryforward) number is establishing
sufficient budgeted reserves to protect the cash position. In addition to protecting fund balance, reserves
also provide a level of protection against unknown public safety emergencies and costs associated with
unfunded state and federal mandates.
5
For Collier County, a minimum sufficient General Fund budgeted reserve level pursuant to the adopted
FY 2017 budget policy is 8% of operating expense. The following is a history of budgeted reserves within
the General Fund and Unincorporated Area General Fund since FY 2008 as well as the reserve
percentage against operating expense.
General Fund Unincorporated Area %of General Fund %of Unincorporated
Fiscal Year Reserves General Fund Reserves Expenses GF Expenses
FY 2017 $33,815,500 $2,440,400 8.8% 4.6%
(Workshop)
2016 $27,890,800 $1,905,600 7.7% 4.2%
2015 $26,670,700 $2,220,100 8.5% 5.6%
2014 $26,217,400 $1,715,000 8.9% 4.5%
2013 $24,844,400 $1,596,200 8.7% 4.3%
2012 $18,180,900 $1,739,500 6.2% 4.5%
2011 $14,210,200 $2,925,100 4.7% 7.4%
2010 $15,569,100 $3,422,400 4.9% 7.2%
2009 $17,541,200 $2,853,500 5.0% 5.8%
2008 $20,506,000 $6,336,600 5.5% 12.9%
Reserves for all Constitutional Officers are budgeted in the General Fund in accordance with budget
policy. It is anticipated that proposed budgeted General Fund reserve levels will eliminate the need for
mid-year operating cuts in FY 2017, assuming no unexpected revenue declines or unforeseen
emergencies. The level and extent will be determined by agency spending patterns, the level of capital
project execution and revenue streams.
Regular and measured growth in General Fund reserves sends a strong message of fiscal health and
stability to the bond rating agencies and general financial community. While it is important to continue the
recovery process from significant budget reductions necessitated by the economic recession, this
recovery and the level of dollars devoted to replacing deferred assets must be measured against the
continued need to maintain prudent reserve levels; protect against revenue shortfalls and reliance upon
ad valorem tax revenue; guard against any assault by the state legislature on the ad valorem and general
county tax/revenue structure; and fulfill public expectation to maintain/enhance service levels. Erosion of
General Fund equity must always be guarded against.
Balancing Dollars devoted to Backlog Vehicle and Equipment Replacement and Infrastructure
Repair and Replacement with New Capital Funding:
The projected backlog number heading into FY 2016 totaled $41.2M. The FY 2016 adopted budget
allocated $20M to backlog asset replacement and maintenance. Each year the inventory of capital assets
and replacement/maintenance projects considered backlog is reviewed and for FY 2017, backlog assets
are valued at$50.6M.
6
While County departments have a general understanding of backlog asset replacement and maintenance,
the method of measurement varies in sophistication and a comprehensive inventory and methodology
across the agency is close to implementation. Once the methodology is implemented, it is likely that the
previously estimated backlog numbers will grow despite the ongoing and growing cash and carry support.
Still this investment in maintaining our current capital inventory has been sizable and must be continued. A
progress report on the County's asset management inventory is available for Board review and can be
found under a separate appendix at the end of this budget workshop document.
The following table represents the amount of capital dollars devoted to replacement/repair of backlog general
governmental assets as well as dollars earmarked to current or new general governmental capital initiatives.
General Fund and Unincorporated General Fund Supported Capital Recap
FY 2016 FY 2017
Adopted Budget Proposed Budget
Backlog Capital:
Sheriff Facilities&Jail Repairs $664,200 $1,059,500
Building Repair and Maintenance $1,500,000 $4,090,500
Library Books $350,000 $450,000
Park&Recreation Repairs and Maintenance—Regional Parks(306) $750,000 $1,600,000
Park&Recreation Repairs and Maintenance—Community Parks(306) $500,000 $750,000
Helicopter(491) $2,000,000 $2,000,000
Replacement Vehicles(523) $2,050,000 $2,050,000
Bridges(313) $8,237,100 $6,800,000
Resurfacing Roads(313) $1,900,000 $2,500,000
Limerock Conversions(313) $300,000 $300,000
Storm water-Naples Park(325) $1,012,700 $1,392,200
Storm water—Golden Gate City Outfall(325) $0 $500,000
Storm water—Weirs(325) $350,000 $1,000,000
Storm water—Pine Ridge Outfall(325) $0 $100,000
Storm water—Ridge Street(325) $400,000 $500,000
Sub-total of Backlog Capital Funding $20,014,000 $25,092,200
Current Capital:
Sheriff Orange tree Sub-Station $900,000 $260,000
Sheriff Accounting System Replacement $1,000,000 $0
800 MHz Replacement $6,200,000 $3,525,000
Boardroom&Webpage Upgrades $100,000 $200,000
Misc Capital $863,300 $1,372,500
Parks&Recreation(306) $320,000 $320,700
Museum(314) $200,000 $200,000
Airport Capital(496-499) $313,100 $300,000
Replacement Ambulances and Radios $1,140,000 $1,500,000
Road&Bridge(313) $1,746,700 $2,160,000
Storm water(325) $2,893,200 $2,483,200
Loans to Impact Fee Funds $5,376,500 $2,816,900
Sub-total of Current Capital Funding $21,052,800 $15,138,300
Grand Total $41,066 800 $40.230,500
Continuation of a pay as you go approach to equipment replacement and infrastructure maintenance will
require a level of patience and diligence given the many programs and services competing for annual
limited resources. This budget devotes considerable discretionary resources to maintenance of the
transportation network- including bridge replacement, parks infrastructure and storm-water improvements.
Through a combination of new ad valorem funding (millage neutral under an increasing tax base) and
existing funding, the goal is to continue increasing our investment in backlog repair and replacement capital
infrastructure at between $2M and $5m annually. Achieving this level of increase will of course be part of
each annual budget planning process and balanced against competing Agency initiatives and programs
including new capital requirements.
7
Infrastructure critical to health, safety and welfare as well as capital initiatives considered valuable to front
line services will receive top priority and funding allocations will be re-appropriated as necessary to
always achieve this objective.
This budget once again allocates resources to continuation of the Agencies capital vehicle and equipment
recovery initiative whereby each fund with equipment replacement needs will contribute to this dedicated
family of funds solely for the purpose of purchasing vehicles and heavy equipment. Remember, funds are
not comingled instead they are fenced off and not subject to normal scrutiny for reduction or deferral in
favor of other programs or services. For FY 2017, reserve dollars in these funds secured for future
replacement total $6,348,600.
Issuance of New Debt
The last time Collier County issued debt for new capital improvements was through various commercial
paper loans from September 2007 (FY 2007) to September 2008 (FY 2008) totaling $78.4 million to
finance various general governmental and public safety projects. The proposed FY 2017 budget
contained within these workshop documents does not provide for the issuance of new debt.
There are several reasons for why new debt is not programmed as part of these FY 2017 workshop
documents nor recommended as part of the adopted budget;
1. Issuance of new long term debt can be accomplished expeditiously usually within 90 days while
short term debt can be issued generally within 45 days. The adopted budget can be amended at
any time to accommodate any financing based upon Board policy direction.
2. Projects which would be eligible for debt pursuant to the debt management policy are in various
stages of development and most have not progressed to a point where an accurate cost estimate
is available for debt purposes.
3. Taxable value increased roughly 10 percent County wide which provides a healthy increase in
property tax receipts over our FY 2017 planning scenario and allows for a cautious yet continued
approach to cash and carry of those backlog assets deemed priority for repair and replacement.
4. In the majority of cases, existing and new dollars have been programmed for high priority
initiatives discussed with the Board previously like, bridge rehabilitation/replacement, storm-water
structure enhancements, the EMS Helicopter and Big Corkscrew Regional Park. Existing budget
and new money allocated in FY 2017 will allow for uninterrupted and continued progress toward
completion of these initiatives including the preparation of more accurate design plans and cost
estimates for Board review.
The timing of any debt issuance should be synced up with projects which are ready for implementation,
have accurate cost estimates, can be executed within the appropriate bond or financing resolution
window—generally three years—and/or extend beyond the cash carry window were break fix creates
health/safety issues or is simply is an inefficient use of existing resources.
Projects which will be ripe for the issuance of new debt again based upon timing include new roadway
segments such as Vanderbilt Beach Road Extension; Phase One of the Big Corkscrew Regional Park;
and other new transportation system capital or general governmental capital improvements which the
Board directs based upon adherence to debt management policy guidelines. Most likely, based upon
current five year planning documents, consideration of debt will be discussed for these types of projects
during FY 2017 and the actual need for debt proceeds will likely not be until FY 2018.
8
The Board has been briefed previously on alternative new money sources as part of discussions on re
starting the landscape capital program, storm-water maintenance and replacement initiatives as well as
funding general capital infrastructure needs. As a reminder, these new money sources include
establishing an electric utility franchise fee which can only be applied to unincorporated area residents
and can be enacted by BCC action; instituting a storm-water utility, pursuing a one cent infrastructure
local sales tax which requires a referendum or increasing the millage rate.
Expanded Service:
The FY 2017 budget once again includes County Manager Agency expanded service requests consisting
of 78.25 FTE's totaling $5,136,900 an increase of$1,150,300 over FY 2016. Initial departmental
requests submitted in April for expanded services prior to County Manager budget reviews totaled in
excess of$10.5M and included requests for 123.50 FTE's.
As discussed within the Board's February Budget Policy document, certain provisions of the federal
Affordable Care Act(ACA) could have a negative fiscal impact to Collier County if not managed properly.
The most penal is the"Pay or Play" provision. This provision imposes a$2,000 penalty per eligible
employee working more than 30 hours per week or 130 hours per month if the employer does not offer
coverage to 95% of the eligible population. The 95% provision took effect on January 1, 2016 with penalties,
if any, being assessed in calendar year 2017 or the County's FY 2017. Eligible employees include"job bank"
employees and part time employees who work the requisite hours. Managing this federal unfunded mandate
requires that these employee types be offered health insurance. Based upon operational needs, a certain
number of these employees will be converted to full time FTE status. For the County Manager's Agency, this
budget includes the conversion of twenty and three quarter(20.75) "job bank" employees and three(3) part
time employees totaling twenty two and one quarter(22.25) FTE's. The budgetary effect is minimal since
most personal service costs have been accounted for in previous budget years and only the marginal cost of
certain life, disability and dental benefits—roughly$900 per employee— is required.
The following table provides a re-cap of the County Manager Agency expanded requests including the
"job bank" and part time conversions by fund along with the dollar value and number of FTE's.
Fund Number and Title Dollar Value FTE's
General Fund(001) $ 947,700 14.75
Transportation Services(101) $ 220,000 4.00
MSTU General Fund-Unincorporated Areas(111) $ 384,400 20.00
Community Development(113) $ 616,300 6.00
Misc Grants—Affordable Housing(116) $ 335,700 1.00
Golden Gate Community Ctr MSTU(130) $ 1,800 1.50
Planning Services(131) $ 34,400
Conservation Collier Maintenance(174) $ 40,000
Museum(198) $ 107,000
County Water/Sewer District Operations(408) $ 2,211,500 27.00
Solid Waste Disposal(470) $ 201,600 3.00
Group Health&Life Insurance Fund(517) $ 36,500
SHIP Grants(791) $ 0 1.00
Total $ 5,136,900 78.25
Health Insurance:
For FY 2017, the County Manager's Agency has met budget policy guidance calling for an 80%/20%
health insurance premium split between employer and employee. No increase is planned for FY 2017.
9
General Wage Adjustment:
With Budget Policy approval by the Board in February this budget document contains a 3.0% general
wage adjustment in an effort to remain competitive in a highly aggressive labor market and recognize
existing employees for their continued commitment, service and loyalty to the agency.
The total value of the compensation adjustments to the County Manager's Agency is $3,442,100. The
adjustments are noted by fund type in the following table.
Fund General Wage Adjustment
General Fund &General Fund Supported $1,592,400
Operations
Unincorporated Area General Fund $ 321,900
All Other Enterprise and Operating Funds $1,527,800
Totals $3,442,100
County government will face escalating challenges in attracting and retaining its best talent as an
improving economy drives a highly competitive job market.
Summary:
Significant challenges exist currently and as future budgets are formulated. Deferral of fixed asset
preventative maintenance and equipment replacement began in FY 2007. High priority maintenance and
replacement projects like storm-water, bridges, HVAC rehabilitation, public building maintenance, road
system and drainage maintenance, park infrastructure, and fleet replacement continue to receive
substantial portion of available discretionary funding. Repair and replacement of the County's valuable
infrastructure assets will continue to receive a significant share of competing available resources going
forward in an attempt to address the backlog systematically and reasonably.
Managing the County's debt portfolio continues in the most prudent and fiscally conservative manner
pursuant to the debt management policy. Interest savings within the portfolio from previous debt
restructuring continues to pay dividends freeing up greater funding for capital infrastructure maintenance.
The issuance of new debt while not part of this budget presentation will receive consideration during FY
2017 as part of discussions on expanding the transportation network, park and recreation facilities, storm-
water facilities and other general governmental infrastructure.
A number of departments/funds in this budget are revenue centric, meaning expenditures are funded
entirely by user charges or other non ad valorem revenue sources. The MSTU's which comprise a
portion of the Growth Management and Public Service Division budgets have generally met policy
guidance with respect to the establishment of millage rates between millage neutral and tax neutral (roll
back rate).
General Fund operating budget transfer dollars to the Sheriff in support of law enforcement, community
services, the jail, county security and public safety communications is up 7.0%. This includes an
increasing commitment to backlog equipment needs with an additional $2.6M over FY 2016. The Clerk of
Court's non court General Fund operating transfer for administration, accounting, internal audit, Board
minutes and records and records management is up 3.0%.
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Transfer to the Property Appraiser is up 3.0%. Operating transfers to the Supervisor of Elections is down
9.4%. Budget submission by the Tax Collector is due on August 1, 2016.
This budget document essentially meets your budget guidance; maintains the current General Fund
millage rate; increases General Fund reserves; allocates dollars for planned employee compensation
adjustments; maintains a policy compliant debt position; satisfies state and federal unfunded mandates
like health care requirements; enhances front line operating services, funds priority expanded operations
and allocates dollars to priority asset maintenance and replacement. This budget also appropriates $4.3M
after resetting the Unincorporated Area General Fund millage rate to $.8069 toward the Board's desire to
restart the median landscape capital program.
While taxable value has increased five (5) years in a row county-wide, significant reliance on property tax
revenue will require continued caution and diligent analysis of state, regional and local economic
conditions as County fiscal policies and appropriations are planned for FY 2018 and beyond. Balancing
competing priorities for capital investment, asset management and service delivery will continue to pose a
healthy and welcome challenge to elected leadership and senior management.
County staff looks forward to presenting the FY 2017 budget document during our scheduled discussions
on Thursday June 16th and, if necessary, Friday June 17th. If you have questions regarding the material
presented in this budget document feel free to contact me or Mark Isackson.
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