Agenda 02/28/2017 Item #11B02/28/2017
EXECUTIVE SUMMARY
Recommendation to Adopt the FY 2018 Budget Policy.
OBJECTIVE: That the Board of County Commissioners (Board) adopt policies to be used in
developing the Collier County Government budget for FY 2018.
CONSIDERATIONS: In order for staff to begin preparation of the FY 2018 budget, direction is needed
from the Board on major policy issues.
Attached to this Executive Summary is a listing of pertinent policy issues that will affect preparation of
the FY 2018 budget. The budget policy document is broken down into three distinct elements. The first
consists of budget policies proposed in FY 2018 that require policy direction from the Board. The second
element consists of standard budget policies that the Board has endorsed for a number of f iscal years.
The third element consists of a three-year analysis of the General Fund (001) and the Unincorporated
Area General Fund (111). Establishing broad goals to guide governmental decision makers is the first of
four budget process principles developed by the National Advisory Council on State and Local Budgeting
(NACSLB) and endorsed by the Governmental Finance Officers Association (GFOA).
The Board needs to establish June budget workshop dates. Tentative dates are Thursday, June 15, 2017
and if necessary Friday, June 16, 2017 with meeting times scheduled from 9:00 a.m. to 5:00 p.m. The
Florida Association of Counties annual conference is scheduled for June 27 through June 30, 2017 in
Palm Beach County.
For informational purposes, adoption of the maximum tentative millage rates is scheduled for Tuesday,
July 11, 2017. The Board is required by Florida Statutes to provide the Property Appraiser with the
proposed millage rates by August 1, 2017 in order to prepare the Notice of Proposed Property Taxes.
Finally, the Board needs to establish September public hearing dates for the adoption of the FY 2018
budget. The School Board has tentatively scheduled September 12, 2017 for their final budget hearing.
Recommended dates for the Collier County budget public hearings are Thursday September 7, 2017 and
Thursday September 21, 2017.
FISCAL IMPACT: The adopted policies will serve as the framework for the development of budget and
ad valorem taxation issues for FY 2018.
GROWTH MANAGEMENT IMPACT: There is no Growth Management impact.
LEGAL CONSIDERATIONS: The County Attorney has approved this item as to form and legality.
Majority support is required for Board approval. - JAK
RECOMMENDATION: That the Board adopts budget policies as detailed in the attachments to this
Executive Summary, establishes June budget workshop dates and September public hearing dates. In
addition, the Board needs to adopt the attached Resolution establishing a May 1, 2017 deadline for the
Supervisor of Elections, the Sheriff’s Office and the Clerk’s budget submittals.
PREPARED BY: Mark Isackson, Corporate Financial and Management Services
11.B
Packet Pg. 259
02/28/2017
ATTACHMENT(S)
1. Budget Policy Resolution signed 2017 (PDF)
2. Fiscal Year 2018 Proposed Budget Policies-recommended (PDF)
3. FY18 Budget Policy Powerpoint Presentation (PPTX)
11.B
Packet Pg. 260
02/28/2017
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.B
Doc ID: 2746
Item Summary: ***This item to be heard immediately following Item 14.B.2***
Recommendation to adopt the FY 2018 Budget Policy. (Mark Isackson, Corporate Financial and
Management Services Division Director)
Meeting Date: 02/28/2017
Prepared by:
Title: Operations Coordinator – Office of Management and Budget
Name: Valerie Fleming
02/22/2017 10:07 AM
Submitted by:
Title: Operations Coordinator – Office of Management and Budget
Name: Valerie Fleming
02/22/2017 10:07 AM
Approved By:
Review:
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 02/22/2017 10:07 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/22/2017 11:04 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 02/22/2017 11:54 AM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 02/22/2017 1:21 PM
Board of County Commissioners MaryJo Brock Meeting Pending 02/28/2017 9:00 AM
11.B
Packet Pg. 261
11.B.a
Packet Pg. 262 Attachment: Budget Policy Resolution signed 2017 (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Policy Document Page 1
Fiscal Year 2018 Proposed Budget Policies
Collier County Board of County Commissioners
February 28,2017
Historically, the annual budget policy approved by the Board of County Commissioners (Board),
has consisted of three (3) sections which are “annual budget policies to be adopted”,“continuing
budget policies to be reaffirmed” and a “three year forecast for the General Fund and the
Unincorporated Area General Fund”.Annual policy recommendations to be adopted are
highlighted in gray on policy document pages 13 thru 17; 19 & 22; 23 thru 24 and 26 thru 31.
While it is suggested that this format continue, the policy document will also cover significant
budget influences and discuss the strategies which may be utilized to address these influences as
the budget document evolves for FY 2018 and beyond.
The FY 2018 budget will be planned and prepared within a regional economic environment
which remains relatively stable among key housing, employment, visitation and demographic
indicators. Taxable value County wide has increased for five (5) consecutive years. County
median home prices and home sales while trending lower in recent months remain within
average ranges posted over the past two years; visitation to the destination year to date is off
record highs but remains strong; new construction permitting while lower than the highs of April
and May 2016 is on par with two year averages; and the County’s unemployment rate increased
two tenths to 5.0 percent. While the regional economy remains stable,signs of slowing growth
should give County leadership pause and caution must continue to prevail in budgeting for
continued recurring operational expansion without considering alternatives designed to reduce
the County’s exposure in the event of an economic slowdown. This is especially true as the
County continues to fund deferred asset replacement and maintenance which will once again be
given top priority in FY 2018.
The FY 2018 budget plan will allocate funding for recurring operational expenses and continue
funding for replacement capital infrastructure and maintenance as well as new capital initiatives.
For the past three fiscal years, capital and operational competition for limited resources have
placed continued pressure on the General Fund (001) and Unincorporated Area General Fund
(111). That said, the budget document must continue to remain flexible -a key component of the
budget management process and the County’s overall budget and financial model. Anticipating
and planning for potential new Board policy initiatives as well as addressing various unfunded
capital needs identified within the CIE and by departments are also an important part of FY 2018
budget planning. These initiatives may include; expanded storm-water improvements consistent
with level of service standards, any venture into golf course acquisition and operations, impacts
from any new policy or increased service level directives (e.g.Conservation Collier, EMS), and
AUIR/CIE obligations. Controlling and segmenting operating expenses will be discussed not
only for general governmental supported operations but also enterprise operations. On the
revenue side, while the introduction of enhanced or new revenue sources is possible (e.g. storm-
water utility fee, millage rate increase), any new revenue or revenue enhancement would likely
be earmarked for specific capital or program initiatives.The issuance of new general
governmental debt will once again be discussed in the policy document. Short term commercial
paper and long term bonded debt will be previewed with the option to fund various general
governmental and transportation network new capital and certain appropriate replacement capital
projects.
11.B.b
Packet Pg. 263 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Annual Budget Policies
Significant Budget Influences:
Each fiscal year based upon fiscally conservative budgetary guidance, limited resources are
allocated to competing services, programs
service and program delivery, significant resources have
public safety, public health, debt management and replacement
infrastructure and equipment. Ad valorem taxes will once again domina
budgetary revenue mix –comprising
of General Fund revenue sources.Eighty
property taxes, sales tax and state shared revenue.
Thus, significant attention is paid to ad valorem taxes and those factors that can influence
millage rate and tax levy decisions. For FY 201
1.Extent of capital, debt and operational transfer dollars expended by the General Fund and
Unincorporated Area General Fund. Board policy decision
Fund operating levy at millage neutral within an increasing taxable value enviro
capture additional levy dollars;
rate to restart the Conservation Collier program;
Gas/Sales Tax
8%
Permits/
Assessments/
Fines
8%
Intergov'tal
Revenues
2%
Service
Charges
31%Impact Fees
Sources of Current County Government
Operating Revenues all Funds (FY 2017)
General Fund
84%
Property Tax by Major Funds
Policy Document Page 2
Annual Budget Policies to be Adopted
based upon fiscally conservative budgetary guidance, limited resources are
allocated to competing services, programs,projects and capital initiatives. Within the pyramid of
delivery, significant resources have and will continue to be devoted
debt management and replacement of priority mission critical
Ad valorem taxes will once again domina te the County’s
comprising about 45% of total net annual operating revenue and
Eighty (80%) of General Fund revenue is comprised of
property taxes, sales tax and state shared revenue.
Thus, significant attention is paid to ad valorem taxes and those factors that can influence
For FY 2018, key factors include;
Extent of capital, debt and operational transfer dollars expended by the General Fund and
Unincorporated Area General Fund. Board policy decision to once again set the General
millage neutral within an increasing taxable value enviro
capture additional levy dollars; dedicate a marginal increase in the General Fund millage
rate to restart the Conservation Collier program; and maintain the Unincorporated Area
Ad Valorem
45%
Impact Fees
5%
Bond
Proceeds/
Interest
1%
Sources of Current County Government
Operating Revenues all Funds (FY 2017)
Ad Valorem
68%
Intergov'tal
Revenues
Fines,
Permits,
Charges
3%
Interest
& Misc.
0%
Carryforward
11%
Interfund
Transfers and
Payments
3%
Transfers from
Consitutional
Officers
2%
FY 2017 General Fund Revenue Sources
MSTU's 3%
Pollution
Control 1%
Unincorporated
Area General
Fund 12%
Property Tax by Major Funds
based upon fiscally conservative budgetary guidance, limited resources are
Within the pyramid of
devoted to
mission critical
the County’s
annual operating revenue and 68%
comprised of
Thus, significant attention is paid to ad valorem taxes and those factors that can influence
Extent of capital, debt and operational transfer dollars expended by the General Fund and
to once again set the General
millage neutral within an increasing taxable value enviro nment to
dedicate a marginal increase in the General Fund millage
and maintain the Unincorporated Area
Sales Tax
10%
State Revenue
Sharing
2%Intergov'tal
Revenues
1%
FY 2017 General Fund Revenue Sources
11.B.b
Packet Pg. 264 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Policy Document Page 3
General Fund (111) millage rate at $.8069 with the marginal increase above the operating
millage rate devoted to continue funding the median landscape capital program.
2.Level of service standards set by the Board for agencies and departments which are
funded within the General Fund and Unincorporated Area General Fund.
3.Proper level of resources to cover the organization’s asset maintenance responsibility
including equipment replacement. Competing priorities between operating and capital
expenses within a revenue structure heavily reliant upon property taxes.
4.General Fund and/or Unincorporated Area General Fund support for new or re-prioritized
operating and capital initiatives such as transportation system improvements, storm-
water, asset management, equipment replacement, economic development; EMS/public
safety capital; Constitutional Officer capital, and other capital initiatives, services or
projects which may require new or augmented funding as policy decisions are made
during the fiscal year.
5.Board desire to financing certain capital maintenance efforts like bridges, lighting system
improvements and storm-water in the absence of a new revenue source.
6.Impacts of potential unfunded mandates including any state legislation to limit a counties
ability to raise property tax revenue, issue debt and/or attempts to restructure shared
revenue formulas negatively impacting local revenue streams; potential state mandates
impacting law enforcement; further reductions in state health care funding as well as
ongoing federal mandates impacting local governments like health insurance.
7.Level of General Fund Ad Valorem operating support extended to constitutional officers
and specifically the Sheriff.
8.Pressure on the Unincorporated Area General Fund given the anticipated capital and
operating service demands, heavy reliance upon property tax revenue and the uncertainty
of the Communication Services Tax.
9.Extent of non ad valorem revenue projected to support operations such as sales tax, state
shared revenues and departmental revenue from General Fund operations.
10.Beginning year General Fund and Unincorporated Area General Fund cash balance.
11.Continued need to grow general governmental reserves.
12.Maintenance of the County’s excellent investment quality Credit Rating.
Discussion of Taxable Values, Millage Targets for the General Fund (County-Wide)and
Unincorporated Area General Fund and Related FY 2018 Budget and Financial Strategies
With five (5) consecutive increases in county-wide taxable value since FY 2013, a seven percent
increase in taxable value for FY 2018 (2017 tax year) would essentially eliminate the tax base
loss resulting from the economic recession and elevate the County’s taxable value on par with
the highest level recorded in FY 2008.
11.B.b
Packet Pg. 265 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Policy Document Page 4
While the tax base loss may be eliminated in FY 2018, it is important to note the differences in
categorical budgeted General Fund expenditures and revenues between FY 2008 and FY 2017.
The table below depicts by category a FY comparison of budget and the resulting changing
expenditure and revenue priorities.
GF Expenditure Category
General Fund
FY 2008
General Fund
FY 2017
Difference FY 2017
to FY 2008
County Atty. & Board $12,433,800 $11,230,300 $(1,203,500)
County Manager Agency
(Direct Budget)$66,796,600 $62,029,800 $(4,766,800)
County Manager –
Operating Transfers $38,185,200 $47,810,600 $9,625,400
Courts and Airport Ops $2,250,300 $2,065,100 $(185,200)
Debt Transfers $7,418,800 $3,073,000 $(4,345,800)
Capital Transfers $59,359,800 $27,155,100 $(32,204,700)
Constitutional Transfers $184,331,300 $198,457,300 $14,126,000
Reserves $20,506,000 $33,899,700 $13,393,700
Totals $391,281,800 $385,720,900 $(5,560,900)
GF Revenue Category
General Fund
FY 2008
General Fund
FY 2017
Difference FY 2017
to FY 2008
Ad Valorem Taxes $260,535,000 $274,958,800 $14,423,800
Federal PILT $750,000 $900,000 $150,000
Enterprise PILT $3,403,900 $6,389,200 $2,985,300
Sales Tax $35,700,000 $38,800,000 $3,100,000
Revenue Sharing $9,489,500 $9,800,000 $310,500
Board Interest $17,500,000 $650,000 $(16,850,000)
Department Revenue $11,495,600 $7,786,000 $(3,709,600)
Transfer & other Revenue $19,334,100 $17,452,300 $(1,881,800)
Carry-forward $50,107,000 $46,000,500 $(4,106,500)
Revenue Reserve $(17,033,300)$(17,015,900)$17,400
Totals $391,281,800 $385,720,900 $(5,560,900)
The County faces a vastly different budget and financial planning environment when compared
to FY 2008 even though taxable value in FY 2018 will likely match the high mark of FY 2008.
First, the fact that all agency fund interest income was deposited into the General Fund, a
practice that ceased in 2010, masked the true recurring revenue streams and in essence created a
false unsustainable entitlement to those operations benefitting from extremely high capital
transfers –like roads and county wide capital prior to the recession. Second, reserves had to
grow to protect cash balances in the absence of interest income in order to cover increasing first
quarter County Manager Agency and Constitutional expenditures prior to initial property tax
receipts. Third, general governmental County M anager Agency direct budgets (see above) will
continue to be squeezed in order to continue funding asset maintenance and replacement that was
deferred during the recession. This coupled with efforts to fund up -in increasing amounts -
transportation system, storm-water, parks and facility capital contributions will limit expenditure
allocation increases for operations. Fourth, any new revenue sources which the Board may
consider for enactment like the storm-water utility fee or a franchise fee while likely dedicated to
a specific capital purpose would provide greater general governmental revenue flexibility and
potentially free up other general governmental dollars for priority capital and operating
initiatives.
11.B.b
Packet Pg. 266 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Policy Document Page 5
The following table provides a history of County-wide and Unincorporated Area taxable values
over the past ten (10) years (tax year 2007-2016) as well as the budget planning projection for
tax year 2017 (FY 2018).
Tax Year
County Wide
Taxable Value
County Wide %
inc. (dec)
Unincorporated Area
Taxable Value
Unincorporated Area
% inc. (dec.)
2007 (FY 2008)$82,542,090,227 --------------$53,397,231,747 -------------
2008 (FY 2009)$78,662,966,910 (4.7%)$50,860,023,424 (4.8%)
2009 (FY 2010) $69,976,749,096 (11.0%)$44,314,951,279 (12.8%)
2010 (FY 2011) $61,436,197,437 (12.2%)$38,146,886,403 (13.9%)
2011 (FY 2012) $58,202,570,727 (5.2%)$36,013,774,963 (5.6%)
2012 (FY 2013) $58,492,762,303 .50%$36,026,786,779 .04%
2013(FY 2014) $60,637,773,315 3.7%$37,207,018,234 3.3%
2014 (FY 2015) $64,595,296,747 6.5%$39,634,174,211 6.5%
2015 (FY 2016) $70,086,389,131 8.5%$43,075,586,559 8.7%
2016 (FY 2017) Oct
DR-422 and Pre-VAB $77,120,332,382 10.0%$47,459,174,309 10.2%
2017 (FY 2018)
Projected $82,518,755,649 7.0%$50,781,316,511 7.0%
The December 2016 State Ad Valorem Estimating Conference Report was released recently for
the 2017 tax year (FY 2018). The report projects that Collier County certified taxable values on
July 1, 2017 will increase 8.9%. We have been fairly adept over the years at sizing the budget
around a conservative yet functional taxable value planning number considering that most budget
planning is over before the certified taxable value number is received from the Property
Appraiser.
Property tax revenue comprises 68% of the General Fund (001) and 30% of the total net county
budget, including fund balances. From new money sources, which excludes fund balance,
property taxes comprise 45% of available total net operating revenue sources. According to the
Tax Policy Center of the Urban Institute and Brookings Institution, local governments across the
United States collected about $1.5 trillion of general revenue and 29.7% of these collections
were from Property Taxes.
The taxable value estimate must allow for operational and capital programming needs as well as
reserve growth. Budget planning around a 7.0% taxable value increase is realistic. Any positive
difference in taxable value above the planning ceiling and the resulting increase in ad valorem
revenue can be used to strengthen the Board’s General Fund and Unincorporated Area General
Fund reserves and/or be applied to much needed programs and services as directed by the Board.
The General Fund and Unincorporated Area General Fund tax or “millage” rate has varied over
the years and has been influenced by the taxable value environment and State legislation. Tax or
“millage” rates for the past twelve (12)years are shown in table form below.
Millage Area FY 06 FY 07 FY 08 FY 09 FY 10-FY 16 FY 17
General Fund $3.8772 $3.5790 $3.1469 $3.1469 $3.5645 $3.5645
Unincorporated Area GF $.8069 $.8069 $.6912 $.6912 $.7161 $.8069
11.B.b
Packet Pg. 267 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Policy Document Page 6
The following table depicts taxable values and levies at increases of five (5), six (6), seven (7),
eight (8) and nine (9) percent assuming a millage neutral General Fund operating tax rate;
restarting the Conservation Collier environmentally sensitive land acquisition and maintenance
program through a marginal increase in the General Fund tax rate of .2500 per $1,000 of taxable
value and;maintaining the Unincorporated Area General Fund tax rate at $.8069 with the
incremental rate above current millage neutral or $.0908 earmarked to continue funding the
unincorporated area median landscape capital program, consistent with the Board’s direction
from the Median-Landscape Capital Workshop on October 6, 2015.
The respective General Fund and Unincorporated Area General Fund gross dollar values at a
millage neutral operating tax rate and that tax rate connected with the Conservation Collier
restart and landscape capital program at the various taxable value scenarios is also shown below.
Current
Taxable Value
Pre VAB
FY 2018 @ 5%FY 2018 @ 6%FY 2018 @ 7%
Policy Planning
Numbers
FY 2018 @ 8%FY 2018 @ 9%
General Fund 77,120,332,382 80,976,349,001 81,747,552,325 82,518,755,649 83,289,958,973 84,061,162,296
Unincorporated
Area GF 47,459,174,309 49,832,133,024 50,306,724,768 50,781,316,511 51,255,908,254 51,730,499,997
Current Levy
General Fund 274,895,425 288,640,196 291,389,150 294,138,105 296,887,059 299,636,013
Conservation
Collier Restart at
0.25 mills 0 20,244,087 20,436,888 20,629,689 20,822,490 21,015,291
Total General
Fund Levy at
$3.8145 274,895,425 308,884,283 311,826,038 314,767,793 317,709,549 320,651,304
Unincorporated
Area GF
(Operating)33,985,515 35,684,790 36,024,646 36,364,501 36,704,356 37,044,211
Unincorporated
Area GF
(Landscape Cap)4,309,293 4,524,758 4,567,851 4,610,944 4,654,036 4,697,129
Total
Unincorporated
Area GF at $.8069 38,294,808 40,209,548 40,592,496 40,975,444 41,358,392 41,741,340
5% Variance
from Current
Levy
6% Variance
from Current
Levy
7% Variance
from Current
Levy
8% Variance
from Current
Levy
9% Variance
from Current
Levy
General Fund
(millage neutral)13,744,771 16,493,725 19,242,680 21,991,634 24,740,588
Conservation
Collier Restart 20,244,087 20,436,888 20,629,689 20,822,490 21,015,291
Total General
Fund Levy
Increase 33,988,858 36,930,614 39,872,369 42,814,124 45,755,879
Unincorporated
Area GF
(Operating)1,699,276 2,039,131 2,378,986 2,718,841 3,058,696
Unincorporated
Area Landscape
Capital at $.0908
millage neutral 215,465 258,558 301,651 344,743 387,836
Total
Unincorporated
Area GF Levy
Increase 1,914,740 2,297,688 2,680,637 3,063,585 3,446,533
11.B.b
Packet Pg. 268 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Policy Document Page 7
If taxable values fall below the seven (7.0)percent planning scenario, budget planning will be
reduced accordingly. Conversely if taxable values exceed the planning benchmark, additional ad
valorem dollars can be used to increase reserves and/or applied to programs and services as
directed by the Board. It is likely that budgeted ad valorem revenue will be millage rate driven
rather than a strategy of setting the millage rate based upon a targeted ad valorem revenue
number.
Summary of Significant FY 2018 Proposed Budget Strategies to Achieve a Structurally
Balanced Budget
The following table highlights certain FY 2018 budget strategies which will be detailed within
this document and which the Board will consider as part of Adopted Budget Policies.Policy
document pages are included for reference in the right hand column.
1 The County Manager is proposing to submit one FY 2018 millage neutral General Fund
(001) operating budget along with service level and related budgetary and millage
implications. Designate approximately sixty four (64) percent of the planned ad valorem
revenue increase after constitutional transfers to capital initiatives with the remaining
thirty six (36) percent after constitutional transfers to cover operations and recurring
costs due to any expanded services. Any expanded services will be limited to mission
critical functions such as but not limited to capital execution, asset maintenance and
replacement execution, asset management and front line service delivery.
Pg’s 5
thru 13
2 Discussions surrounding restarting Conservation Collier have progressed at the Board
level and a majority of the Board has directed that staff incorporate into the FY 2018
budget funding through a $.2500 increase in the General Fund millage rate and
redirecting the marginal dollars above the current operating rate of $3.5645 toward the
purchase and maintenance of environmentally sensitive lands.
Pg’s 8
and 9
3 Proposed guidance for the Unincorporated Area General Fund (111) includes
maintaining the millage rate at $.8069 and earmarking $.0908 or the marginal increase
above the current operating millage rate to fund the median landscape capital program.
The operating millage rate of $.7161 will be used to fund existing and expanded
operations as well as capital transfers.
Pg’s 5
thru 13
4 Over the past two fiscal years,a total of 146.5 expanded FTE’s were added to the
operations (FY 2016 = 68.25; FY 2017 = 78.25). Of this total, general governmental
operations benefitted from the addition of 87.5 expanded FTE’s. County Manager
agency salaries grew by $10.6 million to $164.5 million or 51% of total Collier Co.
government salaries. Constitutional Officer budgeted salaries grew by 17.2 million.
Departments will plan on a significantly diminished number of expanded requests in FY
2018. Any expanded services will also be limited to mission critical functions such as
but not limited to capital execution, asset maintenance and replacement execution, asset
management and front line service delivery.
Pg’s 15
& 16
5 Pursue a strategy in FY 2018 which continues to place a premium on infrastructure
replacement/maintenance. Issuance of long term debt will be discussed under an
approach which could finance certain unfunded road network and other transportation
system capital initiatives listed in the most recent AUIR/CIE as well as other general
governmental new capital and or targeted maintenance projects.
Pg’s 10,
11,12
and 19
thru 24
6 Continue budget parameters for enterprise operations which are tied to best practice
working capital guidelines;capital obligations from the capital improvement element
(CIE); any rate or fee studies stipulations; priority agency wide initiatives; and statutory
or ordinance spending limitations.
Pg 15
7 Continue County-wide capital transfers at an amount equal to or less than a 1/3rd mil
equivalent to continue General Fund contribution to cover growth related debt service
and to help pay for critically needed general governmental facility repairs.
Pg’s 23
and 24
11.B.b
Packet Pg. 269 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Policy Document Page 8
8 Fund storm-water improvements from the General Fund and Unincorporated Area
General Fund consistent with the capital improvement element (CIE), ability to execute,
integration with other utility construction scheduling and identified watershed benefits
per engineering reports. Majority funding will be programmed within the Unincorporated
Area General Fund based on the identified watershed benefit. Discussions will continue
over the adequacy of the current “pay go” strategy, the introduction of a storm-water
utility fee and whether or not the introduction of a financing component is prudent even
with any potential new revenue source. Under the current “pay go” approach, it is
anticipated that the FY 2018 transfer will be no less than the FY 2017 contribution of
$6.7 million
Page 22
9 Continue to program the capital transfer designated to fund new and deferred park capital
projects. It is anticipated that the FY 2018 transfer will be no less than the FY 2017
regular contribution of $2,070,700
Pg’s 10
and 11
10 Establish General Fund contingency reserve at 2.5% of total budgeted appropriation (less
transfers). Grow the General Fund cash balance reserve by $5,000,000, bringing total
reserves to $39 million. This growth in the General Fund reserves is extremely important
to protect the funds beginning FY cash position, avoid more aggressive expenditure
controls as budget margins tighten and position the County to become more self reliant
knowing that federal and state funding as well as funding guidelines will continue to
tighten and become more onerous
Pg’s 24
thru 26
11 Use gas tax revenue to support road capital, maintenance and debt (with an emphasis on
debt) consistent with budget planning and statutory requirements
Pg’s 22
and 23
12 Discussion of present and future revenue sources including the composition of the
County’s general governmental revenue mix
Pg’s 2
and 4
thru 6;
35 thru
43
Limited general governmental operational expense increases are expected and will be
appropriated to account for new programs and services instituted during FY 2017, inflationary
adjusted fixed costs and maintaining a competitive compensation package. The December 2015
over December 2016 CPI is 2.9 percent.
A component increase of 2.5% devoted to operations at the department level is planned. This
means that department operations for FY 2018,which rely on the General Fund and
Unincorporated Area General Fund for dollars,will be restricted to a two and one half percent
(2.5%) increase for current programs and services as well as expanded services.This includes
operating transfers. For FY 2018, the percentage operating adjustment will be translated into a
dollar value for each department head to allocate as priorities dictate.
A significant portion of remaining budget planning dollars will be applied to Agency wide
capital equipment and asset replacement.This will manifest itself primarily through General
Fund and Unincorporated Area GF capital transfers for general governmental and constitutional
facilities, transportation, parks, storm-water and heavy equipment.
Based upon Board guidance from February 14, 2017, a marginal increase in the General Fund
millage rate will be budgeted within existing fund structures to restart the Conservation Collier
program. The marginal millage rate increase of $.2500 per $1,000 of taxable value based upon
the budget planning taxable value increase of 7% will generate a gross value of $20,629,700. The
budgeted transfer from the General Fund to the existing Conservation Collier Trust Fund will be
based upon 95% of the levy accounting for the statutorily required revenue reserve.
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Packet Pg. 270 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Policy Document Page 9
Typical transfers from the Trust Fund to the Maintenance Fund would then be appropriated as
part of the normal budget process. Staff has recommended that the maintenance set aside be at
least 25% of the annual levy. Any loans from the current maintenance fund for property
acquisition prior to November 2017 would be repaid systematically based upon the adopted
budget.
Absent a referendum, Ad Valorem taxes cannot be used as a source of funds for the repayment of
any debt issuance. Therefore environmentally sensitive lands will be acquired from cash on hand
for the immediate future.Maximizing return on investment of program balances is a goal of all
stakeholder’s and County agency representatives. The County’s Investment Policy lists the
authorized investment instruments as well as all parameters under which said investments can be
made. Investment of funds shall generally have final maturities of not more than five (5) years.
The combined program minimum fund balance is currently established by the Board at $32
million.
The table below identifies the level and extent of adopted and mid-year budget reductions since
FY 2009. Between FY 2009 and FY 2013,a total of $118 million of General Fund budget
reductions were necessary to achieve a structurally balanced millage neutral tax rate budget
during taxable value declines and maintain adequate General Fund cash balances consistent with
an investment quality credit rated organization.
For the third time since FY 2009, no mid-year operating cuts are contemplated in FY 2017. This
does not mean that management of the budget will cease. 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 appropriations are properly executed and
spent for the intended purpose.
While it is important to continue the recovery process from significant budget reductions in the
years identified above which occurred due to 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 any revenue shortfalls; 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. Maintaining sufficient General Fund cash
-$40
-$30
-$20
-$10
$0
$10
$20
$30
FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17MillionsGeneral Fund Budget Reductions
Changes in the Adopted Budget Mid-Year Budget Reductions
Total Reductions
$46,663,900
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is always a major focus and by policy the cash and cash equivalent position is set at a minimum
of 10% of actual expenditures. Given our current General Fund reserve levels, it has been
prudent to maintain a cash position in this fund of between 15% and 20% or between $55 million
and $60 million.
The following table presents the estimated backlog of various categories of deferred general
governmental asset maintenance and or replacement between FY 2007 and FY 2012 during the
economic recession. These deferrals summarized below include facility infrastructure
maintenance;park infrastructure maintenance; storm-water maintenance and; road maintenance
where the primary funding source is the General Fund and Unincorporated Area General Fund.
Vehicles and heavy equipment backlog as well as future replacement acquisitions are being
addressed through the motor pool replacement funds and related charges to division budgets
which restarted in FY 2016.
Category 2017 Backlog 2018 Backlog
Admin.Serv.-Vehicles and Equipment $2,053,000 $1,794,000
Public Serv.-Vehicles and Equipment $1,607,000 $3,028,000
Growth Mgt.-Vehicles and Equipment $5,246,000 $5,724,500
Subtotal –Vehicles and Equipment $8,906,000 $10,546,500
Admin Serv.–Facilities and Infrastructure Assets $18,860,000 $17,912,000
Public Serv.–Park Facilities and Infrastructure Assets $5,125,000 $4,500,000
Public Serv. –Library Collection 500,000 $1,436,400
Storm-Water $9,550,000 $5,440,000
Road Maintenance $7,629,700 $6,229,700
Total $50,570,700 $46,064,600
A detailed breakdown of the general governmental asset maintenance and replacement backlog
will be developed for Board review at the June workshop similar to last year.This detailed table
will show the FY 2018 backlog; the dollars budgeted in FY 2018 to reduce the backlog and the
estimated FY 2019 roll over amount.Generally, the beginning FY 2017 backlog number of
$50.6 million was reduced during the FY by $4.5 million. Departments are much more proficient
in tracking and estimating deferred assets and this increasing confidence is important as
decisions regarding resource allocations and related prioritizations are made.
For FY 2018, funding will be earmarked for priority b acklog vehicles, equipment and
infrastructure. Once again, any budget savings from fuel purchases budgeted within each user
division will be calculated and savings will be transferred to the respective motor pool capital
replacement funds for use in augmenting deferred equipment purchases assigned to that user
division.For FY 2017, the general governmental savings (excluding transit and enterprise
operations) totaled $582,800. Potential fuel savings heading into FY 2018 will be substantially
less due to reduced margins in the budget versus actual price per gallon of fuel.
Beginning in FY 2017, staff increased the planning allocation dedicated to buy down deferred
asset replacement and maintenance by approximately $5 million to between $10 million and $15
million annually. Under this strategy, high priority deferred general governmental capital
maintenance and replacement will likely be addressed over the next five (5) years assuming
existing funding streams and traditional expenditure patterns. Management recognizes that a
certain level of backlog will always exist and this methodical pay as you go strategy is predicated
on addressing mission critical equipment and infrastructure first followed by general capital
categories.
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The following table provides a description of what is currently planned in FY 2018 from the
General Fund budget to support ongoing and new capital requirements; continue to address part
of the backlog described in the previous table; and fund growth and non-growth debt obligations.
Category
General
Fund
Non Growth
Debt
Loans to
Impact Fee
Funds -
Debt
Loans to
Impact Fee
Funds -
Projects
County
Wide
Capital
Transfer
for other
Capital
Transfer to
Road
Network
Transfer to
Storm-
Water
Transfer to
Parks
Total
FY 2014 $3,657,700 $4,342,300 $0 $6,841,400 $3,800,000 $8,768,800 $4,730,100 $0 $32,140,300
FY 2015 $3,079,600 $3,307,100 $7,813,200*$7,788,600 $3,441,200 $9,499,900 $4,627,600 $500,000 $40,057,200
FY 2016 $3,077,500 $5,376,500 $900,000*$10,677,500 $4,333,100 $14,559,800 $1,549,600 $750,000 $41,024,000
FY 2017 $3,073,000 $2,476,900 $0 $10,697,500 $4,000,000 $9,935,500 $2,525,000 $2,495,700 $35,203,600
FY 2018 $2,855,400 $3,154,000 $2,000,000 $11,108,100 $3,950,000 $10,500,000 $2,000,000 $1,000,000 $36,567,500
*FY 2015: EMS Station, SOE Complex, &Sheriff Substation. FY 2016: Additional funding for Sheriff Substation. FY18: EMS Station
Strong capital contributions have recently b een appropriated within the Unincorporated Area
General Fund to augment the County’s commitment to capital programming. The following table
depicts these capital contributions.
Category Unincorp.
Area General Fund
Transfer
to Roads
Transfer to
Storm-Water
Transfer
to Parks
Total
FY 2014 $0 $1,300,000 $0 $1,300,000
FY 2015 $3,860,000 $1,050,000 $500,000 $5,410,000
FY 2016 $2,427,300 $4,011,800 $500,000 $6,939,100
FY 2017 $3,300,000 $4,172,000 $750,000 $8,222,000
FY 2018 $4,000,000 $4,172,000 $1,250,000 $9,422,000
Non growth related debt serviced by l egally available non-ad valorem revenue from the General
Fund continues to decline reflecting the various debt restructurings approved by the Board.
Through the County’s debt restructuring and normal debt retirement, non growth related annual
revenue bond debt service paid from the General Fund has decreased 65% or $5.3M since FY
2010 when the debt restructuring initiative began.
Cumulatively since FY 2010 across all debt types (General Governmental and Business), non
growth related annual debt service has dropped 35%. The FY 2018 impact fee loan figure from
the General Fund is planned to increase year over year due primarily to lagging general
governmental facility impact fee receipts and the construction of a new EMS facility.
County-wide capital allocations have traditionally included new money components for general
governmental capital projects as well as maintaining and replacing existing general
governmental infrastructure. The following chart provides a summary description of dollars
programmed for transfer in FY 2016, FY 2017 and planned for FY 2018 by category.
General Fund Supported Capital Category FY 16 Budget FY 17 Budget FY 18 Budget
Sheriff Orange Tree Sub-Station $900,000 $0 $0
EMS Station and Ambulance $0 $0 $2,000,000
Helicopter $2,000,000 $2,000,000 $1,250,000
Jail & other Sheriff Facility Repairs $664,200 $1,059,500 $3,500,000
Sheriff’s replace accounting system $1,000,000 $0 $0
800 MHz Public Safety Communication System $6,200,000 $3,525,000 $858,100
State & Regional Eco Development $475,000 $500,000 $0
Library Capital/Books $350,000 $450,000 $550,000
General Building and A/C Repairs $1,500,000 $4,090,500 $5,250,000
Other General Governmental $488,300 $1,072,500 $950,000
Park Capital $1,070,000 $2,495,700 $1,000,000
Museum Capital $200,000 $200,000 $200,000
Airport Capital $313,100 $300,000 $1,000,000
General Governmental Vehicle Replacement
Supplement $1,500,000 $1,500,000 $1,500,000
Total $16,660,600 $17,193,200 $18,058,100
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After setting aside the first $2,000,000 in FY 2015, a total of $6,000,000 is available at the
beginning FY 2017 (October 2016)to purchase a new helicopter. The set aside planned for FY
2018 is $1,250,000. An additional set aside may be required prior to actual procurement and this
number will be determined based upon the existing helicopter’s trade value and final equipment
options.
A major initiative funded on a cash and carry basis over the past four years is the phased upgrade
of the county-wide public safety communication system. Between FY 2014 and FY 2017 a total
of $15,125,000 has been encumbered for this important public safety project. This project is
expected to be completed in FY 2018 and a final set aside of $ 852,200 is planned.
Transfer dollars and direct maintenance funding for transportation related system improvements
and operations from the General Fund and Unincorporated Area General Fund will increase
significantly in FY 2018 under the current planning scenario from that budgeted in FY 2017 by
$3,442,300 to $44,334,600.This includes dollars intended to offset deferred infrastructure
maintenance. Of course the allocation may change as the FY 2018 budget evolves leading into
the June workshop. This allocation includes dollars to operate the transportation network, dollars
for road resurfacing, intersection improvements, bridges, storm-water and airport capital.
Management has the flexibility to allocate these General Fund and Unincorporated Area General
Fund transfer dollars to mission critical projects or initiatives at the expense of those efforts not
deemed a high priority. This has and will continue to be the management strategy given the
competition for general government resources, planned cuts in the communication services tax
and heavy reliance upon property taxes.
Gas tax dollars within Gas Tax Fund (313) totaling $1,000,000 annually have been freed up and
are available for system maintenance and improvements above that transferred from the General
Fund and Unincorporated Area General Fund beginning in FY 2015 due to restructuring of the
gas tax debt at substantially lower interest costs. These gas tax dollars not devoted to paying
debt service will be available annually until the debt expires in 2025.
Overall, capital transfers from the General Fund and Unincorporated Area General Fund to all
program areas have increased. Sheriff capital until otherwise known is planned consistent with
the AUIR. Existing capital projects like the general sheriff facility A/C repairs, jail kitchen
repairs and Sheriff’s accounting system are in progress and an additional $3,500,000 in new
money has been allocated in FY 2018.
On the State legislative front, House members are expected to consider options for cutting the
state budget by anywhere from $1.1 billion to $2.2 billion as part of an exercise toward making
the next spending plan balanced. House Appropriations members were given two alternative
budget targets to reach at their last meeting. The first would attempt to put state spending in line
with growth to fix the shortfalls over a three-year period. The upcoming base budget would be
cut roughly $1 billion. Staff will continue to monitor state budget discussions with a specific eye
on spending reductions that may shift further costs to local governments.
Staff will also monitor legislation that has an adverse impact on local government revenue
streams. Bills may be introduced that; alter the Communication Services Tax structure,
introduce certain sales tax exemptions (i.e. commercial leases), modify current aviation fuel
taxes, and further limit local control over the levy of ad valorem taxes.
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Packet Pg. 274 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
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Legislation was recently introduced in the House under the guise of Local Government
Transparency which has some very striking and vague impacts on local government borrowing.
The most disturbing is a legislative imposed 6% debt cap based upon revenue available to pay
debt service.Recall that Collier County has a self imposed debt service cap which is 13% of
bondable revenues.
The Florida Association of Counties as always will lobby for local control and support measure
to eliminate or reduce negative impacts to counties.
Recommended Budget Policy: Develop a General Fund (001)operating budget at millage
neutral and provide the Board with a summary divisional description of what millage neutral
purchases in terms of services and the progress made in devoting dollars to asset maintenance,
equipment replacement and capital initiatives planned within the AUIR.
Approve guidance restarting the Conservation Collier Program and direct that staff incorporate
into the FY 18 budget funding through an increase in the General Fund millage rate and
redirecting the marginal dollars above the current operating rate of $3.5645 or .2500 per $1,000
of taxable value towards the purchase and maintenance of environmentally sensitive lands.
Approve guidance for the Unincorporated Area General Fund (111) which includes maintaining
the millage rate at $.8069 (the rate in FY 2007) and earmarking $.0908 or the marginal increase
above the current operating millage rate to continue the median landscape capital program.The
existing millage rate of $.7161 will be used to fund existing and expanded operations as well as
capital transfers.
General Fund Budget Allocations by Agency and Component
The purpose of this allocation is to identify those agency appropriation components within the
General Fund. All agencies work diligently with the County Manager in support of budget
policies adopted by the Board. Equally important is the premise that all agencies would share in
any budget reductions necessitated by taxable values below the planning threshold, reductions in
property tax revenues, new state tax reform initiatives, reductions in state shared revenue and
unfunded mandates.
BCC / Co
Attorney 1%County
Managers
Agency 30%
Road Program
Subsidy 2%
Debt / Capital
Subsidy 6%
Reserves 8%
Courts 1%
Clerk of Courts
2%
Property
Appraiser 2%
Sheriff 43%
Supervisor of
Elections 1%
Tax Collector 4%
FY 2017 Percent of General Fund Budget
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Packet Pg. 275 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
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Considering that transfers to the Constitutional Agencies in FY 2017 account for 52% of total
General Fund budgeted expenses and 72% of the General Fund ad valorem budgeted revenue,
their participation in any necessary reductions due in part to unexpected ad valorem revenue
shortfalls or unforeseen unfunded mandates is essential.
It should be noted that these expense percentages are gross figures and do not account for
statutorily required year ending constitutional officer turn back. This turn back revenue is
budgeted and forecast each year. Constitutional turn back revenue totaled $7,659,792 and
$7,838,435 respectively across all funds for years ending FY 2015 and FY 2016.The General
Fund receives roughly 9 1 percent of all turn back revenue. Turn back by the Tax Collector
accounted for 83% of all turn back revenue in FY 2015 and 88% of all turn back revenue in FY
2016.
Recommended Budget Policy: Continue this policy.
Millage Targets for Collier County MSTU’s, MSTD’s
A Municipal Service Taxing Unit (MSTU) is a mechanism by which a county can fund a
particular service from a levy of ad valorem taxes, not countywide, but within all or a portion of
the county. In the County budget, an MSTU is used to segregate the ad valorem taxes levied
within the taxing unit to ensure that funds derived from such levy are used to provide the
contemplated services within the boundaries of the taxing unit as required.
MSTU’s are created by ordinance and generally there are provisions governing the maximum
millage rate that can be levied. Local ordinance is the control, even if the rolled back rate
exceeds the ordained millage cap.
There are twenty two (22) dependent MSTU’s or MSTD’s active under Collier County’s taxing
umbrellas. Of these, thirteen (13) have advisory boards which provide recommendations to the
Board of County Commissioners.
The Board heard a recent presentation on Wildfire Mitigation on January 24, 2017 where the
concept of an All Hazard’s MSTU tax was discussed. Lee County collects from unincorporated
residents such a tax for a multitude of hazard response purposes such as incident command
training, equipment, facility upgrades, etc. The tax was established by ordinance after notice and
public hearing requirements and is provided within Florida Statutes, 200.065. The current levy in
Lee County is $0.0693 per $1,000 of taxable value. This separate levy,if enacted in Collier
County and applied within the unincorporated area,would raise in excess of $3.2 million.
Recommended Budget Policy: For FY 2018, it is suggested that those existing
MSTU’s/MSTD’s without advisory board oversight be limited to a rolled back millage rate
position unless staff presents a compelling reason for additional funds during budget
presentations. Additionally, it is suggested that existing MSTU’s and MSTD’s with advisory
board oversight be allowed to consider tax rate options ranging from tax neutral (rolled back
rate) to millage neutral depending upon program requirements and taxable values with specific
advisory board recommendations offered during the budget review cycle.
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Revenue Centric Budgets
It is generally recognized that all budgets and expense disbursements regardless of fund or
activity are revenue and cash dependent. This concept establishes that enterprise funds, internal
service funds, certain special revenue funds and other operational funds which rely solely on fee
for service income with zero reliance upon ad valorem revenue should be allowed to establish
budgets and conduct operations within revenue centric guidelines dictated by cash on hand and
anticipated receipts. For FY 2018, the following budget priorities must be satisfied for enterprise
and special revenue operations; working capital guidelines established through policy or best
practices; capital obligations from the capital improvement element (CIE); any fee or rate study
expense stipulations; priority agency wide initiatives; any statutory or ordinance spending
restrictions.
This concept also presumes continual monitoring of cash and receipts and, if necessary,
subsequent operational adjustments dictated by cash flow. As such, ad valorem agency
limitations suggested above will not apply.
Certain cost centers or functions have a net cost to the General Fund (001) or Unincorporated
Area General Fund (111). In these instances where fee for services offset the ad valorem impact,
then the budget reduction guidance should account for this positive impact upon the net cost to
the General Fund (001) or to the Unincorporated Area General Fund (111). Under this revenue
centric approach, Departments will be held to their fee for service projections and any negative
fee variances will be addressed through expenditure cuts and not subsidized by Ad Valorem
taxes. Department Head discretion upon guidance by the County Manager should be afforded in
these scenarios.
Recommended Budget Policy: Adopt this Enterprise Fund and General Governmental revenue
centric budget policy.
Expanded Positions
The County Manager’s Agency added 78.25 FTE’s to the operation as part of the FY 2017
approved budget. These positions were distributed relatively equally throughout the agency
reflecting the continued need to invest in human capital among various strategic position
categories to address ongoing service demands and agency initiatives.
We are faced with the continuing challenge of conducting the business of government within the
context of evaluating strategic organizational efficiencies and re-alignments required to match
service demands with available resources. Consequently, as part of any decision to make major
organizational, service or other changes, proper analys is is undertaken. This analysis includes
review of the customer needs, the organizational structure, the underlying processes and service
delivery models and the proper full time equivalent employee mix. Outcomes include
streamlined business processes, elimination of any wasted effort in the processes, and a
management and staffing structure that is expected to be able to deliver the required services.
For FY 2018, Departments will carefully consider expanded positions since proposed operating
expenditure guidance will likely require a significant re-prioritization of current budget. Any
expanded requests will be limited to mission critical functions such as but not limited to capital
project execution, asset maintenance and replacement execution, asset management
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implementation and front line service delivery. All expanded positions and programs will be
reviewed by the County Manager and his recommendations will be presented as part of FY 2018
budget workshop discussions in June.
Recommended Budget Policy: Expanded position requests will be limited to mission critical
functions, fully vetted with the Board and enumerated within the Budget document including
details of expanded operational costs and any offsetting program revenue.
Compensation Administration
The philosophy of Collier County Government is to provide a market-based compensation
program that meets the following goals:
1. Facilitates the hiring and retention of the most knowledgeable, skilled and experienced
employees available.
2. Supports continuous training, professional development and enhanced career mobility.
3. Establish equitability in position pay ranges and to rates paid incumbents in those positions
4. Recognizes and rewards individual and team achievements.
The Consumer Price Index 12 month percent change from December 2015 to December 2016 is
2.9% for the Miami-Fort Lauderdale area. This is one of the indices that Collier County
traditionally uses when considering a general wage adjustment.The annual Florida Relative
Price Index, an index comparing the relative cost of living among the State’s 67 counties, is also
used as a basis for compensation plan recommendations.
Similar to last year, rather than waiting to appropriate dollars for a compensation adjustment on
an event driven basis,the County Manager proposes to appropriate dollars for the adjustment as
part of budget planning for FY 2018 with the recommended structure submitted for Board
consideration at the June Workshop meeting.
For FY 18, the County Manager is recommending a 2.9% general wage adjustment and a .60%
targeted market based pay plan maintenance component in an effort to remain competitive in a
highly a ggressive labor market and recognize existing employees for their continued
commitment, service and loyalty to the agency. This proposed adjustment also represents an
effort to regain certain payroll buying power which was eroded through introduction of a Florida
Retirement System payroll deduction, previous health insurance co-payment increases and the
three (3) year absence of salary increases as depicted in the summary table below.
The FY 16 Pay and Compensation Plan was funded at the 3% level with allocations split
between a 1.5% general wage adjustment and targeted market based pay plan adjustments to
designated positions that were out of alignment with the recommendations of the compensation
plan review completed by Cody and Associates. A General Wage Adjustment totaling 3% was
allocated in FY 17 at a total cost of $3,442,100.
Recommended Budget Policy: Appropriate dollars equivalent to a 2.9%general wage
adjustment and a .60% pay plan maintenance component as part of FY 2018 budget planning and
that the structure of such adjustment be submitted by the County Manager for Board
consideration at the June workshop meeting. In previous years,the Board of County
Commissioners has authorized adjustments to the compensation plan as shown within the
following table.
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Program Component FY 08 FY 09 FY 10 –
FY 12
FY 13 FY 14 FY 15 FY 16 FY 17 FY 18
Proposed
General Wage
Adjustment
4.10%4.20%0.00%2.00%$1,000 2.00% / $1,000 1.50% / $1,000 3.00%2.90%
Awards Program 1.50%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Pay Plan Maintenance 0.25%0.00%0.00%0.00%0.00%0.00%1.50%0.00%0.60%
Total 5.85%4.20%0.00%2.00%$1,000 2.00%3.00%3.00%3.50%
Health Care Program Cost Sharing
The County is self funded and seeks to operate the health plan with the same diligence as a small
insurance company.Li ke an insurance company, the County faces a significant budget risk
within the health plan due to the potential for a statistical claim cost variance of 10% around the
expected mean claims cost.Such variance is normal statistically and has its roots in the fact that
total medical costs are extremely sensitive to the number of claimants who experience
catastrophic losses. The expected number and size of large claimants is by nature extremely
random and volatile. To manage and prevent this variability,the County reinsures catastrophic
losses and maintains a prudent reserve to comply with Florida Department of Insurance
requirements as well as to protect the General Fund from this volatility.
There are several goals that guide how the County operates the plan within the small insurance
company context. These are:
1.Comply with all legal and regulatory requirements for plan operation
2.Manage plan cost trends to be 30% or more below published trends
3.Maintain overall controllable expenses, reinsurance costs, network fee arrangements and
reserves at prudent levels
4.Protect our employees from the economic impacts of illness or injury
5.Prevent illness when possible by helping our employees and their spouses become aware
of their health, and act on that knowledge
Coverage under the Plan extends to all County employees, with the exception of the Sheriff’s
Office, which operates its own self-funded plan.Nationally, as well as here in Florida, medical
plan costs, and the premium dollars required to fund them, continue to increase annually.The
County’s medical plan has the potential to be similarly impacted by these rising costs.
Due to exceptional plan performance over the past five (5) plan years, plan reserves exceed
statutory minimums. Therefore, it is recommended that there be a no (0%) rate increase for FY
2018.It should be noted that employer health insurance contribution increases are absorbed
within operating appropriations.
Since 2009, Collier County Government has invested in processes to heighten employees and
spouses awareness of their health and make available resources to assist covered employees and
spouses in improving and maintaining their health. These programs have achieved meaningful
reductions in risk and improvements in outcomes for the covered participants.
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For example;
·Of participants with four (4) to five (5) risk factors, 51% improved their LDL
cholesterol; 36% improved their Triglycerides and; 25% of participants above the 7%
A1C hemoglobin blood sugar range lowered their level to at or below the 7%
recommended level.
Employees and spouses have embraced the County’s preventive educational and qualifier
processes which have contributed greatly toward the financial strength of the health program.
Over the last six (6) years, participation has been consistently in excess of 94% for those meeting
the necessary qualifiers. This rate far exceeds those of large employers nationwide.
With the objective of mitigating increases to the plan, the County will continue to emphasize
participation in existing wellness program, proper structuring of reinsurance to manage adverse
plan impacts and prudent plan management.
Historically, Board budget guidance has required all agencies to uniformly share health
insurance contributions between employers and employees. If all agencies maintained the
recommended cost distribution percentages of 80% employer and 20% employee, it is estimated
that for FY 2017, $2.9M in General Fund constitutional transfer savings would have been
realized.
2017 Health Plan Contributions by Agency
Agency
Average
Monthly
EE Rate
Average
Monthly
ER Rate Total EE %ER %EE's Sgl Fam
2017 Savings if
all Agencies
were @ 80/20%
BCC $271.00 $ 1,084.00 $1,355.00 20.00%80.00%1,658 761 897 $ -
SOE $271.00 $ 1,084.00 $1,355.00 20.00%80.00%22 11 11 $ -
COC $271.00 $ 1,084.00 $1,355.00 20.00%80.00%156 69 87 $ -
PA $ 16.00 $ 1,339.00 $1,355.00 1.18%98.82%56 24 32 $ 691,680.00
TC $ 41.89 $ 1,313.11 $1,355.00 3.09%96.91%148 48 100 $ 421,296.00
CCSO $ 80.35 $ 987.33 $1,067.68 7.53%92.47%1,119 373 746 $ 1,788,446.40
Total 3,159 1,286 1,873 $ 2,901,422.40
Since the Presidential and Congressional elections of 2016, it is likely that some or most of the
provisions of the Affordable Care Act (ACA) will be rescinded, amended or replaced with
alternative plan provisions. Staff will monitor the activities of federal policy makers and make
adjustments to the County’s health plan accordingly. But for now, certain provisions of the
current federal Affordable Care Act (ACA) impact 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 beginning in calendar year 2017 or the County’s FY
2017. These compliance provisions will continue until rescinded or amended and present the
potential for federal penalties.
Currently, the employee group which must be managed is the “job bank” pool.
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These employees are generally classified as temporary in nature, are not eligible for health
insurance and are not considered FTE’s approved by the Board.However, for ACA purposes
they are considered part of the eligible health insurance population if they work in excess of 30
hours per week or 130 hours per month.Based upon the December, 2016 census, the 95% test
would affect approximately 82 employees or less.If somehow the County failed to satisfy the
95% provision, the fine could total approximately $3.2 million.
This issue will require ongoing management and the Board should be aware that job bank
employees working 30 hours a week or more may transition to FTE status as part of the budget
process or via separate executive summary and others may have their hours reduced depending
upon operational considerations.Regardless, the existing CMA covering this employee
classification will be revised to stipulate that those employees working 30 hours a week or more
will be eligible for health insurance benefits under the County’s program pursuant to the ACA.
Recommended Budget Policy: In FY 2018, the average cost distribution of health insurance
premiums between the Board of County Commissioners and employees will remain 80%
(employer) and 20% (employee).It is still recommended that the 80% employer share and
20% employee share be uniform across all agencies, including the Constitutional Officers.
This policy treats all county employees equally in terms of cost sharing for health insurance
premiums.
Retirement Rates
All agencies including Constitutional Officers must use the retirement rates published within the
OMB budget instructions. OMB is monitoring all proposed bills. The legislature usually
establishes the new retirement rates in the beginning of May with the Governor signing the bill
into law at the end of May. The preliminary retirement rates that will be published in the
instructions are based on proposed House and/or Senate Bills (Florida Statute Chapter 121).
Recommended Budget Policy: Adherence to the OMB rates published within the OMB budget
instructions.
Accrued Salary Savings
Today’s economic climate has led to an increased movement of employees to and from the
organization. When employees leave, they are generally replaced and the process of replacement
takes varying lengths of time depending on the position being recruited. This fact coupled with
the full budgeted amounts for health insurance and worker’s compensation being transferred to
the self-insurance funds, impacts the amount of accrued salary savings due to position vacancies.
For FY 2016, this rate was established at 2%. For FY 2018, it is suggested that the attrition rate
remain at 2%.
Recommended Budget Policy:Continue the accrued salary savings policy at a 2% rate.
Financing New and Replacement Capital Infrastructure
The last time Collier County issued debt for capital improvements was through various
commercial paper loans between September 2007 (FY 2007) and September 2008 (FY 2008)
totaling $78.4 million to finance various general government and public safety projects.
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All commercial paper loans outstanding were refinanced through long term debt in July 2010.
The issuance of debt for capital improvements is generally considered as an alternative to pay as
yo u go under the philosophy that future tax payers who will also enjoy the capital improvements
should participate in funding capital improvements rather than that burden falling solely to
existing tax payers.
Pursuant to the Collier County Debt Management Policy, several guiding principles have been
identified that provide the framework within which the issuance, management, continuing
evaluation of and reporting on all debt obligations issued by the County takes place.
Asset Life: The County will consider long-term financing for the acquisition, maintenance,
replacement or expansion of physical assets (including land) only if they have a useful life of at
least five (5) years.Debt will be used only to finance capital projects and equipment, except in
case of emergency. County debt will generally not be issued for periods exceeding the useful
life or average useful lives of the project or projects financed.
Capital Financing: Debt of longer amortization periods will be issued for capital projects when it
is an appropriate means to achieve a fair allocation of costs between current and future
beneficiaries. Debt shall not, in general, be used for projects solely because insufficient funds
are budgeted at the time of acquisition or construction.
To the degree possible, the County will rely on specifically generated funds and or grants and
contributions from other governments to finance its capital needs on a pay as you go basis. To
achieve this,it may become necessary to secure short term (not exceeding 5 years amortization)
construction funding. Such financing is anticipated and allows maximum flexibility in CIP
implementation.
Should the issuance of debt become a policy reality, the environment is favorable for obtaining
such credit. First, Collier County has and continues to maintain an excellent investment quality
credit rating. Second, the interest rate environment remains attractive for issuance of short
and/or long term debt. Third, the County’s total principal debt has been reduced $320 million
since FY 2008 and with over $379 million in general governmental debt restructuring since FY
2010, interest (cost of capital) on the portfolio has been reduced from roughly 5% to
approximately 3.5%. Fourth, the County’s self imposed debt limit has fallen well below the 13%
debt to bondable revenue ceiling and the ratio is currently at an unaudited level of 7.1%.
Through FY 2021, the transportation network has an estimated $129.4 million in new and
replacement infrastructure improvements which are included in the current AUIR/CIE but not
funded. The following table highlights these improvements.
Roads FY 18 FY 19 FY 20 FY 21 Total
Vanderbilt Beach Road –
Collier Blvd to 8th Street $25,160,000 $0 $0 $61,050,000 $86,210,000
Veterans’Memorial $0 $2,000,000 $2,500,000 $0 $4,500,000
Bridges $15,403,000 $0 $17,540,000 $0 $32,943,000
LED Replacement Program $2,800,000 $0 $0 $0 $2,800,000
Limerock Road Conversion $2,900,000 $0 $0 $0 $2,900,000
Total $46,263,000 $2,000,000 $20,040,000 $61,050,000 $129,353,000
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In addition to those transportation network improvements, there will be capital costs associated
with constructing the Big Corkscrew Regional Park.Total cost over time is estimated at $55
million depending on design and permitting parameters. In FY 2017,$5,093,000 in new money
was allocated toward this project bringing the cumulative total available budget to $14,084,300.
An additional $5.4 million in new impact fee money will likely be available in FY 18 after
payment of debt service. So, it is possible that a substantial portion of this new money could be
directed toward the Big Corkscrew Regional Park –increasing the available budget to $19.5
million.
A decision to issue some component of short or long term debt is based upon level of service
standards, the timing of any capital improvement, ability to execute,the credit market
environment, and cost of capital.
The County had pursued a strategy in recent history (FY 2008 and prior years) by incurring short
term commercial paper loans for capital projects and refinancing that short term debt with longer
term bonds or other long term credit instruments which match the asset’s useful life. Short term
commercial paper loans carry a very low variable interest rate –currently about 1.25% and funds
can be accessed within about 30-45 days.There is currently no variable rate short term
commercial paper in the County’s debt portfolio.
The advantage of long term debt especially in a low interest rate environment is that budget
certainty for the cost of credit will be achieved. Generally, a project should be ready for
construction and proceeds must reasonably be expected to be spent within a three year window
from debt issuance or adverse tax consequences may occur.Long term debt can be issued
normally within a 60-90 day window. The County’s current general governmental long term
debt portfolio is comprised primarily of special obligation revenue bond debt under a covenant to
budget legally available non ad valorem revenue. It is anticipated that this type of long term debt
would be used under future new credit scenarios.
The following illustrates various long term financing scenarios and the respective interest rates.
$0
$4
$8
$12
$16
$20
$50 Million $75 Million $100 Million $150 MillionAnnual Debt Service (in Millions)New Financing Scenarios
10 Year (2.50%)15 Year (3.08%)20 Year (3.53%)
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Recommended Budget Policy: While it is not suggested that any financing strategy be built into
the FY 2018 adopted budget, it is recommended that the Finance Committee continue to work
with the County’s various agency division stakeholders regarding project scope, timing and
execution patterns and with our debt issuance team to craft a strategy and recommendation on
the type and composition of debt as well as a schedule of potential issuance.
Storm Water Management Capital Funding
The strategy proposed is to fund storm-water improvements from the General Fund and
Unincorporated Area General Fund consistent with the capital improvement element (CIE),
ability to execute, integration with other utility construction scheduling and identified watershed
benefits per engineering reports. It is expected that the funding burden will shift to the
Unincorporated Area General Fund based on the identified watershed benefit. Dollars allocated
will depend upon whether or not the current “pay go” strategy will continue or whether a
component of financing will be introduced.
Under the current “pay go” approach, it is anticipated that the FY 2018 transfer contribution will
total $6.2 million which is less than the FY 2017 contribution of $6.7 million.The majority of
funding will come from the Unincorporated Area General Fund recognizing the identified
watershed benefit. The purpose of this dedicated funding source is to address long-standing
capital project needs in the storm-water program area, as well as to identify to grantor agencies
that Collier County has a dedicated funding source to provide local matching requirements to
available grants.
Recommended Budget Policy:Establish funding between the General Fund and
Unincorporated Area General Fund in an amount no less than $6,100,000 under a pay as you go
strategy and continue studying the storm-water utility concept for further Board consideration
during FY 2018.
Proposed Use of Gas Taxes
Previously, the Board directed through policy that all available uncommitted gas taxes will be
used to support maintenance of the transportation network and related capital initiatives.
Historically, the General Fund has transferred dollars to Gas Tax Fund (313) supporting the
maintenance and improvement of the transportation network. Immediately prior to the decline in
taxable values, this General Fund transfer amounted to $24 million. Gas taxes are the pledged
source of repayment on the current Series 2012 and Series 2014 Gas Tax Refunding Bonds.
Current debt service is approximately $13.1 million per year. The Series 2012 refunding debt
expires in June 2023 while the Series 2014 refunding debt expires in June 2025.
The recent debt restructuring has resulted in a $1.0 million annual savings in debt service which
began in FY 2015. This savings has resulted in additional dollars earmarked for maintenance
and infrastructure improvements.
The following table depicts dollars transferred from the General Fund in support of the
transportation network and related infrastructure typically funded within the Gas Tax capital
Fund and related funds.
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General Fund (001) Transfers to:FY 2016 Budget FY 2017 Budget FY 2018 Request
Gas Tax Road Capital (313)$14,559,800 $1,618,700 $2,100,000
Transportation Capital (310)(1)$6,841,300 $8,400,000
Transportation Engineer (312/101)(1)$3,703,900 3,796,500
Transit -CAT (425/426)(1)$1,475,500 $1,512,400
Total Transp Capital Transfers $14,559,800 $13,639,400 $15,808,900
(1)In FY16, the Transfer in from the General Fund to the Gas Tax Road Capital Fund (313) provided funding to the Non-Gas Tax
funded capital projects, the Transportation Engineering Division, and the Transit System.
The General Fund transfer proposed for FY 2018 is $15,808,900 representing a $2,169,500
increase from FY 2017.Also, the Unincorporated Area General Fund transfer proposed for FY
18 is $4,000,000 and increase of $700,000 from FY 17.These dollars support maintenance on
the roadway network including intersection improvements, resurfacing, bridges and other critical
maintenance needs. Gas tax revenue from all sources in recent years has averaged approximately
$18.5 million per year. When you consider the payment of annual debt service ($13.1M), the
remaining $5.4 million is programmed for construction and maintenance of the transportation
network.
Recommended Budget Policy: Continue the Board’s policy applying gas tax revenue to pay for
debt service on the Gas Tax Revenue Bonds, and that the remaining gas tax revenue and transfer
dollars from the General Fund and Unincorporated Area General Fund continue to
support/supplement maintenance on the roadway network.
General Fund General Capital/ Debt Contribution and Debt Management
The General Fund (001) has provided via transfer the sum equivalent of up to 1/3 mil to non
impact fee eligible county wide capital functions and a debt payment component since FY 2006.
For FY 2017, the equivalency rate was .2495 and for FY 2018 the equivalency rate is planned at
.2583. During the economic downturn, the majority of this transfer evolved into a debt service
payment. However, restructuring the debt portfolio has significantly eased the debt burden
freeing up budget to support county-wide capital projects and necessary maintenance (Fund
301).
For FY 2017,$10,697,500 of the $19,243,100 equivalency transfer was planned for capital
projects. For FY 2018, $11,108,100 of the $21,317,500 equivalency transfer is devoted to capital
projects. This contribution is up a modest $410,600 from FY 2017.
For FY 2018, the General Fund (001) transfer (loan) will be sized to cover debt service which
cannot be covered by impact fees.This amount totals $5,154,000 and includes a $2,000,000 loan
for construction of a new EMS facility.Total loans outstanding to the impact fee trust funds (i.e.
EMS, Libraries, Corrections, Law Enforcement and General Government Facilities) from the
General Fund since inception (FY 2005) through FY 2017 total $94,167,600.
Payment of debt is a top priority.Under the FY 2018 budget planning scenario dollars generated
from the up to 1/3rd mil equivalent allocation will be sufficient to cover revenue bond debt
service.
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Of the $21.3 million projected transfer in FY 2018,$5.1 million will be required to cover the
growth related debt service gap due to insufficient impact fee revenue and $2.8 million is
budgeted to cover non growth related debt. Going forward, the level of General Fund loan
subsidy is heavily dependent upon the level of impact fee collections and any new growth related
capital projects planned like an EMS station or other public safety initiative.
Collier County embarked upon an aggressive debt restructuring program in the summer of 2010
and to date over $379M in general governmental debt has been refinanced.As a result, the cost
of borrowing has been reduced by $1,640,000 annually with this recurring savings applied
toward high priority o perating and capital programs.The cumulative net interest rate of the
general governmental debt portfolio has been reduced from approximately 5%to roughly 3.5%
and annual principal and interest payments servicing outstanding general governmental debt
represents 3.1% of the County’s net adopted FY 2017 budget.The following charts depict the
managed drop in annual debt service payments servicing all debt and annual debt service
connected with our general governmental credit.
Collier County’s total principal debt outstanding at 9/30/17 totals $468M of which $295.2M is
connected with infrastructure improvements driven by population growth and related service
demands. The County’s principal debt has been reduced by $320M since FY 2008. Annual
principal and interest payments servicing the County’s total outstanding debt represents 4.8% of
the County’s net FY 2017 budget.
Recommended Budget Policy: Transfer an equivalent sum of up to 1/3 mil to the County Wide
Capital Fund for purposes of paying non-growth related revenue bond debt;to provide impact
fee fund loans to cover growth related debt obligations; and to fund much needed general
governmental priority capital needs.
General Governmental, Enterprise Fund, and Other Fund Reserve Policies
General: Reserve is a budget/policy term referring to resources set aside to provide a buffer
against risk. Likewise reserves may also be referred to as a portion of fund balance –only on the
expense side of the equation.
Reserves are the cornerstone of financial flexibility and provide government with options for
responding to unexpected issues and a buffer against shocks and other forms of risk.
It is essential for governments to maintain adequate levels of fund balance to mitigate current
and future risks such as revenue shortfalls, natural disasters and unanticipated expenditures.
$0
$20
$40
$60
$80
$100
FY08FY10FY12FY14FY16FY18FY20FY22FY24FY26FY28FY30FY32FY34FY36MillionsTotal Annual Debt Service Payments
$0
$20
$40
$60
$80
$100
FY08FY10FY12FY14FY16FY18FY20FY22FY24FY26FY28FY30FY32FY34FY36MillionsGeneral Governmental
Annual Debt Service Payments
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As such, budgeted reserves serve to protect beginning cash position in a fund and are an essential
component of Collier County’s overall financial management strategy and a key factor in
external agency measurement of Collier County’s financial strength.
Various bond rating agencies recognize that the best reserve policies provide both specificity and
flexibility accomplishing one or more of at least the following three criteria:
·establishing a target level of reserves or a reserve floor
·specifying the appropriate circumstances for drawing down reserves
·directing the replenishment of reserves
In general, rating agencies view positively higher reserve levels, although local governments can
maintain high credit ratings with lower reserve levels if other indicators of financial flexibility
such as revenue raising ability, stable diverse revenue structure, expenditure flexibility and
conservative budgeting practices are strong.
A reserve for contingency is typically budgeted in all operating funds, with the exception of the
Constitutional agency funds. Reserves for the Constitutional Agency funds shall be appropriated
within the County General Fund.
The following is a history of budgeted reserves within the General Fund and Unincorporated
Area General Fund since FY 2008 as well as the % of reserves against total operating expenses.
Fiscal Year General Fund
Reserves
Unincorporated Area
General Fund Reserves
% of General
Fund Expenses
% of Unincorporated
GF Expenses
2018 (Planning)$39,816,300 $3,255,000 10.7%6.2%
2017 $33,899,700 $2,432,900 9.6%4.8%
2016 $27,890,800 $1,905,600 8.4%4.4%
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%
Optimally, and in order to achieve a regular and sustained General Fund beginning fiscal year
cash position of at least $55 million, budgeted reserves should be a minimum of $40 million.
Otherwise, expense side management of the budget in the form of capital transfer reductions and
or reductions in operating transfers may become necessary.
For the third consecutive year, mid-year operating cuts and/or transfer reductions regardless of
execution patters were not made.While this is good news, management of the budget remains a
regular occurrence especially as it relates to scrutinizing regular expenditure patters and
monitoring transfers out of the General Fund to insure that dollars leaving are programmed for
project expenditures within the FY.
Florida State Statutes: In all respects, budgeted reserves shall conform to requirements of Florida
State Statutes.The State establishes maximum limitations on certain reserves.
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The maximum limitations for contingency reserves and for cash flow reserves are 10% and 20%
of a fund’s total budget respectively. There is no statutory limit on capital reserves.
Recommended Budgeted Policy Reserve Position for the General Fund: The Governmental
Finance Officers Association (GFOA) recommends as a baseline, or floor, that General Fund
reserves be set at 16% of regular operating revenues or 2 months of regular operating expenses.
This would put Collier County’s General Fund reserve floor (minimum) based upon FY 2017
budget numbers in the $56M-$59M range.
Collier County has never attained a General Fund budgeted reserve position higher than the FY
2018 proposed position of $39,816,300. This reserve position includes a contingency reserve set
at the recurring policy level equivalent to 2.5% of operations.While Collier County is
vulnerable to extreme weather events given its coastal location, the County’s revenue sources are
relatively stable and expenditure patterns are not volatile. Further, the General Fund budget is
flexible with capital transfers out representing on average ten (10) percent of appropriations. In
addition, the County’s total all funds reserve position is stable and would be used to cash flow a
significant weather event or other natural disaster. These factors suggests a less aggressive
reserve position with a floor or minimum of 8% of operating expenses and a ceiling or maximum
not to exceed 16% of operating expenses. Applying these percentages to our current FY 2018
proposed planning budget, the reserve floor and ceiling would total $29,624,100 and
$59,248,200, respectively.Planned reserves within the General Fund fall within this range.
Replenishment of reserves that drop below the targeted floor (minimum) would occur in
succeeding budget cycles in such amounts as deemed prudent under existing economic
conditions as approved by the Board. The goal will be to recover at least 25% of the reserve
shortfall in year one; 25% in year two; and the remaining shortfall in year three.
Recommended Budgeted Reserve Position for Other General Governmental Funds
including the Unincorporated Area General Fund:The Unincorporated Area General Fund is
primarily an operating fund. While capital transfers have increased over the past few years, the
Unincorporated Area General Fund and for that matter other general governmental funds do not
have nearly the cash flow requirements of the General Fund. Thus the reserve requirements for
the Unincorporated Area General Fund should be set at a minimum of 2.5% of operating
expenses or $1.31 million with a ceiling or maximum of no more than one month’s expenses
which for FY 2018 is approximately $4.38 million.
Reserve requirements for other General Governmental Funds including those that receive
significant transfer revenue from the General Fund will be sized sufficient to cover operations
during the first month or until the first General Fund transfer is scheduled pursuant to the OMB
Transfer Schedule.
Reserves Policy Position for the Motor Pool Replacement Family of Funds (409, 472, 491,
496, 523)
The Motor Pool Replacement Funds were re-established in FY 2016. The annual funding of the
Reserve will be through an annual billing to the applicable user Divisions in an amount equal to
the cost of the vehicle divided by the useful life of the vehicle.
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In FY 2016, the Motor Pool Replacement Fund was established for the various General
Governmental Funds (523), Water/Sewer District (409), and Solid Waste (472).
In FY 2017, the balance of user Divisions were included in the appropriation plan, ie: EMS (491)
and Road and Bridge (Funds 101/523).
In a few years, the Motor Pool Replacement Funds should build up and then maintain a Motor
Pool Replacement Reserve (reserve for future capital) equal to a minimum of one year’s
estimated replacement cost of vehicles currently in service.
Reserve Policy Position for the Pelican Bay Services Division Family of Funds (109,778,
320 and 322).
Operating Reserves Fund (109) –It is recommended that the funds reserve position be
established at between 15% and 30% of operating expense. This is particularly important given
the districts coastal nature, level of infrastructure investment, natural assets and commitment to
maintenance and resource protection.
Street Lighting Fund (778) –The level of reserves in this fund will be established in such
amounts necessary to set aside funding to accomplish lighting projects consistent with the
Pelican Bay Community Improvement Plan.
Capital Project Funds (320 & 322) –Reserve levels are generally minimal with the majority of
budgeted dollars appropriated within defined and active projects.
Reserve Policy Position for Enterprise Funds, including the Collier County Water-Sewer
District Fund (408,412,414) and the Solid and Hazardous Waste Management Funds (470,
471,472,473,474).
General:According to the GFOA, It is essential that a government maintain adequate levels of
Reserves in its enterprise funds to mitigate current and future risks like revenue shortfalls and
unanticipated expenses and to ensure stable services and fees.
Collier County Water-Sewer District (CCWSD):Like a General Fund reserve, a utility system
reserve position may be measured as a percent of regular revenues or regular expenditures,
depending on the predictability or volatility of each.
The Collier County Water-Sewer District reserve policies should be based on sound fiscal
principles designed to enable the utility to maintain continuity of operations in adverse
conditions and avoid user rate shock (rate stabilization).
In addition, various bond rating agencies, particularly Fitch Ratings, recognizes that the best
reserve policies provide both specificity and flexibility, accomplishing one or more of at least
three main criteria:
·Establishing a target level of reserves,
·Specifying the appropriate circumstances for drawing down reserves, and
·Directing the replenishment of reserves
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For enterprise funds, the GFOA recommends starting with an assumption of 90 days, and
adjusting based on relevant risks with 45 days as a bare minimum, and recognizes the difference
between enterprise funds that are supported from the general government and those that are not.
The utility system, with gross assets of approximately $1.2 billion, should maintain a reserve
position necessary to ensure the maintenance of life sustaining services to the public during non-
routine and unforeseen disaster situations such as hurricanes or other related weather events,
other environmental or natural disasters, or other events that cause disruptions in public services,
such as sys tem failures and line breaks.
Collier County lies within a coastal zone highly susceptible to hurricane and storm damage to
water and sewer treatment facilities, transmission lines and distribution/collection mains. Many
of the buried water and wastewater lines sit in sandy soil that is prone to shifting during heavy
rain events. Uncertainty in economic markets with regards to cost of construction materials,
interest rates, personnel and health costs add to the risk factors facing the utility. In the CCWSD,
user fee revenue is used to support the operating budget as well as the capital repair and
rehabilitation program for the horizontal (in-ground) and vertical (above ground) assets.
Reserves can be classified as either “restricted” or “unrestricted”:
·Restricted Reserves -are those established for specific purposes only, such as
debt reserves required by bond covenants, and/or reserves for growth in the
impact fee funds which can be utilized only for growth projects.
·Unrestricted Reserves –are available to ensure continuity of services as identified
above.
Unrestricted reserves in the CCWSD include general contingencies reserves (i.e. “rainy day”
significant unforeseen events), cash flow reserves in the event of revenue disruptions, or capital
reserves for necessary but unforeseen repair and rehabilitation projects.
Recommended Reserve Policy for the CCWSD:At a minimum, the unrestricted reserves
should be budgeted within a range of 5%to 15% of budgeted revenues (revenues are fairly
stable, but may be subject to temporary disruptions from hurricanes or natural disasters), or
within a range of 45-90 days of budgeted operating expenses (operating expenses are more
volatile given aging utility infrastructure and unforeseen events). Forty five (45) to ninety (90)
days of reserves based on Fund (408), (412), and (414) budgeted FY 2017 operating expenses
would range from $16.9 million to $33.8 million. FY 2017 Working Capital resources total $19.2
million representing fifty one (51) days of reserves.
Replenishment of unrestricted reserves that may drop below the targeted floor (45 days) or $16.9
million using FY 2017 numbers would occur in succeeding budget cycles in such amounts as
deemed prudent under existing economic conditions as approved by the Board.
Solid and Hazardous Waste Management Enterprise Funds:The Solid and Hazardous Waste
program in Collier County includes the operation of the solid and hazardous waste disposal
program, the recycling program, and the management of the mandatory residential curbside
collections program. These funds also include both restricted capital reserves (for landfill
closure) and unrestricted operating and capital reserves.The department is responsible for the
right of way disaster debris removal on County roads and monitoring project for Collier County
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in the event of a natural disaster, such as the Hurricane Wilma (Category 3, dry storm cash flow
exposure of $25 million) event in the 4th quarter of 2005.
As such, the Solid Waste System should maintain unrestricted reserves of 60 to 90 days of
operating expenditures to be used to ensure the maintenance of services to the public during non-
routine and unforeseen disaster situations such as hurricanes and other weather-related events, as
well as other environmental or other natural disasters that cause disruptions in public services.
Recommended Reserve Policy for the Solid and Hazardous Waste Enterprise Funds: Sixty
(60) to ninety (90) days of reserves based on Fund (470), (473), and (474) budgeted FY 2017
operating expenses would range from $7.2 million to $10.9 million. FY 2017 reserves for the
Solid and Hazardous Waste Management Enterprise Funds total $9.3 million or seventy seven
(77) days of reserves.
Replenishment of unrestricted reserves that may drop below the targeted floor (60 days) or
$7.2M would occur in succeeding budget cycles in such amounts as deemed prudent under
existing economic conditions as approved by the Board.
Growth Management Division (GMD)-Planning & Regulation Enterprise Fund 113 and
Enterprise Fund 131:Fund 113, referred to as the Building Department Fund, collects revenues
primarily related to building permit activities, including building permits, structural, electrical,
plumbing, and mechanical inspections, plans reviews, and the licensing and oversight of building
contractors.
GMD Building Permit Fund (113) Recommended Reserve:Targeted reserves for this fund
shall be 6 months of the total operating budget of the current fiscal year.
The Growth Management Division/Planning & Regulation Fee Schedule, adopted by resolution
of the Board of County Commissioners, provides the guidelines to implement fee adjustments if
total reserves rise or fall below established thresholds.
Fund 131, referred to as the Land Development Services Fund, collects revenues primarily
related to land development permit activities, including planning and zoning, engineering, and
environmental and natural resources.
GMD Planning Fund (131) Recommended Reserve:Targeted reserves for this fund shall be 9
months of the total operating budget of the current fiscal year. The extra 3 months of targeted
reserves required in comparison to Fund 113 reflects the unpredictable nature and length of
processing time for land development related activities.
Internal Service Fund Reserves
Reserves for Internal Service funds reflect amounts that are intended for and must be used to
meet a specific purpose.
The restriction can be set by legal agreement, statute, regulations, and/or mandatory reserves.
For purposes of this policy emphasis is placed on the risk management group of funds and
information technology.
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Recommended Policy:In order to establish sufficient cash flow for the Internal Service Funds,
a benchmark of 90 days of the prior year’s working capital is calculated.
Contingency reserves represent amounts available for appropriation by the Board to meet any
lawful, unanticipated need of that fund. These reserve amounts are limited by Florida Statutes
and cannot exceed 10% of the total appropriations of the fund.
Collier County i s self-insured and is subject to mandatory reserves for losses. Each year an
actuarial study i s completed for each of the County’s self-insurance funds and the present value
of all outstanding losses is determined. This amount represents the first level of restricted
reserves for our Risk Management Funds.Within the Risk Management’s restricted reserve
balance, the Board has designated $5,000,000 for wind deductible maximum limits coverage for
potential catastrophic losses associated with named storm events.
A margin based upon a confidence interval is then added to this base amount to assure that the
estimate is sufficient to meet future claim payments. The Board of County Commissioners has
traditionally adopted, as contained within budget policy, a 75% confidence interval.
The Group Life and Health Insurance Fund within Risk Management have additional statutory
reserve requirements that are calculated each year and added to the restricted reserve category.
The Information Technology Capital Fund’s restricted reserve amounts are determined by the
total of committed capital projects they have in progress at the end of the year. Once the projects
are completed, any remaining funds may be re-appropriated.
Designated reserves are established to provide funds for a specific purpose where the actual cost
is unknown.
CPI Based Enterprise Fee Adjustments
On June 10, 2014, the Board during discussions on the water, wastewater, irrigation quality
water and bulk potable water rate study provided unanimous guidance to index all enterprise fees
annually equal to the year over year December adjustment in the Consumer Price Index (CPI) –
Miami, Fort Lauderdale SMSA. Rather than going through time consuming and potentially
costly rate studies, the Board suggested that the CPI adjustment be programmed and
subsequently be reviewed by the Board during the budget process.
This allows the Board discretion in approving the CPI adjustment and not simply passing the
adjustment on automatically.
Recommended Budget Policy: Provide the Board with an annual report on potential enterprise
rate and fee adjustments in accordance with CPI changes as indicated above and that any rate or
fee adjustments be included within the proposed budget for Board consideration.
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Scheduling Issues
Decisions Required Staff Recommended Date(s)
Establish Budget Submission Dates
for the Sheriff, the Supervisor of
Elections and the Clerk of Courts.
May 1, 2017 by Resolution
FY 2018 June Budget Workshops (BCC Agency/Courts and Constitutional Officers
Budget Workshops) Thursday, June 15 and if necessary
Friday June 16,2016
FAC Conference is June 27 –June 30, 2017 in Palm
Beach County.
Adoption of Tentative Maximum FY
2018 Millage Rates
July 11, 2017 (Tuesday)
Submission of Tentative FY 2018
Budget to the Board
Friday July 14,2017.
Establish Public Hearing Dates (see
note)
September 7, 2017 (Thursday at 5:05 pm)
September 21, 2017 (Thursday at 5:05 pm)
Note: The School Board has first priority in establishing public hearing dates for budgets. The
School Board’s final budget hearing is tentatively scheduled for September 12, 2017.
The Commission chambers are reserved for the tentative dates for Collier County Government
budget public hearings.
Recommended Budget Policy: Approve the dates identified above and attached resolution
establishing May 1, 2017 budget submittal dates for the Sheriff, the Supervisor of Elections and
the Clerk.
Comparative Budget Data
Provide comparative budget data using FY 2017 adopted budget data (cost and employees per
capita based on unincorporated area population) by Agency with Budget Submittals for Similar
Sized Florida Counties.
Recommended Budget Policy:Counties for comparison purposes include:
·Sarasota County
·Lee County
·Charlotte County
·Manatee County
·Martin County
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Continuing Existing Budget Policies for FY 2018
Grant Funded Positions: Any positions formerly funded with grant funds being recommended
for inclusion in a general (non-grant funded) operating budget shall be treated as expanded
service requests.
Self-Insurance: To conduct an actuarial study of the self-insured Workers’ Compensation,
Property and Casualty, and Group Health Insurance programs. Program funding to be based
upon an actuarial based confidence interval of 75%, with the exception of group health to which
a confidence interval is not applicable.
Contract Agency Funding:The Board will not fund any non-mandated social service agencies.
Median Maintenance:Recognize the Unincorporated Area General Fund MSTD (111) as the
appropriate, dedicated funding source for median beautification maintenance costs.
Carry forward:All funds that are unexpended and unencumbered at the end of the fiscal year
will be appropriated as carry forward revenue in the following year.Carry forward revenue
represents not only operating funds but also previously budgeted operating, debt service, and
capital reserves that are "carried forward" to fund these same reserves in the new year or to fund
capital projects in the current or future years. The largest sources of carry forward are the capital,
debt service, and enterprise funds. In both the General Fund and Unincorporated Area General
Fund, carry forward fund balance is maintained to provide cash flow for operations prior to the
receipt of ad valorem taxes and other general revenue sources.
Proper General Fund cash balance is necessary to meet significant constitutional transfer, public
safety and priority operating needs for October and November, prior to the receipt of any
significant ad valorem tax revenue (ad valorem taxes represent 68.0% of the total FY 2017
General Fund adopted operating revenues).
Fund balance is also an important measure used by bond rating agencies in determining the
County’s credit worthiness. Specific concerns for Florida communities were reliance on the
tourism industry and sales tax revenue, and the ongoing threat from hurricanes and wildfires.
For Florida coastal communities, a minimum carry forward balance of 10% of total General
Fund expenditures was recommended by the ratings agencies. Of course this figure and
recommendation was general in nature and subject to each county’s individual cash flow needs.
A higher percentage would be considered positive –especially during any ratings surveillance.
The recommended level of year ending cash and cash equivalents (carry-forward)in the General
Fund should be a minimum of 10% of actual expenditures. At year ending September 30, 2016,
actual General Fund carry forward balance totaled $54,759,100 which represented approximately
16.8% of actual FY 2016 expenses.
Indirect Cost Allocation Plan:The policy of charging enterprise,special revenue, and grant
funds for support services provided by General Fund departments will be used again in FY 2018.
The basis of these charges is a detailed indirect cost allocation plan prepared, periodically,by a
consultant and adjusted by staff to reflect the organizational environment on a real time basis.
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Impact Fees:Collier County will assess impact fees at such levels as allowed by law,
established by the Board of County Commissioners and supported b
Enterprise Fund Payment in Lieu of Taxes
Water-Sewer District will once again contribute a payment in lieu of taxes
Fund. For FY 2017, the payment in lieu of taxes calculation was based upon a “franchise fee
equivalent basis” commonly referred to as a percentage of gross receipts.
percent (5.25%) of gross receipts of the Water/Sewer District
method and percentage is planned for in FY 201
Solid Waste tipping fees were applied in FY 2017 and this method and percentage is planned in
FY 2018. This method is a common approach used by local governm
consistent with fees paid by private utilities operating in a local government jurisdiction.
Prior to FY 2013, PILT was based upon
the prior year gross (non-depreciated) value
Debt Service:Any capital projects financed by borrowing money shall limit the repayment
period to the useful life of the asset.
Interim Financing:Collier County may also borrow funds on an interim basis to fund ca
projects. In these cases a repayment s
the lowest total cost shall be employed.
The Collier County Debt Management Policy provides that advance refunding for economic
savings will be undertaken when a present value savings of at least five percent of the refunded
debt can be achieved.The policy also states that five percent savings is often considered a
benchmark and that any refunding that produces a smaller net present value savings may be
considered on a case by case basis.
example when the intent is to eliminate old antiquated and limiting bond covenant language.
Ad Valorem Capital and Debt Funding
millage dedicated to capital projects
recommended rate is up to the equivalent of 0.3333 mills. (See history below).
1.0000
0.6580
0.5474
0.5426
0.4148
0.3040
0.3713
0.2354
0.0000
0.2000
0.4000
0.6000
0.8000
1.0000
1.2000
MillageGeneral Fund Capital Equivalent Millage History
(FY 1991
Policy Document Page 33
Collier County will assess impact fees at such levels as allowed by law,
established by the Board of County Commissioners and supported b y impact fee studies.
Enterprise Fund Payment in Lieu of Taxes :The Solid Waste Fund and the Collier County
Sewer District will once again contribute a payment in lieu of taxes (PILT) to the General
, the payment in lieu of taxes calculation was based upon a “franchise fee
equivalent basis” commonly referred to as a percentage of gross receipts. Five and one quarter
of the Water/Sewer District were applied in FY 2017
method and percentage is planned for in FY 201 8. One and three quarter percent (1.75%)
were applied in FY 2017 and this method and percentage is planned in
his method is a common approach used by local governm ents and is generally
consistent with fees paid by private utilities operating in a local government jurisdiction.
PILT was based upon the prior year G eneral Fund millage rate multip
depreciated) value of property, plant, and equipment.
Any capital projects financed by borrowing money shall limit the repayment
Collier County may also borrow funds on an interim basis to fund ca
projects. In these cases a repayment s ource shall be identified and the financing source that has
the lowest total cost shall be employed.
The Collier County Debt Management Policy provides that advance refunding for economic
aken when a present value savings of at least five percent of the refunded
The policy also states that five percent savings is often considered a
benchmark and that any refunding that produces a smaller net present value savings may be
A smaller net present value savings may be prudent for
ample when the intent is to eliminate old antiquated and limiting bond covenant language.
Funding:Continuation of a fixed General Fund equivalent
millage dedicated to capital projects, debt financing and impact fee fund debt loans
the equivalent of 0.3333 mills. (See history below).
0.3713
0.2354
0.3333 0.3530
0.1931
0.3520
General Fund Capital Equivalent Millage History
(FY 1991 -FY 2018)
Collier County will assess impact fees at such levels as allowed by law,
y impact fee studies.
The Solid Waste Fund and the Collier County
to the General
, the payment in lieu of taxes calculation was based upon a “franchise fee
and one quarter
7 and this
One and three quarter percent (1.75%) of
were applied in FY 2017 and this method and percentage is planned in
ents and is generally
consistent with fees paid by private utilities operating in a local government jurisdiction.
millage rate multiplied by
Any capital projects financed by borrowing money shall limit the repayment
Collier County may also borrow funds on an interim basis to fund ca pital
urce shall be identified and the financing source that has
The Collier County Debt Management Policy provides that advance refunding for economic
aken when a present value savings of at least five percent of the refunded
The policy also states that five percent savings is often considered a
benchmark and that any refunding that produces a smaller net present value savings may be
A smaller net present value savings may be prudent for
ample when the intent is to eliminate old antiquated and limiting bond covenant language.
equivalent
loans. The
0.2495
0.2583
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The General Fund continues to loan money to impact fee funds in order to pay their annual debt
service payments. This of course is in addition to normal and customary debt service on non
growth related revenue bond debt.Lo ans from the General Fund to the impact fee trust funds
began in FY 2005 and the value of all loans made now totals $94 million.
Capital Improvement Program (CIP) Policies:On an annual basis, the County shall prepare
and adopt a five-year Capital Improvement Element (CIE) consistent with the requirements of
the Growth Management Plan.
·Capital projects attributable to growth will be funded, to the extent possible, by impact
fees.
·Capital projects identified in the five-year CIE will be given priority for funding. The
five-year plan for water and wastewater CIE projects will be based on projects included
in the adopted master plans.
Unlike operating budgets that are administered at the appropriation unit level, capital project
budgets will continue to be administered on a total project budget basis. The minimum threshold
for projects budgeted in capital funds is $25,000.
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Three
Ad Valorem
(FY
OMB staff prepares annually a three -year projection of General Fund and MSTD General Fund
revenues and expenditures to improve financial planning and to understand the long
of funding decisions.These projections are complimented by a
expenses which conclude the General Fund and Unincorporated Area General Fund sections
respectively.
The following 3-year budget projections are for the G
Fund (111).
General Fund (001) Millage History
As a point of reference, the following graph plots the historical G
well as tax rates for FY 2018 through FY
which the Board may direct by p olicy for a specific program or initiative such as Conservation
Collier.Millage neutral rather than tax neutral rates
purposes considering the belief that taxable value
While the County Manager will be
operating budget in FY 2018 and while this millage neu
priority public safety and other significant asset maintenance/
should note the magnitude of our future asset maintenance responsibility and
future dollars which may be generated
or replacing corporate assets.
3.8772 3.8772 3.5790
-
0.5000
1.0000
1.5000
2.0000
2.5000
3.0000
3.5000
4.0000
4.5000
General Fund Millage History and Recommended
Policy Document Page 35
Three-Year Budget Projections
Ad Valorem Tax Funds
(FY 2018 -FY 2020)
year projection of General Fund and MSTD General Fund
revenues and expenditures to improve financial planning and to understand the long -term impact
These projections are complimented by a trend analysis of revenues and
expenses which conclude the General Fund and Unincorporated Area General Fund sections
year budget projections are for the General Fund (001) and the MSTD
General Fund
General Fund (001) Millage History and Millage Rates
As a point of reference, the following graph plots the historical G eneral Fund millage rate, as
through FY 2020.These rates do not include any marginal increase
which the Board may direct by policy for a specific program or initiative such as Conservation
Millage neutral rather than tax neutral rates for general operations are used for planning
that taxable value will continue to increase in the future.
While the County Manager will be recommending a General Fund millage neutral
and while this millage neutral budget will contain funding for
significant asset maintenance/replacement initiatives, the Board
should note the magnitude of our future asset maintenance responsibility and devote additional
future dollars which may be generated from an increasing taxable value base to maintaining and
3.1469 3.1469
3.5645 3.5645 3.5645 3.5645
General Fund Millage History and Recommended Millage Neutral Tax Rates
(FY 2005 to FY 2020)
year projection of General Fund and MSTD General Fund
term impact
of revenues and
expenses which conclude the General Fund and Unincorporated Area General Fund sections
(001) and the MSTD General
millage rate, as
These rates do not include any marginal increase
which the Board may direct by p olicy for a specific program or initiative such as Conservation
are used for planning
millage neutral base
tral budget will contain funding for
the Board
devote additional
to maintaining and
3.5645
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Policy Document Page
The following tables depict the respective
as well as additional ad valorem dollars which could be raised under
assumptions.Again the table does not account for any marginal rate increase which may be
earmarked by BCC policy for a specific program or initiative.
General Fund
FY 17 Adopted and
Operating Millage Neutral
FY 17 3.5645
FY 18 3.5645
FY 19 3.5645
FY 20 3.5645
In order for Collier County to continue providing high quality best value services; continue to
address deferred infrastructure maintenance; replace backlog equipment and vehicles; maintain
its reserve and cash positions pursuant
rated organization, it is essential to capture those additional ad valorem dollars generated by
increasing taxable values. Failure to do so will jeopardize service levels and make it very
difficult to maintain the extraordinary
As an example, in FY 2018, the projected rolled back rate within the General Fund is $3.
which would raise $11,239,100 less than millage neutral or levying the current
operating rate of $3.5645. While the
$7,942,500 more than the FY 2017 levy due to new construction taxable value
taxable value base, this is not a sustainable model going forward when
from an economic recession and knowing the level of investment required to simply maintain our
assets let alone expand services and facilities based upon AUIR requirements and servici
needs of an expanding population.
The projected millage rates assume that the tax base will increase
year).For FY 2018,our planning model assumes that
increase 7%.Taxable value in FY 201
will provide preliminary taxable value estimates
assumed changes in County taxable values are
Notes to Graph:
FY 2007: The General Fund (001) millage rate adopted in FY
BCC direction.FY 2008: As part of the Florida Legislative Property Tax Reform package implemented in FY
County adopted its final millage rate at 91% of the rolled back rate.
11.9%
19.9%
25.4%
7.2%
-4.7%
--15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
FY05 FY06 FY07 FY08 FY09MillageHistorical and Projected Changes in Collier County Taxable Values
Policy Document Page 36
the respective millage neutral tax rates for FY 2018, 2019
additional ad valorem dollars which could be raised under certain increasing tax base
Again the table does not account for any marginal rate increase which may be
earmarked by BCC policy for a specific program or initiative.
Adopted and Recommended
Neutral Millage Rates
Additional Budgeted Ad Valorem
Revenue Projection Each Year
3.5645
3.5645 $19,242,700 @ 7.0% TV Increase
3.5645 $14,706,900 @ 5.0% TV Increase
3.5645 $15,442,300 @ 5.0% TV Increase
In order for Collier County to continue providing high quality best value services; continue to
infrastructure maintenance; replace backlog equipment and vehicles; maintain
its reserve and cash positions pursuant to policy and representative of a investment quality credit
rated organization, it is essential to capture those additional ad valorem dollars generated by
increasing taxable values. Failure to do so will jeopardize service levels and make it very
extraordinary infrastructure investment which this community enjoys.
, the projected rolled back rate within the General Fund is $3.
00 less than millage neutral or levyi ng the current
rate of $3.5645. While the FY 2018 estimated rolled back rate would produce
levy due to new construction taxable value and a higher
is not a sustainable model going forward when continuing to recover
from an economic recession and knowing the level of investment required to simply maintain our
expand services and facilities based upon AUIR requirements and servici
assume that the tax base will increase 7.0% in FY 2018 (the 201
our planning model assumes that taxable value on existing property
in FY 2019 is projected to also increase 5%.The Property Appraiser
will provide preliminary taxable value estimates for FY 2018 on June 1, 2017. Actual and
in County taxable values are as follows:
07: The General Fund (001) millage rate adopted in FY 2007 was based upon a 16% increase in taxable value pursuant to
08: As part of the Florida Legislative Property Tax Reform package implemented in FY 20
its final millage rate at 91% of the rolled back rate.
4.7%
-11.0%-12.2%
-5.2%
0.5%3.7%6.5%8.5%10.0%
7.0%5.0%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Historical and Projected Changes in Collier County Taxable Values
(FY 2005 -FY 2020)
and 2020
certain increasing tax base
Again the table does not account for any marginal rate increase which may be
Ad Valorem
Revenue Projection Each Year
% TV Increase
% TV Increase
% TV Increase
In order for Collier County to continue providing high quality best value services; continue to
infrastructure maintenance; replace backlog equipment and vehicles; maintain
to policy and representative of a investment quality credit
rated organization, it is essential to capture those additional ad valorem dollars generated by
increasing taxable values. Failure to do so will jeopardize service levels and make it very
infrastructure investment which this community enjoys.
, the projected rolled back rate within the General Fund is $3.4283
00 less than millage neutral or levying the current planning
rolled back rate would produce
and a higher
to recover
from an economic recession and knowing the level of investment required to simply maintain our
expand services and facilities based upon AUIR requirements and servici ng the
(the 2016 tax
existing property will
The Property A ppraiser
. Actual and
07 was based upon a 16% increase in taxable value pursuant to
2008, Collier
5.0%
FY20
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FY 2018 Significant Expense Assumptions
A millage neutral operating budget,again assuming no marginal adjustment for special
policy initiatives of the BCC, assuming an increasing taxable value base provides the County
with those important additional ad valorem dollars necessary to maintain our assets, invest in
our personnel, and service those who live and visit Collier County. Significant expense
assumptions include;
·Allocation for compensation administration –3%.
·2% attrition rate on regular salaries assumed in the County Manager’s Agency.
·Motor pool replacement dollars for continued regular routine ambulance replacement.
Backlog replacement satisfied in FY 2015.
·$1,250,000 final allocation toward replacement of EMS Helicopter.
·Completion of the Public Safety Communication System upgrade in FY 18 with a
final project allocation of $852,200.
·Continued additional David Lawrence Center Funding in the amount of $300,000
·Continue General Fund general governmental capital, debt payment and impact fee
loan transfer equivalent up to 0.3333 mills annually.
·Storm-water capital funding of $2,000,000 for continued countywide storm-water
projects and storm-water operations; additional dollars may be re-allocated at the
Boards discretion to address other county wide critical storm-water maintenance
issues.
·General Fund transfer dollars supporting road construction and maintenance funded at
$15,808,900.
·General Fund Loan to construct new EMS facility and ambulance unit totaling
$2,000,000.
·General Fund support of EMS Operations established at $15,867,600 –up 5.5% from
last year reflecting recurring costs of additional services to equalize response times
county-wide plus costs to operate a planned new facility.
·Full support for Transportation Operations from the General Fund (001)exclusively.
Continue transfer of dollars from the General Fund to the Motor Pool Replacement
Fund for Road and Bridge vehicles.
·Airport capital funding totaling $1,000,000.
·Corporate IT capital funding totaling $750,000.
·Additional capital funding for Sheriff Facilities totaling $3,500,000.
·Mandates to be absorbed if possible within operating budgets, including
Constitutional Officers.
Significant Revenue Assumptions
·FY 2017 ad valorem tax revenue forecast is 96% of actual taxes levied.FY 2017 forecast
totals $265,230,900 –a reduction of $9,727,900 from the adopted budget.Collections
are within the 5% budgeted revenue reserve.
·A millage neutral position without any marginal increase which the BCC may apply for a
specific program or initiative for FY 2018 produces a levy of $294,138,100.
·Sales tax revenue forecast for FY 2017 is projected at $39,000,000 representing an
increase of .5% over budget.FY 2018 budgeted revenue is projected at $39,000,000 or
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.5% over the adopted 2017
achieving the required beginning cash balance position.
·State Revenue Sharing for FY
budget. FY 2018 budgeted revenue is projected at $
2017 budget.
·Constitutional Officer turn-back
$6,600,000 is projected –representing no change from
·Measures to maintain beginning
continue to be necessary and include continued growth in budgeted reserves
any combination of revenue receipts over budget and
·Interest income is projected to increase modestly by $
stable fund balances.
EMS Fund
EMS Operations Fund 490 is another
Typically, this ad valorem support in recent years accounted
operating revenues.However, the percentage is
collections and any Board policy directive
EMS operations by fiscal year is as follows:
Use of General Fund dollars to support this life/safety function has and continues to be a priority.
Road Construction Program
The Board approved road financing plan
and maintaining the General Fund millage rate to provide
funding commitments. These dollars are depicted on the following graph.
$10.9
$9.2
$11.0
$13.3
$12.0
$10.7
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
FY05 FY06 FY07 FY08 FY09MillionsGeneral Fund Support in EMS
(FY 2005
Policy Document Page 38
budget.Conservative revenue estimates are essential to
achieving the required beginning cash balance position.
for FY 2017 is projected to increase $200,000 or 2.
budgeted revenue is projected at $10,000,000 or 2% over the adopted
back is a conservative budget estimate and for FY
representing no change from the FY 2017 budget.
beginning cash balance at between $55 million and $60
include continued growth in budgeted reserves coupled with
any combination of revenue receipts over budget and expense side budget management.
to increase modestly by $100,000 to $750,000 reflecting
is another fund that impacts significantly on the General
in recent years accounted for 50% to 55% of total EMS
However, the percentage is likely to increase given instability in fee revenue
policy directives.Historical and projected General Fund support of
EMS operations by fiscal year is as follows:
Use of General Fund dollars to support this life/safety function has and continues to be a priority.
The Board approved road financing plan was based historically on using growth in taxable value
and maintaining the General Fund millage rate to provide increasing dollars to meet the road
These dollars are depicted on the following graph.
$10.7
$11.3
$12.8
$11.3 $11.6
$13.3 $13.8
$15.0
$15.9
$16.7 $17.1
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
General Fund Support in EMS
(FY 2005 -FY 2020)
Conservative revenue estimates are essential to
.0% over
% over the adopted
is a conservative budget estimate and for FY 2018
60 million
coupled with
expense side budget management.
,000 reflecting
eneral Fund.
% of total EMS
fee revenue
support of
Use of General Fund dollars to support this life/safety function has and continues to be a priority.
on using growth in taxable value
dollars to meet the road
$17.1
FY20
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Policy Document Page
With taxable values projected to increase
maintenance is expected to total $10
resources allocated, infrastructure maintenance and non growth related improvements will
certainly r equire a dedicated commitment of general revenue resources to protect this
investment.Capital obligations necessitated by state or federal agreement
DCA’s will be funded.
FY 2019
A millage neutral operating budget in FY 201
continue to allow for priority funding of
programming like the EMS Stations and
other infrastructure replacement needs and continuing expanded service requirements in those
operations funded within the General Fund.
In addition to annual inflationary cost increa
2019 budget analysis:
·Maintain Capital projects funding in an equivalency up
·Stormwater capital projects funding
·Maintain General Fund support of EMS
·Contingency reserves are maintained at policy.
·Maintain General Fund road subsidy.
·Maintain General Fund support for
In summary,the FY 2019 analysis signals
value, market conditions and general revenues
neutral operating budget in FY 201
would likely result in a $4.4 million budget planning
$5.9 $13.7 $20.3 $38.8 $24.1 $24.0 $23.4
$0.1
$1.5
$6.0
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
MillionsGeneral Fund Support of Road Construction
(FY 2003
Transfer from General Fund
Additional Funds Transferred
*In FY17, the Engineering Division's budget of $3.7 million was moved out of the Transportation Capital Fund and into the Roa
Bridge Operations Fund 101 . Also the Transit system transfer from Transp. Capital Fund of $1.5 million is now supported by the General
Fund.
Policy Document Page 39
projected to increase, the General Fund contribution to road construction
10.5 million.As future budgets are planned and scarce
ated, infrastructure maintenance and non growth related improvements will
certainly require a dedicated commitment of general revenue resources to protect this important
bligations necessitated by state or federal agreement , like JPA’s and
budget in FY 2019 with an increase of 5% in taxable value
funding of public safety capital initiatives and AUIR capital
and sheriff capital requests.This of course is in addition to
nfrastructure replacement needs and continuing expanded service requirements in those
operations funded within the General Fund.
In addition to annual inflationary cost increa ses, the following items were included in the FY
in an equivalency up to 0.3333 mills.
Stormwater capital projects funding for county-wide initiatives.
Maintain General Fund support of EMS.
eserves are maintained at policy.
road subsidy.
General Fund support for Transportation Operations expenses.
signals caution especially when critical variables like taxable
general revenues are difficult to predict.Pursuing a
budget in FY 2019 without a sufficient budgeted beginning fund balance
budget planning deficit as depicted in the trend analysis
$23.4 $2.9 $5.4 $7.6 $9.2 $8.8 $9.5 $14.6 $8.5 $10.5 $10.5
$0.1
$15.6
$8.3 $6.2 $2.0 $2.5 $2.0
General Fund Support of Road Construction
(FY 2003 -FY 2020)
Returned to General Fund
Additional Funds Transferred Vehicle Replacement
*In FY17, the Engineering Division's budget of $3.7 million was moved out of the Transportation Capital Fund and into the Road &
system transfer from Transp. Capital Fund of $1.5 million is now supported by the General
contribution to road construction and
As future budgets are planned and scarce
ated, infrastructure maintenance and non growth related improvements will
important
JPA’s and
in taxable value will
and AUIR capital
This of course is in addition to
nfrastructure replacement needs and continuing expanded service requirements in those
ses, the following items were included in the FY
caution especially when critical variables like taxable
Pursuing a millage
fund balance
deficit as depicted in the trend analysis .
$10.5
d &
system transfer from Transp. Capital Fund of $1.5 million is now supported by the General
11.B.b
Packet Pg. 301 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Policy Document Page 40
Of course required budget management to eliminate any actual equity reduction would occur in
real time.
FY 2020
A millage neutral operating budget in FY 2020 coupled with a 5%taxable value increase allows
for continued funding of backlog asset maintenance and replacement while funding those
programs and services enjoyed by an expanding population base. Once again, management of the
budget will be important to achieve a sufficient beginning fund balance.
The following items were included in the FY 2020 budget analysis:
·Maintain Capital projects funding in an equivalency up to 0.3333 mills.
·Stormwater capital projects funding for county-wide capital initiatives.
·Maintain General Fund support of EMS.
·Contingency reserves are maintained at policy.
·Maintain General Fund road subsidy.
·Maintain General Fund support for Transportation Operations.
The model is intended to offer a picture of very conservative revenue projections against
operating and capital expenses which will likely be faced in the out years. Of course, financial
staff manages the budget in real time and will mitigate unplanned equity reductions. But,
imagine a scenario where major revenue sources like property taxes or state shared revenues
were cut or reduced. The obvious impact would be subsequent expense reductions possibly
coupled with new adopted revenue sources and thus the need for budget flexibility.
General Fund Trend Analysis
11.B.b
Packet Pg. 302 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Policy Document Page
Unincorporated Area
MSTD General Fund (111) Millage History
As a point of reference, the following graph plots th
millage rate, as well as the policy proposed millage rate
includes the proposed marginal millage
program.
Results of Unincorporated Area General Fund Analysis
For FY 2017, the Board of County Commissioners
millage rate to $.8069 or that rate levied in FY 2007
program and allocate recurring dollars for landscape maintenance of the investment
below depicts the marginal dollar increase
general government capital as well as that component allocated toward
landscape capital program. Incremental a
increases under the current $.7161 millage rate
resources to maintain the road network
marginal rate increase to $.8069 or $.0908 will be used exclusively to fund median landscape
capital as well as landscape maintenance
magnitude of our future maintenance and asset replacement responsibility and dedicate resources
gained through an increasing taxable value base toward this purpose.
Unincorporated Area
General Fund
FY 17 Adopted and
Recommended future Tax Rates
FY 17 0.8069
FY 18 0.8069
FY 19 0.8069
FY 20 0.8069
0.8069 0.8069 0.8069
0.6000
0.6500
0.7000
0.7500
0.8000
0.8500 MillageUnincorporated MSTD General Fund (111) Millage History and
Recommended
Policy Document Page 41
Unincorporated Area General Fund (111)
MSTD General Fund (111) Millage History
As a point of reference, the following graph plots th e historical MSTD General Fund
the policy proposed millage rate for FY 2018 through FY 2020
millage rate increase to restart the landscape median capital
Results of Unincorporated Area General Fund Analysis
Board of County Commissioners reset the Unincorporated Area General Fund
$.8069 or that rate levied in FY 2007 to restart the median landscape capital
program and allocate recurring dollars for landscape maintenance of the investment . The table
increase which will be devoted to general operatio
capital as well as that component allocated toward continuing the median
Incremental ad valorem dollars obtained through taxable value
under the current $.7161 millage rate will fund recurring operations and provide
to maintain the road network, storm-water system, and community park capital
to $.8069 or $.0908 will be used exclusively to fund median landscape
maintenance going forward.The Board should also
magnitude of our future maintenance and asset replacement responsibility and dedicate resources
gained through an increasing taxable value base toward this purpose.
Tax Rates
Additional Budgeted
Ad Valorem Revenue Projections Each
Year –Operations and General Capital
Additional Budgeted
Ad Valorem Revenue Projections
Each Year –Median Landscape
Capital and Maintenance
$2,379,000 @ 7.0% TV Increase $301,600 @ 7.0% TV Increase
$1,818,200 @ 5.0% TV Increase $230,600 @ 5
$1,909,200 @ 5.0% TV Increase $242,100 @ 5
0.6912 0.6912
0.7161
0.8069 0.8069 0.8069 0.8069
Unincorporated MSTD General Fund (111) Millage History and
Recommended Millage Neutral Tax Rates
(FY 2005 to FY 2020)
und (111)
20, which
increase to restart the landscape median capital
reset the Unincorporated Area General Fund
to restart the median landscape capital
. The table
which will be devoted to general operatio ns and
the median
s obtained through taxable value
and provide
community park capital .The
to $.8069 or $.0908 will be used exclusively to fund median landscape
also note the
magnitude of our future maintenance and asset replacement responsibility and dedicate resources
Additional Budgeted
Ad Valorem Revenue Projections
Median Landscape
and Maintenance
@ 7.0% TV Increase
5.0% TV Increase
5.0% TV Increase
0.8069
11.B.b
Packet Pg. 303 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Policy Document Page 42
In order for Collier County to continue providing high quality best value services; continue to
address backlog infrastructure maintenance; replace backlog equipment and vehicles; maintain
its reserve and cash positions pursuant to policy and representative of a investment quality credit
rated organization, it is essential to capture those additional ad valorem dollars generated by
increasing taxable values as shown above.Failure to do so will jeopardize service levels and
make it very difficult to maintain the wonderful infrastructure investment which this community
enjoys.As an example, in FY 2018, the projected operating rolled back rate within the
Unincorporated Area General Fund is $.6910 which would raise $1,274,600 less than levying the
current planning operating rate of $.7161. While the rolled back operating rate would produce
$1,100,400 more than the FY 2017 budgeted levy due to new construction taxable value and a
higher taxable value base, this is not a sustainable model going forward when attempting to
recover from an economic recession and knowing the level of investment required to simply
maintain our assets let along expand services and facilities based upon AUIR requirements and
servicing the needs of an increasing population.
FY 2018
The FY 2018 budget projection is based upon a 7.0% tax base increase.Property taxes and the
state shared communications services tax represent over 90% of the operating revenue (less
transfers) within the Unincorporated Area General Fund (111). Once again, changes to
distribution and structure of the communication services tax could be discussed as part of any
state legislative budget proposal.Also, there is the assumption that no legislation will be passed
further eroding a local government’s ability to set and raise ad valorem taxes.
Capital transfers from the Unincorporated Area General Fund have grown substantially since FY
14 and for FY 18 $13.8 million is programmed representing a $1.1 million increase over last
year.These transfer dollars are programmed for Parks, Transportation, Storm-Water
infrastructure, landscaping capital and heavy vehicles and equipment. Sustaining these capital
appropriations and maintaining necessary transportation, landscaping,park, code, planning and
general operations in this fund requires at the very least a millage neutral tax position along with
continued state shared communication services tax revenue. This model is not sustainable under
a rolled back millage rate and/or loss of the communication services tax without mid –year
budget reductions or the introduction of replacement revenue sources like a franchise fee. Any
required mid-year cuts will likely affect transportation operations, park and recreation programs
and other non public safety services.
FY 2019
Assuming that taxable values will increase by 5.0%in FY 2019, a millage neutral operating
budget coupled with a reduction in beginning fund balance could result in a potential budget
planning deficit of $3.1M as depicted within the preceding trend analysis. This analysis assumes
a state communication services tax reduction.The trend analysis shows continued erosion of the
funds cash position.This model is certainly not sustainable and real time budget management
would always ensure that any equity erosion beyond that planned would be curtailed.Continued
funding for median landscape capital improvements is planned.
11.B.b
Packet Pg. 304 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Policy Document Page 43
FY 2020
Continuation of millage neutral operating budget into FY 2020 under a 5.0% increase in taxable
value would generate a modest increase in ad valorem revenue.This increase is certainly not
enough to compensate for the loss in fund equity and planned capital asset maintenance depicted
in the model. Continued funding for median landscape capital improvements is planned. For
planning purposes and assuming continued decline in beginning budgeted fund balance, a deficit
of $4.7 million is depicted.Absent real time budget management the model depicts a total fund
equity loss from FY 2018 through FY 2021 totaling $10.5 million.
The model is intended to offer a picture of very conservative revenue projections against
operating and capital expenses which will likely be faced in the out years. Of course, financial
staff manages the budget in real time and will mitigate unplanned equity reductions. But,
imagine a scenario where major revenue sources like property taxes or state shared revenues
were cut or reduced. The obvious impact would be subsequent expense reductions possibly
coupled with new adopted revenue sources and thus the need for budget flexibility.
Unincorporated Area General Fund Trend Analysis
11.B.b
Packet Pg. 305 Attachment: Fiscal Year 2018 Proposed Budget Policies-recommended (2746 : Recommendation to adopt the FY 2018 Budget Policy.)
Collier County
FY 2018
BCC Budget Policy
Fe bruar y 28,2017
1
11.B.c
Packet Pg. 306 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
FY 18 Budget Policy Highlights
1.Ke y Annual Policies for Consideration and
Board Direction (Policy Document Pages 1-31)
2.Continuing Policies to be Endorsed by
the Board (Policy Document Pages 32-34)
3.Three (3) Ye ar General Fund and
Unincorporated Area General Fund
Analysis (Policy Document Pages 35-43)
2
11.B.c
Packet Pg. 307 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
Millage Rate Policy
Po licy Document Pages 5-14
—General Fund Operating Rate of $3.5645 per $1,000 of Ta xable Value;Restart
Conser vation Collier Program through a Marginal Increase in the Rate of $.2500 per
$1,000 of taxable value;
•General Fund Tr ansfer to the CC Tr ust Fund for land purchases as part of the
budget process
•Tr ust Fund transfers to the Maintenance Fund as part of the budget process
•Use the existing millage rate of $3.5645 to fund operations & capital transfers
—Continue Unincorporated Area General Fund (111) millage rate at $0.8069 per
$1,000 of Ta xable Value
•Allocate $0.0908 (amount increased by) to continue median landscape capital
program.
•Equivalent transfer from Fund (111) to Capital Fund (112) fencing landscape
capital dollars.Maintenance costs programmed in the Unincorporated Area GF
•Use the existing millage rate of $0.7161 to fund operations & capital transfers
Why? Public Health and Safety Program Investment;Continuing
Infrastructure Investment;Human Capital Investment and;Reser ves
3
11.B.c
Packet Pg. 308 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
Millage Rate Policy
Po licy Document Pages 5-14
—MSTU’s –Assuming Increasing Taxable Value
•With Advisory Board Oversight –Ta x Neutral (Rolled Back Rate –same
revenue as last year) to Millage Neutral
•No Advisor y Board –Rolled Back Rate
•FY 2017 –13 millage neutral rates; 6 ro lled back rates; 2 Other
4
11.B.c
Packet Pg. 309 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
Agency Allocations
Po licy Document Pages 13-14
—Premise is that all agencies will work together
and cooperatively should the need arise for
budget reductions due to taxable values below
the planning threshold;re ductions in proper ty
tax reve nue;any state tax reform legislation;
re ductions in state shared reve nue;or unfunded
mandates.
—Conve rsely –increases in reve nue above the
planning threshold will also be allocated based
upon Board direction.
5
11.B.c
Packet Pg. 310 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
Reve nu e Centric
Po licy Document Page 15
—Enterprise Funds;Internal Ser vice Funds;Special Revenue
Funds and other Operational Funds which are supported
by fees with no reliance upon ad valorem revenue will be
allowe d to establish budgets and conduct operations
around reve nue centric guidelines dictated by cash on
hand and anticipated receipts.
—Within the General Fund and Unincorporated Area
General Fund,net cost to these funds offset by fee
revenue will be monitored and negative fee variances will
be addressed through expense cuts and not subsidized by
ad valorem revenue .
6
11.B.c
Packet Pg. 311 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
Agency Positions
Po licy Document Pages 15-16
—Similar to FY 17,expanded position requests will
be limited to mission critical functions,fully
ve tted with the Board and enumerated within
the budget document including details of
expanded operational costs and any offsetting
program reve nue .
7
11.B.c
Packet Pg. 312 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
Compensation
Po licy Document Pages 16-17
—Appropriate a general wage adjustment equivalent to 2.9% as part
of FY 18 budget planning with the structure of such adjustment
developed by the County Manager and presented at the June budget
workshop.
—Provide a targeted pay plan maintenance appropriation of .60%
designed to maintain employee pay ranges at market competitive
levels.
—FY 17 GWA at 3% valued at $3.4 million.
—FY 18 GWA and Pay Plan Maintenance valued at $4.3 million.
•GWA -$3.7 million
•Pay Plan Maintenance -$600K
8
11.B.c
Packet Pg. 313 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
Health Care
Po licy Document Pages 17-19
—Maintain for the County Manager Agency an
average cost distribution between the Board and
Employe es at 80% (Employe r) 20% Employe e.
—Fo r FY 17,the County experienced no (0%)
health insurance rate increase . D ue to continued
exceptional plan performance and plan reser ve s
which exceed statutor y minimums,no (0%)
health insurance rate increase is proposed for FY
18.
9
11.B.c
Packet Pg. 314 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
Retirement Rates
Po licy Document Page 19
—Adherence to OMB rates published within the
OMB budget instructions.
—Rates Established based upon State Guidance .
10
11.B.c
Packet Pg. 315 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
Storm-Wa ter Funding
Po licy Document Page 22
—General Fund (001) storm-water funding planned at
$2,000,000 to suppor t based upon identified and
engineered watershed benefits county-wide .
—Unincorporated Area General Fund (111) storm-water
funding set at $4,172,000.
—Identify critical areas of concern throughout the County
which the Board may program for priority new funding in
FY 18.
—Continue Board discussions on a storm-water utility fee
11
11.B.c
Packet Pg. 316 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
Uses of Gas Ta xe s
Po licy Document Pages 22-23
—Continue Board policy where pledged gas taxes pay debt ser vice on
the gas tax revenue bonds;with remaining gas tax funds programmed
to support construction and transportation network improvements.
—Tr ansfer dollars from the General Fund will provide the vast amount
of funding support for maintenance of the roadway network and
other transportation related expenses including the transit subsidy.
—Tr ansfer dollars from the Unincorporated Area GF will increase
$700K to $4,000,000 in FY 18 in addition to direct budget dollars in
this fund for road maintenance.
—Gas Taxes grew modestly up 4.7% to $20.5M in FY 16.Fore cast FY
17 and planning FY 18 reve nue will be in the $20M range.
—$1M in gas taxes freed up for transportation network improvements
beginning in FY 2015 due to restructuring of the gas tax debt.
12
11.B.c
Packet Pg. 317 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
General Fund General Capital/Debt
Ser vice and Debt Management
Po licy Document Pages 23-24
—Tr ansfer an equivalent planning sum of up to
.3333 mils for county-wide capital purposes;
paying non-growth related reve nue bond debt;
provide impact fee trust fund loans to cover
growth related debt obligations and to fund
much needed general governmental priority
capital needs.
13
11.B.c
Packet Pg. 318 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
General Gove rnmental,Enterprise
Fund and Other Reser ve Po licies
Po licy Document Pages 24-30
—GF –floor ; 8 % of operating expenses or $29.6 million –Ceiling;16% of operating expenses or
$59.2 million;current planning reserve for FY 18 is $39.8 million an increase of $5.9 million.
—Other Gen.Govt.Funds –Generally 2.5% of operating expenses with a ceiling of no more than
one months expenses.Ceiling for the Unincorporated Area GF is $4.4 million;current planning
reserve for FY 18 is $3.3 million.
—Other general governmental funds that receive transfer revenue from the GF will have reser ves
sized to cover the first month of operations or until the first GF transfer is scheduled.
—Reser ve policy for Pelican Bay Ser vices Division (PBSD) operating fund (109) set between 15-
30 percent of operating expenses given the districts coastal nature,level of infrastructure
investment,natural assets and commitment to maintenance and resource protection.
—CCWSD user fee reserves established minimally between 5% and 15% of revenues with
working capital resources set between 45 days and 90 days.Within the family of CCWSD family
of user fee operating and capital funds reser ves will range between $16.9 and 33.8 million while
working capital resources will total roughly $19.2 million or 51 days.
—Ta rgeted reserves within the GMD building permit fund (113) and planning fund (131) set at 6
months and nine months of operating budget appropriations respectively.
14
11.B.c
Packet Pg. 319 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
Financing New and Replacement
Capital Infrastructure
Po licy Document Pages 19-22
—County has not issued capital debt since FY 08
—Finance Committee is engaged and continually reviewing all appropriate
capital financing options
—FY 18 budget planning does not program issuance of debt as part of the
adopted budget
—Any debt issue recommendation will include a consolidated financing plan
based upon the number of current and future capital projects and
initiatives to be financed,the timing of project implementation,expected
payout schedule, t he appropriate type of debt and existing market
conditions
15
11.B.c
Packet Pg. 320 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018
Schedule
Po licy Document Page 31
—Resolution requiring budget submittals by the Sheriff;
Super visor of Elections and Clerk of Cour ts on May 1st.
—Ju ne Budget Wo rkshop Dates –Thursday June 15th and if
necessar y Friday June 16th
—Adopt Tentative Maximum FY 18 Millage Rates on Tu esday
Ju ly 11,2017
—Board Receives Tentative FY 18 Budget Document on Friday
Ju ly 14,2017
—First Public Budget Hearing on Thursday September 7th with
the Final Hearing on Thursday September 21st
16
11.B.c
Packet Pg. 321 Attachment: FY18 Budget Policy Powerpoint Presentation (2746 : Recommendation to adopt the FY 2018