Agenda 02/22/2011 Item #10A
2/22/2011 Item 10.A.
EXECUTIVE SUMMARY
Recommendation to adopt the FY 2012 Budget Policy
OBJECTIVE: That the Board of County Commissioners (Board) adopt policies to be used in developing the Collier County
Government budget for FY 2012.
CONSIDERA TIONS: In order for staff to begin preparation of the FY 2012 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 2012 budget. The
purpose of to day's discussion is for the Board to reach consensus on the policies upon which the budget will be based. The County
Manager met with the Productivity Committee to share the proposed FY 2012 policies prior to this Board presentation.
The budget policy document is broken down into three distinct elements. The first consists of budget policies proposed in FY 2012
that require policy direction from the Board. The second element consists of standard budget policies that the Board has endorsed for
a number of fiscal years. The third element consists of a three-year analysis of the General Fund (001) and the Unincorporated Area
General Fund MSTD (1 I 1).
The Board needs to establish June budget workshop dates. Tentative dates are Thursday, June 16,2011 and Friday, June 17,201 I
with meeting times scheduled from 9:00 a.m. to 5:00 p.m. The available dates avoid any conflict with the Florida Association of
Counties annual conference scheduled from June 2 I through June 24, 2011 in the City of Orlando.
For informational purposes, adoption of the tentative millage rates is scheduled for Tuesday, July 26, 2011. The Board is required by
Florida Statutes to provide the Property Appraiser with the proposed millage rates by August 4,2011 in order to prepare the Notice of
Proposed Taxes.
Finally, the Board needs to establish September public hearing dates for the adoption of the FY 2012 budget. The School Board has
tentatively scheduled September 6, 2011 for their final budget hearing. Recommended dates for the Collier County budget public
hearings are Thursday September 8, 20 I 1 and Thursday September 22, 2011.
LEGAL CONSIDERATIONS: The County Attorney has reviewed this item which is ready for Board action. This is a regular item
requiring simple majority vote. -JAK
FISCAL IMPACT: The adopted policies will serve as the framework for the development of all budget and ad valorem taxation
issues for FY 20 I 2.
GROWTH MANGEMENT IMPACT: There is no Growth Management impact.
RECOMMENDA TIONS: 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, 20 I I deadline for the Supervisor of Elections, the Sheriffs Office and the Clerk's budget submittals.
PREPARED BY: Mark Isackson, Director of Corporate Finance and Management Services, County Manager's Office
Packet Page -207-
2/22/2011 Item 10.A.
COLLIER COUNTY
Board of County Commissioners
Item Number: 10.A.
Item Summary: Recommendation to adopt the FY 2012 Budget Policy. (Mark Isackson,
Director, Corporate Finance and Management Services, County Manager"s Office)
Meeting Date: 2/22/2011
Prepared By
Name: BrockMary
Title: Executive Secretary to County Manager, CMO
2/16/20119:12:38 AM
Submitted by
Title: Executive Secretary to County Manager, CMO
Name: BrockMary
2/16/20119:12:39 AM
Approved By
Name: IsacksonMark
Title: Director-Corp Financial and Mgmt Svs,CMO
Date: 2/16/2011 1 :56:20 PM
Name: OchsLeo
Title: County Manager
Date: 2/16/2011 3:34:25 PM
Packet Page -208-
2/22/2011 Item 10.A.
Fiscal Year 2012 Proposed Budget Policies
Submission to the Collier County Board of County
Commissioners
February 22, 2011
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". While it is suggested that this format continue, the policy document will also
cover significant budget influences; discuss the strategies which may be utilized to address these
influences as the budget document evolves for FY 2013 and beyond.
Annual Bud2et Policies to be Adopted
Si2nificant Bud2et Influences:
The decision to set a millage rate and property tax levy is impacted by a number of factors and for FY
2012, key factors include;
1. Board desired level of service.
2. Extent of capital, debt and operational transfer dollars expended by the General Fund and
Unincorporated Area General Fund.
3. Level of operational cuts to agencies and departments which are funded within the General
Fund and Unincorporated Area General Fund.
4. Funding for new or re-prioritized initiatives such as economic development, infrastructure
maintenance and equipment replacement.
5. Level of General Fund ad valorem operating support extended to constitutional officers.
6. Extent of non ad valorem revenue projected to support operations such as sales tax, state
shared revenue and departmental revenue.
7. Beginning-year cash fund balance.
8. Compliance with bond covenants.
9. Credit rating
Packet Page -209-
2/22/2011 Item 10.A.
MilIa2e Tar2ets for the County-Wide General Fund
For FY 2011, General Fund (001) property tax revenue, using the recapitulated taxable value report
from the Property Appraiser for October 2010, totals $219,002,100. This is based upon a County-
wide taxable value of $61,439,779,385. The decrement between the July and October taxable value
numbers amounted to $402,320,313 equating to an ad valorem revenue reduction of $1,434,000 from
the adopted budget. This influences FY 2011 revenue forecasted and subsequently forms part of fund
balance for budget purposes in FY 2012.
For FY 2012, the County's taxable value according to the State's December 2010 Ad Valorem
Estimating Conference is projected to increase 3.9%. Information contained within the report is at
odds with most economic data covering foreclosures and short sales and the continued drop in
housing prices due to excess inventory. Collier County's suggested budget guidance presented by
staff is not predicated on an increase in taxable value. The challenge is to quantify from local experts
what is happening in the Collier County market with the objective of establishing a realistic taxable
value estimate. After preliminary talks with area subject matter experts as well as monitoring general
state wide discussions among various county property appraiser offices, a decline of 3% appears
reasonable for budget planning purposes. The State's current taxable value estimates appear to be
three (3) to six (6) percent above estimates on the ground from various Florida counties. Any positive
difference in taxable value and the resulting increase in ad valorem revenue can be used to shore up
the Board's General Fund and Unincorporated Area General fund reserves and/or applied to
programs and services as directed by the Board. The County Manager is proposing to submit one
millage neutral budget along with service level and related budgetary and millage implications.
Holding the millage rate at $3.5645 (millage neutral scenario) in FY 2012 would equate to an
$8,004,100 reduction in General Fund (001) ad valorem revenues under a 3% reduction in taxable
value based upon a budget to budget comparison.
Table 1 shows a history of county wide and unincorporated area taxable value over the past four
years (tax year 2007-2010) as well as the budget projection for tax year 2011 (FY 2012). Table 2
depicts millage rates for the past six (6) years.
Table 1.
Tax Year County Wide County Wide % Unincorporated Unincorporated
Taxable Value inc. (dec) Area Taxable Area % inc.
Value (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 (I 1.0%) $44,314,951,279 (12.8%)
2010 (FY $61,439,779,385 (12.2%) $38,149,107,283 (13.9%)
2011)w/o final
VAB
2011 (FY 2012) $59,596,586,003 (3.0%) $37,004,634,065 (3%)
projected
2
Packet Page -210-
2/22/2011 Item 10.A.
Table 2.
Millage Area FY06 FY07 FY08 FY09 FYlO FY 11
General Fund $3.8772 $3.5790 $3.1469 $3.1469 $3.5645 $3.5645
Unincorporated $.8069 $.8069 $.6912 $.6912 $.7161 $.7161
Area
In previous budget cycles, policy directives called for across the board operating and capital
expenditure reductions. For FY 2012, achieving a millage neutral budget will require a combination
of operating and capital cuts which will not be taken across the board, rather the cuts will be targeted
and measured based upon need, priorities, and service levels. A calculated risk is assumed when
non-reoccurring capital dollars are cut to achieve the desired millage neutral outcome. This is
particularly true if taxable values were to decline for a fifth straight year in FY 2013 (tax year 2012).
For FY 2011, budgeted capital transfers (exclusive of debt) from the General Fund amounted to $25.2
million or 68.2% of the total non constitutional transfer dollars. Transfers to support non ad valorem
debt totaled $11.7 million. Of the $36.9 million in General Fund debt/capital transfers, the 1/3rd mil
equivalent transfer (or less) to cover non ad valorem debt and general capital accounts totaled $17.1
million. Transfer to roads was $13.7 million and $6.1 million was earmarked for storm water as part
of the not to exceed .1500 mil equivalent transfer.
For FY 2012, budgeted capital transfers including that component required to support continuing debt
obligations will total $32.1 million - a $4.8 million reduction from FY 2011. The 1I3rd mil
equivalent transfer will once again primarily support debt service. It is projected that the 1I3rd mil
equivalent transfer will total $12.4 million with approximately $11.2 million committed to pay debt.
Inclusive within this figure is a $5.5 million growth related debt gap due to reduced impact fee
collections. The General Fund transfer to support much needed intersection maintenance, resurfacing,
bridge repairs and other network infrastructure maintenance is recommended to remain at $13.7
million. The storm water transfer will be sized at the equivalent of .1000 mils and this transfer is
projected to total $6 million.
Recommendation: Develop a General Fund (001) budget for FY 2012 at millage neutral and
provide the Board with a summary divisional description of what millage neutral purchases in terms
of service, the cost and description of services cut, and the corresponding ad-valorem impact to
restore any cut service.
General Fund Bud2et Allocations bv A2encv and Component
The purpose of this allocation is to identify those critical 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 will share in any budget
reductions necessitated by reductions in property tax revenues, new tax refonn initiatives, reductions
in state shared revenue and unfunded mandates.
3
Packet Page -211-
2/22/2011 Item 10.A.
FY 11 Percent of General Fund Budget
Clerk of Courts'"
1.7%
Property
Appraiser
1.7%
Reserves
4.5%
Debt/Capital
Subsidy
7.4%
Road Program
Su bsidy
4.4%
BCC / Co
Attorney
1.3%
Considering that transfers to the Constitutional Agencies in FY 2011 account for 53.6% of total
General Fund budgeted expenses and 76.7% of the General Fund ad valorem budgeted revenue, their
participation in reductions is essential to achieving a millage neutral budget.
Recommendation: Continuation of this policy.
Milla2e Tar2ets for the Unincorporated Area General Fund
For FY 2011, the estimated MSTD General Fund (111) property tax revenue, using the recapitulated
taxable value report for October 2010, totals $27,318,600. This is based upon an Unincorporated
Area taxable value of $38,149,107,283. The decrement between the July and October taxable value
numbers amounted to $293,314,543 equating to an ad valorem revenue reduction of$210,OOO.
For FY 2012, taxable values are projected to decrease 3.0% resulting in an unincorporated area
taxable value of $37,004,634,065. Millage neutral would generate $26,499,000 in property tax
revenue - a decrease of $1,029,600 based upon a comparison to the FY 2011 adopted budget.
Operating expenses directly budgeted in Unincorporated Area General Fund (111) account for 80.4%
of total expenses. This percentage will likely increase in FY 2012 if the transportation network
operating subsidy is removed completely and budgeted 100% in the General Fund.
Recommendation: Develop an Unincorporated Area MSTD General Fund (111) budget for FY 2012
at millage neutral and provide the Board with a summary divisional description of what millage
neutral purchases in terms of service, the cost and description of services cut, and the corresponding
ad-valorem impact to restore any cut service.
4
Packet Page -212-
2/22/2011 Item 10.A.
Milla2e Tar2ets for Collier Countv MSTU'sIMSTD's
With a simple majority vote in FY 2012, the Board has the latitude to levy the rolled back millage
rate (tax neutral), plus an inflationary adjustment based on the growth in Florida per capita personal
income. 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 four (24) dependent MSTU's or MSTD's active
under Collier County's taxing umbrella which is actively managed by staff. Of these, twelve (12)
have advisory boards which provide recommendations to the Board of County Commissioners.
Recommendation: For FY 2012, it is suggested that those MSTU's/MSTD's without advisory board
oversight be limited to a millage neutral position unless staff presents a compelling reason for
additional funds during budget presentations. Additionally, it is suggested that MSTU's and MSTD's
with advisory board oversight be allowed to consider tax rates ranging from millage neutral to tax
neutral depending upon their particular program requirements with specific advisory board
recommendations offered during the budget review.
Revenue Centric Bud2ets
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. 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 MSTD 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 MSTD General Fund (111). Under this revenue centric approach, Divisions will be
held to their departmental fee for service projections and any negative fee variances will be addressed
through service cuts and not subsidized by Ad Valorem taxes. Division Administrator discretion
upon guidance by the County Manager should be afforded in these scenarios.
Recommendation: Continuation of this revenue centric budget policy.
5
Packet Page -213-
2/22/2011 Item 10.A.
Limitations on Expanded Positions to Maximize Or2anizational Efficiencies
Weare faced with the challenge of maintaining public services as we look at strategic cuts,
reorganizations and re-alignments required to meet financial constraints. Weare focused on ensuring
a rational basis for any changes, be they for improved efficiency and effectiveness, cost savings or all
of these. Consequently, as part of any decision to make major organizational, service or other
changes, proper analysis is undertaken. This analysis includes review of the customer needs, the
organizational structure, the underlying processes and service delivery models. 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.
In cases where changes have already been made, teams of business process professionals are working
hand in hand with management to review process opportunities that will maintain or increase service
levels with reduced staff to manage the workflow. In all cases, the goal of the management team is to
continue to meet the needs of the citizens as efficiently as possible. To help ensure the success of this
rational focus, staff members with appropriate skills sets have been reassigned to these efforts at no
additional cost to taxpayers. As such, no net new positions in the County Manager's Agency will be
continued for FY 2012. This proposed guidance also continues the agency freeze on new hires
funded with ad valorem funds with limited exceptions authorized by the County Manager.
Remember that the budget document only portrays those positions funded within the agency.
Recommendation: Continuation ofthis budget policy.
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. Recognizes and rewards individual and team achievements.
These goals while important are mitigated somewhat by the current economic environment. Focus
will shift on retaining the employment base where possible given revenue parameters and
maintaining the expertise and professional development of the work force.
Recommendation: Given the current economic environment and the consumer price index (CPI)
trend, a salary adjustment for FY 2012 is not recommended. However, on an event driven basis most
likely triggered by taxable values higher than anticipated, the Board may wish to consider a merit
pool to be applied as a bonus and not on an employee's base salary. In previous years the Board of
County Commissioners, has authorized adjustments to the compensation plan as shown within the
following table.
6
Packet Page -214-
2/22/2011 Item 10.A.
Program Component FY06 FY07 FY08 FY09 FY 10 FY 11 FY 12
Cost of Living 3.90% 4.70% 4.10% 4.20% 0.00% 0.00% 0.00%
A wards Program 1.50% 1.50% 1.50% 0.00% 0.00% 0.00% 0.00%
Pay Plan Maintenance 0.25% 0.25% 0.25% 0.00% 0.00% 0.00% 0.00%
Total 5.65% 6.45% 5.85% 4.20% 0.00% 0.00% 0.00%
Health Care Pro2ram Cost Sharin2
Collier County provides a self-funded Group Benefits Plan for health care and prescription drug
coverage. Coverage under the Plan extends to all County employees, with the exception of the
Sheriff's Office, which provides 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 is similarly impacted by these rising costs. For FY 2011, the County
experienced an 8% rate increase. This increase resulted in an average employee increase of $14.37
per month in health contribution. The County has successfully maintained a stable rate structure (0%
rate increase) during fiscal years 2006 through 2010. This is attributable to the success of the existing
wellness program, the proper structuring of reinsurance to manage adverse plan impacts and prudent
plan management.
At the beginning of FY 2009, a new health care initiative and approach was launched to address the
underlying causes of catastrophic claim cases. This new plan re-design and structure provides
participation incentives to members in an attempt to; identify and measure existing risk factors;
promote participation in wellness related programs to help members reduce and/or manage these risk
factors; improve the employee/physician relationship and to provide one on one advocacy services
assisting employees with their health care needs. It is anticipated that these and other cost
contaim11ent and program attributes will position the County to continue providing low cost and high
quality health care coverage.
Recommendation: In FY 2012, the average cost distribution of health insurance premiums between
the Board of County Commissioners and employees will remain at the target level of 80% ( employer)
and 20% (employee).
It is still recommended that the 80% emplover share and 20% emplovee share be uniform across
all a2encies. includin2 the Constitutional Officers. This policy treats all county employees equally
in tenns of cost sharing for health insurance premiums. Continued compliance with this guidance
may require additional premium adjustments and plan design modifications in FY 12.
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 begiIming 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
Chapter 2009-29 second year rates (rates that will go into effect July 1,2011 if the legislators fail to
establish new rates for state fiscal year 2011-20112.
Recommendation: Adherence to the OMB rates published within the OMB budget instructions.
7
Packet Page -215-
2/22/2011 Item 10.A.
Accrued Salarv Savin2s
The limitation on expanded positions, 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. A 4% attrition rate for each Agency funded by the
General Fund and for all of the County Manager Agency will be calculated on FY 2012 Regular
Salaries.
Recommendation: Continue the accrued salary savings policy.
Storm Water Mana2ement Capital Fundin2
The Board previously adopted (County Resolution 2010-137) a policy with funding equivalent up to
0.1500 mills annually. 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.
Recommendation: Recognize the current policy pursuant to 2010-137 with the understanding that a
millage neutral budget will likely require that this transfer be set at an equivalency of .1000 mils.
Proposed Use of Gas Taxes
Previously, the Board directed through policy that all available gas taxes will be used to support the
Road Construction Capital Improvement program. Immediately prior to the decline in taxable values,
this transfer amounted to $24M. Recent reductions in the General Fund (001) transfer to roads has
meant that gas taxes fund a significant portion of debt service on the 2003 and 2005 Gas Tax
Revenue Bonds. Current debt service is approximately $14M per year and the General Fund transfer
proposed for FY 2012 is the same as FY 2011 at $13. 7M. Gas tax revenue from all sources in recent
years has ranged between $18M and $18.5M per year. Earmarking certain gas taxes to pay debt due
to the reduced General Fund (001) transfer will mean that impact fees should be dedicated
exclusively for growth related right of way acquisition and road construction.
Recommendation: Continue the Board's FY 2011 policy and allow gas taxes to support not only the
road construction improvement and maintenance program but to also pay for a portion of the debt
service, instead of the General Fund supporting all of the debt service payments.
General Fund Debt Contribution
The General Fund (001) has provided via transfer the sum equivalent of 1/3 mil to non impact fee
eligible county wide capital functions and a debt payment component since FY 2006. The majority of
this transfer has evolved into a debt service payment and for FY 20 II $11.7M of this $17.1 million
transfer will cover debt service. Due to the lack of impact fee revenue, $4.2M represents a loan from
the General Fund to cover growth related debt. For FY 2012, the General Fund (001) transfer (loan)
will be sized sufficient to cover debt service which cannot be covered by impact fees. Payment of
debt is a top priority.
8
Packet Page -216-
2/22/2011 Item 10.A.
Under a 3% decrease in taxable value, dollars generated from the 1/3rd mil equivalent allocation will
be sufficient to cover this debt service requirement. Prom this transfer amount, approximately $5.5M
will be required to cover the growth related debt service gap due to insufficient impact fee
collections.
The County took advantage of historically low interest rates and in the span of six months between
July and December 2010 refinanced $84.5M in debt. In the process, variable rate interest rate
exposure was eliminated, a level of budget certainty was achieved and interest rate savings realized.
While staffs goal is to continue exploring every opportunity to restructure the County's current debt
portfolio, present market interest rates have essentially halted progress. The General Funds debt
service obligations will be reduced naturally in FY 2014 through a reduction in maximum annual
debt service (MADS) associated with the capital improvement revenue bonds. However it is likely
that this MADS reduction will be absorbed by the growth related impact fee coverage gap which the
General Fund is filling. It is likely that this gap will grow from $5.5M in FY 2012 to $8.0M in PY
2013 and FY 2014. Although limited, staff will continue to explore re-directing certain impact fee
revenue to cover priority debt payments with consequences that include either deferral or
postponement of impact fee funded capital improvements. Further, the County's Finance Committee
should continue its aggressive surveillance of the debt portfolio in an effort to uncover any interest
rate savings opportunities and eliminate onerous bond covenants which led to the $19.5M debt
service reserve fund cash surety requirement due to the bond insurance market collapse.
Recommendation: Continue to transfer an equivalent sum of up to 1/3 mil to the County Wide
Capital Fund for purposes of paying non-growth related debt and to provide impact fee fund loans to
cover growth related debt obligation.
Economic Develooment
Funding for County economic development activities and specifically the granting of incentives to
businesses wishing to locate or relocate in Collier County should be given due funding consideration
within the FY 2012 budget document. Does the Board wish to establish a regular sustained pool of
dollars to draw upon rather than our current practice of using General Fund reserves? Funding for
incentives to attract or retain those types of businesses capable of diversifying the County's current
economic landscape cannot be found from the current General Fund revenue sources, expense cuts or
both without adverse impacts to front line programs or services.
Recommendation: Board direction sought after the EDC/BCC Workshop on March 11, 2011..
9
Packet Page -217-
2/22/2011 Item 10.A.
Schedulin2: Issues
Decisions Required Staff Recommended Datf(s)
Establish Budget Submission Dates May 1, 2011 by Resolution
for the Sheriff, the Supervisor of
Elections and the Clerk
June Budget Workshops (BCC Agency/Courts and Constitutional Officers Budget
Workshops) Thursday, June 16 and Friday June 172011
F AC Conference is June 21 - June 24, 2011 in Orlando.
Submission of Tentative FY 2012 Friday July 15,2011.
Budget to the Board
Adoption of Tentative Maximum FY July 26,2011 (Tuesday)
12 Millage Rates
Establish Public Hearing Dates (see September 8, 2011 (Thursday at 5:05 pm)
note) September 22,2011 (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 6, 2011. The
Commission chambers are reserved for the tentative dates for Collier County Government budget
public hearings.
Recommendation: Approve the dates identified above and attached resolution establishing May 1,
2011 budget submittal dates for the Sheriff, the Supervisor of Elections and the Clerk.
Comparative Bud2:et Data
Provide comparative budget data using FY 2011 adopted budget data (cost and employees per capita
based on unincorporated area population) by Agency with Budget Submittals for Similar Sized
Florida Counties.
Recommendation: Counties for comparison purposes include:
. Sarasota County
. Lee County
. Charlotte County
. Manatee County
. Martin County
10
Packet Page -218-
2/22/2011 Item 10.A.
Reserves
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 State establishes maximum limitations on certain reserves. The maximum limitations for reserves
for contingency and for cash flow are 10% and 20% of a fund's total budget, respectively. Previously,
the General Fund and the MSTD General Fund contingency reserves are generally established by
Board policy at 2.5% of total budgeted appropriations. The reserves for cash flow, in both funds,
varies based on the budget; however, cash flow reserves will never exceed the statutory limits.
Despite recent reductions in ad valorem tax revenues, it is strongly recommended that efforts
continue to grow General Fund reserves - an effort which began in FY 2011. Budgeted General Fund
contingency reserves for FY 2011 total $5,210,200 - representing 1.96% of total operating
appropriations. This reserve level is $2,614,100 higher than the FY 2010 level which represented
.75% of total operating appropriation. The FY 2011 reserve for cash flow grew by $1,000,000 to
$9,000,000.
For FY 2012, it is recommended that the contingency reserve be established at 2.5%. Further it is
recommended that the total General Fund reserves continue to grow by increasing the cash flow
component.
Regular and measured growth in General Fund reserves sends a strong message of fiscal health and
stability to the bond rating agencies and financial community, especially when revenue streams are
constrained. Reserves provide a level of protection against unknown costs and costs associated with
unfunded state and federal mandates. When Hurricane Wilma hit in October 2005 (FY 2006), the
County drew down budgeted contingency reserves by $3,875,000 and cash flowed some $27,125,000
over six months as Federal and State Disaster funding was received.
Recommendation: Build General Fund (001) and Unincorporated Area MSTD General Fund (111)
reserves pursuant to this policy.
11
Packet Page -219-
2/22/2011 Item 10.A.
Continuing Existing Budget Policies for FY 2012
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 a
confidence interval of 75%, with the exception of group health to which a confidence interval is not
applicable.
Contract A2encv Fundin2: 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.
Carrv 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 MSTD 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. Over the last two fiscal years mid-year budgeted appropriation reductions were required to
ensure that adequate fund balances were available in the new fiscal year.
General Fund balance is required to meet operating needs for October and November, prior to the
receipt of any significant ad valorem tax revenue (ad valorem taxes represent 69.9% of the total FY
2011 General Fund adopted revenues).
Fund balance is also an important measure used by bond rating agencies in determining the County's
credit worthiness. Staff from Moody's Investors Service was contacted previously to determine an
appropriate level of carry forward revenue. Specific concerns for Florida communities were reliance
on the tourism industry and sales tax revenue, and the ongoing threat from hurricanes and wildfires.
F or 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 fund balance in the General Fund should be a minimum of 10% of actual
expenditures. At year ending September 30, 2010, actual General Fund fund balance totaled
$59,686,200 which represented approximately 20% of actual FY 2010 expenses.
Indirect Cost Allocation Plan: The policy of charging enterprise and special revenue funds for
support services provided by General Fund departments will be used again in FY 2012. 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.
12
Packet Page -220-
2/22/2011 Item 10.A.
Impact Fees: Collier County will assess impact fees at such levels as allowed by law, established by
the Board of County Commissioners and supported by impact fee studies.
Enterprise Fund Pavment in Lieu of Taxes: The Solid Waste Fund and the Collier County Water-
Sewer District will contribute a payment in lieu of taxes to the General Fund equal to the prior year
General Fund millage rate multiplied by the prior year gross (non-depreciated) value of property,
plant, and equipment or such other method as determined by staff all pursuant to state law.
Debt Service: Any capital projects financed by borrowing money shall limit the repayment period to
the useful life of the asset.
Interim Fin an cill!!:: Collier County may also borrow funds on an interim basis to fund capital
projects. In these cases a repayment source 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 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. A smaller net present value savings may be prudent for example when the intent is to eliminate
old antiquated and limiting bond covenant language.
Ad Valorem Capital and Debt Fundin2: Continuation of a fixed General Fund equivalent millage
dedicated to capital projects, debt financing and impact fee fund debt loans. The recommended rate
is up to the equivalent of 0.3333 mills. (See history below).
General Fund Capital Equivalent Millage History
(FY 91 - FY 14)
1.2000
1.0000
0.8000
~
~
~ 0.6000
:E
0.4000
0.2000
0.0000
L
I
I
I
I
0.3333 0.3333 I
0.2782 0.26 1 I
;
0.2354 0.2081 0.21191
!
IT IT IT IT IT IT IT IT IT IT IT IT IT IT IT IT IT IT IT IT IT IT IT IT I.
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
General economic sluggishness and depressed construction markets continue to affect impact fee
collections. As a result, the General fund continues to loan money to impact fee funds in order to pay
their annual debt service payments. Therefore the first priority for the 1/3 of a mil equivalency capital
allocation is to assist the General Governmental impact fees with loans in order to satisfy debt service
requirements.
13
Packet Page -221-
2/22/2011 Item 10.A.
Capital Improvement Pro2;ram (CIP) Policies: On an annual basis, the County shall prepare and
adopt a five-year Capital Improvement Element (CIE) consistent with the requirements ofthe 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.
14
Packet Page -222-
2/22/2011 Item 10.A.
Three-Year Budget Projections
Ad Valorem Tax Funds
(FY 2012 - FY 2014)
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-term impact of
funding decisions. These projections are complimented by a trend analysis of revenues and expenses
which conclude the General Fund and Unincorporated Area General Fund sections respectively.
The following 3-year budget projections are for the General Fund (001) and the MSTD General Fund
(111 ).
General Fund
General Fund (001) Millal!e Historv
As a point of reference, the following graph plots the historical General Fund millage rate, as well as
the projected tax neutral millage rates from FY 2012 through FY 2014.
General Fund Millage History and Projected Tax Neutral Rates
(FY 04 to FY 14)
4.5000
4.0000
3.5000
3.0000
2.5000
2.0000
1.5000
1.0000
0.5000
FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY I 1 FY 12 FY 13 FY 14
Millal!e Rates
While the County Manager will be recommending a millage neutral budget in FY 12, the Board may
be inclined to consider the implications of services cut and the cost to restore any service levels. Staff
will provide the Board with the millage rate adjustment necessary to restore various service level
packages which are eliminated as part of a millage neutral budget - remembering that a cut of $8.0M
will be necessary. The following table offers the respective estimated TRIM tax neutral (rolled back)
millage rates for FY 2012, 2013 and 2014.
15
Packet Page -223-
2/22/2011 Item 10.A.
FY 11 Adopted and Inc. (Dec.) per $100,000
General Fund Projected Tax Neutral Taxable Value
Millage Rates
FY 11 3.5645 $ 0.00
FY 12 3.7616 $19.71
FY 13 3.7780 $1. 64
FY 14 3.6869 $(9.11)
The projected millage rates assume a 3% decrease in taxable value of existing property in FY 2012
(the 2011 tax year). For FY 2013 taxable values of existing property as well as new construction is
projected flat while FY 2014 taxable value is projected to increase 2.5%. The Property Appraiser will
provide preliminary taxable value estimates for FY 2012 on June 1, 2011. Actual and assumed
changes in County taxable values are as follows:
Historical and Projected Changes in Collier County Taxable Values
(FY 04 - FY 14)
30.00%
25.38%
25.00%
20.00%
]5.00%
..
~
~ 10. 00%
;.::
o!!:
5.00%
0.00%
FY04 FY05 FY06 FY07
FY]4
-5.00%
-10.00% J
-] 5.00%
-] 1.02% -1220%
Notes to Graph:
FY 2007: The General Fund (001) millage rate adopted in FY 2007 was based upon a 16% increase
in taxable value pursuant to BCC direction.
FY 2008: As part ofthe Florida Legislative Property Tax Reform package implemented in FY 2008,
Collier County adopted its final millage rate at 91 % of the rolled back rate.
16
Packet Page -224-
2/22/2011 Item 10.A.
FY 2012 Si2nificant Expense Assumptions
· A millage neutral budget reflecting $8.0M in expense reductions will be presented and the
Board will have the option of considering service level adjustments with the cost to restore
service level packages provided. A millage neutral budget will mean that most ad-valorem
division operating budgets will be reduced 3% on a targeted basis based upon the net General
Fund impact.
· Allocation for compensation administration - 0%.
· 4% attrition rate on regular salaries assumed in the County Manager's Agency.
· Continue General Fund debt payment and impact fee loan transfer equivalent up to 0.3333
mills annually ($12,400,000).
· Stonn water capital funding equivalent to 0.1000 mills or $5,965,800. This millage
equivalency rate represents no change from FY 11 but represents a decrease in dollars totaling
$184,500.
· General Fund support of road construction and maintenance funded at $13,735,000 consistent
with FY II levels.
· General Fund support of EMS established at $11,316,100 - no change from FY 11.
· Continue if possible the shift in Transportation Operations funding from MSTD General Fund
(111) to General Fund (001).
· Mandates to be absorbed if possible within operating budgets, including Constitutional
Officers.
Si2nificant Revenue Assumptions
· FY 11 ad valorem tax revenue forecast is 96% of actual taxes levied. FY 12 budget represents
a millage neutral position at $212,432,000 - a reduction of $8,004, 1 00.
· Sales tax revenue forecast for FY 11 is projected at $27,000,000 representing an increase of
6.3% over budget. FY 12 budgeted revenue is projected at the FY 11 forecast amount of
$27,000,000.
· State Revenue Sharing for FY 12 is projected to increase $221,500 or 3.1 % over budget.
· Constitutional Officer turn back is a very conservative budget estimate and for FY 12
$6,848,800 is projected - an increase of $698,800 over the FY 11 budget.
· Measures to maintain beginning fund balance at approximately $44,000,000 continue to be
necessary and include continued growth in budgeted reserves coupled with any combination
of revenue receipts over budget and appropriation adjustments.
· Interest income is projected flat and it is anticipated that interest rates will moderate to offset
what will likely be a continued reduction in the investment pool (capital spend down).
17
Packet Page -225-
2/22/2011 Item 10.A.
EMS Fund
EMS is another fund that impacts significantly on the General Fund. Typically, this ad valorem
support accounts for 45% to 50% of total EMS operating revenues. Historical and projected General
Fund support of EMS operations by fiscal year is as follows:
$14,000
General Fund Support in EMS
(FY 04 - FY 14)
$13,311
$2,000
$12,000
$10,000
i $8,000
0:
'"
=
=
~ $6,000
$4,000
$-
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Use of General Fund dollars to support this life/safety function has and continues to be a priority. No
reduction in General fund transfer dollars is anticipated in FY 12.
Road Construction Pr02ram
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 funding
commitments. These dollars are depicted on the following graph.
While taxable values are projected to decrease for a fourth straight year, the ad valorem contribution
to road construction and maintenance is expected to remain at $13.7 million as indicated on the
following graph. As future budgets are planned and scarce resources allocated, future infrastructure
maintenance and non growth related improvements will certainly require a dedicated commitment of
general revenue resources to protect this important investment. Capital obligations necessitated by
state or federal agreement, like JPA's and DCA's will be funded. Under millage neutral philosophy,
gas taxes must be used to cover a larger portion of debt service as well as the functions stated above.
18
Packet Page -226-
2/22/2011 Item 10.A.
General Fund Support of Road Construction
(FY 03 - FY 14)
45.000
40.000
35.000
$38.791
10.000
5.000
,-.. 30.000
~
'C
= 25.000
=
~
=
:= 20.000
E: 15.000
'-'
FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY] 4
· Transfer from General Fund 0 Returned to General Fund
FY 2013
A millage neutral budget in FY 2013 with no change in taxable value will likely require modest
operating reductions - in the area of 1 % - to offset a projected increase in the 1/3rd millage
equivalency necessary to support growth related revenue bond debt service payments prior to the
anticipated maximum annual debt service reduction in FY 2014. This appears to be a one - time
event. Without supporting impact fee collections and under conservative general revenue
assumptions, allowances on the operating side will be necessary in order to fund priority debt service
payments.
The projected General Fund tax neutral millage rate for FY 2013 is 3.7780 or $377.80 per $100,000
of taxable value. This is the projected rolled back rate and represents an increase of $21.35 per
$100,000 of taxable value from a millage neutral FY 2012 position.
In addition to annual inflationary cost increases, the following items were included in the FY 2013
budget analysis:
· Maintain Capital projects funding in an equivalency up to 0.3333 mills.
· Stormwater capital projects funding equivalent to 0.10 mills.
· Maintain General Fund support of EMS.
· Contingency reserves are maintained at policy.
· Maintain General Fund road subsidy.
· Maintain FY 2011 General Fund support for Transportation Operations expenses.
In summary the FY 2013 analysis offers caution especially when critical variables like taxable value,
market conditions and general revenues are difficult to predict. Pursuing a millage neutral budget in
FY 2013 without a sufficient budgeted beginning fund balance would likely result in a $10.5 million
budget planning deficit as depicted in the trend analysis. Of course required correction on the expense
side assuming revenue assumptions are accurate would be necessary.
19
Packet Page -227-
2/22/2011 Item 10.A.
Ensuring a sufficient beginning fund balance could mean reducing or eliminating the General Fund
road subsidy forcing the use of gas taxes to completely support the approximately $14M annual road
debt service payment. This would leave approximately $4M of gas tax revenue for capital,
maintenance, right-of-way acquisition and the Collier Area Transit (CAT) subsidy. Other operating
transfer subsidies would also be targeted including dollars in support of the transportation operations.
While every fiscal year presents new challenges and predicting revenue sources is difficult in any
out-year, continued use of non-reoccurring capital and operating dollars to achieve required cuts will
eventually be replaced by reoccurring operating cuts with front line service level impacts.
FY 2014
A millage neutral budget in FY 2014 coupled with a modest 2.5% increase in taxable value presents
a significant challenge to a balanced budget under a scenario where fund balance continues to erode.
Once again, without a sufficient beginning fund balance, the projected FY 2014 deficit approaches
$17.9 million as indicated within the trend analysis.
The projected General Fund tax neutral millage rate is 3.6869 or $368.69 per $100,000 of taxable
value. This is the rolled back rate and represents a decrease of $7.47 from the FY 2012 tax neutral
level per $100,000 oftaxable value.
The following items were included in the FY 2014 budget analysis:
. Maintain Capital projects funding in an equivalency up to 0.3333 mills.
. Stormwater capital projects funding equivalent to 0.10 mills annually.
. Maintain General Fund support of EMS
. Contingency reserves are maintained at policy.
. Maintain General Fund road subsidy.
. Maintain General Fund support for Transportation Operations expenses.
20
Packet Page -228-
2/22/2011 Item 10.A.
General Fund Trend Analvsis
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Revenues
Ad Valorem Taxes (1.) 220,436,100 212,432,000 212,432,000 217,742,800 228,627,000
Sales Taxes (2.) 25,400,000 27,000,000 27,270,000 27,951,800 27,951,800
Revenue Sharing 7,048,500 7,270,000 7,342,700 7,526,300 7,526,300
Transfer Revenue 2,288,200 1,986,400 1,986,400 1,986,400 1,986,400
Other Sources (3.) 29,565,400 29,494,400 29,492,000 29,524,200 29,524,200
Carry forward (4.) 44,318,500 44,057,700 33,444,200 23,072,600 16,504,300
Revenue Reserve (13,605,000) (13,302,000) (13,319,000) (13,629,500) (14,681,400)
RTOT 315,451,700 308,938,500 298,648,300 294,174,600 297,438,600
Expenses
Division Operating (1.) 64,144,600 62,698,600 62,071,800 63,313,200 66,478,900
Capital Transfers (2.) 25,222,100 20,952,700 20,766,000 21,027,900 22,079,300
Operating Transfers (3.) 30,608,000 30,414,900 30,110,800 30,713,000 32,248,700
Debt Transfers (4.) 11,758,400 11,148,100 14,237,800 11,692,900 11,692,900
Constitutional and Courts 169,508,400 164,983,900 163,399,100 166,537,100 174,864,000
Reserves (5.) 14,210,200 18,740,300 18,636,800 18,746,300 17,729,500
ETOT 315,451,700 308,938,500 309,222,300 312,030,400 325,093,300
Deficit 0 0 (10,574,000) (17,855,800) (27,654,700)
21
Packet Page -229-
2/22/2011 Item 10.A.
Assumptions
Revenues
1. Ad Valorem Tax Revenue predicated upon a millage neutral strategy in FY 2012 under a 3% TV
reduction. FY 2013 TV forecast flat with a 2.5% TV increase in 2014 and a 5% increase in 2015.
2. Sales tax revenue relatively stable with FY 2012 revenue projected at FY 2011 forecast levels.
Modest increases in the out years.
3. Other sources of revenue include departmental revenue, indirect cost reimbursements, payment in
lieu of taxes and constitutional officer turn back.
4. Carry forward is a critical component of the revenue stream and although not considered current
revenue the source provides cash flow in the early fiscal year months of October and November
leading up to the receipt of December property tax receipts. At a minimum, the budgeted carry
forward should be established in the $44M range which allows for actual cash balances at year end
of an estimated $50M when factoring in actual levels of revenues received and expenses incurred
over or under budget. $50M in beginning cash provides sufficient coverage to pay regular expenses
and required constitutional transfers during the first two months of the new fiscal year.
Expenses
1. Division operating expenses include the BCC, County Manager, County Attorney, OMB,
Administrative Services, Public Services, Emergency Services and other direct General Fund expenses
including the Naples CRA TIF increment. Increases in the out years are consistent with adjustments
in taxable value.
2. Capital transfers out of the General Fund reflect the support for Roads, Storm water and General
Governmental capital items. While the out year increases are consistent with taxable value
adjustments it is likely that the level of infrastructure maintenance and improvements required
within the transportation network and storm water system will demand greater resources.
3. Operating transfers include General Fund subsidies to support operations of the Transportation
Networks, Emergency Medical Services, the Transit System, Courts, as well as providing the CRA TIF
increment.
4. Debt transfers include principal and interest on the current sales tax capital improvement series
revenue bonds and General Fund loans to cover the growth debt service gap due to insufficient
impact fee collections. While refunding the 2002 series revenue bonds reduced our interest
payments, continued reductions in impact fee collections will require an increased debt contribution
from the General Fund in FY 2013. While impact fee collections are projected to continue lagging
through FY 2015, a significant downward reduction in maximum annual debt service on the capital
series revenue bonds will reduce the required transfers in FY 2014 and 2015.
5. Despite continued reductions in ad valorem tax revenues, staff strongly suggests continued efforts to
grow General Fund reserves - an effort which began in FY 2011. Growth in General Fund reserves
sends a strong message of fiscal health and stability to the bond rating agencies and financial
community, especially when revenue streams are constrained. In addition it can serve to protect
22
Packet Page -230-
2/22/2011 Item 10.A.
that all important beginning General Fund cash balance number which not only signals strong fiscal
health but prudent financial management.
Message
As budgets constrict, the additional fund balance generated from revenue and expenses over or
under budget tends to shrink. While the drop in carry forward projected in FY 2013,2014 and 2015
is based upon conservative revenue and expense forecast projections, it is evident that maintaining a
millage neutral stance in the out years will create a keen competitive environment for scarce
resources and require funding decisions between supporting infrastructure investment versus
maintaining front line operations. In addition, the required midyear adjustments to budgeted and
programmed expenses necessary to insure a proper beginning cash balance will become more
difficult and likely affect operating and capital programs.
Unincorporated Area General Fund (111)
MSTD General Fund (111) Milla2e Historv
As a point of reference, the following graph plots this historical MSTD General Fund (111) millage
rate, as well as the projected millage rates for FY 2012 through FY 2014 based on tax neutral (rolled
back) millage rates.
Unincorporated MSTD General Fund (111) Millage Rate History
& Projected Tax Neutral Rates
0.8500
0.8069 0.8069 0.8069 0.8069
0.8000
~ 0.7500
:;
~
0.7000
0.6500
0.6000
FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY] 0 FY] ] FY] 2 FY 13 FY] 4
Results of Unincorporated Area General Fund Analvsis
While the County Manager recommending a millage neutral budget, the Board may be inclined to
consider the implications of services cut and the cost to restore any service levels. Staff will provide
the Board with the millage rate adjustment necessary to restore various service level packages which
are eliminated as part of a millage neutral budget - remembering that a cut of $1,029,600 will be
necessary. The following table offers the respective tax neutral (rolled back) millage rates for FY
2012,2013 and 2014.
23
Packet Page -231-
2/22/2011 Item 10.A.
FY 11 Adopted and Inc. (Dec.) per $100,000
Unincorporated Projected Tax Neutral Taxable Value
General Fund Millage Rates
FY 11 0.7161 $0.00
FY 12 0.7593 $4.32
FY 13 0.7604 $.11
FY 14 0.7421 $(1.83)
FY 2012
The FY 2012 budget projection is based upon a millage neutral position with a projected 3%
decrease in taxable value. Under millage neutral, property taxes will decrease $1,029,600. Property
taxes and the communications services tax represents on average approximately 75% of the operating
revenue within the MSTD General Fund (111). The communications services tax has held relatively
constant and has not been affected by the economic downturn. Strong cash balances have provided a
level of built in protection in recent years. However, this fund is predominately operating in nature
with very little capital or capital transfer expense.
Beginning in FY 2009, the MSTD General Fund (111) absorbed part of the Transportation operating
transfer which had been borne previously by the General Fund (001). State Law and specifically
section 129.02 requires the establishment of a separate County Transportation Trust Fund to "carry
on all work on roads and bridges in the county....". Collier County Transportation operations are
funded primarily within Transportation Operating Fund 1 0 1.
Since inception of the Transportation Division in FY 2001 and continuing through FY 2008,
Transportation Fund 101 has received as its primary revenue source a transfer from General Fund
(001) - not MSTD General Fund (111). The following table depicts budgeted dollars transferred to
support transportation operations from the General Fund and Unincorporated Area General Fund.
General Fund (001) MSTD (Ill) Total
FY08 $18,066,900 $0 $18,066,900
FY09 $9,864,700 $7,693,500 $17,558,200
FY 10 $7,935,400 $8,786,900 $16,722,300
FY 11 $12,971,400 $2,912,800 $15,884,200
For FY 12, a concerted effort will be made to revert this transfer back solely to the General Fund.
Divisional expenses will be reduced on a targeted basis by 3%. Contingency reserves will be
budgeted at 2.5% of operating expense.
24
Packet Page -232-
2/22/2011 Item 10.A.
FY 2013
Assuming that taxable values will be flat in FY 2013, a millage neutral budget coupled with a
reduction in beginning fund balance could result in a potential budget planning deficit of $730,000 as
depicted within the preceding trend analysis. Ensuring a sufficient budgeted beginning fund balance
would likely require elimination of the transfer to support transportation operations which is included
as an appropriation for FY 2013 planning purposes.
FY 2014
Continuation of millage neutral into FY 2014 under a 2.5% increase in taxable value would generate
increased ad valorem revenue - assuming the rolled back rate is not adopted. For planning purposes
and assuming continued decline in beginning budgeted fund balance, a deficit of $1.8 million could
be encountered.
Unincorporated Area General Fund Trend Analvsis
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Revenues
Ad Valorem
Taxes 27,528,600 26,499,000 26,499,000 27,161,500 28,519,600
Communication
Services Tax 5,800,000 5,500,000 5,500,000 5,500,000 5,500,000
Other Sources 4,314,100 4,255,400 4,300,000 4,300,000 4,400,000
Carry forward 6,650,600 6,519,800 5,865,300 5,154,300 4,191,300
Revenue Reserve (1,847,400) (1,778,200) (1,792,000) (1,836,800) (1,928,600)
RTOT 42,445,900 40,996,000 40,372,300 40,279,000 40,682,300
Expenses
Division
Operating 33,682,900 33,703,000 33,800,000 34,645,000 36,300,000
Transfers 5,837,900 5,090,700 5,100,000 5,227,500 5,448,900
Reserves 2,925,100 2,202,300 2,202,300 2,202,300 2,202,300
ETOT 42,445,900 40,996,000 41,102,300 42,074,800 43,951,200
Deficit 0 0 (730,000) (1,795,800) (3,268,900)
25
Packet Page -233-
2/22/2011 Item 10.A.
RESOLUTION NO. 2011-
A RESOLUTION PURSUANT TO SECTION 129.03, FLORIDA STATUTES,
REQUIRING THE FY 12 TENTATIVE BUDGETS OF THE SHERIFF, THE
SUPERVISOR OF ELECTIONS AND THE CLERK TO BE SUBMITTED TO THE
BOARD OF COUNTY COMMISSIONERS BY MAY 1,2011.
WHEREAS, Chapter 129, Florida Statutes, addressing the County annual budget,
provides specifically in Section 129.03, Florida Statutes, that the Board of County
Commissioners may, by resolution, require the tentative budgets of the Sheriff, the Supervisor of
Elections and the Clerk to be submitted by May 1 of each year.
NOW, THEREFORE, BE IT RESOL VED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, pursuant to Section 129.03, Florida
Statutes, that the Sheriff, the Supervisor of Elections and the Clerk of the County of Collier,
Florida, are hereby required to submit their respective tentative budgets for the FY 12 fiscal year
to the Board of County Commissioners by May 1, 2011.
This Resolution shall be effective on its adoption.
This Resolution adopted this 22nd day of February, 2011, after motion, second and
majority vote.
ATTEST:
DWIGHT E. BROCK, Clerk
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By:
Fred Coyle, Chairman
Appr ved as t form and
legal uf 'e y
Jeffre
Coun
Packet Page -234-