Backup Documents 06/20/2019 PresentationCollier County
FY 2020
BCC Budget Policy
March 12, 2019
1
FY 2020 Budget Policy Highlights
1.Key Annual Policies for Consideration and
Board Direction (Policy Document Pages 3-40)
2.Continuing Policies to be Endorsed by
the Board (Policy Document Pages 41-43)
3.Three (3) Year General Fund and
Unincorporated Area General Fund
Analysis (Policy Document Pages 44-54)
2
Suggested Board Budget Guidance Action
After due consideration it is recommended that;
The Board approve all recommended Budget
Policies with any changes dealt with on an
exception basis.
3
Millage Rate Policy
Taxable Value! Budget Planning Around a 4% TV Increase
General Fund Millage Rate of $3.5645 per $1,000 of Taxable Value; Why?
✓Property taxes comprise on average 70% of general governmental
revenues
✓Several FY 20 new funding initiatives including strategic land purchases;
enhanced storm-water maintenance and capital; school safety officer
mandates; newly activated innovations zones; etc.
✓Grow reserves to ensure sufficient cash at year end and provide a buffer
against unexpected expenses or Board policy shifts
✓Protect cash position and fund general governmental capital deferred
while funding Hurricane Irma recovery and waiting for reimbursement.
✓Ensure that dollars are available to cash flow another natural disaster in
2019-2020
✓Continue investment in public safety operations and infrastructure
✓Continued investment in capital infrastructure
✓Operate and maintain new capital facilities constructed
4
Millage Rate Policy
Continue Unincorporated Area General Fund (111) millage rate at
$0.8069 per $1,000 of Taxable Value
✓Allocate $0.0908 (amount increased by) to maintain
constructed median landscaping
✓Equivalent transfer from Fund (111) to storm-water
maintenance and capital programming for projects benefitting
the Unincorporated Area
✓Fund new Innovation Zones
✓Maintain commitment to community parks; code enforcement;
zoning and land use; natural resources; and road maintenance;
✓Continue capital commitment to community parks; and the
transportation network;
Why? Maintain Budget Flexibility; Public
Health, Safety and Welfare Program
Investment; Continuing Infrastructure
Investment; Human Capital Investment and;
Reserves
5
Millage Rate Policy -MSTU’s
MSTU’s –Assuming Increasing Taxable Value
◦With Advisory Board Oversight –Tax Neutral
(Rolled Back Rate –same revenue as last year) to
Millage Neutral
◦No Advisory Board –Rolled Back Rate
◦FY 2018 –12 millage neutral rates; 3 rolled back
rates; 4 Other
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Unincorporated Area Property Tax Impact
(Homestead Property)
7
FY 19
Parcel
Taxable
Value
Example
FY 20
Tax Base
Esc. Proj.
(Cap 3%)
FY 20
Parcel
Taxable
Value
Example
General
Fund
Tax Rate
Unincorp.
Area GF
Tax Rate
FY 19
County GF
and
Unincorp.
GF Tax
Example
FY 20
County GF
and
Unincorp.
GF Tax
Example
Difference
Between
FY19 &
FY20
100,000 1.025 102,500 3.5645 0.8069 437.14 448.07 10.93
125,000 1.025 128,100 3.5645 0.8069 546.43 559.98 13.55
175,000 1.025 179,400 3.5645 0.8069 765.00 784.23 19.23
225,000 1.025 230,600 3.5645 0.8069 983.57 1,008.04 24.48
250,000 1.025 256,300 3.5645 0.8069 1,092.85 1,120.39 27.54
275,000 1.025 281,900 3.5645 0.8069 1,202.14 1,232.30 30.16
300,000 1.025 307,500 3.5645 0.8069 1,311.42 1,344.21 32.79
325,000 1.025 333,100 3.5645 0.8069 1,420.71 1,456.11 35.41
500,000 1.025 512,500 3.5645 0.8069 2,185.70 2,240.34 54.64
600,000 1.025 615,000 3.5645 0.8069 2,622.84 2,688.41 65.57
287,500 1.025 181,940 3.5645 0.8069 775.93 795.33 19.41AVG
Unincorporated Area Property Tax Impact
(Non Homestead Property)
8
FY 19
Parcel
Taxable
Value
Example
FY 20
Tax Base
Esc. Proj.
(Cap 10%)
FY 20
Parcel
Taxable
Value
Example
General
Fund
Tax Rate
Unincorp.
Area GF
Tax Rate
FY 19
County GF
and
Unincorp.
GF Tax
Example
FY 20
County GF
and
Unincorp.
GF Tax
Example
Difference
Between
FY19 &
FY20
100,000 1.040 104,000 3.5645 0.8069 437.14 454.63 17.49
125,000 1.040 130,000 3.5645 0.8069 546.43 568.28 21.86
175,000 1.040 182,000 3.5645 0.8069 765.00 795.59 30.60
225,000 1.040 234,000 3.5645 0.8069 983.57 1,022.91 39.34
250,000 1.040 260,000 3.5645 0.8069 1,092.85 1,136.56 43.71
275,000 1.040 286,000 3.5645 0.8069 1,202.14 1,250.22 48.09
300,000 1.040 312,000 3.5645 0.8069 1,311.42 1,363.88 52.46
325,000 1.040 338,000 3.5645 0.8069 1,420.71 1,477.53 56.83
500,000 1.040 520,000 3.5645 0.8069 2,185.70 2,273.13 87.43
600,000 1.040 624,000 3.5645 0.8069 2,622.84 2,727.75 104.91
287,500 1.040 299,000 3.5645 0.8069 1256.78 1307.05 50.27AVG
FY 2020 New Funding Initiatives/Requirements
General
Fund
Unincorp. Area
General Fund
Golden Gate Golf Course (Debt Service)2,000,000 0
Golden Gate Golf Course Development Planning & Maintenance 1,000,000 0
New (2) Innovation Zones 683,500 350,000
School Safety Officer Program 3,000,000 0
Big Corkscrew Reg Pk –Phase 1 Operations & Maintenance 1,000,000 0
Amateur Sports Complex Operations 2,000,000 0
Marginal Increase in Stormwater Maintenance and Capital Funding 2,500,000 2,500,000
Loss of Communication Services Revenue Sharing Dollars 0 500,000
General Grant Matches including Hurricane Hardening 2,000,000 0
Marco Airport Terminal; Everglades Sea Base; and Immokalee
Airport Runway Rehab –Grant Matches
1,000,000 0
Everglades City Utilities 200,000 0
Collier Area Transit Subsidy Addition 1,000,000 0
Information Tech Hardening & Mgt Software Upgrades 2,000,000 0
Compensation Administration 380,600 152,000
Future Long-Term Asset Maintenance Reserve 5,000,000 0
Total 23,764,100 3,502,000
9
FY 2020 New Funding Initiatives/Requirements
(continued)
General
Fund
Unincorp. Area
General Fund
New Funding Initiatives & Requirements Total 23,764,100 3,502,000
FY 20 Millage Neutral Property Tax Increase 12,587,900 1,768,100
Constitutional Officer Portion of New Property Tax Dollars 6,294,000 0
New Millage Neutral Property Taxes to Fund New Initiatives 6,293,900 1,768,100
Funding Shortfall at Millage Neutral (less Constitutional portion)(17,470,200)(1,733,900)
FY 20 Projected Rolled Back Rate Revenue Loss from Millage
Neutral
(4,866,400)(415,900)
FY 20 Projected Rolled Back Rate Revenue 7,721,500 1,352,200
Constitutional Officer Portion of New Property Tax Dollars @
Rolled Back Rate
3,860,800 0
New Millage Neutral Property Taxes to Fund New Initiatives @
Rolled Back Rate
3,860,700 1,352,200
Funding Shortfall at Potential Rolled Back Rate (less
Constitutional portion)
(19,903,400)(2,149,800)
10
Hurricane Irma Expenses (Recovery Budget) and
Budget Management Process
Fund Category FEMA Revenue
Budgeted
Capital Project
Deferral
Reserves
(Reduced)
Total
Budget
Deferrals
General
Governmental
$15,547,600 $14,834,900 $26,990,700 $57,573,200
Enterprise $7,500,000 $41,557,700 $22,300,000 $71,357,700
Constitutional -
Sheriff
$4,500,000 $4,500,000
Total $23,247,600 $56,392,600 $53,790,700 $133,430,900
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•17 months since Hurricane Irma landfall and the County has spent $105
million through January 2019 with an additional $34 million budgeted in
FY 19 for remaining clean up efforts.
•Reimbursement received totals $27.8 million.
•Approximately 60.0% of actual expenses is connected with community
wide debris removal; 7.6% for debris removal from canals; and the
remaining 32.4% paid for various structural repairs and damage to the
transportation network, parks system, general governmental buildings,
landscaping and water and wastewater systems.
•Budget management will include monitoring all reimbursement proceeds
and directing those proceeds to the appropriate capital accounts where
expenses were incurred and/or reserves.
•Corresponding review of available Hurricane budgeted appropriations
and when appropriate, redirecting budget back to the appropriate capital
accounts and/or reserves.
FY 2019 Adopted Gross Budget
by Fund Type
12
General Fund
25%
General Fund -
Constitutional Officers
13%
Special Revenue Funds
19%
General Gov't Debt
Service Funds
2%
General Gov't Capital
Projects Funds
9%
Enterprise Funds
24%
Internal Service Funds
8%
Permanent (Trust)
Funds
0%
Unincorporated Gen Fd,
Conservation Collier, TDC,
Planning & Development Services,
Road & Bridge, MSTU's, Pelican
Bay, Grants
Water / Sewer;EMS, Solid
Waste, Public Transit
Services (This fund type
includes Operations, W/S
Debt, and Capital)
General Fund Expense Slide
by Category
13
General Fund FY 2020 Planning
Proforma
14
General Fund Cash Planning and
Observations
Year ending cash balance influences budget planning.
FY 18 and FY 19 budget management designed to increase cash.
Still positioning budget to manage Hurricane Irma expenses and
deferred capital projects while waiting for reimbursement
revenue.
First two months cash flow requirements in new FY (October
and November) now totals $71 million and growing.
Reserves growing to protect year ending cash; hedge against
unanticipated expenses and/or policy shifts; safety net in the
event of natural disasters; signal of financial strength; and
important component of budget flexibility strategy.
15
Agency Allocations
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; reductions in property
tax revenue; any state tax reform legislation;
reductions in state shared revenue; or unfunded
mandates.
Conversely –increases in revenue above the
planning threshold will also be allocated based
upon Board direction.
16
Revenue Centric
Enterprise Funds; Internal Service Funds; Special
Revenue Funds and other Operational Funds
which are supported by fees with no reliance
upon ad valorem revenue will be allowed to
establish budgets and conduct operations around
revenue 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.
17
Agency Positions
Expanded position requests limited to Board
approved capital facility openings and/or Board
directed service level adjustments.
All budget to budget expanded requests will be
reviewed by the County Manager and final
recommendations presented as part of the FY
2020 budget workshop in June.
18
Compensation
Appropriate a general wage adjustment (GWA) of $1,200 to all base
salaries which represents an average of 2.2% off the average agency
salary of $55,500 as part of FY 2020 budget planning with the
structure of such adjustment developed by the County Manager and
presented at the June budget workshop.
FY 2020 GWA for the CM Agency valued at $3.0 million
Targeted pay plan maintenance appropriation for FY 2020 equivalent
to .5% or $565,000 is recommended to strengthen certain lower
classification pay grades where a market imbalance exists.
Cost of Living December over December 2018 is 2.9%
19
Health Care
Maintain for the County Manager Agency an
average cost distribution between the Board and
Employees at 80% (Employer) 20% Employee.
For FY 2019, the County experienced no (0%)
health insurance rate increase. Due to continued
exceptional plan performance and plan reserves
which exceed statutory minimums, no (0%)
health insurance rate increase is proposed for FY
2020.
20
Retirement Rates
Adherence to OMB rates published within the
OMB budget instructions.
Rates Established based upon State Guidance.
21
Storm-Water Funding
FY 2019 general governmental storm-water operating and capital funding
totaled $8.2 million.
FY 2020 planning model increases funding by $1,000,000 to $9.2 million.
With the Board decision to not pursue a storm-water utility in FY 2020,
County Manager committed to increasing general governmental
maintenance funding above the planning model consistent with industry
standards with the final amount depending upon receipt of actual taxable
value numbers; overall budget submissions.; and Board Direction.
Eligible replacement and new capital projects will be evaluated with the
potential for special obligation revenue bond financing up to $30 million
in projects in lieu of the current cash and carry methodology.
Legally available non ad-valorem revenue will be used to fund any debt
service which is estimated at approximately $2.7 million annually.
22
Uses of Gas Taxes
Continue Board policy where pledged gas taxes pay debt service on the gas
tax revenue bonds which have final maturities in June 2023 and 2025
respectively; remaining gas tax funds programmed to support construction
and transportation network improvements.
Transfer dollars totaling $9.6 million planned in FY 2020 from the General
Fund to Transportation Capital Fund (310) will provide funding support for
maintenance of the roadway network and other transportation related
expenses.
Transfer dollars from the Unincorporated Area GF planned at $3.5 million in
FY 20 to Transportation Capital Fund (310) augmented by a $2.6 million
direct budget appropriation in this fund for road maintenance.
Gas Taxes grew modestly up 4.1% to $22.7M in FY 18. Forecast FY 19 and
planning FY 20 revenue will be in the $23M range.
$1M in gas taxes freed up annually for transportation network improvements
beginning in FY 2015 due to restructuring of the gas tax debt.
23
General Fund General Capital/Debt
Service and Debt Management
Transfer an equivalent planning sum of up to
.3333 mils for county-wide capital purposes;
paying non-growth related revenue bond debt;
provide impact fee trust fund loans to cover
growth related debt obligations and to fund
much needed general governmental priority
replacement capital projects within the parks
system and general governmental facilities.
24
General Governmental, Enterprise
Fund and Other Reserve Policies
GF –floor; 8% of operating expenses or $32.9 million –Ceiling; 16% of operating expenses or
$65.9 million; current planning reserve for FY 2020 is $50.1 million an increase of $5.6 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 $4.7 million; current planning
reserve for FY 2020 is $2.46 million.
Other general governmental funds that receive transfer revenue from the GF will have reserves
sized to cover the first month of operations or until the first GF transfer is scheduled.
Reserve policy for Pelican Bay Services 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 reserves will range between $17.4 and $34.7 million
while working capital resources will total roughly $26.2 million or 68 days of reserves.
Over a three to five year period, establish a solid waste restricted reserve of ten (10) percent
of the FY 2019 budgeted charges or $4.4 million.
Targeted reserves within the GMD building permit fund (113) and planning fund (131) set at 18
months and 24 months of total budget appropriations respectively.
25
Financing New and Replacement Capital
Infrastructure
Finance Committee is engaged and continually reviewing all appropriate
capital financing options.
FY 20 budget planning does not program issuance of debt as part of the
adopted budget.
Any new 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, the appropriate type of debt and existing market
conditions.
Issuance of debt in the areas financed would supplement the cash and carry
approach and funding would be redirected from the respective program
areas to fund debt service.
Cost to finance always a concern, but County’s credit rating will reduce the
interest expense.
Long term debt means that future users of capital facilities and infrastructure
and not just current users will participate in paying for facilities.
26
School Resource Officer Funding
Program functional in some County school for decades.
County Commission through the Sheriff's Agency has funded a program
providing coverage in many schools for years.
SB 7026 passed in 2018
Legal responsibility to comply with SB 7026, including funding is the
responsibility of the Collier County School District
Current program costs are approximately $7.0 million annually and since
enactment of the Statute, the Sheriff has a presence in every County public
school facility and charter school in compliance with the current State law.
Additional recurring funding of $3,000,000 expected over next four (4)
years.
Continue discussions with all stakeholders at the conclusion of the
legislative session with the goal of developing a recurring funding formula
that splits equally the cost of the program between the Collier County
School District and Collier County for Board consideration.
27
Schedule
Resolution requiring FY 2020 budget submittals by the
Sheriff; Supervisor of Elections and Clerk of Courts on May
1st.
FY 2020 June Budget Workshop Dates –Thursday June 20th
and if necessary Friday June 21th
Adopt Tentative Maximum FY 2020 Millage Rates on Tuesday
July 9, 2019
Board Receives Tentative FY 2020 Budget Document on
Friday July 12, 2019
First FY 2020 Public Budget Hearing on Thursday
September 5th with the Final FY 2020 Budget Hearing on
Thursday September 19th
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