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Agenda 11/18/2008 Item #10I Agenda Item No. 101 November 18, 2008 Page 1 of 4 EXECUTIVE SUMMARY Recommend the Board of County Commissioners (Board) provide direction to staff concerning the use of excess turn back from the Constitutional Officers. OBJECTIVE: To obtain direction from the Board on the allocation of excess turn back from the Constitutional Officers. In providing this direction, the Board should first recognize a reduction in final taxable value and identified but unfunded needs in the current fiscal year. This leaves a net amount of $7,401,567 for allocation by the Board. To determine the allocation of the $7,401,567, the Board should consider the funding removed from the FY 2008 Budget to meet the millage neutral target for the County-wide General Fund (00l) and the Unincorporated Area General Fund (111) and a list of expenses previously discussed by the Board including expenses identified during the AUIR meeting on November 3, 2008. CONSIDERATIONS: Excess turn back from the Constitutional Officers is budgeted each year. This turn back is statutorily required to be given to the Board in the month following the close of the fiscal year in which the turn back is budgeted. The actual turn back for the FY 2008 budget year, just finished on September 30,2008, totaled $10,566,584 as identified below. Name Gencral Fund Excess Fees FY 2008 FY 2008 FY 2008 FY 2008 Budget Forecast Actual Difference Tax Collector Property Appraiser Supervisor of Elections Sheriff Clerk: Excess Fees Interest Income $ 5,500,000 $ 7,000,000 $ 8,960,227 $ 1,960,227 $ 200,000 $ 200,000 $ 849,766 $ 649,766 $ 200,000 $ 280,000 $ 322,020 $ 42,020 $ - $ $ 1,030,555 $ 1,030,555 $ - $ $ - $ $ 17,500,000 $ 17,500,000 $ 24,384,016 $ 6,884,016 $ 23,400,000 $ 24,980,000 $ 35,546,584 $ 10,566,584 The proposed budget submitted to the Board for the FY 2009 Budget workshops in June 2008 was in accordance with the Board's budget policy adopted in February 2008. The Board's guidance during the budget workshops was for the County-wide General Fund (001) and thc Unincorporated Area General Fund (111) to be millage neutral. The millage neutral target required a total reduction in expenditures of $13,020,000. The following table identifies funds available for allocation and identifies areas for allocation. .- Agenda Item No. 101 November 18, 2008 Page 2 of 4 Excess Constitutional Officer Turn Backs $ Taxable Value Decrease (001 & 11 I) (final values on Oct I) $ Turn Back left after replacing lost taxes in the FY 2008 budget $ Non-budgeted expenses that shoutd be funded: Accumulated $2 Fee for Court Technology $ Repay FEMA for insurance reimbursements $ Increase in Unemployment Compensation $ Turn Back available for Board to allocate after replacing lost tax revenue and funding non-budgeted expenses $ 10,566,584 (1,820,000) 8,746,584 (241,303) (788,714) (315,000) 7,401,567 Appropriations removed to meet millage neutral target and Board discussion items: Landscape Capital funding (112) $ 1,403,000 'AUlR - Capital reinstatement $ 1,507,883 Landscape .Maintenance funding $ I, I 40,900 'A UlR - Landscape Maintenance partial year reinstatement $ 260, t 00 Lime rock Road funding Resurfacing funding EDC incentive funding 'South Regional Library books CA T - Eliminate low-ridership routes 'Two ambulances (fully manned with 12 positions) -David Lawrence Center (see attached letter received by the Board) $ 2,910,883 $ 1 ,40 1.000 $ 1,339,500 $ 1,500,000 $ 891,800 $ 364,300 $ 415,000 $ 942,876 $ 300,000 $ 10,065,359 $ (2,663,792) -New items added per Board discussions Difference Also worth noting: The County purchased bond insurance to secure debt service payments for the Series 2002 Capital Improvement Revenue Bonds (secured by sales taxes),. In addition, the County purchased a reserve account surety bond for deposit to the required reserve account instead of funding the reserve account with cash from additional borrowed funds. Pursuant to the bond resolution for the bonds, upon certain downgrade events of the insurer providing the reserve account surety bond the County is required to cash fund the reserve account. As a result ofthc current financial market crisis and the downgrading of the insurer, the County is required to cash fund the reserve account with approximately $7,000,000 by March, 2009. This would consume the available turn back in its entirety. FISCAL IMPACT: Allocation of Turn Back in the amount of$7,40l,567. GROWTH MANAGEMENT IMPACT: There is no growth Management impact associated with this request. RECOMMENDA nON: Board consideration and direction to staff of the allocation of FY 2008 excess fees. Authorize all necessary budget amendments. PREPARED BY: John A. Yonkosky, Director OMB 2 Page 1 of I Agenda Item No. 101 November 18, 2008 Page 3 of 4 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 101 Meeting Date: This item to be heard at 1 :00 p.m. and after Item 128. Recommend the Board of County Commissioners (Board) provide direction to staff concerning the use of excess turn back from the Constitutional Officers. (John Yonkosky, Office of Management and Budget Director) 11/18/2008 90000 AM Approved By OMS Coordinator Applications Analyst Date Administrative Services Information Technology 11/5/20082:56 PM Approved By John A. Yonkosky Director of the Office of Management Date County Manager's Office Office of Management & Budget 11/5/20084:27 PM Approved By James V. Mudd Board of County Commissioners County Manager Date County Manager's Office 11/5/200811 :37 AM file://C:\AgendaTest\Export\116-November%2018,%202008\10.%20COUNTY%20MAN... 11/12/2008 Agenda Item No!'~g~ 1 of 1 November 18. 2008 Page 4 of 4 Yonkosky.J Subject: FW: Request for County Support From: Dave Schimmel [mailto:OAVE@dlcmhc,com] Sent: Thursday, OctDber 30, 2008 9: 51 AM To: mudd-i Cc: ColettaJim; henning_t; fiala_d; CoyleFred; HalasFrank Subject: Request for County Support Dear Jim, As you recall several months ago at budget time, I made a request to be placed on the unfunded tist in anticipation that the County may have additional revenue later in the year. I requested $300,000 to replace adult crisis stabilization unit money that had been cut by the State of Florida. In the last three months David Lawrence Center has sustained the following reductions: . $53,000 in county support . $300,000 State CSU reduction . $241,000 Children's Mental Health . $87,000 State Substance Abuse . $576,000 Medicaid We have adjusted our budget accordingly and eliminated over 20 positions, many in the Administrative area. The current reductions total a tittle over one million dollars. In addition, we anticipate a 4% reduction in our State of Florida contract which will equal $280,000 which has been requested by the Governor as a 4% hold back. In addition, we anticipate a $287,000 i. our children's CSU effective June of 2009. As you can see tike many other social service agencies, these are difficult times but it is imperative that we maintain our emergency and acute care services. We are respectfully requesting any support we can receive from the county to help us through this difficult time. Sincerely, David C. Schimmel, CEO CONFIDENTIALITY NOTICE: This email and any attachments may contain confidential and/or protected information fDr the exclusive use of the designated recipient's name above. If you are not the intended recipient, you are hereby notified that you have received this communication in error and that any review, disclosure, distribution or copying of it, or its attachments is prohibited. If you have received this communication in error, please immediately notify Sender by telephone at (239) 455- 8500 or forward the message immediately to info@dlcmhc.com and then destroy this email and any attachments. 11/5/2008