Agenda 02/26/2008 Item #10E
Agenda Item No.1 OE
February 26, 2008
Page 1 of 22
EXECUTIVE SUMMARY
Recommendation to Adopt FY 09 Budget Policy
OBJECTIVE: That the Board of County Commissioners adopt policies to be used in developing the
Collier County Government budget for fiscal year 2009.
CONSIDERATIONS: In order for staff to begin preparation of the FY 2009 budget, direction is needed
from the Board of County Commissioners on major policy issues.
Attached to this Executive Summary is a listing of pertinent policy issues that will affect preparation of
the FY 2009 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 09 policies prior to this Board presentation.
The budget policy document is broken down into three distinct elements. The first element consists of
budget policies proposed in FY 09 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 ofa three-year analysis of the General Fund (001) and the Unincorporated Area General
Fund MSTD (111).
The Board needs to establish June budget workshop dates. Tentative dates are Thursday, June 19, 2008
_ (Board Agency) and Friday, June 20, 2008 (Constitutional Officers) 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 24-27, 2008 in Miami.
For informational purposes, adoption of the proposed millage rates is scheduled for Tuesday, July 22,
2008. The Board is required by Florida Statutes to provide the Property Appraiser with the proposed
millage rates by August 4, 2008 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 09 budget.
The School Board has tentatively scheduled September 16, 2008 for their final budget hearing.
Recommended dates for the Collier County budget public hearings are September 4,2008 (Thursday) and
September 18,2008 (Thursday).
FISCAL IMP ACT: The adopted policies will serve as the framework for the development of all budget
and ad valorem taxation issues for fiscal year 2009.
GROWTH MANAGEMENT IMP ACT: There is no Growth Management impact.
RECOMMENDATIONS: That the Board of County Commissioners 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,
2008 deadline for the Supervisor of Elections and the Sheriffs Office budget submittals.
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Prepared by: Michael Smykowski, OMB Director
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Page I of 1
Agenda Item No.1 OE
February 26, 2008
Page 2 of 22
--- COLLIER COUNTY
BOARO OF COUNTY COMMISSIONERS
Item Number: 10E
Item Summary: Recommendation to adopt FY09 Budget Policy. (John Yonkosky, Director, Office of
Management and Budget)
Meeting Date: 2/26/200890000 AM
Approved By
OMB Coordinator Applications Analyst Date
Administrative Services Information Technology 21201200812:59 PM
Approved By
James V. Mudd County Manager Date
Board of County County Manager's Office
Commissioners 2120120082:59 PM
file://C:\AgendaTest\Export\ 10 l-February%2026,%202008\ 1 0.%20COUNTY%20MANAG... 2/20/2008
~'-~~-',-"'- --.-.-....... _'.'_0___" ..~---
- -.-.
Agenda Item NO.1 OE
February 26,2008
FY 09 Budget Policies Page 3 of 22
General Fund Milla!!e Rate
The General Fund millage rate will be limited to the rolled back millage rate less the
estimated $S.OM loss in revenue associated with the additional homestead exemption and the
$25,000 business exemption for tangible personal property (approved as part of the January
29, 200S Constitutional Amendment #1).
The tax reform legislation adopted in 2007 provides the Board of County Commissioners with
the latitude to levy the rolled back millage rate plus an adjustment for personal income growth
with a simple majority vote. Staff is recommending a lower millage rate more consistent with
the wishes of Collier County voters (exemplified by the approval of Constitutional
Amendment #1).
General Fund Bud!!et Allocations
That the Board continues the budget policy limiting General Fund agency budget
appropriations to no more than their respective percentages (pie allocation delineated below)
in the adopted FY 04 budget, with Agencies limited to 2% less than their respective adopted
FY OS budgets.
All Agencies will share proportionately in any budget reductions associated with any:
. new tax reform initiatives adopted,
. any reductions in state shared revenues,
. any new unfunded mandates.
%of
FY04
AQ9nCY BudQ91
BCC/Co At!. 1.5%
County Manager 27.3%
Courts/Related 2.3%
Airport Authority 0.3%
Road Program Subsidy 5.2%
DebUCapital Subsidy 6.0%
Reser.es 7.7%
Clerk of Courts' 3.4%
Sheriff" 39.6%
Property Appraiser 2.1%
Tax Collector 3.8%
Supe.,;sor of Elections 0.9%
Total 100.0%
.Oerk adjusted for Article V is 2.2%.
"'''' Sheriff allocation includes $1.7 million debt service
forthe Special Operations facility.
Agenda Item NO.1 OE
February 26, 2008
Page 4 of 22
- Millal!e Tarl!ets for the Unincorporated Area General Fund
With a simple majority vote in FY 09, the Board of County Commissioners has the latitude to levy
the rolled back millage rate, plus an inflationary adjustment based on the growth in Florida per capita
personal income. However, Collier County voters overwhelmingly supported Constitutional
Amendment #1.
Recommendation: (I) Develop an Unincorporated Area General Fund budget for FY 09 at the
rolled back millage rate less Constitutional Amendment #1 ramifications.
Millal!e Tar!!ets for Collier County MSTU's/MSTD's
With a simple majority vote in FY 09, the Board of County Commissioners has the latitude to levy
the rolled back millage rate, plus an inflationary adjustment based on the growth in Florida per capita
personal income. However, Collier County voters overwhelmingly supported Constitutional
Amendment # I.
Recommendation: (I) Develop MSTUIMSTD budgets in FY 09 at the respective rolled back
millage rates.
Limitations on Expanded Positions to Maximize Or!!anizational Efficiencies
To maximize organizational efficiencies, a limitation of no net new positions in the County
Manager's Agency will be implemented in FY 09. This recognizes the fact that in service
organizations such as local governments, the primary expense is for salaries and associated fringe
benefits and will continue to force economies within the County Manager's Agency through more
effective use of existing resources.
Continuation of the hiring freeze on select vacancies is also recommended; this will require a
reallocation of existing personnel to staff existing facilities.
Health Care Prol!ram Cost Sharinl!
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
Sheriffs 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 at double---digit levels. The County's medical plan is similarly
impacted by these rising costs. However, management and employees continue to work together to
hold down the impact of future increases by restructuring benefit levels and initiating further cost
shifting measures. In addition, staff continues to negotiate with providers for discounted physician
and hospital fees and promote corporate wellness and preventive health care initiatives.
Recommendation: In FY 09 the average cost distribution of health insurance premiums between the
.. Board of County Commissioners and employees will remain 80% (employer) and 20% (employee).
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Agenda Item NO.1 OE
February 26, 2008
It is still recommended that the 80% emplover share and 20% emolovee share be uniform acrts~!i'I15 of 22
agencies. inclusive of the Constitutional Officers. This policy treats all county employees equally in
terms of cost sharing for health insurance premiums.
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 employee8
available.
2. Supports continuous training, professional development and enhanced career mobility.
3. Recognizes and rewards individual and team achievement.
Recommendation: Budget 4.2% of budgeted Regular Salaries in FY 09 for compensation
administration. The recommended salary adjustment provides only for a cost-of-living adjustment.
The merit awards program and pay plan maintenance provisions are not recommended for FY 09 due
to increasing budget constraints. (See chart below).
Program Comoonent FY05 FY06 FY07 FY08 FY09
Cost of Living * 2.10% 3.90% 4.70% 4.20% 4.20%
Awards Pro<rran1 1.50% 1.50% 1.50% 1.50% 0.00%
Pav Plan Maintenance 0.25% 0.25% 0.25% 0.25% 0.00%
Total 3.85% 5.65% 6.45% 5.85% 4.20%
"Note: Cost of living adjustments are based on the annual Miami-Ft. Lauderdale SMSA (all
urban consumers).
Stormwater Management Capital Funding
The Board previously adopted a policy with funding equivalent to 0.1500 mills annually. The
purpose of this dedicated funding source is to address long-standing capital project needs in the
Stormwater 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: Provide dedicated General Fund dollars to Stormwater Management capital
projects with funding set at 0.1500 mills annually, as per County Resolution 2005-115. (attached)
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Agenda Item NO.1 OE
February 26, 2008
ScheduliDl~ Issues Page 6 of 22
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Decisions Re uired Staff Recommended Date s
Establish Budget submission dates for May 1, 2008
the Sheriff and the Supervisor of
Elections.
June Budget Workshops (BCC Agency/Courts) Thursday, June 19,2008
(Constitutional Officers/wrap-up) Friday, June 20, 2008
FAC conference is June 24-June 28,2008 in Miami.
Jul 22, 2008 Tuesda
September 4, 2008 (Thursday)
Se tember 18, 2008 Thursda
Notes: The School Board has first priority in establishing public hearing dates. The School Board's
final budget hearing is tentatively scheduled for September 16,2008. The Commission chambers are
reserved for the tentative dates for Collier County Government budget public hearings.
Recommendation: Approve the attached resolution establishing May 1,2008 budget submittal dates
for the Sheriff and the Supervisor of elections.
Comparative Budl!et Data
Provide comparative budget data using FY 08 adopted budget data (cost and employees per capita
based on unincorporated area population) by Agency with Budget Submittals for Similar Sized
.- Florida Counties.
Recommended counties for comparison purposes include:
. Sarasota County
. Lee County
. Charlotte County
. Marion County
. Manatee County
Reserves
. A reserve for contingency is typically budgeted in all operating funds, with the exception of
the Constitutional Officer funds. Reserves for the Constitutional Officer funds shall be
appropriated within the County General Fund. The reserve for contingencies in the General
Fund will be 2.5%.
Accrued Salarv Savinl!s
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 will be
calculated on FY 09 Regular Salaries and budgeted within each cost center containing ten
.- (10) or more FTE's.
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Agenda Item NO.1 OE
February 26, 2008
Existing Budget Policies for FY 09 Page 7 of 22
Budget Policies Affecting Operating Budgets
Financial Mana!!emenUFinancial Bud!!et Development
. OMB staff will prepare 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 made in FY 08.
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 of75%, with the exception of group health to which a confidence interval
is not applicable.
Proposed Uses of Gas Taxes
. Based on the Board's policy decisions relative to the Annual Update and Inventory Report
(AUIR) regarding Transportation, all available gas tax revenue will be used to support the
Roads Construction Capital Improvement Program.
Reserves
. The General Fund reserve for cash flow is $8,000,000. In the MSTD General Fund, the
recommended reserve for cash flow is $250,000.
Contract A!!encv Fundin!!
. The Board of County Commissioners will not fund any non-mandated social service agencies.
External Operatin!! and Capital Proiect Fundin!! Requests
. External operating and capital budget requests should only be considered within the
framework of the budget process. Requests for funding received outside the boundaries of the
budget process shall be considered in the subsequent year's budget cycle.
Median Maintenance
. Recognizing Unincorporated Area General Fund MSTD (Ill) as the appropriate, dedicated
funding source for median beautification maintenance costs.
Agenda Item NO.1 OE
February 26, 2008
Page 8 of 22
Revenue Policies
Carryforward
. All funds that are unexpended and unencumbered at the end of the fiscal year will be
appropriated as carryforward revenue in the following year.
. In the event that sufficient cash is not available to meet General Fund operating needs, staff
will make arrangements to borrow against pooled cash.
. General Fund balance is required to meet operating needs for October and November of a
given fiscal year, prior to the receipt of any significant ad valorem tax revenue (ad valorem
taxes represent 66.58% of the total FY 08 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. For Florida coastal communities, a minimum carry forward balance of 10% of
total General Fund expenditures was recommended. It was noted that bond ratings would
improve as this percentage increased.
Recommendation: The recommended level of fund balance in the General Fund should be a
minimum of 10% of actual general fund expenditures, with a maximum fund balance level of
15%. If fund balance exceeds the 15% level, the surplus above the 15% level should be used
to fund non-recurring costs, as fund balance is a non-recurring revenue source.
Maximization of Impact Fees
. Collier County will assess the maximum impact fees allowed by law, as supported by impact
fee studies,
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 08. The basis of these charges is a
detailed indirect cost allocation plan prepared by a consultant.
Enterprise Fund Payment 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 value of property, plant, and equipment.
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Agenda Item NO.1 OE
February 26, 2008
Debt Administration Policies Page 9 of 22
Debt Service
. Any capital projects financed by borrowing money shall limit the repayment period to the
useful life of the asset.
Interim Financinl!
. 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 net present value savings generated by a proposed refinancing shall be a minimum of 5%.
As a general rule, savings generated by refinancing shall be utilized to reduce future debt
service payments.
Budget Policies Affecting Capital Projects
Ad Valorem Capital Fundinl!
. Continuation of a fixed General Fund millage dedicated to capital projects. The
recommended rate is 0.3333 mills. (See history below). This provides some built-in
protection against loss of purchasing power due to construction inflation.
General Fund Capital Millage History
(FY 91 - FY 08)
1.2000..
I 1.0000
1.0000 j
0.8000 1
I
" I
'" '
JJ1 0.6000 i
i 0.5474 0.56lJ3
0.4000 c 0.3333 0.3333 0.3333
0.2000 ; 0.3333 0.3333 0.3333 0.3333
! 0.2354
0.0000 I-~ . .----,-------.---------,--------- ----r- -- --- T-..~"." -,"........--,
~~~~~~~~~~~~~~~~~~
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Fiscal Year
Capital Improvement Prol!ram (CIPl Policies
Agenda Item No.1 OE
February 26, 2008
Page 10 of 22
- . On an annual basis, the County shall prepare and adopt a five-year Capital Improvement
Element (CrE) consistent with the requirements of the Growth Management Plan. The annual
budget will include sufficient appropriations to fund capital projects identified in the first year
of the CIE.
. 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 erE projects will be based on projects included in the
adopted master plans.
. Non-CIE capital projects funded by General Fund ad valorem taxes will be reviewed annually
on a case-by-case basis.
. The respective departments during the budget process will identify annual operating expenses
associated with capital projects.
. 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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Agenda I\em I~o. 1 DC:
February 26. 2008
Page 11 of 22
Three-Year Budget Projections
Ad Valorem Tax Funds
(FY 09 - FY 11)
The following 3-year budget projections are for the General Fund (001) and the MSTD General Fund
(lll).
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 millage rates from FY 09 through FY 11, based on the assumptions in this analysis.
General Fund Millage History
FY 96 - FY 11
4.7 . ---.. .....- ...----.-.--..- -- ----.-..-. --.-. '--
~5 ,
I
4.3
,
I
4.1 I
3.8772 3.8772 3.8772 3.8772 3.8772 ,
3.9 I-- 241
3.7 3.6813 .. .' . 3.5790
37 - "_0;1---'_
. '. 35510 ~. I
M'II .4889 . 3.5058 3.5028 .. 3.4495
I age 3.5 .; - - ,I--- -,~ - i 3.4154'
~."< ~ ~ . 3.1469 :
33-'~-~-~ - ~ ~ ~
. 1 3.1282
31-~- -. '- -01--- -:I---~- . __
. ,,~ ''; :::. ',,; - : ",,; , I
2.9 I--- - ~ . - 1---' - 1--' - 1---' - I--- - "~ - I--- -;
27" ~-'I---_-t-- _WI--,_.I--- -1---:-1--- -I--- ~
2.5 I I I . :
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Fiscal Year
Millal!e Rates
Based on the assumptions used in this analysis, the FY 09 General Fund projected millage rate is as
follows:
Net Inc. (Dec.) per
FY 08 Adopted FY 09 Projected $100,000
Fund Millal!e Rates Milla2e Rates Taxable Value
General Fund 3.1469 3.1282 ($1.87)
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Agenda Item NO.1 OE
February 26, 2008
Page 12 of 22
- The projected millage rate assumes a 2.5% decrease in the valuation of existing property and 2%
increase in valuation associated with new construction in FY 09. The Property Appraiser will
provide preliminary taxable value estimates on June 1,2008. Actual and assumed increases in
County taxable values were as follows:
:~-_.- -.-.. -..-...- I
i Historical Increases in Collier County Taxable Value
i (FY 97 - FY 11) i
,
I 30.00% ,
I 27.50% I
I 25.00% 25.40% I
22.50% 20&;1% 19.91% ,
I
, 20.00% 18.30% I
17.50% 16.40%
, 14.34% 13.55%
15.00% -
12.50% ..... 11.50%
9AO% i
10.00% ,
7.50% i6.~% 7,:!2'10 - 7.20% i
!
. ,
5.00% j . I
"'. i
,.
2.50% I ~.. I
';"..'d,
0.00% 4. r- I
I FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
L._n_ _ ___ ____.____.~._______ -_'0""__- -~---_.. -
-
FY 09 Expense Assumptions
. Assumes FY 09 budgets at 98% of FY 08 adopted level.
. Allocation for compensation administration - 4.20%.
. 4% attrition rate on regular salaries assumed in the County Manager's Agency.
. Capital projects funding equals 0.3333 mills annually.
. Stormwater capital funding equivalent to 0.1500 mills.
. General Fund support ofroad construction - $24,000,000
. Increase in payment to Naples CRA - $200,000.
. Increased General Fund support of EMS - $1,949,400.
. Increased support of road maintenance - $ 741,400.
. Mandates to be absorbed within 98% ofFY 08 adopted budget
. Bailiffs- $133,846.
. Youth Relations Deputies (new schools) - $ 267,692.
. Facility expenses - $1,228,600
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Agenda Item No. 10E
Februarv 26. 2008
Page 13 of 22
Revenue AssumDtions
. Ad valorem tax revenue forecast is 96.65% of actual taxes levied.
. Sales tax revenue increased 3.0% annually from FY 08 forecast level. .
. State Revenue Sharing increases 3.5% annually.
. Constitutional Officer tumbacks were based on an average of historical receipts.
. No gas taxes allocated to roadway maintenance.
Other Funds/Factors ImDactinl! the General Fund
Individual analyses of the Road and Bridge Fund, and the EMS Fund, and the road construction
program were undertaken to determine the relative impact on the General Fund.
Road and Bridl!e Fund
Gas taxes are now used exclusively for road construction, resulting in a General Fund subsidy of road
maintenance programs. Road maintenance operations will be increasingly supported by sales tax
revenue previously available in the General Fund.
In FY 98, 100% of available gas tax revenue was allocated to road construction. As such, the
required General Fund support of road maintenance activities was $5.9 million.
During the period from FY 99 through FY 01, the required General Fund support was minimized, as
the Board allocated $1,000,000 in FY 99, $2,000,000 in FY 00, and $3,000,000 in FY 01 in gas taxes
for road maintenance. Roadway maintenance is an appropriate use of gas tax revenue. However, it is
also recognized that a major road construction campaign is underway with limited available
revenues.
As gas taxes are cornmitted to support transportation bonds, no gas taxes will be allocated to roadway
maintenance in FY 09. The historical and projected General Fund support required is as follows:
Sales Tax Required for Road and Bridge
FY 98 . FY 11
25000 --~---
18,808
20000 17275 18,067
..
'E 15,993 '
~ 15000 15113
,g
!::.
.
~ 10000
.
~
~
5000
0
98 99 00 01 02 03 04 05 06 07 08 09 10 11
Fiscal Year
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Agenda Item NO.1 OE
February 26, 2008
Page 14 of 22
- EMS Fund
EMS is another fund that impacts significantly on the General Fund. The analysis assumes I
additional unit in FY 11. Historical and projected General Fund support of EMS operations by fiscal
year is as follows;
General Fund Support of EMS
FY98-FY11
18000 Ha__,_ --------
16000 15,261 15,058
b 14000
8: _ 12000
= .
~ 110000
;r, S 8000
-.c
~ t:. 6000
c
.
'" 4000
2000
0
98 99 00 01 02 03 04 05 06 07 08 09 10 11
Fiscal Year
The increase in the General Fund transfer reflects revised ambulance fee collections based on actual
run data experienced in FY 08.
Road Construction Prol!ram
The Board approved road financing plan hinges on using growth in taxable value and maintaining the
General Fund millage rate to provide growth dollars to meet the road funding commitments.
In the adopted FY 03 budget, there was a $5,900,000 General Fund transfer to the road construction
program. General Fund support of the road construction program in FY 04 amounted to $13,699,300
and the FY 05 level of support was $20,298,800. FY 06 support of $38,790,900 included using the
$14,066,800 General Fund reserve for road construction.
Based on the Board approved AUIR, the road-financing plan assumes the following General Fund
support: $24,000,000 in FY 09 and annually thereafter. This commitment is depicted in the
following graph.
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Agenda Item NO.1 DE
February 26, 2008
15 of 22
General Fund Support of Road Construction
FY 03 . FY 11
----_.-._--- .------ .---- ------ -'--'
40000
..
"C 35000
0
~
5 30000
.<:
t.
t: 25000
0
Il:
~ 20000
."
~ 15000
i!!
~ 10000
c!l
5000
0
03 04 05 06 07 06 09 10 11
Fiscal Year
FYIO
The projected General Fund millage rate is 3.4154 or $341.54 per $100,000 of taxable value. This
represents an increase 0[$28.72 per $100,000 of taxable value [rom the projected FY 09 level. This
would also exceed the allowable millage rate that may be approved with a simple majority vote of the
Board of County Commissioners (rolled back rate adjusted for growth in Florida per capita income)
that is estimated at 3.1738 mills.
In addition to annual inflationary cost increases, the following items were included in the FY 10
budget analysis:
. Sheriff Impacts-
. Bailiffs and Youth Relations Deputies. $401,500
. Capital projects funding equals 0.3333 mills annually.
. Stormwater capital projects funding equivalent to 0.1500 mills annually.
. Increased General Fund support of Road & Bridge - $1,515,400.
. Payment to Naples CRA - $200,000.
. Allocated insurance - $400,000.
. Operational impacts of new facilities - $1,090,700.
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Agenda Item NO.1 OE
February 26, 2008
FYll Page 16 of 22
~
The projected General Fund millage rate is 3.4519 or $345.19 per $100,000 of taxable value. This
represents an increase of$3.66 from the FY 10 projected level per $100,000 of taxable value. This
would also exceed the allowable millage rate that may be approved with a simple majority vote of the
Board of County Commissioners (rolled back rate adjusted for growth in Florida per capita income)
that is estimated at 3.2200 mills.
In addition to the inflationary costs of existing services, the following items were included in the FY
II budget analysis:
. Bailiffs and Youth relations Deputies - $429,000.
. Capital projects funding equals 0.3333 mills annually
. Stormwater capital projects funding equivalent to 0.1500 mills annually.
. Increased General Fund support of EMS - $1,651,850.
. Increased General Fund support of Road & Bridge - $880,900.
. Payment to Naples CRA - $200,000.
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Agenda Item No.1 OE
February 26, 2008
Page 17 of 22
Unincorporated Area General Fund (111)
Results of Un in corD orated Area General Fund Analvsis
In this analysis, the following expense assumptions were used: forecast 96% of budgeted
appropriations for operating divisions and 100% of budgeted transfers. Assumptions were as follows
in terms of increasing taxable value in the unincorporated area: FY 09 - 2%, FY 10 - 5%, and FY II
-5%.
The implications for future year millage rates required to fund the MSTD General Fund (III)
budgets developed in this analysis are as follows:
FY 08 Adopted and Inc. (Dec.) per
Unincorporated Projected Millage $100,000
General Fund Rates Taxable Value
FY08 0.6149 $0.00
FY09 0.6091 ($1.03)
FY 10 0.6005 ($0.861
FY II 0.6891 $8.86
FY09
The FY 09 budget projection includes annual inflationary cost increase of existing services and a
$305,700 in the indirect cost allocation payment to the General Fund. The analysis projects a
millage rate of 0.6091 in FY 09 or $60.91 per $100,000 of taxable value. This is a decrease of
$1.03 per $100,000 of taxable value, attributable to the policy limiting FY 09 budgets to 98% of the
adopted FY 08 level.
FY 10
In FY 10, the projected millage rate is 0.6005 or $60.05 per $100,000 of taxable value; this is a
decrease of $0.86 per $100,000 of taxable value. The analysis assumes inflationary cost increases
(4% Personal Services and 4% Operating Expenses/Capital Outlay) for existing services.
FY II
In FY II, the projected millage rate is 0.6891 or $68.91 per $100,000 of taxable value; this is an
increase of$8.86 per $100,000 of taxable value. In addition to annual inflationary cost increases, the
analysis includes a $1,122,600 increase in capital landscaping projects. This would also exceed the
allowable millage rate that may be approved with a simple majority vote of the Board of County
Commissioners (rolled back rate adjusted for growth (assumes 5%) in Florida per capita income) that
is estimated at 0.6330 mills.
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Agenda Item NO.1 OE
RESOLUTION NO. OS- February 26,2008
Page 18 of 22
A RESOLUTION PURUSANT TO SECTION 129.03, FLORIDA STATUrES,
- REQUIRING THE FY 09 TENTATIVE BUDGETS OF THE SHERIFF AND THE
SUPERVISOR OF ELECTIONS TO BE SUBMI'ITED TO THE BOARD OF
COUNTY COMMISSIONERS BY MAY 1,2008.
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 and the
Supervisor of Elections to be submitted by May 1 of each year.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, pursuant to Section t29.03,
Florida Statutes, that the Sheriff and the Supervisor of Elections of the County of Collier,
Florida, are hereby required to submit their respective tentative budgets for the FY 09 fiscal
year to the Board of County Commissioners by May 1, 2008.
This Resolution shall be effective upon its adoption.
This Resolution adopted this 26th day of February, 2008. after,~otion, second and
majority vote favoring same.
ATTEST: BOARD OF COUNTY COMMISSIONERS
DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA
-- By:
TOM HENNING, CHAIRMAN
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Agenda Item 'No. 10E
February 26\2008
Page 19 of 22
RESOLUTION NO. 2005- ~
RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA, DIRECTING THAT AD
VALOREM REVENUES (GENERATED FROM .15 MILLS) SHALL
BE DEDICATED TO COLLIER COUNTY'S STORMWATER
UTILITY FOR FISCAL YEAR 2006 AND THE NEXT NINETEEN
FISCAL YEARS
WHEREAS, In Collier County Ordinance No. 91-27, ("The Collier County Stormwater
Utility Ordinance"), the BCC concluded that it was necessary to undertake a
stormwater management program ("Program") and thereby created a "Stormwater
Utility" to set aside funds to pay lor the Program; and
WHEREAS, the Stormwater Utility is an enterprise fund to operate, maintain and
improve the County's stormwater management and capital improvements thereto; and
WHEREAS, Ordinance No. 91-27 established the "Stormwater Utility Enterprise Fund"
to account for all revenues, expenditures, assets, earnings 01 the utility, in which all
revenues from the slormwater utility shall be deposited, and that such monies shall, In
order of priority, (I) pay the costs of operations and maintenance, (ii) debt service, and
(iii) extension and replacement of the system; and
WHEREAS, depositing these ad valorem tax revenues as directed herein will dedicate
to the Stormwater Utility anticipated monies of at leest $7 million lor fiscal year 2006
and for each of the County's next nineteen fiscal years; and
WHEREAS, depositing these ad valorem tax revenues (the emounts determined by
applying .15 mills of these ad valorem taxes) into the "Stormwater Capital
Improvement Fund - Fund 325" Is an internal dedication of these funds that does not
reduce or increase the total ad valorem tax revenues to be collected by Collier County;
and
WHEREAS, to the greatest extent allowed by law, this Resolution irrevocably
dedicates these tax revenues to tha County's Stormwater Utility, including with regard
to acquiring grant monies, issuing bonds, and implementation of the Stormwater
Capital Improvement Program.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
1. All of the County's applicable officers and employees are hereby directed that
the dollar amounts of the County's ad valorem tax revenues received in Fiscal
Year 2006 and for the next nineteen liscal years (resulting Irom applying In
each liscal year a millage rate of .15 mills), shall be dedicated to the County's
Stormwater Utility by depositing these revenues into "Fund 325 _ The
Stormwater Capital Improvement Fund."
2. This Resolution shall take effect immediately upon adoption.
ADOPTED this ~ day of March 2005 after motion, second and majority vote
favoring adoption.
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BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA
. By: ~W. (~
~~_;. . .. to Ch.'....n'. FRED W. COYLE, C an-
. ..u.t ..ff.llt.... 001'1.
Approved lIS to form and legal sufficiency:
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Thomas C, Pal er, Assistant County Attorney
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Agenda Item NO.1 OE
February 26, 2008
COLLIER COUNTY GOVERNMENT Page 20 of 22
PRODUCTIVITY COMMITTEE
3301 East Tamiami Trail
Naples, FL 34112
February 7, 2008
Board of County Commissioners
3301 Tamiami Trail East
Naples, Florida 34112
Subject: Proposed FY 09 Budget Policy Items
Dear Commissioners,
Per standing policy, on February 6,2008 County Manager Mr. Jim Mudd reviewed the
proposed budget guidelines for all County agencies with the Productivity Committee. The
guidelines he proposes are a dramatic change from previous years, calling for a 2%
reduction from '08 actual expenditures. The reduction of2% in actual spending is a
"stretch" goal because it comes in the face of anticipated increases in the cost of fuel,
power, insurance and many other costs of doing County business; meanwhile the
population base being served by all County government entities grows as well. The
.- guidelines will require a rigorous review by all budgeting entities and some difficult
decisions later by the BCC for the County Manager's departments. Nevertheless, the
rigorous controls are appropriate within the context of anticipated revenue curtailments,
an uncertain outlook for the regional and local economy and voter expectations fueled by
Amendment One and the rhetoric from our state legislators. Therefore, the Productivity
Committee unanimously endorsed the proposed guidelines. In addition, we encourage the
Board of County Commissioners to consider the additional comments on individual
budget guidelines cited below.
Millage Rates
Mr. Mudd and Mr. Doug Gorham (a Director in the Property Appraiser's agency)
provided us an excellent overview of the impact on ad valorem revenues resulting from a
confluence of forces; 2007 legislated millage reductions, Amendment One, impact of
existing Save Our Homes requirements and possible softening of appraised property
values. We understand that many homesteaded property owners will experience a slight
increase in their taxes due to the 3% adjustment; many will be unpleasantly surprised by
this anomaly. Further, Mr. Mudd informed us that the Board of County Commissioners
can, at its volition, apply the state inflation adjustment of approximately 5% and it would
not need an extra-ordinary vote of the BCC. Although application of the 5% "rollup"
adjustment would significantly lighten the budgeting and management challenges facing
Mr. Mudd and other County officials, he will urge the BCC to not apply the adjustment.
We concur that with Mr. Mudd's assessment that the overwhelming majority by which
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Agenda Item No.1 OE
COLLIER COUNTY GOVERNMENT February 26, 2008
Page 21 of 22
PRODUCTIVITY COMMITTEE
3301 East Tamiami Trail
Naples, FL 34112
Amendment One passed in Collier County represents a clear mandate from the taxpayers;
a mandate that should be respected by the Board. It has been argued by various officials
and agencies in many jurisdictions that the voters don't yet comprehend that tax
reductions are not without consequences; budget cuts ultimately must result in service
cuts which will displease them. However, the only way to test that premise is to live
within the spirit of the message the voters have sent.
Limitations on Expanded Position Count
The hiring freeze, imminent early retirement buyout and reductions in force planned in
Development Services due to declining permit fees are appropriate steps this fiscal year.
We concur with continuation ofthe hiring freeze for FY '08. Ifthe current income
constraints persist in future years, other "right sizing" options should be considered as a
long term strategy. However, the hiring freeze policy is viable in the short term.
Comparative Budget Data
In previous reviews of individual department budgets the Productivity Committee has
strongly reaffirmed the County Manager's use of benchmarking data as a budget tool. We
would hope that all County agencies avail themselves to the wealth of comparative data
available, recognizing that the comparative data may be overstatcd slightly as many
counties are in the midst of engineering their own reductions in headcount.
Health Care Cost Sharing
For the past three years the Productivity Committee has urged that all County agencies
move to an 80/20 sharing of the costs of employee medical insurance. The 80%/20% was
previously achieved for the departments under the purview of the BCC and will be
maintained.
Compensation Administration
The total 4.2% total budget for salary increases is the lowest since FY '05 and contains
no funding for the Awards Program and Pay Plan increases. The Committee discussed
whether even smaller increases should considered given the low voluntary turnover and
weak local job market. However, we are cognizant that the reduced headcount means
that fewer and fewer employees will be taking on bigger tasks without specific
recognition of the fact through added compensation. Ultimately we concurred with Mr.
Mudd's approach of using the appraisal system to weed out the weaker performers and
compensating those remaining as fairly as possible under the circumstances.
Agenda Item No.1 OE
February 26, 2008
COLLIER COUNTY GOVERNMENT Page 22 of 22
PRODUCTIVITY COMMITTEE
~ 3301 East Tamiami Trail
Naples, FL 34112
Attrition
Personnel projections should be developed based on estimated Sept. 30, 2008 on-board
personnel, and then 4% attrition factor should be applied.
Prioritization in the Budget Process
For some years the revenue stream and population growth afforded and required
enhancement of County programs, services and facilities. As budgets are brought forward
during the coming months Mr. Mudd and his department heads will need to assess what
activities can be curtailed or eliminated entirely considering the marginal impact of the
program or service; changes in mission, overlap and duplication of activities and impact
on the public good. Capital projects will come under the microscope as well. If the
Productivity Committee can provide assistance in that process we will be open to
requests for our involvement.
Ultimately of course the BCC will be faced with the tough choices of what programs,
services and capital projects to cut and by how much. Likewise you will face the
inevitable voter WTath; a service considered expendable by one taxpayer may be
~ considered a divine right by another (e.g., one citizen's ATV park is another citizen's
library hours.) Your communication to the public takes on new importance to shape their
expectations and enhance their awareness that tax reductions inevitably entail a shrinking
government.
We compliment Mr. Mudd on the budget guidelines that he developed and the clarity
with which he presented them to us. We thank you for the opportunity to participate in
this review and stand ready to assist further in this challenging budget cycle should the
need arise.
Sincerely,
~ ~(f9
Larry Baytos
Chairman, Productivity Committee
cc: Jim Mudd
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