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Backup Documents 03/12/2024 Item #11D PresentationCollier County FY 2025 Budget Policy Collier County Board of County Commissioners – March 12, 2024 What are we doing today? 2 Requested Action FY 2025 Budget Schedule Priority Based Budgeting Approach FY 2024 Budget Overview FY 2025 Budget Policy Highlights Recommendation Requested Action3 To Adopt the FY 2025 Budget Policy Establish June budget workshop dates and September public hearing dates Adopt a Resolution establishing a deadline of May 1, 2024, for budget submittals by the Supervisor of Elections, the Sheriff’s Office, and the Clerk. 4 FY 2024/2025 Collier County Budget Timeline AugJul OctSep Nov 6/20/24 and 6/21/24 FY 2025 Priority- Based Budgeting Workshop 7/1/24 Certification of Taxable Property Values by Property Appraiser (DR 420 Forms) Starts FY 25 TRIM Process 7/12/24 Tentative FY 25 Budget by Fund to Board with Change Log 7/9/24 Board Adopts Proposed Millage Rates as the Maximum Property Tax Rates to be Levied in FY 25 On or about 8/4/24 (Within 35 days from Certification) County Provides Property Appraiser with Millage Rates, Rolled Back Rates, Info for 1st Public Hearing On or before 8/24/24 (55 days from Certificatio n) Property Appraiser Mails TRIM Notices 9/5/24 1st Public Budget Hearing / Adopt Proposed Millage Rates and Tentative FY 25 Budget 9/19/24 2nd and Final Public Hearing, Adopt Millage Rates and FY 25 Budget (Resolution) 10/6/24 Submit TRIM Compliance Package to DORValue Adj. Board Petition Filing Deadline Usually 2nd Friday of September 6/14/24 - FY 25 Budget Workshop Document to Board Adopt FY 25 Budget Policy 3/12/24 Feb Strategic Plan, AUIR, Budget Policy Workshop 2/6/24 Priority-Based Budgeting Approach5 6 FY 2024 Budget Overview7 8 FY 2024 Net Adopted Budget $1,995,177,500 General Government Serv.; $198,843,000 ; 10% Public Safety; $359,256,900 ; 18% Physical Environment; $379,095,700 ; 19%Transportation; $183,856,500 ; 9% Human Services & Economic Environment; $37,658,800 ; 2% Culture & Recreation; $104,830,500 ; 5% Debt Service; $66,748,600 ; 3% Reserves; $664,887,500 ; 34% Constitutional Officers; Facilities Mgt; Risk Mgt, Fleet, IT, Courts, Admin Serv. Sheriff; EMS; Code Enforcement; Permitting/Zoning Water/Sewer District; Solid Waste; Stormwater; Beach Renourishment & Dredging Parks, Library, Museums; TDC Beaches Comm & Human Serv; Eco Devel; Domestic Animal Ctrl; Public Health; CRA's 9 FY 2024 General Fund (0001) Expense by Category Total $687,385,600 Health Safety Welfare $385,876,700 56.1% Debt Service $8,812,900 1.3%Mandates $86,797,600 12.6% Gen Gov'tal $130,443,600 30% General Governmental Health, Safety, Welfare Roads Sheriff Stormwater Mental Health Parks & Rec.Health Dept. County Atty Emergency Svcs County Manager State Attorney Budget/Mgmt/Grants Public Defender Corp Comp & Internal Review Judges Domestic Animal Svcs Mandates Library BCC Museum Dept of Juv Justice Veteran Services Medicaid Payment to State General Administration Facilities (Utilities) Social Servs/Seniors Reg. Planning Council Affordable Housing CRAs/Eco Dev & Innov Zones Extension Svcs Beach Parking Sports Complex Supervisor of Elections Facilities Mgmt Property Appraiser Capital Projects Tax Collector Real Estate Svcs Clerk of Courts Info Technology Courts Contribution C-ARP Grants Debt Service Employee Svcs Special Obligation Bond Purchasing Dept Admins Transp. Disadvant. CAT Econ. Dev/Impact Fees Com Planning & Resiliency 10 FY 2024 Unincorporated General Fund (1011) Expense by Category Total $83,740,800 Health, Safety, Welfare $14,674,700 17.5% Mandates $10,289,800 12.3% General Governmental $58,776,300 70.2% 11 Ad Valorem 47% Gas/Sales Tax 6% Infrastructure Sales Tax 3%Permits/ Assessments/Fines 7% Intergov'tal Revenues 1% Service Charges 29% Impact Fees 5% Bond Proceeds/ Interest 2% Sources of Current County Government Operating Revenues all Funds Source Budget Ad Valorem 554,728,300$ Gas/Sales Tax 74,603,100$ Infrastructure Sales Tax 30,313,400$ Permits/ Assessments/Fines 78,272,200$ Intergov'tal Revenues 17,532,100$ Service Charges 346,953,400$ Impact Fees 59,868,000$ Bond Proceeds/ Interest 21,638,900$ Total Revenue 1,183,909,400$ 12 Ad Valorem Property Tax by Fund General Fund 80% MSTU's 2% Conservation Collier 6% Pollution Control 1% Unincorporated Area General Fund 11% Fund Budget General Fund 444,334,400$ MSTU's 11,766,700$ Conservation Collier 31,089,400$ Pollution Control 3,647,000$ Unincorporated Area General Fund 63,890,800$ Total Ad Valorem 554,728,300$ FY 2025 Budget Policy Highlights 13 Operating Control Lines Mission Critical Program Enhancements Millage Rate Policy Conservation Collier Employee Compensation Health Insurance Capital Allocations Reserves General Fund and Unincorporated Area General Fund Operating Control Lines 14 Recommended Policy: Establish a control line of 3.5% for operational increases at the department level. This means that department operations for FY 2025, which rely on the General Fund and Unincorporated Area General Fund for dollars, will be restricted to a 3.5% increase for current programs, services, and operating transfers. Subject to Prioritization Recommendation Aligned with Responsible Governance Strategic Objective “Safeguard Taxpayer Money by Promoting Fiscal Stewardship and Sound Budget Oversight” Mission Critical Program Enhancement (Expanded) Requests 15 Recommended Policy: Expanded requests will be limited to Board-approved capital facility openings, priority- based service level adjustments, and/or historically strained mission critical imperatives with final County Manager recommendations presented at the June budget workshop Subject to Prioritization Recommendation Aligned with Responsible Governance Strategic Objective “Safeguard Taxpayer Money by Promoting Fiscal Stewardship and Sound Budget Oversight” Millage Rate (General Fund and Unincorporated Area General Fund) 16 Recommended Budget Policy: Develop a General Fund (0001) and Unincorporated Area General Fund (1011) operating budget utilizing a priority-based budgeting approach. Recommended millage rates will be calculated utilizing preliminary taxable value based on prioritized budget requirements within established control lines. Program adjustments or funding realignment may result in changes to the millage rate. Aligned with Responsible Governance Strategic Objective “Safeguard Taxpayer Money by Promoting Fiscal Stewardship and Sound Budget Oversight” MSTU Millage 17 Recommended Budget Policy: For FY 2025, it is suggested that MSTU’s be limited to a millage rate sufficient to cover current budget year operations and planned annual capital program allocations. Program adjustments or funding realignment may result in changes to the millage rate. Recommendation Aligned with Responsible Governance Strategic Objective “Safeguard Taxpayer Money by Promoting Fiscal Stewardship and Sound Budget Oversight” Conservation Collier 18 Recommended Budget Policy: Planned FY 2025 allocations will be consistent with the approved Conservation Collier Ordinance. Recommendation Aligned with Responsible Governance Strategic Objective “Safeguard Taxpayer Money by Promoting Fiscal Stewardship and Sound Budget Oversight” Employee Compensation19 Recommended Budget Policy: Appropriate dollars equivalent to a 3% base wage increase to all classifications plus 1.5% to implement a merit-based incentive program and a 0.5% pay plan maintenance component to strengthen certain targeted classification pay grades where market balance exists.  Total cost for the County Manager’s Agency is approximately $7.5 million for FY 2025. Recommendation Aligned with Board Strategic Priority “Human Resources Recruitment and Retention to Position Collier County as an Employer of Choice” Employee Health Insurance20 Recommended Budget Policy: For FY 2025, a 7% rate increase to the existing rate structure is recommended. This rate increase will result in an employer portion funding increase of approximately $2 million for the County Manager’s Agency. Bi-monthly employee cost increases will be between $4 and $7 for employees with single coverage and $10 and $16 for employees with family coverage. Recommendation Aligned with Quality of Place Strategic Objective “Support Access to Health, Wellness, and Human Services” Planned General Fund Capital Allocations 21 Category General Fund Non- Growth Debt Investment for Impact Fee Funds - Debt County Wide Capital Transfer for Other Capital Transfer to Parks Transfer to Road Network Transfer to Storm-Water Capital Long Term Replacement Capital Reserve Total FY 2025 $8,189,100 $1,285,700 $38,972,600 $2,210,000 $3,150,000 $9,660,000 $2,940,000 $5,000,000 $71,407,400 Recommendation Aligned with Infrastructure and Asset Management Strategic Objective “Optimize the Useful Life of All Public Infrastructure and Resources through Proper Planning and Preventative Maintenance” Planned Unincorporated Area General Fund Capital Allocations 22 Recommendation Aligned with Infrastructure and Asset Management Strategic Objective “Optimize the Useful Life of All Public Infrastructure and Resources through Proper Planning and Preventative Maintenance” Unincorporated Area General Fund Transfer to Parks Transfer to Roads Transfer to Storm-Water Capital Total FY 2025 $4,095,000 $14,280,000 $5,700,000 $24,075,000 General Governmental Reserves23 General Fund - floor; 8% of operating revenues or $44.9 million – Ceiling; 16% of operating revenues or $89.9 million for FY 2025; FY 2024 budgeted reserve is $72.2 million. Unincorporated Area General Fund – Target 8.3% of operating expenses or approximately one month of expenses approximately $6.6 million. FY 2024 budgeted reserve is $ 6.8 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/UAGF transfer is scheduled. Recommendation Aligned with Responsible Governance Strategic Objective “Safeguard Taxpayer Money by Promoting Fiscal Stewardship and Sound Budget Oversight” Enterprise Fund Reserves24 CCWSD user fee reserves established minimally between 5% and 15% of revenues with working capital resources set between 45 days and 90 days. Solid Waste reserves set between 45 days and 90 days based on FY 2024 operating expenses. Continue re-establishment of a solid waste restricted reserve for disaster response of ten (10) percent of the budgeted charges. Targeted reserves within the GMD building permit fund (113) and planning fund (131) set at 12 months and 24 months of total budget appropriations, respectively. Recommendation Aligned with Responsible Governance Strategic Objective “Safeguard Taxpayer Money by Promoting Fiscal Stewardship and Sound Budget Oversight” County-Wide Capital Reserve 25 Established in 2020 FY2023 Approved Transfers to FEMA Fund (1813) to Cashflow Hurricane IAN Recover Totaled $35 Million Current FY2024 Balance $22.5 Million FY 2025 Recommended Contribution $5 Million County-Wide Capital Reserve History FY2020 FY2021 FY2022 FY2023 FY2024 Recommended FY2025 Adopted Budget 5,000,000$ 9,000,000$ 17,500,000$ 35,800,000$ 22,467,300$ 27,467,300$ YOY Variance 5,000,000$ 4,000,000$ 8,500,000$ 18,300,000$ (13,332,700)$ 5,000,000$ Recommendation Aligned with Infrastructure and Asset Management and Responsible Governance Strategic Objectives “Prepare for the Impacts of Natural Disasters on our Critical Infrastructure and Natural Resources” “Optimize the Useful Life of All Public Infrastructure and Resources through Proper Planning and Preventative Maintenance” “Safeguard Taxpayer Money by Promoting Fiscal Stewardship and Sound Budget Oversight” Recommendation26 To Adopt the FY 2025 Budget Policy, establish June budget workshop dates and September public hearing dates, and adopt a Resolution establishing a deadline of May 1, 2024, for budget submittals by the Supervisor of Elections, the Sheriff’s Office, and the Clerk. Thank You 27