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Backup Documents 06/24/2010 Budget BCC BUDGET MEETING BACKUP DOCUMENTS JUNE 24, 2010 FY 2011 Proposed Budget ~ . '" . Collier County, Florida NOTICE OF PUBLIC MEETING Notice is hereby given that the Board of County Commissioners of Collier County will conduct Budget Workshops on Thursday, June 24, 2010 and Friday, June 25, 2010 if necessary at 9:00 a.m. Workshops will be held in the Boardroom, 3'd Floor, W. Harmon Turner Building, Collier County Government Center, 3301 East Tamiami Trail, Naples, Florida to hear the following: COLLIER COUNTY GOVERNMENT BOARD OF COUNTY COMMISSIONERS FY 2011 BUDGET WORKSHOP SCHEDULE Thursday, June 24, 2010 9:00 a.m.: General Overview Courts and Related Agencies (State Attorney and Public Defender) Public Services Administrative Services Growth Management Public Utilities Debt Service Management Offices (Pelican Bay) County Attorney BCC (Community Redevelopment Agencies, Airport) 1:00 p.m.: Constitutional Officers: Elections Sheriff Clerk of Courts Other Constitutional Officers requesting to address the BCC Public Comment Collier County FY 20 I I BCC Budget Workshop Proposed FY 20 II Budget Highlights · Net County Budget = $843,395,500 · Represents a 9.7% reduction from FY 20 I 0 ($90,587,800). o Operating - (5.3%) o Capital- (19.7%) · Continues trend of lower County budgets over last 3 years. !~=--I 6/23/2010 1 Total County Budget Reduced by $465 million in last 3 years. Collier County Net Budget $1.400 .~..~.----- ~a--~-~-- - -----~--...~-~---~ $1,189 $1 ,200 ~--_.- $1,000 ~- $800 - . c ~ $600 ~- f $400 - $200 ~ $0 2007 2008 2009 2010 2011 I~~ Proposed FY 20 II Budget Highlights · No proposed increase in property tax rates. · No new service charges or user fees. · No significant reductions in front line services. · No planned facility closures or reductions in operating hours. I~ ' __1tr Cownt;y I 6/23/2010 2 No planned layoffs or furloughs · Funded FTE Positions in County Manager's Agency down 4.2% from FY 20 I O. · Funded FY 20 II Position count reduced 17.8% from FY 2009 authorized levels (359 fewer FTE) · No expanded position requests in County Manager's Agency in FY 20 II. ~Cou"",1 FY 20 II Position Count Summary , , , I-Y 09 (Fr,~,:(od) (F~,:,:,Od) (F~,:(:(ld) (f-~J:(:(\J) I (F~,:,;,I<l) D,v,,,,,,, Authut",d Adu,',,] Fon< ,,( Cu",,,{ E~,~"d(d Tot..1 xeh", ~ CC),.,,-,,,",,c;,;'d~';';,~,) '_~'J",".~.'l_.,:.." .~u~,~,~~~ _'," ,,_, )'JIlQnt~~yTriislglflCM,c_,. mmokaJee eRA ~'rVilthQf" '.,.JJ.OO..,,_-, 14.00 ",00 3.00 .11.00" .0. 23.00 .4.17 5.00,; 25.00 3.00 O. CBB Fund.d Positions_Trans j8_Fy~~;a',~~~([,~,,-. nlltFundedP....ltlola-CDBG ~i'~~deci.ftl$~ip~;~:' rantFund.dPo$ltion5-Svvfor 2,.()(L 1295 2.01L .2.1)1)., 12.?5. 14.85 2.00" 1<l.85 200 8.05 2.15 eniors 13_15 10.95 10.95 9.80 9.80 -10. ~_;~1~'t~lft~~~~~'i;~"'!ifiy~~';':f~~~J;-;'f:t:~t~!~i~mi~~H4#~~I~ft~1~Ji~:r_ I~=-~yl 6/23/2010 3 Annual Debt Service fully funded & compliant with BCC Debt Management Policy . Total annual general governmental debt service payments equal $56.1 million. 13.00% Ratio of General Governmental Debt to Bondable Revenues FY OS_~~~dited) - FY 10 (estimated) 9.75% · Represents 9% of total bondable general governmental revenues, well within 13% cap. 3.25% FY05 FY06 FrO? FYOS FY09 FiIO em l~=-~yi General Fund Budget Highlights · Proposed FY 20 II General Fund Budget = General Fund ~ Total Budget ~.$.313,60 I ,900 -3~~.!r.'_",;,:';' PI~,W~~~i~n ;t;~S2EL~,:~:.:...__ $400 $350 $300 $250~ $200r $150 $100 I $50" $01-- PI' 07 FY 08 FY09 FY 10 FY II ~YCou...r:j"i; 6/23/2010 4 FY 20 II represents the fourth year of taxable value reductions which began in FY 2008. Historical Changes in County-Wide General Fund (00 I) Taxable Values Historical Changes in MSTD Unincorporated General Fund (III) Taxable Values 30.0% T25.4% 25.0% 20.0% i ~~~5.~....n_..~............~ '~ F=...". ~= --- 2008 2009 2010 ~=-"<YI Taxable Value History . Tax Year General Fund Taxable Values MSTD Umncorporated General Fund Taxable Values . 2007 (FY 08) $82,542,090,227 $53,397,231,747 2008 (FY 09) $78,662,966,910 (4.7%) $50,860,023,424 (4.8%) 2009 (FY 10) $69,976,749,096 (11.0%) $44,314,951.279 (12.8%) 2010 (FY II) $61,502,523,957 (12.1%) $38,329,371,464 (13.5%) (Preliminary) Variance $21,039,566,270 (25.5%) $15,067,860,283 (28.2%) FY08-FYII ~=-ol 6/23/2010 5 Millage Rate History Property Tax Rates - General Fund Property Tax: Rates - MSTD Unincorporated General Fund 4.0000 15000 3.0000 2.5000 2.0000 +--- 1.5000 t- 1.00001 0.5000 j 0.0000 - FY07 FYOB FY09 FYIO FYII 3.5645 J.5645 09000 ' --------- --------------- . ;0.8069 0.8000 -'- 0.7000 0.6000 0.5000 0.1000 0.3000 -t- 0.2000 -~ 0.1000 - 0.0000 ~- FYO? FYOS FY09 FY 10 FY It -TT469--j:1469 - I~,=-",yl No proposed increase in General Fund & Unincorporated MSTD General Fund property tax rates. . Average reduction of 12.1 % in County portion of tax bill for Non-Homestead & Commercial Properties . Homestead property owners are likely to see an average increase in their County portion of the tax bill of 2.7% in accordance with the State recapture provision pursuant to Florida Statute ~=-"'YI 193.155 6/23/2010 6 Breakdown of Typical FY 20 II Unincorporated Area Residential Tax Bill v.,", Ap,';.,,' O'b/' County MSTU's 9.0'll: IndependentFi.... Control District 9.7'll: Mos'luitoControl 0.7% SFWMD/SCBB 3.9% School8oard 45.9% County Ge"eral Fund 13.4% I~=-"<YI :3 Breakdown of Typical FY 20 II Unincorporated Area Residential Tax Bill 28.8% ~=-"<YI 6/23/2010 7 6/23/2010 General Fund Expenditure reductions in FY 20 I 0 Reductions in expenses Road Capital Fund 313 Storm Water Capital Fund 325 CountyWide Capital Fund 301 $15,646,700 $3,000,000 $5,019,300 [s~, Cou",;~1 FY 20 I I General Fund expenditures reduced due to reduction in taxable values and resulting loss in ad valorem revenue Reductions in expenses (FY 20 II) in the General Fund 00 I Amount Operating Department budgets $5,123.400 $4,819,800 $4,260,400 $6,160,100 $7,910,400 Transfer to Transportation Capital Fund 313 Transfer to Storm Water Capital Fund 324/325 Transfer to General Government Capital/Debt Fund 30 I Transfer to Constitutional Officers FiscalYear Draw on Beginning FY 2011 Fund Balance $3,682,800 I ~l' C<>unlOY i p, Unincorporated Area General Fund Budget Highlights · Proposed FY 20 I 1 Budget = o $42,369, 100 o 16.7% Reduction from FY 20 I 0 · Reductions in MSTD Unincorporated General Fund included: o Cut operating expenses 5% o Shifted funding ofTransportation Operations to the General Fund (00 I) ~=->><YI Ad Valorem Support for Road & Bridge Operations Fund (10 I ) Transfers to Road & Bridge I I Fund 101 ! FY 2010 FY 2011 % General Fund (00 I) Unincorporated Area MSTD General Fund (III) $7,935,400 $12,971,400 l~=-"",I 6/23/2010 9 FY 20 I I Revenues Sources General Fund (00 I ) StateRevenueShuingl 7,048,500 \ 2% \ \ I \ \ SalesTu: 25,400,000 .. Intergovernm"ntal Revenues 4,927,200 1% Fine.,Permitli,________ Chug... ______ 9,693,700 -~ " lnter...t& Mi.c.___ 1,58S,OOO 0.5% Transfersfrom ConsitutionaJOffk",n 6,150,000 2% InterlundTranders ~dP..ymenu 8,760,900 " Carryfotwud 44,31B,50{) ,.. !~=-"Q'I General Fund Revenues I Ad Valorem FY 06 _ FYII . Ad valorem revenues are down $31,956,800 in FY 2011. . FY 20 II Sales Tax Collections will be slightly higher than FY 20 I O. . FY 20 I I State Shared Revenues are estimated to be 3% above 20 I 0 activity. ~=-YI ,YOti FY07 FYOa ,CY09 FYIO FYII i 6/23/2010 10 Other Revenues ~ Gas Tax Revenues FY 05 - FY II $21,--- ___H_.__ FY 20 II Gas Tax estimates are $18 . ~ $15 j $12 flat to FY 2010. f $9 .. $3 $0 ~ -, . Impact Fees continue to drop. FYOSFY06FY07FY08FY09FYIOFYII Since FY 2007 (peak),lmpact Fee Revenues have dropped Impact Fee Revenues FY 06. FY II ""~ 82%. l $~:: ' -.----.__ -.- . FY 20 I 0 Interest Income is substantially below FY 2009 $-.- ...~ FY06 FY 07 FYOS FY09 FY 10 FY II activity and will remain low in FY2011. ~T=-"<Y I Areas of Concern · Millage neutral budget achieved with heavy reliance on reductions in nonrecurring capital expenditures. · Similar approach will not be available in comparable scope and dollar volume in FY 2012 if taxable values continue to decline and the BCC maintains millage neutral guidance. ~=--I 6/23/2010 11 General Fund Reserves · Still below budget policy level of 2.5% of operating expenses. · Trending in the right direction. 8.97% e 1.94% l~=-yl Deferral of fixed asset preventive maintenance and equipment replacement · Deferrals began 3 years ago. . Manageable in FY 20 I I, but prolonged deferrals likely to lead to significant breakdowns and costly repairs over time. . Need to monitor closely. 1~=-n'Yl 6/23/2010 12 Base salary adjustments and merit bonuses deferred for second consecutive year · Cost of living increases were not provided in FY 20 I 0 nor proposed in FY 20 I I. · Need to be in position to compete/retain best talent when the market turns. ~=-"",I 6/23/2010 13