Agenda 04/08/2014 Item # 11B4/8/2014 11. B.
EXECUTIVE SUMMARY
Recommendation to accept the Conservation Collier Ten -Year Financial Plan and associated
financial management recommendations for the Conservation Collier Program.
OBJECTIVE: To receive Board acceptance of the updated Conservation Collier Ten -Year
Financial Plan.
CONSIDERATIONS: On March 11, 2014, item I IA, staff presented a number of Conservation
Collier matters including an update to the Ten -Year Financial Plan. The Board requested staff to
bring back the plan in a format that more clearly communicates the Panther Habitat Unit (PHU)
Program currently in the approval process.
The Panther Habitat Unit (PHU) Program involves the establishment of PHU credits at Caracara
and Pepper Ranch and selling those credits to County Departments so they can meet permit
obligations relative to panther habitat mitigation. Financial estimates for the PHU Program are
provided as part of the overall financial plan and separately as a PHU Program marginal cost
analysis. Through the ten years in the planning window the estimated marginal cost of the PHU
program, including costs incurred prior to FY14, is $403,300. The planned sales of PHUs to the
Solid Waste Department and other County Departments total $1.6M. Interest earnings on PHU
escrow funds are estimated at $589,800 and are used to fund ongoing PHU preserve
maintenance. Based on current estimates the PHU Program is financially beneficial to the
overall Conservation Collier Program.
The Financial Plan presented as part of this Executive Summary includes minor updates relative
to the March presentation but no material changes in expense assumptions. Interest assumptions
are consistent with the March item. Planned reductions, discussed below, reduce planned
expenditures, from spending plans contemplated prior to March 2014, by approximately $1.6M.
The concept of delay /cut means the expenditure will not be made unless new revenue becomes
available or other planned expenditures are reduced allowing the adding back of expenditures
without negatively affecting fund balance.
Delay /cut planned expenditures for public access amenities:
• Rivers Road Preserve - Delay /cut planned parking lot, ADA trails, picnic table, benches,
and signage. Savings of $81,000
• Railhead Scrub Preserve — Delay /cut planned parking lot, signs, kiosk, entry gates,
benches, and tables. Savings of $127,680
• Nancy Payton Preserve — Delay /cut parking lot, ADA trails, signage, and kiosk. Savings
of $71,500
Other proposed cost reductions:
• "Trued up" projected costs for initial exotic removal for Rivers Road Preserve based on
quotes recently received. Savings of $173,390.
• "Trued up" projected costs for exotic removal at Pepper Ranch based on quotes recently
received. Savings of $279,000.
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4/8/2014 11.B.
• Reduce staffing in the Conservation Collier Fund by two (2) FTEs and transfer Pepper
Ranch ranger responsibilities to the Parks & Recreation Department. These actions will
be implemented by 2019 and result in ten year savings of $722,800. This will leave the
Conservation Collier Program with two (2) full time Environmental Specialists in 2019.
• Assign existing staff to conduct follow -up exotic herbicide applications for preserves
under ten acres instead of contracting out. Savings of $45,000
• Eliminate planned management spending at McIlvane Marsh. Savings of $120,000.
Conservation Collier Trust Fund Interest Earnings:
The County's Investment Policy ensures appropriate stewardship over public funds. The Clerk
of Courts is responsible for the investment of County Funds pursuant to the Investment Policy
established by the Board of County Commissioners.
FISCAL IMPACT: The subject Financial Plan includes expense side management adjustments,
described above, as well as revenue adjustments for PHU sales and interest earnings. These
adjustments include proposed cuts in previously planned amenities as well as personnel and
maintenance costs. Interest earnings on Conservation Collier funds and proceeds from the sale
of PHU credits to County Departments provide program revenue. Interest earnings are based on
rates of return ranging from '/2 of 1 percent to 2 percent.
The financial health of the Conservation Collier program can be measured by the fund balance
trend. The first five years of the plan envisions a planned fund balance reduction of $2.9M for
capital improvements and $1.2M for land restoration activities. The fund balance at the end of
five years is estimated to be $32.9M. The following five years of the plan represent a transition
to steady state maintenance and reduced personnel and maintenance costs. These changes along
with some improvement in interest earnings and the addition of Pepper Ranch PHU sales
proceeds make the second five years slightly better than break -even with fund balance remaining
steady at $33M.
Current estimates for PHU Program escrow requirements envision the $33M ending fund
balance divided between a general Conservation Collier Program fund balance of approximately
$27.3M and a PHU Program escrow balance of approximately $5.7M. Earnings from both
sources are intended to fund management and maintenance activities with the earnings from
PHU escrow monies eannarked for Caracara and Pepper Ranch.
It is suggested that with respect to the Conservation Collier Program that policies be
implemented to protect the Program's cash position. These policies could include establishing a
minimum find balance and linking operating expenses to program revenue in addition to the
annual update to the program's Financial Plan.
LEGAL CONSIDERATIONS: This item has been approved for form and legality and requires
a majority vote for Board approval. - JAB
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated
with this item.
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4/8/2014 113.
RECOMMENDATION:
• Institute reductions to personnel, operating and amenity expenditures as proposed.
• In addition to annual monitoring and updates, maintain a three -year financial planning
window to ensure adopted budgets and spending practices remain consistent with long -
range financial targets.
• Evaluate planned amenity and capital improvements for impact on overall financial plan.
• Consider transitioning planned expenditure for the Greenway Bridge to acquisition of and
related improvements to the final Gordon River Greenway land parcel.
• Establish a minimum combined Conservation Collier program fund balance of $32M
with compliance provided by linking program expenditures to program revenue.
• That the Board provides any direction to the Clerk of Courts regarding the investment
approach and /or distribution of investment earning dollars.
Prepared by: Alexandra Sulecki, Principal Environmental Specialist, Conservation Collier,
Parks and Recreation Department
Attachments: Conservation Collier Ten -Year Financial Plan Update dated 3 -31 -14
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4/8/2014 11. B.
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.11.B.
Item Summary: Recommendation to accept the Conservation Collier Ten -Year Financial
Plan and associated financial management recommendations for the Conservation Collier
Program. (Steve Carnell, Public Services Administrator)
Meeting Date: 4/8/2014
Prepared By
Name: BrockMaryJo
Title: Executive Secretary to County Manager, County Managers Office
4/2/2014 9:20:41 AM
Submitted by
Title: Executive Secretary to County Manager, County Managers Office
Name: BrockMaryJo
4/2/2014 9:20:41 AM
Approved By
Name: FinnEd
Title: ManagementBudget Analyst, Senior, Transportation Engineering & Construction Management
Date: 4/2/2014 1:45:00 PM
Name: OchsLeo
Title: County Manager, County Managers Office
Date: 4/2/2014 3:34:17 PM
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4/8/2014 11.B.
Conservation Collier Program
Ten -Year Financial Plan Update
March 31, 2014
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