Agenda 02/24/2009 Item #10D
Agenda Item No, 100
February 24, 2009
Page 1 of 20
EXECUTIVES~RY
Recommendation to adopt the FY 10 Budget Policy and to approve a resolution directing the Sheriff, the
Supervisor oeEleetions and the Clerk to provide their FY 10 budget submittals by May I, 2009.
OBJECTIVE: That the Board of County Commissioners (Board) adopt policies to be used in developing the
Collier County Government budget for FY 10,
CONSIDERATIONS: In order for staff to begin preparation of the FY 10 budget, direction is needed from the
Board on major policy issues,
Attached to this Executive Summary is a listing of pertinent policy issues that will affect preparation of the FY 10
budget, The purpose of toclay's discussion is for the Board to reach consensus on the policies upon which the
budget will be based, Tbe County Manager met with the Productivity Committee to share the proposed FY 10
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 10 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 of a three-year
analysis ofthe General Fund (001) and the Unincorporated Area General Fund MSTD (111),
The Board needs to establish June budget workshop dates, Tentative dates are Monday, June 29, 2009 (Board
Agency) and Tuesday, June 30, 2009 (Constitutional Officers) with meeting times scheduled from 9:00 a.m, to 5:00
p,m, The availahle dates avoid any conflict with the Florida Association of Counties annual conference scheduled
from June 22-26, 2009 in the City of Marco Island,
For informational purposes, adoption of the proposed millage rates is scheduled for Tuesday, July 28, 2009, The
Board is required by Florida Statutes to provide the Property Appraiser with the proposed millage rates by August 4,
2009 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 10 budget, The
School Board has tentatively scheduled September 17,2009 for their final budget hearing, Recommended dates for
the Collier County budget public hearings are September] 0,2009 (Thursday) and September 24,2009 (Thursday),
LEGAL CONSIDERATIONS: The County Attorney has reviewed this item which is ready for Board action,
This is a regular item requiring simple majority vote, -JAK
FISCAL IMPACT: The adopted policies will serve as the framework for the development of all budget and ad
valorem taxation issues for FY ] 0,
GROWTH MANAGEMENT IMP ACT: There is no Growth Management impact.
RECOMMENDATIONS: That the Board 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 1,2009 deadline for the Supervisor of Elections, the Sheriff's
Office and the Clerk's budget submittals,
PREPARED BY: John Y onkosky, Office of Management and Budget Director
Page I of 1
Agenda Item No, 10D
February 24, 2009
Page 2 of 20
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
10D
Recommendation to adopt the FYi 0 Budget Policy and to approve a resolution directing the
Sheriff, the Supervisor of Elections and the Clerk to provide their FYi 0 budget submittals by
May 1,2009. (John Yonkosky, Office of Management and Budget Director)
Meeting Date: 2/24/200990000 AM
Approved By
Jeff Klatzkow Assistant County Attorney Date
County Attorney County Attorney Office 2/13/20092:13 PM
Approved By
OMS Coordinator OMS Coordinator Date
County Manager's Office Office of Management & Budget 2/17/20095:49 PM
Approved By
Mark Isackson Budget Analyst Date
County Manager's Office Office of Management & Budget 2/17/20095:54 PM
Approved By
James V. Mudd County Manager Date
Board of County County Manager's Office 2/18/2009 5:29 PM
Commissioners
file://C:\AgendaTest\Export\ I 24-February%2024, %202009\ 10, %20COUNTY%20MANAG.., 2/18/2009
Agenda Item No, 100
February 24,2009
Page 3 of 20
RESOLUTION NO. 2009-_
A RESOLUTION PURSUANT TO SECTION 129.03, FLORIDA STATUTES,
REQUIRING THE FY 10 TENTATIVE BUDGETS OF THE SHERIFF, THE
SUPERVISOR OF ELECTIONS AND THE CLERK TO BE SUBMITTED TO THE
BOARD OF COUNTY COMMISSIONERS BY MAY 1, 2009.
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, the Supervisor of
Elections and the Clerk to be submitted by May I of each year,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, pursuant to Section 129.03, Florida
Statutes, that the Sheriff, the Supervisor of Elections and the Clerk of the County of Collier,
Florida, are hereby required to submit their respective tentative budgets for the FY 10 fiscal year
to the Board of County Commissioners by May 1,2009,
This Resolution shall be effective on its adoption.
This Resolution adopted this 24th day of February, 2009, after motion, second and
majority vote,
ATTEST:
DWIGHT E, BROCK, Clerk
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By:
Donna Fiala, Chairman
Ap oved as to form and
leg su cwncy
. 1--\
JeffrV A. ow
CounYy A omey
Agenda Item N.o, 100
February 24:\2009
Page 4 of 20
RESOLUTION NO. 2005- ill-
RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA, DIRECTING THAT AD
VALOREM REVENUES (GENERATED FROM .15 MILLS) SHALL
BE DEDICATED TO COLUER 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
Utimy" to set aside funds to pay for 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 of the utility, in which all
revenues from the stormwater 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 least $7 million for fiscal year 2006
and for each of the County's next nineteen fiscal years; and
WHEREAS, depositing these ad valorem tax revenues (the amounts 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 the 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 fiscal years (resulting from applying in
each fiscal year a millage rate of ,'5 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 Jl;IL day of March 2005 after motion. second and majority vote
favoring adoption.
'''~'.'uO~''
ATTESI.('i"\..,..,.." '10'.
DWIG~~.~f.!Qe;'K~.~~rk
't:. t~ ~~l ..,
i ~i\.; ;~ " . : ~
By: '\:'d. j'" ,By: ~w. (~
' '~!Y,:C; 'I' ' ," .. to Chtlf1Nn'. FRED W, COYLE, Ch an-
,.U,'I..rl...t.... 0II1y.
Approved as to lorm and legal sufficiency:
~~--
Thomas C. Pal er, Assistant County Attorney
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA
FY 10 Proposed Budget Policies
Agenda Item No, 10D
February 24,2009
Page 5 of 20
Historically, the annual budget policy approved by the Board of County Commissioners (Board), has
consisted of three (3) sections which are "annual budget policies to be adopted", "eontinuing budget
policies to bc reaffirmed" and a "Three Year Forecast for the General Fund and the Unincorporated
Area General Fund",
The County Manager (CM) informed the Board, during the Boards' December 16,2008, meeting that
he will prepare the FY 10 budget using two (2) scenarios, The scenarios are millage neutral and tax
neutral. The following budget policy addresses the impact of both approaches,
Annual Budl!et Policies to be Adopted
MiIlal!e Tarl!ets for tbe County-wide General Fund
Assuming no change in the Truth in Millage (TRIM) Statute by the 2010 Legislature, the Board,
under current statutes has the ability to adopt annual ad valorem millage rates using three (3)
approaches, They are: a majority vote millage rate, a 2/3'd" vote millage rate or a unanimous vote
millage rate,
The majority vote maximum millage rate is the rolled back rate adjustcd for change in per capita
Florida personal income, The 2/3,d,S vote millage rate is the rolled back rate adjusted for the change
in Florida personal ineome multiplied by a factor of 1 ] 0%, The unanimous vote millage rate is a rate
which is greater than the 2/3,d,S vote maximum millage rate,
For FY 09, the adjusted General Fund (GF) property tax rcceipts, using the recapitulated taxable
value (Oct. 08), totals $247.589,900, This is based upon taxable value totaling $78,677,407,]53, For
FY 10, taxable values are projected to decrease 13,9% resulting in a county wide taxable value of
$67,741,247,559, ]f the Board elects to pursue a millage neutral budget, GF (00]) property tax
revenue will drop by $34,415,000 to $213,]74,900 based upon the current rate of3,]469 per $1,000
of taxable value, A millage neutral budget will require, on average, a 15% budget reduction for the
Agency's funded in the GF, The millage rate associated with a tax neutral position (adoption of the
rolled back ratc) is 3,6549 per $1,000 of taxable value,
Recommendation: Develop a GF budget for FY10 at the rolled back millage rate, This
recommendation assumes a 3% reduction in ad valorem budgets from FY 09 adopted levels,
General Fund Budl!et Allocations bv Al!encv (County Manal!er, Sberiff, Supervisor of
Elections, Tax Collector, Property Appraiser and tbe Clerk)
The Board continue the budget policy limiting GF agency budget appropriations to no more than their
respectivc percentages (see following table) in the adopted FY 04 budget. Working parallel with this
guidance the CM has directed the Office of Management and Budget (OMB) to work with each
Agency in developing a millage neutral and a tax neutral budget submittal. This would allow the
BCC to evaluate programs and services proposed for funding versus those that would be eliminated,
Once again, all agencies will share proportionately in any budget reductions necessitated by new tax
reform initiatives, reduclions in state shared revenue and unfunded mandates,
Agenda Item No, 10D
February 24, 2009
Page 6 of 20
Agency % of FY 04 Budget
BCC/County Attorney 1.5%
County Manager 27,3%
Courts/Related 2,3%
Airport Authority 0,3%
Road Program Subsidy 5,2%
Debt/Capital Subsidy 6,0%
Reserves 7,7%
Clerk of Courts' 3.4%
Sheriff' , 39,6%
Property Appraiser 2,1%
Tax Collector 3,8%
Superyisor of Elections 0,9%
Total 100,0%
'Clerk adjusted for Article V is 2,2%
"Sheriff allocation includes $1.7 million debt seryice for the Special
Operations facility,
Recommendation: Continuation of this policy,
Millal!e Tarl!ets for the Unincorporated Area General Fund
For FY 09, the adjusted MSTD General Fund (lll) property tax revenues, using the recapitulated
taxable value (Oct 08), totals $35,163,400, This is based upon a millage rate of 0.6912 per $1,000 of
taxable value and taxable value totaling $50,873,002,930. For FY 10, taxable values are projected to
decrease 13.9% resulting in an unincorporated area taxable value of $43,801,655,523, The millage
rate associated with a tax neutral position (rolled back rate) is 0,8028 per $1,000 of taxable value,
Millage neutral would generate $30,275,700 in property tax revenue - a decrease of $4,887,700 from
FY09,
Recommendation: Develop an Unincorporated Area General Fund budget for FYlO at the rolled
back millage rate,
Millal!e Tarl!ets for Collier County MSTU's/MSTD's
With a simple majority vote in FYIO, the Board has the latitude to levy the rolled back millage rate,
plus an inflationary adjustment based on the growth in Florida per capita personal income,
Recommeudation: Develop MSTU/MSTD budgets for FY10 at the respective rolled back millage
rates,
2
Agenda Item No, 10D
February 24, 2009
Page 7 of 20
Revenue Centric Budl!ets
It is generally recognized that all budgets and expense disbursements regardless of fund or activity is
revenue and cash dependent. This concept establishes that enterprise funds, internal service funds,
certain special revenue funds and other operational funds which rely solely on fee for service income
with zero reliance upon ad valorem revenue should be allowed to establish budgets and conduct
operations within revenue centric guidelines dictated by cash on hand and anticipated receipts, This
concept also presumes continual monitoring of cash and receipts and if necessary subsequent
operational adjustments dictated by cash flow, As such, ad valorem agency limilations suggested
above will not apply,
Certain cost centers or functions have a net cost to the GF (001) or MSTD General Fund (Ill), In
these instances where fee for services offset the ad valorem impact, then the budget reduction
guidance should account for this positive impact upon the net cost to the GF (001) or to the MSTD
General Fund (111), Under this revenue centric approach, Divisions will be held to their
departmental fee for service projections and any negative fee variances will be addresscd through
service cuts and not subsidized by Ad Valorcm taxes, Division Administrator discretion upon
guidance by the CM should be afforded in these scenarios,
Recommendation: Adoption of this revenue centric budget policy,
Limitations on Expanded Positions to Maximize Or!!'anizational Efficiencies
To maximize organizalional efficiencies. a limitation of no net new positions in the CM's Agency
will be continued for FY 10, 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 CM's Agency through more effective usc of existing resources,
Individuals/teams will be expected to do more through improved organizational efficiencics,
This proposed guidance also continues the agcncy freeze on new hires funded with ad valorem funds
and provides - on an exception basis only - hires (inlcrnal preference) within divisions with zero
reliance upon propcrty tax dollars,
Recommendation: Adoption of this budget policy,
Health Care Pro!!'ram Cost Sharin!!
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, The
County has successfully maintained a stable rate structure (0% rate increase) during fiscal years 2006
through 2008, This is attributable to the succcss of the cxisting wellness program, the proper
structuring of reinsurance to manage adverse plan impacts and prudent plan management.
For 2009, a ncw health care initiative and approach was launched to address the underlying causes of
catastrophic claim cases, This new plan re-design and structure provides participation incentives to
members in an attempt to; identify and measure existing risk factors; promote participation in
3
Agenda Item No, 10D
February 24,2009
wellness related programs to help members reduce and/or manage these risk factors; impf(R'lIlJ~ of 20
employee/physician relationship and to provide one on one advocacy services assisting employees
with their health care needs,
Recommendation: In FYI0, the average cost distribution of health insurance premiums between the
Board of County Commissioners and employees will remain SO% (employer) and 20% (employee),
It is still recommended that the 80% emplover share and 20% emplovee share he uniform across
all al!encies, includinl! 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 employees
available,
2, Supports continuous training, professional development and enhanced career mobility,
3. Recognizes and rewards individual and team achievements,
These goals while important are mitigated somewhat by the current economic environment. Focus
will shift on retaining the employment base where possible given revenue parameters and
maintaining the expertise and professional development of the work force through local and regional
venues as well as web based applications,
Recommendation: Given the current economic environment and the downward cpr trend, a salary
adjustment for FY 10 is not recommended, In previous years the Board of County Commissioners,
has authorized adjustments to the compensation plan as shown within the following table, Latest
information from the Bureau of Labor Statistics reported for the Miami-Fort Lauderdale SMSA
reveals a dramatic drop in the cpr for the last half of calendar 200S with the month of December
2008 showing only a 0,5% increase from December 2007.
Program Component FY05 FY06 FY07 FY08 FY09 FY 10
Cost of Living * 2.10% 3,90% 4,70% 4.10% 4,20% 0.00%
Awards Program 1.50% 1.50% 1.50% 1.50% 0.00% 0.00%
Pay Plan Maintenance 0,25% 0,25% O,2S% O.2S% 0.00% 0.00%
Total 3,SS% 5,65% 6.4S% S,8S% 4.20% 0.00%
_ *Note: Cost of living adjustments are based on the annual Miami-Ft. Lauderdale SMSA (all urban
consumers),
Stormwater Manal!ement Capital Fundinl!
The Board previously adopted (County Resolution 200S-11S) 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 requircments to available
grants,
Recommendation: Provide dedicated GF dollars to Stonnwater Management capital projects with
funding equivalent to O,ISOO mills,
4
Agenda Item No, 100
February 24, 2009
Page 9 of 20
ScheduliDl! Issues
Decisions Re uired
Establish Budget submission dates for
the Sheriff, the Supervisor of
Elections and the Clerk
June Budget Workshops
Staff Recommended Date s
May I, 2009 by Resolution
(BCC Agency/Courts)
(Constitutiona] Officers)
I FAC conference is June
, Island,
Ju] 28, 2009 (Tuesda )
September ]0, 2009 (Thursday at 5:05 pm)
Se tember 24,2009 (Thursda at 5:05 m
Monday, June 29, 2009
Tuesday, June 30, 2009
23-June 26, 2009 in Marco
Note: The School Board has first priority in establishing public hearing dates for budgets, The
School Board's final budget hearing is tentatively scheduled for September 17, 2009, The
Commission chambers are reserved for the tentative dates for Collier County Government budget
public hearings,
Recommendation: Approve the dates identified above and attached resolution establishing May I,
2009 budget submittal dates for the Sheriff, thc Supervisor of Elections and the Clerk,
Comparative Budl!et Data
Provide comparative budget data using FY 09 adopted budget data (cost and employees per capita
based on unincorporated area populalion) by Agency with Budget Submittals for Similar Sized
Florida Counties,
Recommendation: Counties for comparison purposes include:
. Sarasota County
. Lee County
. Charlotte County
. Martin 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 GF, The reserve for contingencies in the GF will be 2,5%,
Recommendation: Approve the reserve policy,
5
Agenda Item No, 100
February 24,2009
Page 10 of 20
Accrued Salary 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 for each Agency funded by the
GF and for all of the eM Agency will be calculated on FY 10 Regular Salaries and budgeted within
each cost center containing ten (10) or more funded FTE's.
Recommendation: Approve the accrued salary savings policy,
6
Existin!!: Bud!!et Policies for FY 10
Agenda Item No, 100
February 24,2009
Page 11 of 20
Financial Mana!!ementfFinancial Bud!!:et Development: OMB staff will prepare annually a three-
year projection of General Fund and MSTD General Fund revcnues and expenditures to improve
financial planning and to understand the long-term impact of funding decisions made in FY 10,
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 of 75%, 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 State provides or establishes maximum limitations on certain reserves, The maximum
limitations for reserves for contingency and for cash flow are 10% and 20%, respectively, The
Gcneral Fund and the MSTD General Fund, reserves for contingency, are generally established at
2,5% of total budgeted appropriations, The reserves for cash flow, in both funds, varies based on the
budget; however, cash flow reserves will never exceed the statutory limits,
Contract A!!encv Fundin!!: The Board 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 thc budget process shall be considered in the subsequent
year's budget cycle,
Median Maintenance: Recognize the Unincorporated Area General Fund MSTD (Ill) as the
appropriate, dedicated funding source for median beautification maintenance costs,
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, Carryforward revenue represents not only
operating funds but also previously budgeted operating, debt service, and capital reserves that are
"carried forward" to fund thesc same reserves in the new year or to fund capital projects in the current
or future years, The largest sources of carryforward are the capital, debt service, and enterprise funds,
In both the GF and MSTD General Fund, adequate carryforward fund balance is maintained to provide
cash flow for operations prior to thc receipt of ad valorem taxcs and other general revcnue sources,
GF balance is required to meet operating needs for October and November of any given fiscal year,
prior to the receipt of any significant ad valorem tax revenuc (ad valorem taxes represent 67,35% of
the total FY 09 GF adopted revenues),
Fund balance is also an important measure used by bond rating agencies in determining thc County's
credil 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,
7
Agenda Item No, 10D
, ' , ' , February 24, 2009
For Flonda coastal commumtIes, a mlmmum carry forward balance of 10% of total GF expei'ldilmlrtlSof 20
was recommended, It was noted that bond ratings would improve as this percentage increased,
The recommended level of fund balance in the GF should be a minimum of 10% of actual
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,
Impact Fees: Collier County will assess impact fees at such levels as allowed by law, established by
the Board of County Commissioners and 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 10, The basis of
these charges is a detailed indirect cost allocation plan prepared, periodically, by a consultant and
adj usted by staff to reflect the organizational environment on a real time basis,
Enterprise Fund Pavment 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 GF equal to the prior year GF millage
rate multiplied by the prior year gross (non-depreciated) value of property, plant, and equipment.
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,
Ad Valorem Capital Fundinl!: Continuation of a fixed GF millage dedicated to capital projects.
The recommended rate is the equivalent of 0.3333 mills, (See history below), This provides some
built-in protection against loss of purchasing power due to construction inflation,
. Non-eIE capital projects funded by GF ad valorem taxes will be reviewcd annually on a case-
by-case basis,
. The respective departments during the budget process will identify annual operating expenses
associated with capital projects,
8
Agenda Item No, 100
F ? 009
Page 13 f 20
General Fund Capital Millage History
(FY 91- FY 12)
1.0000
1.0000
0.8000
CIl
OJ
.!!! 0,6000
~
0.4000
0.2000
0,0000
0.3333 0,3333 0.33330.33330.3333 0.3333
13
0.3333 0.33330.33330.33330.33330.3333
0.2354
-----,--..----,---, ............--....----,---,------ ---- ",-
-,
RRRRRRRRRRRRR"RRRRRRRR
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Fiscal Year
Capital Improvement Prol!ram (CIP) Policies: On an annual basis, the County shall prepare and
adopt a five-year Capital Improvement Element (CIE) consistent with the requirements of the Growth
Management Plan, The annual budget will include sufficient appropriations to fund capital projccts
idcntified 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 CIE projccts will be based on projects included in the
adopted master plans,
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,
9
Three-Year Budget Projections
Ad Valorem Tax Funds
(FY 10 - FY 12)
Agenda Item No, 100
February 24, 2009
Page 14 of 20
The following 3-year budget projections are for the GF (001) and the MSTD General Fund (Ill),
General Fund (001) Millal!e History
As a point of reference, the following graph plots the historical GF millage rate, as well as the
projected millage rates from FY 10 through FY 12, based on the assumptions in this analysis,
General Fund Millage History and
Projected Tax Neutral Position
FY 03 - FY 12
4.5 ,-----'-'-'------'-
I
4 r! 3,1l772,,-_,-3.87ZL-,3-,1l11L-.3..Jl771,"-"-';,5790'--'----,-,------------3:6549-3.9242 ___4.002~_,
3.5 -- --
I 3,1469 3.1469
3 I
1
2.5 '
2
1.5
0.5
o
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
_._.......____"' _~ _-'0.
MiIlal!e Rates
Bascd on the assumptions used in this analysis, implications for future years millage rates, projected
at tax neutral (rolled back) millage rate for FY 10 and at rolled back (up) rate adjusted for any
increase in the Florida Personal Income Growth Factor pursuant to HB IB are as follows:
General Fund
FY09
FYIO
FYll
FY 12
FY 09 Adopted and
Projected Millage Rates
3.1469
3,6549
3,9242
4,0027
Inc, (Dec,) per $100,000
Taxable Value
$ 0,00
$ 50,80
$ 26,93
$ 7,85
10
Agenda Item No, 10D
February 24, 2009
The projectcd millage rate assumes a 13,9% decrease in laxable value of existing property ifi'aw 1,,)01 20
and a 5,0% decrease in taxable value for FY 11, FY 12 was held constant with FY ] I taxable values,
It is assumed that new construction will remain flat. The Property Appraiser will provide preliminary
taxable value estimates for FY ] 0 on June I, 2009, Actual and assumed changcs in County taxable
values are as follows:
r-"-- ---,_..----- _____.,'u__....._....._.._.,_,_
I Historical and Projected Changes
I in Collier County Taxable Value
(FY 03 - FY 12)
i
,
I 30.00% 25,40%
I 27.50% ,)
i I
25.00% I
! 22.50% 19.91%
I i
20.00% , 18.30%
, 1 16.40%
I 17.50%
I 15.00%
12.50% 1 11.50%
10.00% I J
I 7,20%
I 7.50% I I
5.00% j
I 2.50%
, I
I 0.00% .
I !
I -2.50% FY03 FY04 FY05 FY06 FY 07 FY08
I -5.00% ) -4.20%
I, I
I -7.50% I
j
I -10.00%
I -12,50% I
! 1
I
I -15,00% I -13,90%
I -17,50% J
[ .>-.,. .".,....- -.,., ------ ,.-....".- ~._. -- -- .--..---..,..-.--
-
0.00% I
FY 12 I
I
I
1
I
I
,--I
.5.00%
Notes to Grauh:
FY 07: The General Fund (001) millage rate adopted in FY 07 was based upon a IG% increase in
taxable value pursuant to BCC direction,
FY 08: As part of the Florida Legislative Property Tax Reform package implemented in FY 08,
CoIlicr County adopted its final millage rate at 9] % of the rolled back rate,
FY 10 Expense Assumptions
. Assumes a tax neutral position for FY 10 with ad valorem budgets set at 97% of FY 09
adopted levels,
. Allocation for compcnsation administralion - 0%,
. 4% attrition rate on regular salaries assumed in the Counly Manager's Agency,
. Capital projects funding equals 0,3333 mills annually,
. Stormwater capital funding equivalent to 0,] 500 mills,
. General Fund support of road construction - $2],803,800,
. Shift of Information Technology support out of the General Fund to an Internal Service Fund,
. Decreased Gcneral Fund support of EMS by $361,500 to $] ] ,687,800,
. Decreased General Fund support of road maintenance - $8,595,900,
. Mandates to be absorbed within 97% of FY 09 adopted budget, including Constitutional
Officers,
]1
Revenue Assumptions
Agenda Item No, 100
February 24,2009
Page 16 of 20
. Ad valorem tax revenue forecast is 96% of actual taxes levied,
. Sales tax revenue decreases 5,0% from FY 09 forecast level.
. State Revenue Sharing decreases 4,0% from the FY09 forecast.
. Constitutional Officer turn backs projected to decrease based upon slowing fee collections,
. No gas taxes allocated to roadway maintenance,
Other Funds/Factors Impactinl! the General Fnnd
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 GF,
EMS Fnnd
EMS is another fund that impacts significantly on the GF, The analysis assumes a reduction of
$361,500, which approximates 1 EMS unit in FY 09 dollars, Historical and projected GF support of
EMS operations by fiscal year is as follows:
General Fund Support of EMS
History and Tax Neutral Projection
FY03-FY12
"' 18,000
"
" 16,000
..
~
:> 14,000 13,311
0 12,049
.z:: 10,920
C 11,018 11,688 11,688 11,688
- 12,000
(; 9,240
<l. 10,000 8,122
<l. 8,287
:>
VI
" 8,000
"
:>
~ 6,000
..
10 4,000
"
..
Cl 2,000
-....',-....-
03 04 05 06 07 08 09 10 11 12
Fiscal Year
The decrease in the General Fund transfer to EMS reflects an overall decrease in the general fund
dollars available to support general government operations,
12
Road Construction Pro!!ram
Aaenda Item No, 100
- February 24, 2009
Page 17 of 20
The Board approved road financing plan was based historically on using growth in taxable value and
maintaining the General Fund millage rate 10 provide growth dollars to meet the road funding
commitments,
In the adopted FY 03 budget, thcrc was a $5,900,000 GF transfer to the road construction program,
GF support of the road construction program in FY 04 amounted to $13,698,000 and the FY 05 level
of support was $20,298,800, FY 06 support of $38,790,900 included using the $14,066,800 GF
reserve for road construction,
Based on the Board approved AUIR, the road-financing plan assumes the following GF support:
$23,509,000 in FY 09 and a projected decrease in FY 10 counting for the down-turn in property tax
values, This commitment is depicted in the following graph:
General Fund Support of Road Construction
History and Tax Neutral Position
FY 03 - FY 12
38,791
40,000
~
'"
c
.. 35,000
~
"
0
.c
C 30,000
~
~
0
0.
0. 25,000
"
VI
'" 20,299
c
" 20,000
u-
n;
~ 13,698
'"
c 15,000
"
<:>
10,000
5,900
5,000
1_,-
03
04
05
06
24,100 24,000 23,509
-..',.
~ ,
i
I
i
i
I
I
I
i
!
I
I
i
21,804 21,804 21.804
08
09
10
11 12
I
!
I
I
i
-1
I
I
I
I
I
___..1
07
Fiscal Year
13
Agenda Item No, 10D
February 24,2009
Page 18 of 20
FY 11
The projected Gcneral Fund tax neutral millage rate is 3,9242 or $392.42 per $100,000 of taxable
value, This represents an increase of $26,93 per $100,000 of laxable value from the projected FY 10
level. This rate represents the rolled back (up) rate adjusted by any increase in the Florida Persona]
Income Growth Factor pursuant to HB ]B,
In addition to annual inflationary cost increases, the following items were included in the FY I]
budget analysis:
. Capital projects funding equals 0.3333 mills annually,
. Stormwatercapital projects funding equivalent to 0.1500 mills annually,
. Maintain General Fund support of EMS - $11,687,800.
. Maintain General Fund support of Road & Bridge at $],268,800, recognizing that in FY 10 this
funding was shifted primarily to MSTD GF (Ill),
FY12
The projected General Fund millage rate is 4,0027 or $400,27 per $100,000 of taxable value, This
represents an increase of$7,85 from the FY ]] projected level per $]00,000 of taxable value, Once
again, this rate represents the rolled back (up) millage rate accounting for any increase in the Florida
Personal Income Growth Factor allowed pursuant to HB ]8.
The following items were included in the FY 12 budget analysis:
. Capita] projects funding equals 0.3333 mills annually,
. Stormwater capital projects funding equivalent to 0.1500 mills annually,
. Maintain General Fund support of EMS - $] 1,687,800.
. Continue shift of Road and Bridge support to MSTD GF (Ill),
14
Unincorporated Area General Fund (111)
Agenda Item No, 100
February 24, 2009
Page 19 of 20
MSTD General Fund (111) Millal!e Historv
As a point of reference, the following graph plots this historical MSTD GF (Ill) millage rate, as well
as the projected millage rates from FY 10 through FY 12, based on the assumptions in this analysis:
0,9000 !
I
0,8500 1 0.8425
I
0,8000 J
0,7500 -,
I
0.7000 j
0.6500
0,6000
Collier County Florida
Millage Rate History & Tax Neutral Projection FYOl - FY12
Unincoporated MSTD General Fund (111)
0,845
0.845
-",."-
0,8069 0.8069 0.8069 0.8069 0.8069 0,8069
0.8028
0.6912 0.6912
ctt
~M ~~ ~~ ~~ ~~ ~~ ~ID ~~ ~M ~w ~ll ~"
Results of Unincorporated Area General Fund Analvsis
Millage neutral and lax neutral budgets will be presented for Bee consideration as part of the FY 10
Budget Workshops, The MSTD GF (Ill) analysis assumes the tax neutral (rolled back) position and
accounts for the shift in Road and Bridge funding ITom GF (00 I) to the MSTD GF (III),
The implications for future year millage rates required to fund the MSTD General Fund (111)
budgets developed in this analysis are as follows:
Unincorporated FY 09 Adopted and Inc, (Dee,) per $100,000
General Fund Projected Millage Rates Taxable Value
FY09 0,6912 $ 0,00
FY 10 0,8028 $11.16
FY 11 0,8450 $ 4.22
FY 12 0,8450 $ 0,00
15
Agenda Item No, 100
February 24, 2009
FY 10 Page 20 of 20
The FY 10 budget projection is based upon a tax neutral position with a projected 13,9% decrease in
taxable value. The millage rate under this scenario required to generate $35,163,400 in property tax
revenue (that amount raised in FY 09) is ,8028,
FYll
In FY 11, the projected millage rate is 0,8450 or $84,50 per $100,000 of taxable value; this is an
increase of $4.22 per $100,000 of taxable value, The analysis assumes a continuation of the tax
neutral position and a 5% reduction in taxable value, The millage rate is the rolled back (up) rate
adjusted by any increase in the Florida Personal Income Growth Factor pursuant to HB 1 B,
FY 12
In FY 12, the projected millage rate is 0,8450 or $84.50 per $100,000 of taxable value; this
assumption is based upon no growth or decline in taxable value, Major expenses include
continuation of the Road and Bridge transfer, which was shifted from the GF (001) in FY 10, The
millage rate is the rolled back (up) rate adjusted by any increase in the Florida Personal Income
Growth Factor pursuant to HB I B.
16