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Agenda 01/27/2026 Item #10A (Resolution - Establishing a framework to constrain County spending at current fiscal year baseline levels for Fiscal Year 2027)1/27/2026 Item # 10.A ID# 2026-163 Executive Summary Recommendation to adopt a Resolution establishing a framework to constrain County spending at current fiscal year baseline levels for Fiscal Year 2027, applying to County funding allocations including those for Constitutional Officers; authorizing limited annual increases for operating and capital costs; and directing the preparation of an annual long-term capital and asset management analysis. OBJECTIVE: To enhance fiscal oversight, strengthen long-term financial sustainability, and position the County to respond proactively to potential legislative changes to ad valorem taxation under consideration by the Florida Legislature. CONSIDERATIONS: Legislative proposals currently under consideration by the Florida Legislature may materially affect County ad valorem revenues in future fiscal years. In advance of any statutory changes, this policy establishes a measured expenditure control framework intended to moderate spending growth while preserving the County’s ability to meet essential service, infrastructure, and contractual obligations. The policy constrains County spending at current fiscal year baseline levels for County departments and authorizes limited annual increases of up to three percent (3%) for operating expenditures and up to five percent (5%) for capital expenditures, subject to defined exclusions. This approach provides fiscal discipline while allowing for inflationary pressures, operational continuity, and capital maintenance. The policy applies to County funding allocations to Constitutional Officers for planning and budgeting purposes, while recognizing the statutory independence of those offices and encouraging alignment with the County’s fiscal framework. In addition, this proposal directs the preparation of a long-term capital and asset management analysis to provide the Board with a clear understanding of long-term infrastructure funding needs, asset conditions, and maintenance and replacement priorities, with an initial status update provided to the Board after six months. Collectively, these actions are intended to strengthen fiscal oversight, promote long-term financial sustainability, and position the County to respond proactively to potential legislative changes to ad valorem taxation under consideration by the Florida Legislature. This item is consistent with the Collier County strategic plan. FISCAL IMPACT: The overall fiscal impact will be discussed when the budget comes before the Board. Funding for the long-term capital and asset management analysis is available within County-wide Capital Fund (3001). GROWTH MANAGEMENT IMPACT: This resolution has no Growth Management Plan impact. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. - SAA RECOMMENDATION(S): That the Board adopt a Resolution establishing a framework to constrain County spending at current fiscal year baseline levels for Fiscal Year 2027; apply the framework to County funding allocations, including those for Constitutional Officers; authorize limited annual increases for operating and capital costs; and direct the preparation of a Comprehensive Capital Recovery and Funding Requirements Assessment that identifies the County’s annual capital funding requirement, with an initial update provided to the Board after six months and annually thereafter. PREPARED BY: Commissioner William L. McDaniel, Jr., District 5 ATTACHMENTS: Page 637 of 5261 1/27/2026 Item # 10.A ID# 2026-163 1. Resolution Budget 012026 FINAL Page 638 of 5261 RESOLUTION NO. 2026 -_____ A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, ESTABLISHING A FRAMEWORK TO CONSTRAIN COUNTY SPENDING AT CURRENT FISCAL YEAR BASELINE LEVELS FOR FISCAL YEAR 2027, APPLYING TO COUNTY FUNDING ALLOCATIONS INCLUDING THOSE FOR CONSTITUTIONAL OFFICERS; AUTHORIZING LIMITED ANNUAL INCREASES FOR OPERATING AND CAPITAL COSTS; AND DIRECTING THE PREPARATION OF A LONG-TERM CAPITAL AND ASSET MANAGEMENT ANALYSIS TO BE PRESENTED WITHIN SIX MONTHS. WHEREAS, the Board of County Commissioners is charged with ensuring the fiscal integrity and long-term financial sustainability of Collier County; and WHEREAS, legislative changes under consideration by the Florida Legislature related to ad valorem taxation may significantly impact County revenues in the near future; and WHEREAS, it is prudent and necessary for the County to take proactive measures to manage expenditures and plan for upcoming potential revenue constraints; and WHEREAS, maintaining current spending levels while allowing limited, controlled increases for essential operational and capital needs will promote fiscal discipline without compromising critical services; and WHEREAS, a comprehensive actuarial analysis of County assets will provide valuable insight into the County’s financial position, long-term obligations, and asset management needs. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: Section 1. Purpose and Intent. This Resolution is intended to strengthen fiscal oversight and position Collier County to respond effectively to potential changes in state law affecting ad valorem taxation and County revenues. Page 639 of 5261 Section 2. Spending Limitations. Total spending for County departments, including all Constitutional Officers, shall be constrained at the current fiscal year’s adopted baseline budget levels, subject to certain exclusions as authorized by the Board of County Commissioners. Section 3. Authorized Increases. Notwithstanding the spending limitations established herein: (a) Operational costs may increase by up to three percent (3%) annually; and (b) Capital costs may increase by up to five percent (5%) annually. Any operational or capital cost increase authorized pursuant to this section shall require approval by a majority vote of the Board of County Commissioners as part of the annual budget adoption. Section 4. Long-term Capital and Asset Management Analysis. The County Manager, or designee, is hereby directed to procure and prepare a comprehensive analysis of all County assets, including but not limited to infrastructure, facilities, and long-term financial obligations. The analysis shall be updated and presented to the Board of County Commissioners within six (6) months and annually thereafter. This Resolution adopted after motion, second and majority vote favoring same this ______ day of ________________, 2026. ATTEST: CRYSTAL K. KINZEL, CLERK _________________________ , Deputy Clerk BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA, By: __________________________________ Dan Kowal, Chairman Approved as to form and legality: __________________________ Sally A. Ashkar Assistant County Attorney Page 640 of 5261