Okaloosa County BOCC — September 2, 2014 — July14,2014 budgetworkshop

July 14, 2014 Budget Workshop A Fiscal Year 2014-15 Budget Workshop of the Okaloosa County Board of County Commissioners was called to order at 6:00 p.m. at the Water & Sewer Administration Building in Fort Walton Beach. Members present were Charles K. Windes, Jr., Chairman; Nathan Boyles, Vice Chairman; Wayne Harris; Dave Parisot; and Don Amunds. Also present were Gary J. Stanford, Finance Director, and Dave Skarzynski, Budget Analyst, Clerk's Office; and Ernie Padgett, County Administrator. Mr. Padgett acknowledged the close working relationship between his office and the Clerk’s Office in preparation of the budget, calling it a good working relationship. He stated the Finance Department provides much of the information and added he has been meeting with county departments and Constitutional Officers over the past six weeks to discuss the budget for the next fiscal year. Mr. Padgett reported that his instruction to staff was to submit a budget for what they needed but not to be extravagant. Mr. Padgett called attention to the second paragraph of his Budget Transmittal Letter. He said there is no recommendation for any tax increase for this fiscal year. Three revenue sources are projected to have increases. Mr. Padgett identified them as: ® 4,31% increase in the Ad valorem Tax base, resulting in an approximate increase of $1,863,000 ® State Revenue Sharing is projected to increase by $275,000 ® State Sales Tax is projected to increase by $700,000 As previously noted, Mr. Padgett stated he allowed department directors to submit their budgets based on what they felt they needed to adequately provide services at an acceptable level. He pointed out the budget requests were approximately $6 Million more than the projected annual revenues. Over the past several weeks he said the real work began to bring the budget into balance. Mr. Padgett stated the county still must deal with unfunded mandates from the State. He cited as an example the special assessment last year of more than §1.8 Million for the Florida Retirement Systems (FRS). He stated this year the county will again be assessed an FRS contribution, which will now total $2.1 July 14, 2014 -l- Minute Book 71, Page {133 Okaloosa County Board of County Commissioners Million, including last year’s assessment. Mr. Parisot interjected two other examples of unfunded State mandates are contributions for Medicare and Department of Juvenile Justice (DJJ). Mr. Padgett responded that he was going to cover those items in a future workshop and was only providing an example. Mr. Padgett advised ProShare dollars will continue to be used to help fund employee benefits. He explained the county’s good claims record has resulted in receiving significant rebates from the insurance carrier. Mr. Padgett proposed using $880,000 from the self-insurance reserves fund to provide a $500 raise and associated benefits for each employee. Mr. Padgett also reported the three-cent Local Option Gas Tax passed by the Board last year will generate $1,053,644 this year. This revenue is to be used to purchase road and bridge equipment, as well as move capital projects forward. Additionally, Mr. Padgett said he is recommending a one-time transfer of $500,000 from the Parks MSTU Reserves to address the stormwater challenge. He reiterated this is a one-time only transfer request and feels that will give the Board time to discuss options on how to address stormwater issues (options: stormwater utility, sales tax, dedication of some level of property taxes). Mr. Padgett reported the Tourist Development Council (TDC) voted against a recommendation to use tourist development tax dollars to enhance increased law enforcement costs/requirements in the taxing district. He said he believes that option should not be ruled out if it can be accomplished legally. Finally, Mr. Padgett stated budget workshops will begin on July 14 and continue to August 12, with a total of five workshops scheduled. He announced the two budget hearings are set for September 4, 2014 in Crestview and September 15, 2014 in Fort Walton Beach. The tentative millage rate will be set at the September 4 hearing. That rate can be reduced but not increased at the second and final budget hearing. Mr. Padgett recommended focus be maintained on each individual workshop, dealing with those departments/offices on the agenda. Mr. Parisot referred to the recommendation of a $500 raise for each county employee and asked if the Constitutional Officers will adopt that position. Mr. Padgett replied they should adhere to our recommendation and the Board can discuss it with each Constitutional Officer as he presents his budget. Upon July 14, 2014 -2- Minute Book 71, Page 134 Okaloosa County Board of County Commissioners inquiry by Mr. Amunds, Mr. Padgett answered the $2.1 Million contribution to FRS is a total figure, including Constitutional Officers. Mr. Boyles asked the appropriate manner to address changes in the proposed budget. Mr. Padgett replied there are a number of ways but as the departments present their budgets, if there is a recommendation for an adjustment with agreement by the commissioners, he will make that adjustment. He reminded the Board, the budget must stay in balance. Mr. Windes stated direction to the County Administrator will be by consensus of the Board. Mr. Boyles confirmed his understanding, saying if an item is brought up for discussion, the Board will finalize its position and the budget will be adjusted as we go through the process. Mr. Amunds stated if changes are recommended by the Board, Mr. Padgett will return with a recommendation of where to take funds. Mr. Padgett concurred, saying he suggests taking these changes workshop by workshop so it will not hit us all at once. When asked by Mr. Amunds about the amount in General Revenue Reserves in the proposed budget, Mr. Padgett stated it is status quo, no additional money. An extended discussion ensued regarding the amount of reserves. Mr. Boyles asked at what point the Board can give direction on the amount to be placed in Reserves. Mr. Padgett said the proposed budget has $3,369,000 designated for reserves. Upon inquiry by Mr. Parisot and Mr. Harris, Mr. Padgett said the Auditor General's Office feels 8% of the budget should be placed in Reserves. He added the proposed budget is less than that, perhaps at 5%. Mr. Boyles recommended increasing the Reserves percentage by one-half percent. Mr. Harris asked where the budget can be cut. Mr. Boyles pointed out the proposed budget has funding for at least 30 new positions (23 full-time and part-time positions, as well as 10 emergency relief positions for EMS that do not increase the Public Safety Department’s budget). Mr. Parisot referred to the County Administrator's recommendation to transfer $500,000 from the Unincorporated County Parks MSTU Reserves to the stormwater budget. He said when the commissioners voted to split that revenue’ source between Parks and stormwater, they gave their word the Parks Reserves would only be used for Parks. Mr. Parisot stated he is not ready to renege on that promise. He added, however, that he has no problem with borrowing against that reserve account. Mr. Padgett replied that Mr. Parisot has made a good point but told July 14, 2014 -3- Minute Book 71, Page 135 Okaloosa County Board of County Commissioners the Board at some point it must have a revenue source to fund stormwater projects on an annual basis. Mr. Boyles expressed concern about borrowing with no stipulations, saying it may never be repaid to that account, Mr. Boyles stated he would prefer to give Mr. Padgett direction now to develop another half-percent to be placed in the General Fund Reserves. Upon inquiry by Mr. Harris, Mr. Boyles confirmed he is speaking of the operating account. Mr. Amunds asked what other things can be done to bring money into the bank, saying he would like to know the origin of things. Mr. Padgett answered he will return with that information. Mr. Amunds referred to Mr. Parisot’s earlier comments on the Unincorporated County Parks MSTU Reserves and agreed with him that the Board should keep its promise. Mr. Boyles asked if the Board can take the issues one at a time and arrive at consensus. Mr. Windes directed the discussion to General Fund Reserves. Mr. Harris and Mr. Amunds stated they agree with Mr. Boyles’ suggestion, Mr. Parisot said he also believes this fund should be increased and asked what the numbers would be. Mr. Padgett stated he will bring that information to the next workshop. Mr. Amunds recommended the discussion on the proposed $500,000 transfer from the Parks MSTU be held at the next workshop. Mr. Padgett responded when questions come up, he will bring back a response at the following workshop. GROWTH MANAGEMENT - INSPECTIONS DIVISION Mr. Elliot Kampert, Growth Management Director, listed the Program Goal and Key Objectives for the Inspections Division. He reported permit activity is up by 2% and the division has $81,309 in the bank as of July 30, 2014. Mr. Kampert stated $400,000 has been paid back for prior year subsidies. He said he is requesting a new vehicle and a fourth Code Enforcement Officer. Mr. Kampert completed his presentation on the Inspections Division with a description of this unit's accomplishments. July 14, 2014 -4- Minute Book 71, Page 136 Okaloosa County Board of County Commissioners Upon inquiry by Mr. Harris, Mr. Kampert stated new home starts have declined, noting it is pretty even between North and South County. GROWTH MANAGEMENT - PLANNING DIVISION Mr. Kampert recited the Program Description, Program Goal, Key Objectives, and listed the division’s major accomplishments. He advised that he is not requesting any new staff for this division. GROWTH MANAGEMENT - CODE ENFORCEMENT Mr. Kampert provided the Program Description, Program Goals, Key Objectives, and Performance Measures. He explained the challenge this division faced in FY 2012 when the Sheriff dissolved his Environmental Unit, noting Code Enforcement assumed those responsibilities. He added calls have increased regarding unlicensed contractors. Mr. Kampert reiterated that he is requesting a fourth Code Enforcement Officer. Mr. Boyles stated he was skeptical at first about adding positions but was surprised to learn about the volume of calls that go to Code Enforcement. He said he is supportive of the additional position and recommended development of a policy to follow up with the complainants to let them know what is happening. Mr. Harris stated he is skeptical about a new vehicle. Mr. Kampert responded that he will work with Fleet Maintenance Manager John Vaughn. Mr. Harris also stated he supports “putting some teeth in Code Enforcement.” Mr. Windes asked him if he is talking about fines and penalties. Mr. Harris replied in the affirmative and Mr. Windes said he can agree with that. Mr. Amunds asked if the Inspections and Code Enforcement Divisions are using technology (laptops) to its fullest. Mr. Kampert replied they are exploring those options. Mr. Boyles requested Mr. Kampert provide the commissioners with additional information on unlicensed contractors and work being done without permits. July 14, 2014 -5- Minute Book 71, Page 137 Okaloosa County Board of County Commissioners GROWTH MANAGEMENT - TRANSIT Mr. Kampert noted that tomorrow will be the venue to discuss transit, saying he believes staff can bring back some figures that will not involve additional costs but a reduction. He was referring to the scheduled public hearing to consider possible discontinuance of the fixed routes at the Board's regular meeting on July 15. Mr. Parisot pointed out the proposed budget has zero dollars for fixed route services. He said if any decision is made to keep those routes, money will have to be found in the General Fund to suport them. Mr. Windes agreed that is a big subject for tomorrow. CORRECTIONS Chief Corrections Officer Paul Lawson provided the Program Description, as well as historical expenditure and staffing summaries. He detailed the major accomplishments of the department, Program Goal, and Key Objectives. When asked by Mr. Parisot if Chief Lawson was proposing additional staff, he replied he has a slide graphing the average jail population from 1995 to 2014. After the explanation, he said he had originally requested five Corrections Officers and one Captain for the next year. He said if the Board told him to follow through with hiring these positions, it would be October or November before he could have them on staff. Chief Lawson stated the proposed budget does not include costs to hire those five Corrections Officers. As discussion continued, Chief Lawson explained why having another Senior Staff Officer would be beneficial. Upon inquiry by Mr. Amunds, Chief Lawson stated the budget does factor in the hiring of a Captain. Chief Lawson next explained the impact of Senate Bill 522, aka the Jimmy Ryce Act. He termed it a good law but stated it is another unfunded mandate. Chief Lawson reported a problem with the entry/exit doors (purchased in 1992) which occurred during the April 29 storm event. He said the doors have been kept operational by the Facilities Maintenance staff but advised no further repairs are possible. Chief Lawson stated replacement of these doors is vital, noting the estimated replacement costs are $300,000. He added that he has spoken with FEMA representatives who were July 14, 2014 -6- Minute Book 71, Page 138 Okaloosa County Board of County Commissioners supportive of the damages application for the doors. However, he stated the doors must first be purchased and then FEMA will reimburse. Another issue brought forward by Chief Lawson was the eventuality of building another jail. He said the current location is built out. Anticipated costs for a new jail are $15 Million. Mr. Amunds asked about adding the costs to hire the five Corrections Officers into the FY 2015 budget. Mr. Padgett said this was discussed last year and we waited. He stated he would again like to hold off as long as possible. Mr. Padgett also advised the $300,000 for the doors is in the budget in the Capital Outlay Fund. Mr. Boyles said they return money back at the end of the year and asked about placing those funds in a reserve account. He stated at least some funds would be set aside if the level of service must be increased. PUBLIC SAFETY Mr. Dino Villani, Public Safety Director, stated this department consists of four divisions, running six programs. He said the proposed budgets for all those divisions are basically the same as last year with one exception. Mr. Harris referred to the survey conducted a few years back on what residents felt were priorities. He stated this agency was the highest of citizens’ priorities. PUBLIC SAFETY - E9-1-1 SYSTEM Mr. Villani reported no ad valorem dollars go into the E9-1-1 System. Funding comes from the collection of a $.50 fee by the State on telephones. of that $.50 fee collected by the State, Okaloosa County E9-1-1 receives §.48 for wireline devices and $.35 for wireless devices. Beginning January 1, 2015, the fee will change from $.50 to $.40. He advised that 129,530 E9-1-1 calls were received in FY 2013. PUBLIC SAFETY - COUNTY WARNING POINT The County Warning Point provided dispatch services for EMS, 17 fire districts, animal services, after hours notification for July 14, 2014 -7- Minute Book 71, Page 139 Okaloosa County Board of County Commissioners Department of Health, assists with 3-1-1 requests, and provides notification to State and other County departments. In FY 2013, there were 24,081 EMS responses dispatched and 18,734 fire department dispatches. Mr. Villani presented a diagram of the Emergency Communications Center, showing the location of the Sheriff's Dispatch Room, 9-1-1/3-1-1 Call Center, and EMS/Fire Dispatch Room. PUBLIC SAFETY - BEACH SAFETY Mr. Villani reported a total of 42 spring rescues with a total of 15 red flag days with rip currents in 2013. In 2014 there were 19 total spring rescues with a total of 18 red flag days with rip currents pulling. One extra lifeguard daily increases the ability for educational and preventative contacts. He said the establishment of a portable tower system for quick set up on rip current locations has allowed the lifeguards to increase the ability to contact patrons and focus on prevention efforts. Mr. Villani noted they are doing their job with less money this year. PUBLIC SAFETY - EMERGENCY MEDICAL SERVICES Mr. Villani stated Emergency Medical Services (EMS) responded to 24,081 requests for assistance during calendar year 2013. EMS provides Advanced Life Support and Basic Life Support Care. He said an ambulance for Basic Life Support Care to shuttle patients takes the work load off Advanced Life Support units. Mr. Villani referred to the slide showing staffing cuts in FY 2009 and FY 2012 and advised staffing cuts are beginning to impact operations. He said it has been necessary to move staff from one end of the county to the other for coverage. Mr. Villani addressed Destin seasonal coverage. Medic 11 is in operation from April 1 through October 1. In 2013, in Destin during the season, there were 1,537 calls. Off season in Destin in 2013 there were 1,128 calls. He advised the countywide response time is less than nine minutes; however, the response time in Destin during off season is longer. On one of his slides, Mr. Villani stated Medic 10 must pick up an additional 400 calls during the off season when Medic 11 is inactive. Mr. Villani requested reestablishment of six full-time EMTs and three full-time Paramedics which were eliminated in 2009 and 2012. He also asked to add ten relief positions, noting this will not increase budget costs. Additionally, he recommended July 14, 2014 -8- Minute Book 71, Page 140 Okaloosa County Board of County Commissioners a BS a a Uw Te Rea SS a the purchase of three new GM 4500 Advanced Life Support ambulances, one new ford F350 van ambulance for Basic Life Support Care, and cardiac monitor replacements. PUBLIC SAFETY ~ EMERGENCY MANAGEMENT Mr. Villani described Emergency Management as prevention, mitigation, preparedness, response, and recovery. He stated when the funding is reduced by more than 2%, it affects the EMPA Grant. Upon inquiry by Mr. Boyles about EMS, Mr. Villani stated one unit is taken down during the winter in Destin and they want to make it a full-time unit. Upon further inquiry by Mr. Boyles, Mr. Villani stated the additional staff will take personnel back to the 2009 level. In reply to a question from Mr. Amunds, Mr. Villani stated the Basic Life Support is being used to its fullest extent. Mr. Padgett said the request is to add nine full-time positions and ten relief positions. PUBLIC COMMENTS No one from the public came forward to comment. Mr. Parisot requested a breakdown in expenditures, by percentage from the General Fund, in each of the following categories: Public Safety, Essential Services, and Quality of Life. ADJOURNMENT There being nothing further to be discussed, the workshop was adjourned at 8:00 p.m. DON W. HOWARD CHARLES K. WINDES, JR., CHAIRMAN CLERK OF CIRCUIT COURT BOARD OF COUNTY COMMISSIONERS (These minutes were transcribed by Teresa Ward.) July 14, 2014 -9- Minute Book 71, Page 141 Okaloosa County Board of County Commissioners