Okaloosa County BOCC — August 16, 2016 — July 18, 2016 budget workshop

July 18 , 2016 Budget Workshop A budget workshop to review the Fiscal Year 2016-1 7 Budget was called to order at 8 : 30 a.m . at the Shalimar Administration Building . Members present were Charles K. Windes , Jr ., Chairman ; Carolyn Ketchel , Vice Chairman ; Wayne Harris ; Nathan Boyles ; and Trey Goodwin . Also present were Gary J . Stanford , Finance Director , Clerk ' s Office ; John Hofstad , County Administrator ; and Greg Stewart , County Attorney . Mr . Hof st ad stated this is the first of four scheduled budget workshops before the Board to explain the proposed spending plan for next year . He said during these reviews staff will seek guidance and make changes as necessary . Mr . Hofstad noted there were challenges in preparing the proposed budget but the document presented today is a balanced budget . Mr . Hofstad summarized his transmittal letter which accompanied the budget. He reported property values are projected to increase 4 . 3% with ad valorem revenue increasing by approximately $2 . 4 Million . Anticipated State Revenue Sharing is $600 , 000 and State Sales Tax Revenues are estimated at $1 . 5 Million . Mr . Hofstad stated these three sources will contribute approximately an additional $4 . 5 Million in General Fund revenue for FY 2016-17 . Before receipt of the certified numbers from the Property Appraiser two weeks ago , Mr . Hofstad stated the budget was out of alignment by $7 Million . He said after a series of discussions that deficit was cut to $3 . 5 Million . More work was done with an additional $1 Million being cut from the initial budget requests . He advised that more revisions were necessary and last week those changes were made and the budget team is now able to present a balanced budget . The proposed budget for next fiscal year is $369 , 567 , 653 which represents an increase of $38 , 273 , 406 across all funds . This is an 11.6 % increase above the current budget . He explained there is a substantial increase in the enterprise funds , stating those funds are doing very well and growing . The following budget drivers and unanticipated expenses were described : • A significant impact is projected with regard to heal th care . There will be a 6% increase in employee heal th care July 18 , 2016 -1- Minute Book 75 , Page 26 Okaloosa County Board of County Commissioners  costs . Mr . Hof st ad noted some options are available and will be discussed during tomorrow ' s regular meeting . • Inmate health care costs are expected to increase by 11 % or $268 , 000 because of the rising inmate population in the County Jail. • Medicaid costs are expected to jump by 9% or $158 , 000 . • There has been a sharp rise in case load (28 % increase) for the Medical Examiner . Projected costs for the Medical Examiner will increase by 22 % or $106 , 000 . • The Health Department has requested an additional $100 , 000 , representing an increase of 1 7 %, to continue the current level of support provided to Okaloosa County . Mr. Hofstad next outlined proposed employee compensation and new positions . He pointed out that 90 positions have been cut over the last six years and employees are asked to do more with less . Over this period of time the CPI has increased by 12 % but employee compensation has grown by only 6%. Mr . Hofstad reported a number of county employees are below the poverty line . He stated this budget proposes a 2 % equivalent ( $800 per employee) pay adjustment . Across all funds , the pay adjustment equates to approximately $800 , 000 . With regard to adding positions , Mr . Hofstad stated several new positions are programmed in to rebuild organizational capacity and correct deficiencies noted by the Audi tor Genera