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

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 General and the County ' s External Audi tor. The following positions are recommended : • Purchasing Specialist , Purchasing Department • Buyer in Purchasing Department to support and be funded by the Airports and Water & Sewer Funds • Grants & RESTORE Manager • Grants Coordinator , Purchasing Department • Construction Inspector III , Growth Management • Construction Plans Examiner , Growth Management • Planning & Permitting Technician , Growth Management • Two Administrative Assistant II positions , Growth Management Mr . Hofstad stated there will be a net proposed increase of 18 positions in the General Fund and Enterprise Funds . Highlights regarding Capital Outlay , Equipment and General Fund Reserves include : July 18 , 2016 -2- Minute Book 75 , Page 27 Okaloosa County Board of County Commissioners  • Taxes dedicated to the P . J . Adams Construction Trust Fund are anticipated to be $350 , 000 . • The Crestview Courthouse replacement project represents $12 . 8 Million increase over the initial projected costs for a renovation of the facility . • Approximately $480 , 000 in new capital projects are proposed in this budget and include : South Courthouse Annex security improvements , jail space remodeling to handle additional capacity with additional security improvements , and county facility air conditioning replacements . • The proposed budget incorporates $208 , 146 for payment on the new elections equipment . • Recommendations on new vehicles and equipment for the enterprise funds will be highlighted by those department directors during budget workshops . • In the General Fund , replacement vehicles are recommended for Code Enforcement , Corrections , Parks , and Mosquito Control . Additional equipment purchases are recommended for Facilities Maintenance , Information Technology , Parks , and Mosquito Control . • General Fund Reserves are expected to increase by $14 3 , 54 6 for a total projected reserves budget of $6 , 715 , 041 . Mr . Hofstad stated the Sheriff ' s initial request for FY 2016 - 17 included a spending plan increase of 10 % or $3 . 3 Million to address pressing law enforcement needs throughout the county . He said the bulk of the amount requested is for new positions . He said $620 , 000 was deducted from this request and $2 . 69 Million is proposed for next year. For the enterprise funds , the following information was provided : • Record growth has been reported in the Tourist Development Fund. Projected revenues for FY 2016-17 are $54 , 774 , 450 which represents an increase of $9 , 314 , 636 from the prior year . • Passenger Facilities Charges and Customer Facilities Charges are forecast to increase by 22 % or by $3 . 2 Million . • The FY 2016-17 budget reflects an 11 % or $7 , 186 , 339 in revenue for the Water & Sewer Department for next year . • In Solid Waste and Recycling , the proposed budget reflects a 2 . 9% increase or $236 , 000 . July 18 , 2016 -3- Minute Book 75 , Page 28 Okaloosa County Board of County Commissioners Mr . Hofstad concluded his presentation with a word of thanks to the budget team . Mr . Boyles complimented Mr . Hofstad on presentation of the balanced budget but expressed concern regarding the small amount placed in General Fund Reserves . Upon inquiry by Mr . Boyles , Mr . Stanford advised the overall General Fund budget is just over $92 Million . Mr . Boyles repeated his concern that $150 , 000 is not a lot of savings to be placed in Reserves and would like to see that increased . Another concern voiced by Mr . Boyles was the trend over the last two years to exceed capacity at the County Jail . He termed this proposed budget as a good starting point . SHERIFF Sheriff Larry Ashley stated he is at a position that he doesn ' t know if he could ever be pleased with the budget . He said that he has scrubbed his request and pointed out each year he submits a request of what he needs . Sheriff Ashley stated 2009-10 was marked by a 55 % increase in violent crimes and in that year $1 Million was cut from his budget . In 2010-11 , $1 . 5 Million was cut from the Sheriff ' s budget and in 2011-12 another $1 . 5 Million was cut . He emphasized that the budget for the Sheriff ' s office is currently at the same level it was in 2007 . The Sheriff stated the difference is we have a million more tourists and thousands of more residents . Each of these years there was an increase in violent crimes . However , in 2013 there was a 10 % decrease in violent crimes but a million dollars was also cut from his budget . He reported a 3 . 5% decrease in violent crimes during the first six months of this year . Sheriff Ashley supported his review with a series of slides entitled : Basic Trends , Annual Call Volume Increase , Population Impact on Local Traffic , and Calls for Service Trends . He reiterated his request is to add 14 sworn deputies and one civilian and to provide his staff with a 3 % cost of living adjustment (COLA) . Mrs . Ketchel thanked Sheriff Ashley for bringing integrity to the department. She shared concerns about the increased volume of calls for service , distracted driving , and problems at the Jail . Mrs . Ketchel said the School Resource Officer (SRO) Program has been very successful and felt it is something we must do . July 18 , 2016 -4- Minute Book 75 , Page 29 Okaloosa County Board of County Commissioners Mrs . Ketchel and Mr . Harris also spoke about the upcoming retirement of Undersherif f Don Adams and stated he will be greatly missed . Mr . Windes added that the Undersheriff has instilled confidence and thanked Mr . Adams for his service on behalf of the Board of County Commissioners . Mr . Boyles requested additional information on the $4 67 , 000 COPS Grant going away . Sheriff Ashley stated this grant is ending but the department has submitted grant applications for the Street Crimes Unit . He noted that terms of the grant are to match the funds for at least one year . Upon further inquiry by Mr . Boyles , the Sheriff stated there are 40 SROs . He said the School Board pays one-third of the costs for the SROs . Mr . Boyles also had questions on worker ' s compensation and noted that it has gone up 60 % over the last three years . Sheriff Ashley advised costs will increase with new hires . He reported there have been a number of injuries to officers with an increase of 108 % over the last five years . Sheriff Ashley stated , in response to another inquiry , that body cameras have not diminished the number of assaults on off ice rs. He also provided answers to questions regarding wrecker service costs , maintenance of vehicles , and fuel costs . Sheriff Ashley commented that it may become necessary to park half of the patrol cars and go to two-man uni ts . He said what happens elsewhere in the country does have an impact here . When Mr . Harris asked about the morale of the department , the Sheriff stated the community has always been supportive and referred to the recent death of Officer Myer in the line of duty . He stated the community stood (propped) them up during that tragedy . Sheriff Ashley stated with regard to events happening elsewhere , " It worries me ." SUPERVISOR OF ELECTIONS Mr . Paul Lux , Supervisor of Elections , told the commissioners they have his budget before them . He said this is a General Election year with two full-fledged elections . Mr . Lux stated he cannot pre-pay for elections costs and this budget will ref le ct the expenses for the elections . He