Okaloosa County BOCC — September 2, 2014 — July22,2014 budgetworkshop — reading text

July 22, 2014 Budget Workshop A Fiscal Year 2014-15 Budget Workshop of the Okaloosa County Board of County Commissioners was called to order at 1:00 p.m. at the Okaloosa County Courthouse in Crestview. 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; Ernie Padgett, County Administrator; and Greg Stewart, County Attorney. MEDICAL EXAMINER Mr. Padgett stated he was informed the Medical Examiner is out of pocket and will not be present today. HEALTH DEPARTMENT Dr. Karen Chapman, Director of the Florida Department of County Health in Okaloosa County, shared a number of major accomplishments of the department during 2014. Dr. Chapman stated her request for FY 2015 is different than past years. She explained that she is requesting the county's Facilities Maintenance Department take over janitorial services for the Health Department facilities. Dr. Chapman stated janitorial services have been provided on a contract basis for the last 14 years. She advised that she has spoken with Facilities Maintenance Director Don Turner about working this into his budget. Dr. Chapman stated her budget reflects a 5% increase. Upon inquiry by Mr. Amunds, Dr. Chapman said there would be no savings by using county forces for janitorial services. She stated the $74,000 request for janitorial services is more than what was paid this year, adding they were not getting a good product. Mr. Harris expressed his support, saying it is a good move and he thinks this is the first time the Health Department has asked for an increase. Mr. Boyles asked if this budget request takes into account any consideration for placing money into reserves. Mr. Padgett replied in the negative. Mr. Boyles asked how this process is July 22, 2014 -1- Minute Book 71, Page 157 Okaloosa County Board of County Commissioners to be followed with $1.5 Million to go for stormwater recovery and additional funds to be placed in reserves. He asked about carving out millions of dollars from the budget, how those cuts will affect departments, and if the departments will get a second hearing/presentation before the Board when cuts are made. Mr. Padgett responded the commissioners don’t have to make cuts as they go. He said after the Sheriff’s presentation he will make commentary and recommendations on concerns expressed at the last budget workshop. Mr. Boyles stated the budget being presented may not be the one which is adopted, He asked where the $3 Million for stormwater and road repairs is coming from. Mr. Boyles stressed we may not have the funds to give the Health Department a 5.3% increase. Mr. Padgett replied this is the same process we went through last year and if the Board wants to change the process, it can. Mr. Harris remarked he has never been a big fan of performance- based budgets and he has requested the Board go back to a zero- based budget format. He referred to Mr. Boyles’ earlier remarks and said this process does not give anyone an opportunity to come back to the Board. Mr. Boyles asked if the Board can take a few minutes now to hear the County Administrator’s plan. Mr. Amunds suggested that at future workshops, the County Administrator open by providing answers to questions posed at the previous budget workshop. Mr. Windes concurred. Mr. Padgett said that can be done next time. Mr. Boyles stated the elephant in the room is the Board cannot look Dr. Chapman in the face and say it can agree to the increase she is requesting. Mr. Parisot stated at the last meeting the Board approved allocation of $260,000 to continue public transit which brings the total to $3% Million to be found. Mr. Windes commented there is definitely work to be done. Mr. Boyles again asked for Mr. Padgett to present his plan at this time. Mr. Harris recommended Dr. Chapman be allowed to complete her presentation. Dr. Chapman spoke on Medicare revenues and readjusted programs for family planning and STDs. She added this is the first time since 2008 any kind of layoffs had to be done because of a revenue shortfall. Dr. Chapman projected a deficit budget but felt she could make up $125,000 to $150,000 during the year to cover the deficit. At Mr. Amunds’ inquiry, Dr. Chapman July 22, 2014 -2- Minute Book 71, Page 158 Okaloosa County Board of County Commissioners explained the impact on her budget and level of service resulting from Obamacare. Mr. Steve Czonstka, Niceville, asked Dr. Chapman if there are any plans to bring illegal immigrants to Okaloosa County, noting many are being transported to military installations. He expressed concerns about unknown health issues and if screenings will be done. Dr. Chapman replied she has no knowledge of any plans to use Okaloosa County military facilities for immigrants. She added that Senator Gaetz sent a letter to Health Services asking for their specific plans and expectations for the State of Florida but there has been no response that she is aware of. REVIEW OF PRIOR BUDGET WORKSHOP ISSUES Mr. Windes said he feels the bulk of work is done in the County Administrator’s Office but the commissioners are only getting “bits and pieces” on the budget. Mr. Padgett responded that he believes we are all saying the same thing. He understood there to be three issues from the previous workshop. Mr. Padgett stated staff will fine tune the budget as we go, stressing they are always updating as the figures (revenue numbers) come in. Mr. Padgett stated Mr, Parisot requested detailed information on the expenditure levels in the three categories: Public Safety, Essential Services, and Quality of Life. A pie chart was presented on the screen showing the percentage of allocations for each category. Mr. Stanford clarified that he understood Mr. Parisot’s question to be on the General Fund dollars rather than the entire budget and this chart reflects proposed cost distribution for FY 2015 in those three categories. Mr. Padgett gave the percentages: ® Public Safety: 58.2% or $46,449,423 e Essential Services: 31.8% or $25,374,567 ®@ Quality of Life: 10.0% or $ 8,022,406 The pie chart, as well as a bar graph, was used to show the expenditures in the 2012, 2013, and 2014 budgets, and the proposed FY 2015 budget. Mr. Padgett stated the next question was regarding the Unincorporated Parks MSTU. (NOTE: At the July 14 budget workshop, Mr. Padgett recommended a one-time transfer of $500,000 from the MSTU Reserves to stormwater for FY 2015.) He read a portion of Ordinance No. 13-21 which outlined the July 22, 2014 -3- Minute Book 71, Page 159 Okaloosa County Board of County Commissioners purposes for creation of this taxing unit. Mr. Padgett stated last year the Board moved $450,000 to stormwater. The excerpt listed specific parks to be maintained as identified in the Stipulation and Agreement dated February 14, 1984. It also provided for services and improvements within the MSTU for parks and recreational areas as determined by the Board. This ordinance added the provision to provide services and improvements within the MSTU for management and control of stormwater and “such other services and improvements as necessary for the provision of a stormwater utility.” Mr. Parisot told Mr. Padgett he was reading from the ordinance adopted last year but the Board made a commitment that the money in reserves on September 30, 2013 would remain in reserves and would only be used for parks. He said he wants to uphold that commitment made to the citizens. Mr. Parisot added he does not have a problem with “borrowing.” Mr. Amunds asked if the money from Walton County with regard to a Memorandum of Understanding (MOU) on expenses for the Medical Examiner’s Office is factored into the proposed budget. Mr. Padgett answered that Walton County was notified last year they had to make payment toward the Medical Examiner's facility. He stated that has not been factored into the budget. Mr. Windes stated Mr. Parisot was satisfied with Mr. Padgett’s comment on the Unincorporated Parks MSTU but Mr. Boyles is not. Mr. Boyles said last year it was also pointed out there would be a negative annual cost in the Parks budget which will eat up reserves to pay operating costs. He expressed great concern about robbing another half-million dollars from this reserve after the commissioners said they would not do that. Mr. Boyles said this should be fixed but not by slight of hand. Mr. Padgett disagreed, saying it is not slight of hand or robbing the fund. He told the Board they could make a run at a sales tax or a stormwater utility. Mr. Boyles told his fellow commissioners they must take charge and said he believes the suggested direction is misguided. Mr. Padgett responded by telling the commissioners they are the policy makers and staff needs direction. Mr. Boyles was of the opinion that was the subject at the last meeting and asked for alternatives. Mr. Harris said he sees the only foreseeable alternative is to advocate for a referendum. He said we will never achieve anything with piece meal efforts. Mr. Harris objected to throwing good money after bad and added that it is too late this July 22, 2014 -4- Minute Book 71, Page 160 Okaloosa County Board of County Commissioners year to put this item on referendum. He added this problem will never be taken care of if we don't get aggressive. Mr. Amunds felt if the Board makes a promise, it needs to keep that promise. He agreed with Mr. Boyles’ and Mr. Parisot’s earlier comments about not pulling any money from this reserve fund. Mr. Amunds said he believes there is consensus to direct the County Administrator to take that off the table. He continued by stating we should follow up on other revenue sources/income. With regard to the issue of Walton County sharing expenses for the Medical Examiner facilities, Mr. Amunds said just because a letter was sent, does not mean compliance and asked for a report on the follow through. Mr. Padgett replied the Medical Examiner said they billed Walton County for its share of the expenses, adding that he has not seen a signed MOU with Walton County. Mr. Amunds stated if the Board directed a MOU to be established, then it is the county’s responsibility to put it into place. He expressed concern there is no MOU in place or any information on the costs due Okaloosa County. Mr. Amunds stated someone should be held accountable. Mr. Boyles commented the public will certainly hold the commissioners accountable. Mr. Windes said these items will be placed at the beginning of the next budget workshop agenda to answer the commissioners’ questions. He said they will expect more and better answers. Mr. Boyles noted another item on the list is $1.5 Million for road repairs and setting aside additional allocation for General Fund Reserves. Mr. Padgett referred to the reimbursement from FEMA for the April 29 rainstorm event and said the State and Okaloosa County will split the remaining costs. Mr. Stanford explained that per the funding agreement, FEMA will reimburse 75%. The remaining 25% local match will be shared by the State and the county, both with a 12%% share. Mr. Stanford advised that is generally how FEMA and the State provide assistance. Mr. Padgett reiterated the budget is fine-tuned as we go and there are two months left before adoption of the budget. He advised work is continuing on increasing General Fund Reserves. Mr. Boyles commented it looks like we are tossing couch cushions and buying lottery tickets. He said everyone is asking for an increase and asked if he is supposed to nod and smile about these increases. Mr. Boyles stated he has an obligation to July 22, 2014 -5- Minute Book 71, Page 161 Okaloosa County Board of County Commissioners participate in this process and not just wait on the numbers, thinking it will work out in the end. Mr. Harris said