Okaloosa County BOCC — February 11, 2013 — February 12 Strategic Plan Workshop — reading text

Board’s staff. These reductions have been the result of attrition, layoffs, countywide reorganization and three February 12, 2013 -5- Minute Book 68, Page Okaloosa County Board of County Commissioners Voluntary Separation Incentive Programs offered in 2008, 2010 and 2012. Mrs. Godwin stated insurance costs have increased by 30% over the last six years. In 2007 employees were required to contribute $20 per month for insurance premiums. This was later increased to $40 per month. However, that employee contribution has been offset the last two years by the county’s return for participation in the ProShare agreement with Florida Blue. Although ProShare proceeds are expected in 2014, Mrs. Godwin stated there are no dollars from that program to apply for the coming year. Upon inquiry by Mr. Amunds, Mrs. Godwin stated $635,000 is for a 1% increase for all Board and all Constitutional Officers’ employees. Mr. Boyles referred to the across-the-board adjustments described by Mrs. Godwin earlier in her presentation. He noted those adjustments do not match inflation and actually results in “handing the employees less.” Mr. Boyles said everything they are buying costs more. Continuing, he stated there are employees who hoped to go forward but they are stuck where they started. Mr. Parisot asked for a description of the potential impact for employees who might leave the county and cash in their leave time. Mr. Curry answered there could be some gain in the budget because replacement of the vacant slots would be at a lower pay rate. Information Services Mr. Don Vanderhoek, Information Services Director, stated many information technology infrastructure improvements are needed to support the ongoing technical operations of the county. Currently, the IS Department supports 800 computers, 200 of those are for the Library Cooperative. He said 200 computers are more than six years old and need to be replaced. Mr. Vanderhoek said his concerns are similar to those reported by Mr. Vaughn in Fleet. He felt the department is getting far behind in replacing its equipment and suggested a program to replace 100 to 125 computers each year to lessen the impact. Mr. Vanderhoek also reviewed the age of the servers and the tape library. His report included details on costs to change to a February 12, 2013 -6- Minute Book 68, Page Okaloosa County Board of County Commissioners new disk system, loss of support for XP after 2014, and coming changes to the internet (IPV4 to IPV6). He estimated 25% to 40% of the budget is spent to brace up old systems. Public Works Mr. John Hofstad, Public Works Director, said his message is more of the same. He stated the demand for services grows but revenues dwindle. Mr. Hofstad said response to stormwater control problems continues to be reactionary. He advised the funds needed to address current stormwater issues are $50 Million. Mr. Hofstad acknowledged the Board has been very supportive of maintaining the level of service of the Road Division; however, the need for this type work continues to grow. He reported a slight uptick in gas tax revenues. Mr. Hofstad stated rather than just overlay roads, the department has been diligent in using different methods for upkeep of the roadways. With regard to the Parks Division, he stated this section is funded by MSBU assessments and dollars continue to be programmed into the budget each year. Upon inquiry by Mr. Harris, Mr. Hofstad replied the new by-laws for the Parks Advisory Committee have been very beneficial. Upon inquiry by Mr. Parisot, Mr. Hofstad stated there is still a $400,000 cap on performing road projects in-house. Mr. Parisot also expressed his position on establishing a stormwater utility and how the lack of such a utility affects state funding. Mr. Hofstad replied they lose 25 points on each grant application because there is no dedicated funding source for stormwater projects. Mr. Curry stated Agenda Item #3 is Revenue Source Options. He noted this broad picture of current limitations and opportunities does not include Enterprise Funds. The information today places emphasis on the General Fund. When asked by Mr. Boyles about a comparison of ad valorem tax and sales tax revenues, Mr. Curry responded that is part of the budget process which is just now beginning. He remarked it is more art than science, noting the information provided by the Property Appraiser in April is only a guess and it will not be until May when the Property Appraiser has better data. February 12, 2013 -7- Minute Book 68, Page Okaloosa County Board of County Commissioners Mr. Boyles stated the Okaloosa County policy position has been to place heavy weight on ad valorem tax revenues. He asked if that discussion could be spread more broadly. Mr. Amunds stated franchise fees would not just affect property owners but everyone using the utility. Mr. Curry stated there was much discussion on this subject last year. He said about ten or twelve years ago there was litigation filed against the municipalities concerning franchise fees. The municipalities did not want the franchise fee to be passed along to the customers. Mr. Curry told the Board they do not have the authority to arbitrarily impose a franchise fee but can do so with a cooperative agreement. Upon inquiry, Mr. Stanford estimated franchise fee revenue at $7.5 Million. Mr. Curry pointed out that one untapped revenue source is to increase the gas tax by five cents. He reiterated there are no impact fees in the county and no second LOGT. Mr. Curry noted that adopting a franchise fee would only affect the residents of unincorporated Okaloosa County. Upon inquiry, Mr. Stanford stated adoption of one to five cents of the second LOGT (local option gas tax) requires a majority plus one vote. Revenue from all five cents would be $4.5 Million. Mr. Curry stressed those revenues could only be used for Road Department projects. If the LOGT revenues were put into the Road Department, then General Fund dollars could be taken out. Mr. Curry notified the Board that the coming budget year will be the greatest challenged faced so far. Mr. Curry said the fourth item on the agenda is the proposed FY 2014 Strategic Plan. Details are provided for each department. He drew the Board’s attention to Page 48 of the information packet. Mr. Curry pointed to the Mission Statement, Vision Statement, Operations Philosophy, as well Goals and Objectives located on this page. He stated deciding on what the Board’s highest priority is will help in building the budget and suggested looking at only a small grouping of issues/items. The seven goals listed in the Strategic Plan under Board of County Commissioners are: 1. Reduce the number of unpaved roads while increasing the number of paved roads that are resurfaced 2. Improve stormwater infrastructure 3. Plan for long-term space needs for all government entities 4. Reduce the size of county government 5. Meet Okaloosa County’s public safety needs 6. Ensure the sustainability of drinking water supplies February 12, 2013 -8- Minute Book 68, Page Okaloosa County Board of County Commissioners 7. Maintain outstanding service and reaction time to county residents without an increase in funding Mr. Parisot said he believes #4, Reducing the size of county government, can be removed. Mr. Curry advised that a priority list does not have to be solidified today and can be brought back for discussion at a regular Board meeting. Mr. Amunds felt the Compliance Officer position for TDC should be added. Mr. Curry directed attention to Page 54 under the heading of the County Administrator’s Office. The goals outlined in this section are: 1. To fully implement the Board’s corrective action plan/response to the Auditor General’s “Okaloosa County Board of County Commissioners’ Oversight of the Tourist Development Council and Use of Tourist Development Taxes and Funds Received from British Petroleum” Operational Audit dated January 2013 2. Continue development of the County’s RESTORE Act Program 3. Ensure maximum service delivery capabilities of county employees 4. Provide for space needs of government offices 5. Use technology to maximize effectiveness of county offices and employees 6. Enhance service delivery and maximize staff potential by providing appropriate training, education and job experiences Mr. Parisot referred to his handout and the three goals he has identified: 1. Ensure proper oversight of fiscal spending in all areas, with special emphasis on tourism bed taxes 2. Rebuild General Fund Reserves to a 45-day operational level to handle emergencies and other unforeseen events 3. Continue policy making on the development and implementation of RESTORE Act programs Mr. Curry noted that Mr. Parisot’s Goal #3 corresponds to Goal #2 under County Administrator. Upon inquiry by Mr. Windes, Mr. Curry stated the goals listed under the County Commissioners are not in any priority listing. Mr. Boyles said there are many good possibilities and feels some items, such as Goal #6 under the Board (sustainability of drinking water) could be moved to the department level. February 12, 2013 -9- Minute Book 68, Page Okaloosa County Board of County Commissioners Mr. Curry pointed out the last item on the agenda is adoption of the Strategic Plan for Fiscal Year 2013-14. He said today is for the Board to provide direction to staff rather than adoption of the plan. Mr. Boyles referred to Mr. Parisot’s list of goals and said he likes #1 and #3 but is not convinced #2 should be included. He said we can try to focus on a 45-day reserve but we can only take one step at a time. Mr. Windes commented that we will be treading water for a while. The floor was opened for public comment. No one came forward to speak. Mr. Curry capsuled the comments made during the workshop. ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at 3:07 p.m. _____________________________ _______________________________ DON W. HOWARD DON R. AMUNDS, CHAIRMAN CLERK OF CIRCUIT COURT BOARD OF COUNTY COMMISSIONERS (These minutes were transcribed by Teresa Ward.) **** February 12, 2013 -10- Minute Book 68, Page Okaloosa County Board of County Commissioners