Okaloosa County BOCC — April 9, 2013 (meeting #1123) — reading text

provide a higher level of oversight to the Tourist Development Department's fiscal Attachment: Budget Policy Document FY14 (1578 : Budget Policy Document) reporting activities; and 1 Restore Act Coordinator to work with the Restore Advisory Committee and contracted consulting firm to develop and implement the County's multi-year plan. The County is also reviewing request for proposals (RFPs) for internal auditing services which will enhance the County’s internal auditing functions as well as act as the Board's Auditor General Office (AGO) compliance officer following deficiencies recently noted in the Tourist Development Department. The proposed budget includes the deletion of the following positions: 1. Court Services – 1 Domestic Violence Case Monitor (PT) due to a reduction in funding. 2. Growth Management – 1 Growth Grant Project Coordinator currently staffed through a temporary staffing agency. The proposed budget includes the addition of the following positions: 1. Fleet Operations – 1 Lead Equipment Technician and 1 Equipment Technician to maintain the aging fleet. 2. Human Resources – 1 Human Resources Specialist to replace the position deleted last year and support the reorganizational shift of internal operations. 3. Public Safety, 911 Division – 1 911 Call Taker to provide adequate staffing on all four shifts. 4. Tourist Development – 1 Security Guard to increase overall security and reduce contracted security services and 1 Marketing Coordinator to successfully market the Emerald Coast. 5. Water & Sewer – 1 Master Painter for on-going and preventative maintenance. The Facility Maintenance Department estimates the Board should anticipate the addition of 5 new positions to support the renovation and occupancy of the Courthouse Annex. The Corrections Department will require the addition of 8 Correctional Officer I positions: 5 to reopen the upstairs housing and 3 to provide backup to current staff and conduct additional transports as the jail population increases. The Board has also discussed enhancing the County’s Legal Services Department to handle more legal matters in-house necessitating the hiring of additional staff. As the Patient Protection and Affordable Care Act (PPACA), otherwise known as ObamaCare, is implemented in 2014, the County will be required to offer insurance to employees who work 30 hours or more per week. The Page 20 Packet Pg. 27  1.b Board has relief employees in the Emergency Medical Services and Airport Police divisions and temporary, seasonal employees in the Beach Safety Division that may be affected by PPACA. Staff is currently working with these divisions to ensure that they have adequate staffing levels and ensure the county is in compliance with the PPACA. In Fiscal Year 2012, the overall county structure was reorganized in an effort to streamline the number of department directors for greater efficiency and cost effectiveness. Significant cost savings were realized through the reassignment of duties and elimination of high level positions such as the Assistant County Administrator and Corrections Director as well as nearly the entire Administrative Services Department. Compensation considerations for positions affected by the reorganization were delayed until Fiscal Year 2014 budget discussions. Attachment: Budget Policy Document FY14 (1578 : Budget Policy Document) Voluntary Separation Incentive Program (VSIP). In Fiscal Year 2008 and in Fiscal Year 2010 the Board of County Commissioners approved the offering of a VSIP to help reduce positions and balance the budget. In July 2011, legislators amended Florida Statute 215.425, thereby affecting the County’s ability to offer the same type of VSIP to employees. The Statute amendments eliminated bonuses not specifically tied to performance and capped severance pay to an amount not greater than 20 weeks of compensation. In an effort to continue to shrink operations, a new VSIP was developed and implemented in April 2012 that provided increased annual and sick leave payouts, and a total of 2 employees applied and were approved for the program. Policy Recommendation. While additional staffing requirements have been identified, without revenue enhancements further staffing reductions will be necessary to meet the fiscal challenges in Fiscal Year 2014. Staff recommends augmenting revenues or identification of priorities among county services, as much as is possible, to facilitate budget formulation. For Fiscal Year 2014, staff recommends the Board consider a 3.0% market adjustment to partially defray employees’ cost of living increases experienced during the past several years. However, based on final budget estimates, this plan could be modified to include other market increase considerations, a lump sum payment to employees or, if necessary, a decrease in compensation through salary reductions or furloughs. Staff recommends a decrease from $10,070 to $9,102 in per employee health, life and dental benefits. Operating Expenditures Department of Juvenile Justice (DJJ). The Department of Juvenile Justice (DJJ) is currently funded by each county paying the costs of predisposition detention services for youths who are residents of the county, although the detention facilities remain operated by the State DJJ. During each Fiscal Year, the County receives a “reconciliation” of costs from DJJ. For Fiscal Year 2010 and Fiscal Year 2011, the reconciled amount resulted in increased costs from $828,327 to $1,014,157 and $823,203 to $1,884,390, respectively. The County has not paid the 2010 “reconciled” amount and has requested, according to procedure, to join the administrative challenge currently ongoing and enter an administrative hearing challenge for the 2011 amount, as well. The pending (unpaid) amount for Fiscal Year 2010 is $1,061,186 and the pending amount for Fiscal Year 2011 is $412,889. The State originally estimated Okaloosa County’s share for 2012 to be $1,257,575, but that amount was reconciled at State’s year end and the County received a credit of ($506,610). The State estimated the Fiscal Year 2013 amount to be $1,009,964. The County struggles to continue to meet the financial demands of this unfunded mandate. Page 21 Packet Pg. 28  1.b Medicaid. Okaloosa County is required to pay a portion of the State’s share for certain Medicaid services. The County’s portion in Fiscal Year 2011 amounted to $1,315,130 and $1,293,915 for Fiscal Year 2012. During last year’s session, the Legislature passed a Medicaid Budget Conforming Bill that requires each county to pay 85.0% of all unpaid Medicaid invoices, regardless of disputes over said invoice. For Okaloosa County the final adjusted backlog of questioned invoice balances amounted to $225,970. This amount will be repaid over 4 years. These payments will go to the State by withholding the county’s state revenue sharing distribution each month. The County is currently still eligible to receive a refund for incorrect charges if they apply to the state for a credit to their Medicaid account. The bill also shifts the county’s Medicaid share for upcoming years giving Okaloosa County a Fiscal Year 2013 budgetary requirement of $1,575,500 and an estimated expenditure for the year at this time of $1,600,000. With Attachment: Budget Policy Document FY14 (1578 : Budget Policy Document) the change in statutory definitions and the uncertainty of additional changes, the impact to the budget is somewhat unknown. Community Redevelopment Agencies (CRA). In Fiscal Year 2012 the Board of County Commissioners funded four community redevelopment agencies, the first in Fort Walton Beach, the City of Crestview being the second, the third in Destin and the fourth in Cinco Bayou. These agencies impact the budget by the incremental changes in valuation in the designated areas. For the last five years the incremental change decreased and in this past year it declined by $171,765, due primarily to the decrease in valuation of all of the CRA areas. These decreases bring the total annual amount distributed to these agencies to almost $1,135,000. With the decrease in incremental value and the uncertainty of additional areas, the impact to the budget is somewhat unknown. Social and Community Service Agency Appropriations. After several years of 10.0% reductions, last year the Board of County Commissioners decreased funding to most social service agencies by 50.0%. This was the fourth year in a row for funding reductions. These social service agencies included Shelter House ($3,645), Head Start ($3,645), Day Care Services ($36,450), Elder Services ($11,847), and the Ben Gordon Visitation Center ($12,500). Additionally, the Child Protection Team ($57,402), Economic Development Council ($120,933) and the Soil Conservation District ($45,215) each had a 4.0% reduction in Fiscal Year 2013. With the continuing decline in available revenues, budget staff is proposing further reductions or elimination of funding to social and community service agencies. Library Cooperative Support. In existence since 1997, the Library Cooperative (OCPLC) provides free and easy access to information, ideas, books and technology that enriches, educates and empowers the residents of Okaloosa County. Member cities of the Cooperative (Crestview, Destin, Fort Walton Beach, Mary Esther, Niceville, Valparaiso) operate public library facilities that serve all municipalities and the unincorporated county. Since the establishment of the Cooperative, all six libraries have either constructed new facilities or added additional footage to meet the needs of their enlarged service area. The county does not operate any library facilities. The Cooperative office administers county-wide programs, serves as liaison to the State Library and applies for grants and aids, and operates The Library Spot, a self-service lending machine in Baker, which was secured through a grant awarded in Fiscal Year 2013. Each library is funded by its municipality, and the Board allocates funds to assist the municipalities in serving county residents. Through the Cooperative’s interlocal agreement, 80% of Board funding passes through to the cities. Over the past five years, the Board has provided the following amounts for the respective Fiscal Years: 2009 - $1,004,000; 2010 - $900,000; 2011 - $535,000; 2012 - $585,500, and 2013 - $513,600. Concurrent with decreases in funding, economic pressures on residents have resulted in increased demands upon libraries, especially for technology-related services that assist in education, career and business development, job search, Page 22 Packet Pg. 29  1.b acquiring social services and interacting with government agencies. Member libraries have suffered a loss of financial