Okaloosa County BOCC — 2013 meeting #1123 (date undetermined) — Budget Policy Document FY14 — reading text

Budget Policy Document April 2013  CONTENTS Economic Information 1 Local Government Revenue and Policies 4 Local Government Expenditure and Policies 18 Capital Project Budgeting Policies 25 Budget Workshops 36 Millage Process Schedule 37 Summer Schedule 38 Performance Based Budget-Q&A 39 Furlough White Paper 41  Board of County Commissioners Okaloosa County, Florida Fiscal Year 2014 Budget Policy Workshop Economic Information Population. As government exists for the benefit of the people, it is important to 200,000 monitor population trends within the 180,000 Okaloosa Population county. A sudden increase in the growth 160,000 rate would exert pressure on the Board of 140,000 County Commissioners to add new services or infrastructure. The total 120,000 population changes reflected by both the 100,000 census data, including the most recent, 80,000 and the Bureau of Economic and Business 60,000 Research (BEBR) is portrayed in the 40,000 graph to the right, along with the table on page 3. After multiple years of increases 20,000 and, most recently, decreases or basically 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 maintaining the same level of population, the 2012 BEBR has now begun to Census Data BEBR Estimates increase again. The 2012 BEBR increased over 2011 by 3.1%. Unemployment Rates Unemployment. An increasing 14.0 unemployment rate can indicate an economic slowdown, which can affect government 12.0 11.3 revenue sources, such as sales tax and user 10.5 10.0 9.6 9.1 fees. Additionally, the increase in the 8.7 number of unemployed can increase the 7.9 8.1 Percentage 8.0 7.4 demands for certain governmental services, 6.1 such as health care. The previous three 6.0 Annual County, State and National 4.0 unemployment rates are depicted in the graph to the left. Okaloosa County’s 2012 annual 2.0 rate of 6.1% is a decline from 2011 of 7.4% 0.0 and a further decline from 2010 rate of 7.9%. 2010 2011 2012 Okaloosa County’s rate still remains, as in previous years, well below the 2012 State and County State National National rates of 8.7% and 8.1%, respectively. Page 1 Inflation. The Consumer Price Index (CPI) tracks Economic Indices the overall change in prices in the economy by % Increase in Consumer & Employment Index measuring price changes of a specific "basket" of goods and services. The Employment Cost Index 4.5 4.1 4 3.4 3.5 (ECI) measures changes in compensation costs. 3.5 3.3 3.1 3.0 Inflation erodes the purchasing power of the dollar 2.7 3 3.5 2.2 3.1 and is an indicator of how much additional money 2.5 1.7 2 1.5 is required to purchase the same amount of goods 2.1 2.5 1.5 1.9 and services. The CPI and the ECI rates are at 1.9 1 0.1 1.2 1.7% and 1.1%, respectively, this year as depicted 0.5 1.0 1.1 in the graph to the right. The ECI shows wages and 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 salary costs for State and local government employees, only. CPI ECI Per Capita Property Tax Per Capita Property Tax. This indicator measures the $750 burden of the countywide millage of property taxes per 649 capita based upon the latest Department of Revenue and $600 Florida Association of Counties, "Millages by County"