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

$32,300 $2,000,000 $20,157 $5,067 $0 $0 $0 $0 $0 Alachua Bay Charlotte Hernando Okaloosa Osceola St. Johns St. Lucie Santa Rosa Crestview Destin FWB 2009 2010 2011 in order to meet State requirements, customer demand, and meet statutory restrictions and limitations. Because of the significant capital improvement needs and the bonded indebtedness related to the enterprise funds, continued monitoring and analyzing of rates and charges for the enterprise activity of the County will be ongoing. The Board should consider exploring any future Home Rule assessment or user charge as needed. The review of an Okaloosa County impact fee ordinance continues to be considered. The Board has already studied the creation of an assessment system to address the serious stormwater management issues that plague Page 15 the County. The assessment, if imposed, will address the many stormwater system needs identified in the County Stormwater Master Plan. The Board will continue to study alternative financing means for future needs. Cash Carryforward Carryforward is a term applied to the amount of cash or receivables on hand at the beginning of the fiscal year. Carryforward amounts are estimated in advance of that time, as are the revenues and other receipts reasonably anticipated to be collected during the upcoming year. A reserve for cash balance to be carried over may be provided for the purpose of paying expenses from October 1 of the ensuing fiscal year until the time when the ad valorem tax and other revenues for that year are expected to be available. In accordance with Florida Statutes Chapter 129.01(c)2, this reserve may be not more than 20.0% of the total receipts and balances of the budget. Carryforward results from not only unspent operating funds, but also previously budgeted debt service, and capital reserve funds that are carried forward to fund those same reserves in the new fiscal year or to fund capital projects in the current or future years. Page 17 displays an analysis of individual fund types with significant changes in carryforward balances and the sources of the carryforward. As is always the case, fund balances and net assets fluctuate based upon the activity occurring in the fund for that particular year. In 2012, fund balances increased from the previous year due to continued efforts of the Board to maintain status quo and cash in these turbulent budgetary times. The General Fund fund balance fluctuates quite a bit almost every year. In Fiscal Year 2011 the General Fund changed and increased fund balance due to one-time revenue and due to GASB 54 reclassification of the previous Fine and Forfeiture Special Revenue Fund fund balance. The Tourist Development Fund decreased because of spending down oil spill promotional funds, although bed taxes increased significantly, including the balance related to proposed beach renourishment projects throughout the tourist development area. The capital outlay funds have projects that are ongoing throughout the year that affect the cash balances either positively or negatively. The Capital Outlay Fund decrease came from the completion of the Courthouse Annex Extension project and other current projects. The Road and Bridge Construction Fund balance increased somewhat due to delays and re-evaluation of several major projects that are or will be ongoing during the years to come. Several enterprise funds increased net assets or cash carryforward due to increased fee revenue and reduced or delayed projects during the difficult economic times. The Water and Sewer Fund had a significant increase in cash during the year due to delays of major projects awaiting, military joint projects and borrowing for future projects. Airport Fund had an increase in net assets, due to the increase in funding for several ongoing capital projects and the use of bond proceeds for capital funding and debt projects. The Solid Waste Fund net assets increased significantly due to renegotiation of waste and transfer contracts. The Inspection Fund decreased due to building activity throughout the year and the start of the repayment of the general fund cost allocation previously delayed. The Emergency Medical Services Fund increased due to some increased revenue billings and slight increased tax support. The Convention Center Fund net assets decreased due to the mandatory early redemption provision of the debt on the Center. The internal service funds had some increase in revenue activity as well as some unexpected expenses. The Self Insurance Internal Service Fund increased due to insurance reimbursements, while the Fleet Internal Service Fund declined due to increased maintenance and fuel costs. Policy Recommendation. The Board of County Commissioners will have to continue to evaluate, analyze and explore all opportunities in order to maximize resources to maintain levels of service expectations of the Page 16 citizenry. With minimal revenue increases anticipated, certain state shared revenue declining and the charges for service rates being impacted by the economic times, the Board will continue to have fiscal challenges. The Board will have to consider additional revenue enhancements or potential declines in expenditure or service levels in order to maintain the status quo. Comparative Cash Carryforward (Fund Balance/Net Asset) Balances Fund Type Amount Amount Increase Fund Title 9-30-2012 9-30-2011 (Decrease) General Fund $8,423,310 $3,936,643 $4,486,667 Special Revenue County Transportation Trust $1,091,779 $2,066,310 ($974,531) Tourist Development Trust $13,196,918 $16,225,315 ($3,028,397) Natural Disasters $1,157,322 $1,206,022 ($48,700) E911 Operations $1,299,843 $1,085,587 $214,256 Unincorporated County Parks $4,675,333 $4,413,418 $261,915 All Other $2,791,003 $2,543,302 $247,701 Debt Service Fund $194,806 $430,601 ($235,795) Capital Projects Funds Capital Outlay Construct $3,699,258 $7,974,845 ($4,275,587) Road & Bridge Construct $11,201,953 $10,745,328 $456,625 Enterprise Funds(Net Assets) Water & Sewer $35,112,802 $19,507,521 $15,605,281 Airport $22,673,659 $21,416,750 $1,256,909 Solid Waste $1,023,698 $97,186 $926,512 Inspection $122,876 $213,290 ($90,414) Emergency Medical Services $3,432,243 $2,673,937 $758,306 Convention Center $6,456,466 $6,938,552 ($482,086) Internal Service Funds Self Insurance $1,174,318 $980,250 $194,068 Garage Services ($29,863) $130,627 ($160,490) Total $117,697,724 $102,585,484 $15,112,240 Page 17  Local Government Expenditures Governmental expenditures are utilized primarily to provide required services not provided by any other source. Governmental services include; property appraisal, tax collections, election services, assimilation and recording of legal/court documents, law enforcement and public safety services, growth management, public transportation, road construction and maintenance, recreation/cultural services, water and sewer services, airport services and solid waste services, just to name a few. Personal Services Salary Adjustments. Each budget year, staff reviews National economic trends, including an averaging of the Employment Cost Index (ECI), the Consumer Price Index (CPI), and various compensation surveys, and provides wage scale increase recommendations based on those sources. During the Fiscal Years 2009, 2010, 2011, 2012 and 2013 the Consumer Price Index (CPI) indicated wage scale increases of 4.30%, .10%, 2.70%, 1.50% and 2.90%, respectively. In Fiscal Year 2009, the Board awarded the last across the board market adjustment in the amount of 2.0%. Based on the minimal employee wage increases awarded and the stated CPI adjustments for those Fiscal Years, employees have fallen behind 9.89%. For Fiscal Year 2014, the National economic trends indicate wage scale increases of 1.9% are warranted. In an effort to begin addressing the lack of market adjustments and keeping with current economic trends,