Okaloosa County BOCC — January 30, 2013 — reading text

funds. Regarding operating expenses, Mr. Curry stated the Board has been consistently decreasing contributions to social and community service agencies. Last year those agencies were given notice that future funding may be eliminated. He noted these agencies will be considered at the end of the budget process. Mr. Curry stated because of downsizing efforts, more than 130 positions have been eliminated over the past six years. He reported the General Fund operations will continue to be a challenge this year and without enhanced revenues, further reductions may be required. Upon inquiry by Mr. Parisot, Mr. Curry said proposed staffing changes are on Page 27 of the agenda packet. Proposals include deleting one Domestic Violence Case Monitor in Court Services and one Growth Grant Project Coordinator in Growth Management. Proposed additions are: Fleet Operations – one Lead Equipment Technician and one Equipment Technician Human Resources – one Human Resources Specialist to replace the position deleted last year Public Safety 9-1-1 Division – one 9-1-1 Call Taker Tourist Development - one Security Guard and one Marketing Coordinator Water & Sewer – one Master Painter The packet also noted the Board has discussed the establishment of a Legal Department. Mr. Curry stated he would like to address Fleet Operations for a moment. He pointed out the county had a good fleet in 2007 but there has been minimum replacement of vehicles since then. Mr. Curry stated the fleet is aging and consideration must be given to replacing a minimum number of vehicles and equipment. April 9, 2013 -3- Minute Book 69, Page Okaloosa County Board of County Commissioners Upon inquiry by Mr. Parisot, Mr. Curry stated consideration should be given to upgrading IT equipment. He noted that last year $75,000 to $100,000 was allocated for such updates. Reserves – Mr. Curry recommended a target General Fund Reserve of 8% or approximately thirty days of “operating cash” for the Board. The approximate target amount for General Fund Reserves is $3,015,000. Capital Projects – Mr. Curry stated the Policy Document has several pages detailing capital projects and he will not review those. Fiscal Challenges – Mr. Curry provided a “snapshot” of the fiscal challenges. Ad valorem taxes, using the current millage rate, are projected to increase by $390,000. Other General Fund revenue considerations were identified. Mr. Curry projected a total revenue increase of $470,000. Under the heading of “untapped revenues,” Mr. Curry estimated $21,160,000 could be realized with a local option sales tax. Also, the second LOGT could bring in $2,735,125. Other revenue possibilities are franchise fees, impact fees or stormwater assessments. Mr. Parisot asked if any estimates have been received from the Tax Collector regarding the implementation of the new Business Tax Receipt Ordinance. Mr. Amunds replied the Board will not know that impact until the Tax Collector returns his excess fees. The expenditures side of the Fiscal Challenges was identified. Those were: $1,742,561 for the Sheriff’s expanded School Resource Officer Program; $1,253,500 for replacement of vehicles and equipment; $1,458,623 for a 3% salary market adjustment; and $675,000 for Capital Outlay. Mr. Curry said the Florida Retirement System impacts are unknown at this time. The estimated known expenditures were $4,821,211. Mr. Curry emphasized the numbers being used are for demonstrative purposes. The difference between estimated General Fund increased expenses and estimated General Fund revenue increases is -$4,351,211. To compensate, the Board could approve a millage increase of 0.355 mills or reduce government services by 3.3% or $4,351,211. Mr. Parisot posed questions about the Department of Juvenile Justice (DJJ) issues. Mr. Curry responded money has been set April 9, 2013 -4- Minute Book 69, Page Okaloosa County Board of County Commissioners aside in Reserves in the event Okaloosa County is not successful in that litigation. He added that if the county is successful, those set-aside funds will provide a “nice nest egg.” Upon further inquiry by Mr. Parisot, Mr. Curry said he is not optimistic about proposed legislation regarding Medicaid this year. Mr. Curry’s recommendations for balancing the FY 2014 budget were to review the big picture, consider revenue enhancements, look at a reduction methodology, and adopt a services and staffing philosophy. Using a pie chart to demonstrate the “big picture,” Mr. Curry identified the portion of the total budget of $257,241,963 which is Governmental ($132,467,495) and which is Non-Discretionary ($124,774.468). Other pie chart showed revenues for the Governmental portion of the budget, as well as expenditures. Reduction options are across the board, reductions based on category hierarchy (#1 Public Safety, #2 Essential Services, #3 Quality of Life), reductions based on prioritization of services, or a combination of all three. In 2009 a countywide survey was conducted to learn the citizens’ viewpoints on service priorities. The first four in order of importance are ambulance/EMS, Emergency Management or disaster preparation, law enforcement/jail, and roads/bridges. Mr. Curry felt a philosophy of services and staffing in association with reductions should attempt to keep services and staffing in place to weather the economic downturn. Options are reductions in compensation and benefits, use of Reserves (which is not recommended) or additional staff layoffs as a last resort. Continuing, Mr. Curry emphasized the importance of the Board providing direction early in the budget process. He acknowledged there are hard decisions to be made. The budget workshops are set for July 18, July 23, July 30, August 6 and August 8. The Tentative Budget Hearing is scheduled for Crestview at 6 p.m. on September 5 and will be followed by the Final Budget Hearing on September 17 at 6 p.m. in Fort Walton Beach. Mr. Parisot asked if the final hearing can be moved to September 16 because he will be traveling. Mr. Curry replied the Board cannot set a budget hearing in conflict with the School Board’s hearing and it will be necessary to research before making a decision. April 9, 2013 -5- Minute Book 69, Page Okaloosa County Board of County Commissioners Mr. Paul Lux, Supervisor of Election, stated the deadline for purchasing voting equipment for voters with disabilities was extended from 2012 until 2016 and asked the commissioners to keep that on their radar. He also pointed out the current equipment is getting older and the manufacturer of this equipment has gone out of business. Mr. Lux said given the move for election reform, the looming deadline for specific equipment for voters with disabilities, and the age of current equipment, the purchase of all new voting equipment may be necessary. He advised the costs will be amortized over several years. Mr. Lux noted that electric poll books are being used in half of Florida’s counties. He said Okaloosa County is still using paper. He stated we may be able to get funding assistance from the Americans Vote Act to help modernize this area of the process. Mr. Lux reported elections in Okaloosa County are running fine and people are happy. Undersheriff Don Adams came forward to speak on behalf of Sheriff Larry Ashley. He said the Sheriff’s staff has reviewed the Budget Policy Document. Mr. Adams reported the Sheriff’s preliminary budget numbers indicate a $3 Million increase over last year’s budget. He acknowledged that $1.7 Million (SRO Program) of that figure is included in Mr. Curry’s report. Mr. Adams explained that the Sheriff’s Office, like the county, needs to replace vehicles and has found that six of the positions eliminated last year are critical positions and need to be reinstated. Mr. Adams encouraged the commissioners to look at revenue enhancements. He said he doesn’t know if they can continue to make reductions and still be able to provide services. Mr. Harris asked Mr. Adams if he is referring to a tax increase. He responded, “I think that is what it is.” Mr. Harris said he is not certain any decisions can be made tonight. He stated there are many hard decisions to be made and he would like time to sleep on it. He asked Mr. Curry if there are any questions which must be answered tonight. Mr. Curry said it would be helpful if the Board can give some marching orders on whether or not to increase the millage rate. Mr. Amunds said he is not interested in increasing the millage rate. He also considered franchise fees “off the table.” Mr. Amunds felt any action to increase gas taxes would be a rush April 9, 2013 -6- Minute Book 69, Page Okaloosa County Board of County Commissioners job. With regard to a sales tax increase, Mr. Amunds said he doesn’t see anything happening on that front in the short term. Mr. Curry reported the timeline for gas tax implementation is July 1. Mr. Harris commented the people traveling through the county would be contributing. Mr. Windes said he is looking at increasing the gas tax. Mr. Curry asked for comments on the target for General Fund Reserves. Mr. Harris said he would like to see it stay at 8%. He again voiced support at looking at implementation of additional gas taxes. Mr. Amunds recommended this subject be placed on the next agenda (April 16) for discussion. Mr. Boyles said he has been hearing from his constituents they don’t mind paying their fair share but don’t want to pay any more than they have to. He felt the burden should be shared broadly. Mr. Boyles advised that he is not supportive of an increase in ad valorem taxes, noting that is a very narrow revenue base. He stated that earlier he heard franchise fees were “off the table” but again said the burden should be spread. Mr. Boyles expressed his concern the cost of living continues to rise but there are no increases for employees. He added that he gets more calls about roads than anything else. Mr. Boyles agreed there are many challenges and said there are more problems than money to solve them. Mr. Parisot said his calculations show that by not increasing the millage rate since 1992 it has saved the taxpayers $75 Million but that is a revenue stream the county has given up. He also said he does not see how a 3% salary adjustment is possible without enhancing the revenue stream. Mr. Parisot stated he was supportive of some type increase. Mr. Curry suggested letters be mailed to the utility companies to determine their position on possible imposition of franchise fees. Mr. Amunds replied he has no problem with that recommendation. An extended discussion ensued regarding franchise fees. Mr. Amunds asked Mr. Curry to draft a letter to be mailed to the utility companies. He also asked for the attorney to provide bullet points on the issues concerning franchise fees. Mr. Curry also asked for guidance on employee compensation. Mr. Parisot asked how the Board can support this without a revenue April 9, 2013 -7- Minute Book 69, Page Okaloosa County Board of County Commissioners source. Mr. Harris expressed his concern the county will begin to lose employees as the economy picks up. He felt the Board should look at some type of increase. Mr. Amunds stated he would love to give everyone an increase but he is hesitant at this point to make that commitment. He said he doesn’t want to get hopes up. Mr. Curry agreed that is a realistic approach and it sounds like the Board is telling the budget team to hold the line and to look at new revenue sources. A comment was made about providing salary adjustments for those on the lower end. Mr. Harris quickly said he