Budget Workshop June 8, 2012

Millage & Ad Valorem History FY 05/06 – FY 12/13 Proposed 2 $97.4 million 37.8% reduction

Millage & Ad Valorem History FY 05/06 – FY 12/13 Proposed 3 $97.4 million 37.8% reduction

Goal: Long-Term Financial Alignment to Sustain Essential Services 4 Work towards General Fund sustainability & alignment of revenue with services Reduced CRA increments Reduced General Fund subsidy to Parks Eliminated Public Service Tax transfer to Stormwater Moved Medicaid to Indigent Healthcare Fund Merged Fire & EMS Prioritized services Eliminated 205 General Fund positions including Department Director level Reduced historical unspent appropriations Bridged gap in revenues with one-time funding Worked with Constitutional Officers Reduced level of service

General Fund Operating Revenue & Expense 5 FY 07/08 -$296,109,782 FY 11/12 - $234,780,819 FY 12/13 -$231,133,011

General Revenue Not In General Fund FY 02/03 – FY 12/13 Proposed in millions 6

General Fund - Infrastructure (in millions) 7 FY12/13 FY 06/07 Proposed TRANSPORTATION CRA Increments $13.57 $4.50 Public Service Tax $4.60 $3.70 Transportation subsidy through not reducing 1-mill proportionately $ $4.00 * mills proportionate difference PARKS Sales Tax to Parks $3.10 $ Sales Tax to commercial paper $2.00 $ Transfer from General Fund to Leisure MSTU $3.30 $1.40 FACILITIES Communications Services Tax to Facilities $2.35 $ STORMWATER Public Service Tax to Stormwater $2.60 $ SUBSIDIZED INDIRECT COST $11.80 $3.10 $43.32$16.73 $43.32 $16.73

Balancing the Deficit Three Year Plan*** (in millions) 8 FY 11/12 FY 12/13*FY 13/14** Ad Valorem ($9.0) ($5.3) $0.0 One-Time ($10.5) ($8.0) ($6.0) Deficit ($19.5) ($13.3) ($6.0) Use One-Time $8.0 $6.0 $0.0 ($11.5) ($7.3) ($6.0) Prior Year Balance $0.0 $1.2 $0.0 Misc. Budget Adjustment $12.7 $2.0 $0.0 $1.2 ($4.1) ($6.0) $1.2 ($4.1) ($6.0) *Assumes 4% property value reduction **Assumes no change in property value ***Assumes no increase to Board or Constitutional budgets

FY 12/13 – Balancing the Deficit (in millions) 9 Expense ($1.2) Compensation Plan ($1.0) FRS pending Supreme Court decision $0.4 Planned reduction to Parks transfer ($0.5) Sheriff Comm. Center increase $1.6 Stormwater savings $2.2 BoCC division operating reductions $0.3 Outside medical reduction $0.1 CRA value, including June 1 $0.2 Adult Day Care Revenue FY 11/12 recurring balance$1.2 Parks debt payoff$2.0 Indirect cost increase $0.9 Reduced Tax Collector amount ($0.3) Misc. Major Revenue Increase$1.3 June 1 preliminary value ($1.2) PROJECTED GENERAL FUND DEFICIT ($13.3) $3.9$2.1 Use Fund Balance $6.0 ($7.3) $6.0 Deficit($1.3)

FY 12/13 – Balancing the Deficit One-Time Available & Expenditures 10 (in millions) Available One-Time Funds FY 10/11 Additional Ending Fund Balance$1.5 Self-Insurance Reserve Available$3.4 Mid-Year Division Savings$1.6 Available Funds $6.5 Landfill Closure Funds Available $15.0 Available Funds $21.5

FY 12/13 – Balancing the Deficit One-Time Available & Expenditures 11 (in millions) Available One-Time Funds From Prior Slide $21.5 Medicaid “Back Billing” ($7.7) FRS Potential Reimbursement of Employee Contribution ($4.5) Polk Commerce Reserve Reimbursement ($0.6) Parks Debt Payoff ($1.9) Efficiency Commission ($0.3) Available Funds $6.5 Used to Bridge in FY 12/13 ($6.0) Available Funds $0.5

FY 12/13 – Balancing the Deficit One-Time Expense Items Not Budgeted 12 Jail & Mental Health Program$450,000 Cultural Arts$133,500 Other Outside Agencies$200,688 Unfunded Requests from Outside Agencies$500,000 Commissioner Funding$?? TOTAL $1,284,188

FY 13/14 – Balancing the Deficit 13 (in millions) Deficit from One-Time to Balance used in FY 11/12($6.0) Increase Major Revenue $1.0 2 nd year Efficiency Commission($0.2) Statutory retirement rate increase($0.5) 3 rd Polk Commerce settlement payment($0.2) NR CRA plan increment reduced to 75% $0.7 FRS increase (partially covered by one-time in FY 12/13) ($2.1) (pending Supreme Court decision) Constitutional Officer adjustment $0.2 Section 125 benefit not in FY 13/14 $1.2 Deficit($5.9) Note: assumes no change in property value from FY 12/13 & does not include impact from Amendment IV

Major Fund Budget Issues 14 Fund balanced 5 years through FY 16/17 utilizing fund balance as recurring revenue does not cover recurring expense Stormwater Assessment will provide $1.4 million for roadway stormwater issues if approved $250,000 savings including reduction of 3 FTEs Transportation Trust Fund

Major Fund Budget Issues 15 $2.8 million impact in FY 12/13 as some meters are changed ahead of schedule $35 million annual average CIP budget over 5 years; bond issues budgeted every other year to finance expansion Additional staff required due to increased water plant capacity 5% indexing of water & wastewater user fees continues in FY 12/13 as approved by Board in FY 09/10 Utilities Funds

Major Fund Budget Issues 16 Recurring expenditures higher than recurring revenue Proposed reductions to balance the fund for next 5 years $200,000 annual Turf Program reduction $94,170 minor reorganization savings with elimination of 2 FTEs $40,000 annual savings from Youth Assistance Program elimination Continued focus on self-supporting or replacement projects (ex: Walker Road, Off-Highway Vehicle Park, Coleman Campground) Leisure Services MSTU Fund

Major Fund Budget Issues 17 $6 million potential additional expenses for gas collection system if Wheelabrator Ridge Energy agreement ends before construction of next cell $1 million set aside for potential refunds pending internal audit results 5% revenue decrease with tonnage decline due to increased recycling Waste Resource Management Funds

Major Fund Budget Issues 18 New Ranchlands & Marion Creek stations in development Davenport, Babson Park, & Four Corners station remodels in progress Focus on operational & managerial function alignment to streamline Division $105,000 service improvement – increased hours of availability for Medical Director to enhance service delivery Fire Rescue Fund

Major Fund Budget Issues legislation increased Medicaid by $2.28 million, from $6.50 million to $8.78 million $10.8 million reserve reduction from $15.8 million to $5.0 million for services to members Indigent Health Care Fund

Major Fund Budget Issues 20 4% projected Tourism Tax collections increase (currently 7% above prior year actuals) Final debt service payment on Chain of Lakes Stadium to be made in FY 12/13 Increased 4 th & 5 th Penny reserves; TDC working to identify & address future capital needs Tourism Trust Fund

Major Fund Budget Issues 21 FY 11/12 Single-Family Residential permits 43% higher than same time period in FY 10/11 Recurring revenue covered recurring expenses at FY 10/11 end, increasing fund reserves in FY 12/13 Maintaining costs & slight revenue increases projected to keep fund balanced through FY 18/19 Building Fund

Budget Process Calendar 22 July 6 – Sheriff’s Budget Presentation to Board July 9 – County Manager’s Proposed Budget Presentation August 23 – Board Workshop to discuss Community Investment Program August 28 – CIP Work Session September 6 – First Public Hearing September 13 – Final Public Hearing