1. County Fiscal Outlook February 2, 2010

2. Outline Economic Environment Revenue Outlook Budget Strategies FY 2010 Budget Challenges Budget Strategies FY 2011 Summary

3. Outline Economic Environment Revenue Outlook Budget Strategies FY 2010 Budget Challenges Budget Strategies FY 2011 Summary

4. Economic Environment October 13 Dr. Zingale December 15Scott Skraban January 5Dr. Snaith January 25Dr. Baker Dr. Snaith Presentations

5. Economic Environment Florida’s unemployment rate reached 11.8% in December Including those that are underemployed unemployment rate rises to 19.5%

6. Unemployment Rates Economic Environment

7. $143,500 $319,968 $159,716 Orange County Average Residential Sale Prices

8. Economic Environment

9. Statewide Foreclosures 302,161 Economic Environment

10. Orange County Foreclosure Filings 5,067 11,351 26,131 *31,000 * Projected 2006 200720082009 Economic Environment

11. Orange County Housing Starts Source: U.S. Census Bureau 10,863 1,661 440 26 Economic Environment

12. Outline Economic Environment Revenue Outlook Budget Strategies FY 2010 Budget Challenges Budget Strategies FY 2011 Summary

13. Tourist Development Tax Building Permits Utility Connection Fees Enterprise Revenues Revenue Outlook

14. Tourist Development Tax -15.4%3.2%25.5%-3.0%

15. Revenue Outlook Building Permit Revenue -2.5%-29.1%-40.8%-13.8%

16. Revenue Outlook Utility Connection Fees -2.1%-39.4%-64.4%Flat

17. Property Taxes Sales Tax Public Service Tax Impact Fees Recording Fees Revenue Outlook

18. NOV JANMAR MAY JUL SEP OCT Revenue Outlook 2010 Property Appraiser Assessment Date Taxable Value Estimate Preliminary Taxable Value Final Taxable Value State Taxable Value Estimate

19. Revenue Outlook 2011 and Beyond Property Tax Outlook –FY 2011 – (10%) Sales Tax –FY 2011 - (2.0%) Revenue Outlook

20. Countywide Property Tax –Millage rate 4.4347 down from 5.1639 in FY 2007 Sheriff MSTU –Millage rate 1.8043 down from 2.1234 in FY 2007 Fire MSTU –Millage rate 2.2437 down from 2.5862 in FY 2007 Sales Tax PST State Revenue Sharing

21. $959 $942 $853 ($89) $474$476$475$428 $107 $105 $94 $130$133 $131 $116 $128$126 $116 $104 $89 $88 $87 Major Revenue Sources Revenue Outlook

22. $959 $942 $853 ($89) $474 $476$475 $428 $107 $105 $94 $130 $133 $131 $116 $128$126 $116 $104 $89 $88 $87 $784 $385 $84 $105 $102 $85 ($69) -10% Major Revenue Sources Revenue Outlook

23. $959 $942 $853 ($89) $474 $476$475 $428 $107 $105 $94 $130 $133 $131 $116 $128$126 $116 $104 $89 $88 $87 $784 $385 $84 $105 $102 $85 ($69) Major Revenue Sources Revenue Outlook Three Main Property Tax Levies Countywide Sheriff Fire

24. Revenue Outlook Countywide Property Tax$385M Sheriff MSTU$ 84M Fire MSTU$105M TOTAL$574M Three Major Property Taxes

25. Orange County Property Tax Estimates Revenue Outlook

26. Orange County Property Tax Estimates $711 Revenue Outlook

27. Orange County Property Tax Estimates $711$705 Revenue Outlook 0.8%6.7%6.6%7.1%

28. Orange County Property Tax Estimates $711$705 Revenue Outlook 0.8%6.7%6.6%7.1%

29. Outline Economic Environment Revenue Outlook Budget Strategies FY 2010 Budget Challenges Budget Strategies FY 2011 Summary

30. $959 $942 $853 ($89) $474$476$475$428 $107 $105 $94 $130$133 $131 $116 $128$126 $116 $104 $89 $88 $87 Major Revenue Sources Budget Strategies FY 2010

31. Reduced Operating Budgets Used Prior Year Cash Savings Froze CIP Projects Adjusted Reserves $60M $30M Budget Strategies FY 2010

32. Public Safety -3.2% Outside Agencies -3.4% General Government-12.1% Budget Strategies FY 2010

33. General County Employees (Excludes: Const. Offices, Enterprise Operations, and Public Safety)

34. Outline Economic Environment Revenue Outlook Budget Strategies FY 2010 Budget Challenges Budget Strategies FY 2011 Summary

35. Cost cutting measures to conserve cash Past investments in infrastructure Reduction in Risk Management costs Healthy reserves Budget Challenges Good News Bad News Rising unemployment & foreclosures Economic uncertainty Declining revenues State budget deficit/unfunded mandates Increasing service needs

36. Public Safety Sheriff –Largest budget in county –Budget consists primarily of personnel costs and fuel Corrections –Budget highly dependent on inmate population –Medical care costs –Legislative impacts Fire Rescue –New stations and equipment replacement on hold –Various programs on hold –Trend not sustainable Budget Challenges

37. Health Services and Family Services PCAN –Increases in healthcare costs and expensive secondary care creates financial challenges –Restructure program to control costs Medicaid –Medicaid enrollment is increasing significantly –Healthcare reform proposals advocate extending Medicaid to more individuals –Changes in State law may further exacerbate budget shortfall Family Services Programs –Increasing demand for mental health and homeless issues –Funding for safety net programs Budget Challenges

38. Administrative Services –Escalating maintenance costs –Fuel price volatility –Lease obligations Community & Environmental Services –Operating and maintaining current parks –Limited funding for Total Maximum Daily Load (TMDL)/water quality Public Works –Providing adequate O&M funding continues to be a challenge –Level of services have been reduced –CIP challenges Admin. Services, C & E Services, Public Works

39. LYNX –Current funding $35 million –Impact of 7% reduction Healthcare –$96 million program covering 9,000 employees and 19,000 members –Medical trend is 9% increase –Future funding challenges Employee Benefits –Structural changes Budget Challenges LYNX and Employee Benefits

40. Outline Economic Environment Revenue Outlook Budget Strategies FY 2010 Budget Challenges Budget Strategies FY 2011 Summary

41. Budget Strategies FY 2011 FY 2010 Tax Based Operating Budget

42. Public Safety 2010 Tax Based Operating Budget Sheriff $184M Fire Rescue 145 Corrections 146 Other 7 TOTAL $482M Budget Strategies FY 2011 FY 2010

43. Administrative Services $46M Family Services 45 Health Services 43 Parks & Recreation 30 Comm. & Environ. Services 20 Growth Management10 Other60 TOTAL $254M FY 2010 General Government 2010 Tax Based Operating Budget Budget Strategies FY 2011

44. Constitutional Officers$ 53M LYNX 35 Other 54 (CRAs, Outside Agencies, Courts, CRP) TOTAL $142M Outside Agencies 2010 Tax Based Operating Budget Budget Strategies FY 2011 FY 2010

45. Budget Strategies FY 2011 Tax Based Operating Budget

46. $70M Reduction Budget Strategies FY 2011

47. Savings from FY 2009 Budget CIP Adjustments Operating Budget Cuts Budget Strategies FY 2011

48. Savings from FY 2009 Budget $15M CIP Adjustments Operating Budget Cuts Budget Strategies FY 2011

49. Commuter Rail$35M Corrections$10M Total Budget Strategies FY 2011 Capital Improvements Program $45M

50. Commuter Rail$35M Corrections$10M Total Budget Strategies FY 2011 Capital Improvements Program $45M $30M Cash Funding $15M Finance

51. Savings from FY 2009 Budget $15M CIP Adjustments $15M Operating Budget Cuts Budget Strategies FY 2011

52. Savings from FY 2009 Budget $15M CIP Adjustments $15M Operating Budget Cuts $40M Budget Strategies FY 2011

53. 7% budget cuts for BCC & Constitutional Offices –Cut programs –Reduce level of service –Delete vacant positions –Possible layoffs Budget Strategies FY 2011 Operating Budget Cuts

54. Direct impact on employees –Wage freeze –Mandatory 5 day furloughs –Changes in health care benefits & co-pays –Early retirement incentives –Appointed BCC employees will lose 4 days of administrative leave Budget Strategies FY 2011 Operating Budget Cuts

55. Outside agencies will have their budget cut by 7% Budget Strategies FY 2011 Operating Budget Cuts

56. Savings from FY 2009 Budget $15M CIP Adjustments $15M Operating Budget Cuts $40M Budget Strategies FY 2011 $70 Million

57. Outline Economic Environment Revenue Outlook Budget Strategies FY 2010 Budget Challenges Budget Strategies FY 2011 Summary

58. Economic uncertainty Decreasing revenues No new taxes Balance budget –Savings –CIP adjustments –7% decrease in operating budgets Summary

59. Public Safety –Sheriff’s Office –Corrections –Fire Rescue Summary – Next Steps February 2, 2010 Health Services and Family Services –PCAN, Medicaid –Family Services Programs Community & Environmental Services, Public Works –Parks, TMDL –Public Works February 16, 2010

60. LYNX Administrative Services –Facilities, Fleet, Leases Employee Health Care and Benefits Summary – Next Steps February 23, 2010

61. County Fiscal Outlook February 2, 2010