BOARD OF COUNTY COMMISSIONERS FY11 Budget Workshop May 18, 2010.

BOARD OF COUNTY COMMISSIONERS

FY11 Budget WorkshopMay 18, 2010

FY10 GENERAL FUND BUDGET SUMMARIES

2

Summary of FY10 Adopted General Fund Budget

Dollars in Millions

% ofTotal

% of Total without

Mandated Payments and

ReservesBSO Regional Services 425.8 43.7% 52.5%Property Appraiser 15.1 1.5% 1.9%Supervisor of Elections 11.4 1.2% 1.4%County Agencies 356.9 36.6% 44.0%Planning Council 1.0 0.1% 0.1%Legislative Delegation 0.2 0.02% 0.02%Tax Increment Payments 29.9 3.1% Mandated Health Payments 10.8 1.1% Mandated DJJ Payments 6.8 0.7% Mandated Judicial Costs 1.8 0.2% Transfer to Debt 0.6 0.1% Reserves 113.9 11.7%

TOTAL $974.2 100.0% 100.0% 3

FY10 Adopted Budget County General Fund Agencies

Dollars in Millions

% ofTotal

Human Services* 75.7 21.2%

Libraries 59.5 16.7%

Parks 33.1 9.3%

Facilities Maintenance 29.8 8.3%

Transfer to Transit 29.6 8.3%

Other Agencies 129.2 36.2%

TOTAL 356.9 100.0%

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*Excluding Mandated Health Payments

Facilities Maintenance Division Budget

Allocation

5

Courts42%

General Gov't34%

BSO10%

Libraries7%

Human Services4%

Mass Transit3%

FY 11 PROPOSED BUDGETS

BSO & SUPERVISOR OF ELECTIONS

6

BSO General Fund Budget Summary ($ in Millions)

FY09Actual

FY10Budget

FY11Proposed

FY10-11PercentChange

Admin & Support Services 58.9 55.1 55.0 -0.2%

Detention & Community Control 228.8 222.7 211.1 -5.2%

Regional Law Enforcement 130.7 125.5 133.8 6.6%

Regional Fire 23.4 22.6 21.2 -6.2%

441.8 425.9 421.2 -1.1%

7

BSO Admin & Support Services – 353.6 FTEs

($ in millions)

8

FY09ACTUAL

FY10BUDGET

FY11PROPOSED

FY10-11PERCENTCHANGE NOTES

Personal Services 34.3 36.5 33.8 -7.4%

30 positions eliminated, FRS rate increase

Operating Expenses 19.6 18.0 21.1 17.2%

Restores operating expenses funded with 1X surplus funds in FY 10

Capital Expense 5.0 0.6 0.1 -83.3%

Defers most capital expenses another year

TOTAL $58.9 $55.1 $55.0 -0.2%

BSO Detention & Community Control 1,747 FTEs

($ in millions)

9

FY09

ACTUALFY10

BUDGETFY11

PROPOSED

FY10-11PERCENTCHANGE NOTES

Personal Services 174.3 172.7 161.5 -6.5%

121 positions eliminated (closes D tower at Rein & Hollywood booking facility, eliminates JAC staffing), converts 245 detention deputies to technician positions, restores crime lab (AFIS section), reduced overtime, FRS rate increase

Operating Expenses 52.9 49.3 49 -0.6%

Assumes 4500 inmates for food and health care compared to 5190 in FY10. Associated reductions compensate for restoring operating expenses funded with 1X surplus funds in FY 10

Capital Expense 1.6 0.3 0.2 -33.3% Defers most capital expenses another year

Transfers/Reserves 0 0.4 0.4 0.0%

TOTAL $228.8 $222.7 $211.1 -5.2%

Broward County Jail Average Daily Population by Month

10

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

3000

3500

4000

4500

5000

5500

6000

6500

BROWARD COUNTY JAIL AVERAGE DAILY POPULATION BY MONTH

BSO Regional Law Enforcement - 1,146.6 FTEs

($ in Millions)

FY09

ACTUALFY10

BUDGETFY11

PROPOSED

FY10-11PERCENTCHANGE NOTES

Personal Services 114.1 107.5 116.9 8.7%

24 positions eliminated, restores crime lab, eliminated attrition, FRS rate increase, eliminates furloughs, annualizes raises

Operating Expenses 13.3 14.8 15.2 2.7%Increased self insurance cost due to use of one time surplus funds in FY10

Capital Expense 3.4 1.3 0.4 -69.2% Defers most capital expenses another year

Transfers/Reserves 0 1.9 1.3 -31.6% Reduces OPEB allocation

TOTAL $130.8 $125.5 $133.8 6.6%

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BSO Regional Fire – 123 FTEs($ in Millions)

FY09

ACTUALFY10

BUDGETFY11

PROPOSED

FY10-11PERCENTCHANGE NOTES

Personal Services 17.1 17.9 16.5 -7.8%10 positions eliminated in air/sea unit, FRS rate increase

Operating Expenses 2.8 3.0 3.0 0.0%

Capital Expense 0.4 0.1 0.1 0.0% Defers most capital expenses another year

Transfers/Reserves 3.1 1.6 1.6 0.0%

TOTAL $23.4 $22.6 $21.2 -6.2%

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SUPERVISOR OF ELECTIONS BUDGET - 72 FTEs

($ In Millions)

FY09

ACTUALFY10

BUDGETFY11

PROPOSED

FY10-11PERCENTCHANGE NOTES

Admin Operations 6.8 6.1 5.9 -3.3%

Reduced operating expenses, shifted more equipment maintenance costs to elections

Aug/Nov Election 8.8 4.5 5.3 17.7%

Increased printing due to expected turnout, greater share of equipment maintenance costs and new unemployment costs

Municipal Elections .6 0.8 0.6 -25.0% Fully reimbursed by Cities

TOTAL $16.2 $11.4 $11.8 3.5%

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FY12 OUTLOOK AND FY11 PROPERTY TAX

SCENARIOS

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FY12 Outlook

Continued decline in tax roll Up to $6B estimated State Budget

Gap due to depletion of Stimulus Funds

Dramatic proposed increases to FRS Rates due to unfunded liability

Continued health insurance cost pressures

BSO cost deferrals Potential increase in jail population

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Multi-Year Taxable Value Forecasts

FY12 - -3.1% FY13 - -.9% FY14 - -.1% FY15 - .5%

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Source: March Florida Revenue Estimating Conference

FY11 Property TaxesSame Rate for Operating &

Capital($ in Millions)

FY10 FY11$

DIFFERENCE%

CHANGE

General Fund 708.5 595.1 -113.4 -16%

General Capital 19.0 16.0 -3.0 -16%

G.O. Debt 74.4 58.0 -16.4 -22%

Total 801.9 669.1 -132.8 -17%

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FY11 Property Taxes Rolled-Back Rate for Operating &

Capital ($ in Millions)

FY10 FY11$

DIFFERENCE%

CHANGE

General Fund 708.5 708.5 0.0 0%

General Capital 19.0 19.0 0.0 0%

G.O. Debt 74.4 58.0 -16.4 -22%

Total 801.9 785.5 -16.4 -2%

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FY11 PROPERTY TAX SCENARIOS – RESIDENTIAL

PROPERTIES

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FY09 FY10 FY 11 SCENARIOS% of

Residential Parcels

Taxable Value

Actual Taxes

% of Residential

ParcelsTaxable Value

Actual Taxes

% of Residential

ParcelsTaxable Value*

Same Rate Rolled-Back

RateHomestead With "Save Our Homes" Differential 49% $109,980 $538 39% $110,000 $538 29% $114,000 $557 $667Dollar Change FY10 to FY11 $20 $129Homestead Without "Save Our Homes" Differential 13% $209,000 $1,022 23% $155,000 $758 34% $122,000 $596 $714Dollar Change FY10 to FY11 -$161 -$44

Without Homestead 38% $219,000 $1,071 38% $175,000 $856 37% $147,000 $719 $860Dollar Change FY10 to FY11 -$137 $4

*Homestead properties with a "Save our Homes" Differential will experience a maximum 2.7% increase in "assessed" value prior to the deduction of exemptions per State Statute. The scenarios for all other residential properties are based on a 16% decline in assessed/taxable value.

Summary of Cuts Needed in Various Millage Scenarios

(assuming proportionate cuts)

SAME RATE CUT 13.8% BELOW ADOPTED BUDGET

ROLLED-BACK RATE

CUT 1% BELOW ADOPTED BUDGET

BSO $91.9M *$37.4M

County Agencies $54.7M $9.0M

Property Appraiser **Minimum of $4.1M

**Minimum of $2.2M

Supervisor of Elections

$2.0M $.5M

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* Amount as shown in BSO budget document. Includes reductions to compensate for cost increases and current year cost deferrals of $32.9M and a 1% cut below this year’s budget of $4.5M

** Budget will be submitted 6/1/10. Cost increases unknown at this time. Cost deferral of $2.1M in FY10.

COUNTY AGENCY REDUCTIONS

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Rolled-Back Rate - $9M (2.5%)

Same Rate - $ 54.7M (15.1%)

Same Rate Plus BSO’s Shortfall - $109.2M

(30.1%)22

FY11 County Agency Reduction Scenarios

County Agency Budget Comparison FY07 – FY10

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FY07 FY10PERCENTCHANGE

POSITIONSELIMINATED

Human Services* $84.5 $75.7 -10.4% -115

Libraries $70.9 $59.5 -16.1% -294

Parks $38.4 $33.1 -13.8% -140Facilities Maintenance** $32.4 $29.8 -8.0% -37Transfer to Transit $39.1 $29.6 -24.3% -136Other Agencies $158.4 $129.2 -18.4% -412

TOTAL $423.7 $356.9 -15.8% -1,134

*Excluding Mandated Health Payments**Includes utilities

RESERVES

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Recommended General Fund Reserve for Emergencies/Cash

Flow Approach

Establish reserve policy @ 10% of Budget

Allocate any amount above this level to an account to be utilized over a three year period to assist with tax relief

25

Recommended General Fund Reserve for Emergencies/Cash

Flow Approach (cont’d)

For example, if general fund totals $950 million in FY 11 Establish emergency reserves at

$95M (currently $109M) Utilize $14M over three year period Provides $4.7M relief in FY11 $4.7M impact will need to be

addressed in FY14

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NEXT STEPS

27

Continue Staff Analysis of Constitutional Officer Proposed Budgets & County Agency Reduction Options

Individual Budget Briefing Meetings with Commissioners on June 10th and 11th

Budget Workshop to Review Administration’s Recommendations on June 22nd 28