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FY1994 Response to Budget Inquiryk C UNTY o MON ROE KEY WEST FLORIDA 33040 (305)294-4641 District Four Marathon Government Annex Suite 110 490 63rd Street, Ocean Marathon, FL 33050 Telephone: (305) 289-6000 FAX: (305) 289-6013 June 10, 1993 Honorable Danny Kolhage County Clerk 500 Whitehead Street Key West, FL 33040 Dear Danny: BOARD OF COUNTY COMMISSIONERS MAYOR, Jack London, District 2 Mayor Pro Tern, A Earl Cheal, District 4 Wilhelmina Harvey, District 1 Shirley Freeman, District 3 Mary Kay Reich, District 5 Thank you for your timely budget submission. I appreciate the clarity that you provided. This year, I will not make an issue out of (page 11) paying $250 each for a chair when I purchased a very good one for about half of that amount. On page 5, you provided an analysis of the past five years along with the current request. The increase was 6.3%. A quick, unverified calculation indicates the aggregate increase over the base year of 1988-89 to be 7.07%. My review of your revenue history from 1988-89 indicates an increase of $1,365,833. I believe that equates to an increase of 1.84% over the base year of 1988-89. I find it of interest that for the same time period, your budget increased 7.07% while revenues you collected increased only 1.84%. However, at the same time, I note that the aggregate increase in the number of case filings was 11,748. Can a correlation be made between any of these figures to support your request for the increases you have had over the last five years? Sincerely, A. EARL CHEAL, DBA Mayor Pro Tem BRANCH OFFICE 3117 OVERSEAS HIGHWAY MARATHON, FLORIDA 33050 TEL. (305) 289-6027 3Dannp 1. Rotbage . CLERK OF THE CIRCUIT COURT MONROE COUNTY 500 WHITEHEAD STREET KEY WEST, FLORIDA 33040 TEL. (305) 292-3550 June 28, 1993 Hon. A. Earl Cheal County Commissioner, District 4 Marathon Governmental Center Marathon, Fl. 33050 Dear Commissioner Cheal: BRANCH OFFICE 88820 OVERSEAS HIGHWAY PLANTATION KEY, FLORIDA 33070 TEL. (305) 852-7145 In response to your inquiry dated June 10, 1993 concerning my budget submission for Fiscal Year 1993-1994, I am pleased to provide you with the following information. I have enclosed as Attachment 1 a worksheet describing the method used to calculate "average annual increase". This method is utilized because it is consistent with the requirements of Florida's TRIM Law, which requires the County to provide public notice and certify to the Property Appraiser and its citizens, the increase in its proposed property taxes and operating budgets over the current year. Your method of calculation, using a base year, includes a compounding effect that accounts for the difference. However, the point is that the County is required, by law, to advise the public and report annual increases in its taxes and budgets with the base year being the current year. I specifically direct your attention to the table in the lower right hand corner of the worksheet which lists the annual increases beginning with FY 89-90. In FY's 89-90 and 90-91, the large increases of 10.31% and 12.62% respectively, were the result of extraordinary requirements placed upon my office by the Courts. In FY 89-90, I received an Administrative Order that required my office to assume the responsibility for the preparation of judgments and sentences in criminal cases. This function was previously performed by the judge's judicial assistants. Commissioner Cheal June 28, 1993 Page 2 It was necessary for me to (one each in the Key West, and the attendant matching duties. add three new Deputy Clerk positions Marathon and Plantation Key offices), costs to perform those additional In FY 90-91, the Sixteenth Judicial Circuit, Monroe County, was certified by the Supreme Court to receive an additional County Judge position. Judge Becker was ultimately elected to that position. Nationally accepted standards, and our own experience, indicates that three new clerical positions are required to support each new judicial position. Accordingly, my budget for that year included three new deputy clerk positions in Marathon, together with matching costs and some capital equipment funding. The increases shown in FY's 91-92, 92-93, and proposed 93-94 more closely reflect normal operating conditions. The average annual increase for those three years is actually 2.9%. In response to your question in reference to revenue increases, I can tell you that there is very little correlation between the major revenue sources and my opera ts. As I have described, the increases in FY's 89-90 an 90-91 re the result of my responses to changes in the court er which I had no control. The addition of a County Judge does have some effect on revenues, such as fines and filing fees; however, the effects are very subtle and involve mostly timing differences. Obviously, cases get filed and misdemeanors and traffic offenses occur regardless of the number of judges that are available to hear them. In fact, some of the relationships are actually inverse. For instance, the major revenue declines experienced over the period included in my summary were in the area of interest income. There is a reduction of approximately $1.4 million between the peak year of 1989-90 and our estimates for FY 1992- 93. The reasons for this are, of course, related to interest rates and the national economy. However, we must spend more staff time and resources to diversify our investment activities in order to be more aggressive in periods of declining and historically low interest rates. Revenues from documentary stamp and intangible taxes can also show large fluctuations that have no impact on workloads and staffing requirements. The fact that case filings increased by 11,748 during the period covered in the reports is very significant. Commissioner Earl Cheal June 28, 1993 Page 3 Some of the filings have a direct and substantial impact on revenues. With others, the effect is minimal. The areas that have shown the most dramatic increase in filings over the period are in county criminal cases (misdemeanors and criminal traffic), and traffic citations. The revenues associated with these filings are classified as "Fines and Forfeitures" and are shown on page 1 of the Revenue History. As you can see, those revenues increased from $1.7 million in FY 87-88 to our estimate of $2.4 million in FY 92-93. When it comes to the relationship of filings to workload, I need only say that filings are workload. In December of 1989, I contracted with the firm of Carter Goble and Associates to prepare a space and staffing master plan for the Office of the Clerk of Courts. I will take this opportunity to provide you with some of the results of that master plan specifically related to filings and staffing patterns. The Judiciary contracted with Carter Goble to conduct a similar study for their use. On the basis of a combination of several different models, Carter Goble provided projections of both case filings and staffing for the period from 1990 to 2010. Attachments 2 through 8 are copies of tables taken from the master plan that show historical information, descriptions of the various models used, and projections of case filings. Attachment 9 shows the same information for personnel projections. On Attachment 10, I have compared the projections for the year 1990, the actual filings for 1990, the estimated filings for 1993, the projections for 1995, the staffing level for 1990, the current staffing level, and projected staffing level for 1995 and presented some obvious relationships between the data. In summary, my estimate of filings for 1993 are 90% of the projected filings for 1995. The Carter Goble master plan personnel projections for 1995 is 110; however, the staffing level for FY 93-94 is 95, which is exactly the same as the level for 1990. It is clear that I have respected the Board's desire to "hold the line" on budget increases and corresponding tax increases. However, it is also clear that my office is rapidly falling behind in the ratio of deputy clerks to filings. Although Carter Goble's projections and staffing recommendations are intended to be used for planning purposes, our ability to process the court's work in a timely and effective way is diminished when the appropriate ratio of clerical staff to filings is not maintained. Commissioner Earl Cheal June 28, 1993 Page 4 Our use of technology such as the CJIS system, the use of PC based receipting and payment posting, and computerized voice response systems has helped to mitigate the need for additional staff; however, sooner or later increased volumes will have to be met with additional personnel. My budget request for FY 93-94 includes appropriations necessary to make salary adjustments in accordance with the findings of the wage and classification study being conducted by Cody and Associates of the Office of the Clerk of Courts. Cody has done some market surveys and analysis of the County's employees and employees of other officials. My request is made on the basis of the very early results of that work. In light of the circumstances that I have described in this memo relative to workloads, I am sure that you will agree with me that it is very important from the standpoint of employee morale and incentive that I have the ability to adjust employee salaries to achieve equity and competitiveness. If I can provide you with any further information, do not hesitate to contact me. Sincerely yours, y L. Ko hage Clerk Circuit Court and ex officio Clerk to the Board of County Commissioners DLK:rj CLERK'S BUDGET CALCULATION OF AVERAGE ANNUAL INCREASE FY 89-90 FY 90-91 BUDGET BUDGET FY 89-90 $2,672,562 FY 90-91 $3,009,873 FY 88 - 89 (2,42Z747) FY 89 - 90 (2,67Z562) DIFFERENCE 249,815 DIFFERENCE 337,311 DIVIDED BY FY 88-89 2,422,747 DIVIDED BY FY 89-90 2,672,562 ANNUAL INCREASE 10.31% ANNUAL INCREASE 12.62% FY 91- 92 FY 92- 93 BUDGET BUDGET FY 91-92 $3,058,227 FY 92-93 $3,159,057 FY 90 - 91 (3,009,873) FY 91- 92 (3,05a227) DIFFERENCE 48,354 DIFFERENCE 100,830 DIVIDED BY FY 90-91 3,009,873 DIVIDED BY FY 91-92 3,058,227 ANNUAL INCREASE FY 93-94 BUDGET 1.61% FY 93-94 $3,280,014 FY 92- 93 (3,159, 057) DIFFERENCE 120,957 DIVIDED BY FY 92-93 3,159,057 ANNUAL INCREASE 3.83% ANNUAL INCREASE 3.30% ANNUAL INCREASE FY 89-90 10.31 % FY 90-91 12.62% FY 91-92 1.61 % FY 92-93 3.30% FY 93-94 3.83% TOTAL 31.67% AVERAGE ANNUAL INCREASE 31.67%/5 6.33% Exhibit 1 Exhibit 2 T N N T O O N R T T N n �4Ds rl N in .= V) N T < QQ lV Cl T as 8i, Q n Ki, U �o Ke�'co � N T TT g 400 V al o T in T � y M N M M M !l !! _ �lyy r el Ck el Ck t9 P� ci f7 N T ci (((QQQ111��� oTa Yoh vpp N o x T N � lV T IL � M Jq oT 91 � 0 T g 7i T M 2 � r is � r ■ � ■ F <, ., 1> 4 T T 10 a \� L T 0 M c�i cJ a C4 c4i C4 d� OI 01 T nI $ ci P% o ci to e 1t�: N tV i tqp lJ N uj W � � � W 1 .�; 1 ul IL T T ,r o p<Th < .= o <� �■ � r � r r r � r r � r � r r r r A io :r 6 io F i Exhibit 3 Z 0 LU - O.0 a� CD �9 UJ U 0 H co O cc (L cr .. 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N C �q N N T aq cr 8 IL CL F-^ O C [ O C ~.N- O 1D N ^ P a O tC ca O T T .G O N n S • � .T- Ny Z 88 T< T T C�{ a cmN aD (� a T N N cc } jpQ� O b U N co Z CD N pQ y� mm N .../ T U Q t�j x a N � aT tD fD ^ O 10 p a T T U „N8 Clco �p O ^ M O T C T a0 P O (ta o p O as N Z iucc "� m g a ET Q S2 oolw N o . w c w A a is 0 a eepp O25 c O U IL U U lL _ N co .r F Exhibit 6 L Exhibit 7 §K� § E - o "G § kw \ - # 2 9 b ■ � %g � 2 $ a / + 3 . $ \2 Exhibit 8 R 9 CD r I C�1 O cn m ' T C^^ Z O_____ U w Ov Et *o a. u. w � W Z O C W o F- D ; U O LH (.5 8 `�S e A n a~p' C11 P N ^ c�a P n Sq R FI FI e JR 1J a Exhibit 9 CLERK'S CASELOAD FILINGS AND PERSONNEL 1990 1993 1995 CARTER CARTER GOBLE CLERK GOBLE PROJECTED ACTUAL PROJECTED PROJECTED CIRCUIT CRIMINAL 1,859 1,977 2,500 2,266 CIRCUIT CIVIL 2,175 2,139 2,500 2,519 PROBATE 467 437 450 547 JUVENILE 828 685 650 1,170 COUNTY CRIMINAL 6,632 7,997 9,500 7,634 COUNTY CIVIL 1,758 1,495 1,600 2,143 COUNTY TRAFFIC 34,316 34,412 38,000 45,074 TOTAL 48,035 49,142 55,200 61,353 PERSONNEL 95 95 95 110 55,200 61,353 = 90% OF 1995 PROJECTIONS Exhibit 10