Item C20
BOARD OF COUNTY COMMISSIONERS · d ^ IS Of"
AGENDA ITEM SUMMARY "RevIse /"\
Meeting Date: J!muarv 17,2007
Divi,i,", "0""" md Fi~~ ~ 0
Department: OMB 7
Bulk Item: Yes ---K- No
Staff Contact Person: Tina Boan- 4472
AGENDA ITEM WORDING: Approval to advertise a Budget Amendment for General Fund
001, Uninc Svc Dist Parks & Recreation Fund 147, and Planning, Building, and Zoning Fund
148. And Approval of a resolutian concerninl! the transfer of funds.
ITEM BACKGROUND: See attached memo.
PREVIOUS RELEVANT BOCC ACTION: Previously Adopted FY 07 Budget, BOCC approved
at the September 20, 2006 regular meeting.
CONTRACT/AGREEMENT CHANGES:
NONE
STAFF RECOMMENDATIONS:
Approval
TOTAL COST:
N/A
BUDGETED: Yes
No
COST TO COUNTY:
N/A'
SOURCE OF FUNDS: Various Fund Bal
REVENUE PRODUCING: Yes
No
AMOUNT PER MONTH_ Year
APPROVED BY: County Atty _ OMBlPurchasing _ Risk Management_
DOCUMENTATION:
Included X
Not Required_
DISPOSITION:
AGENDA ITEM # C-22
Revised 8/06
Salvatore R. Zapp
Division Director
Oftice of Management &
1100 Simonton Street
Key West. Florida 33040
January 4. 2007
,-.-..'....---
,
BOARD OF COUNTY COMMISSIONERS
Mayor Mario Di Gennaro, District 4
Mayor Pro Tem Dixie M. Spehar, District 1
George Neugent, District 2
Charles "Sonny" McCoy, District 3
Sylvia l Murphy, District 5
Thomas ,I. Willi
County Administrator
Monroe County Board of County
Commissioners
1100 Simonton Street
Key West, Florida 33040
We have been notified by the Clerk of the Circuit Court, that the General Fund Balance has come in lower
than our estimate. This means that we currently have more of the General Fund appropriated than there is
in Fund Balance by approximately $1,104,777. This places the General Fund (001) in a deficit position.
Specifically, the current appropriated amount of the fund balance of $18,301,883 exceeds the actual
ending Fund Balance of $17, 197.706.
During the budget process. there was a push by the Commission and County Administration to bring down
the aggregate percentage over the rolled back rate. That request was made as a result of the tremendous tax
increase necessary in the Fine & Forfeiture Fund caused by the annual increases in the Sheriffs budget,
and the continuing cash flow problem caused by that budget. Additionally, the reduced fund balance at the
end 01'2005. which fell to a low 01'$8,167,075, exacerbated the cash flow problcm in that fund.
The Board of County Commissioners has a policy in place that specifies how much of the cstimated fund
balancc is appropriated each year.' During fiscal year 2002 the Board approved the pay-olT of the
Refunding Bonds Series 1993(88)' using approximately $3.5 milli"on of the General Fund Balance.
Additionally at this time, the Board changed the percentage of how much of the estimated fund balance to
appropriate from 70% to 75% in order to make up for this fund balance reduction.
In 2005, thc Board approved the appropriation of an additional 2.5% of the estimated ttmd balance,
bringing the total to 77.5%. The thinking here was to decrease General Fund taxation by appropriating
more of ftmd balance. In 2006 the Board gave approval to again appropriate 77.5% of the estimated Fund
Balance. However, during the last two budgct hearings, the Board gave specific directions to reduce the
percent over the rollcd-back rate in several of the ad valorem ttmds to "at or below the rolled back rate."
This required that the Offiee of Management and Budget appropriate 80% of the anticipated ftmd balance
in order to comply with the directions of the Board. (Please see attached exhibit distributed during
budget hearings)
The Office of Management and Budget has analyzed in detail the expenditures of the General Fund that
exhibit how the fund Balance decreased Irom $27.765,786 at the cnd of September 2005, to $17.197.706
at the end of September 2006. It should be noted that included in thc fund balancc at September 2005 was
$4.5 million received just prior to the close of the fiscal year I()J' the sale of land on Stock Island.
Page tw(~General Fund Memorandum
The following is a listing of some of the expenditurcs that t()ok place in the General Fund during 2006 that
we consider extraordinary.
Hurricane Match to Grant Fund (125) - (Fiscal 06 portion only) $3.000,000
Transfer of Funds to Growth 'Management (148) - T() Cover Lcgal Fees Shortfall 500.000
Increase in Not- For- Profit Funding 1.293,445
Non-FEMA eligible Hurricane Costs Includes Tropical Storm Ernesto (Not Declared) 999,775
Additional outside legal council costs (includes anol'dable/workforce housing
consulting costs) 714.000
Computer Hardware and Peripherals, including ADS consulting expenditures during
absence of technical services director. 800,000
Subtotal 7,307,220
Various Salary related expen.ditures including new positions and Retirement rate
Increases as per the Florida Retirement System (FRS) 1,900,000
Across the Board Increases in spending in the General Fund. 800,000
Total General Fund Expenditures/Decrease in Fund Balance $10,007,220
The Office of Management and budget has also analyzed the timing of the General Fund expenditures
during 2006. As previously mentiol1ed in this memorandum, the total expenditures for the year were
$46,250,958. The Chart below presents by quarter the actual 2006 expenditures.
Millions
$5.00
10 Millions I
$20.00
$15.00
$10.00
$0.00
1stQtr
2nd Qtr
3rd Qtr
4thQtr
The Office of Management and Budget uses a variety of techniques to predict expenditures during the
budgeting process. Our analysis based on past experience and based on the total expenditures through the
third quarter of fiseal 06 suggested. that approximately $ 9.0 million would hc spent in the linal three
months of 2006; especially in light of the fact that a purchasing Ireeze had been in elTeet beginning in
August.
It should be noted that our analysis of past years total actual expenditures fc)r the General Fund are as
Jollows:
,--------..' ---.---------- -..--.,.-
Fiscal Year Total Expenditure % Inc/Dec
~------'--
2002 $33,905,633 -.-
2003 $36,028,941 6.2%
2004 $37.402,227 3.8% ,
~
2005 $37.338,687 -.DCi J ~"f)'
-~._- -----
2006 $46.250,958 23.8%
'-- ------,- ---.-----.--.
Page thr,ce Geneml Fund Memorandum
When expenditures increase so dramatically without a corresponding tax increase, the fund balance 1S
drawn down dramatically as well.
Immediate Corrective Measures Recommended by OMH
Hold a public hearing in February' for a budget amendment reducing the Fund Balance forward from
$18,30 I ,883 to 13,328,222 or 77.5% of the actual fund balance of $17,] 97,706.
Specific Revenue Adiustments
I) We recommend the redistribution of the half cent sales tax to 55% from 35%. We expect this to
increase revenues by 1,888,354.
2) Adjust various revenue budgets based upon previous years actual revenue receipts.
3) Increase operating transfers from other funds through cost allocation charges not previously bill cd.
Specific Expenditure Cuts
I) Institute an immediate hiring freeze ( This includes all vacant and currently posted positions)
2) Suspend all General Fund Capital Expenditures.
3) Put on hold all 2006 General Fund Worker's Compensation Billings.
4) Across the board operating cuts, based on detailed analysis performed by OMB,
5) Limit Travel to one per year per department.
6) Reverse the recent policy change which provides a cash bonus of between I and 5% of the
employee's salary. ( This was not budgeted) Section 2. 15B of the Personnel Policy and Procedure
Manual.
7) Recommend a purchasing freeze that in the past has been implemented in the last quarter of the
tiscal year be implemented immediately.
The goals of the above stated specifics are to reduce expenditures by at least $2.7 million, and
increase revenues by approximately $2.4 million, which makes up $5 million of the fund balance
difference as stated above. This does not correct our current fund balance situation in the General
Fund, which will have to be addressed during the next budget cycle, It is apparent that the 2008
expenditure budgets need to be drastically reduced, and appropriate taxation has to be passed by
the commission in the General Fund to avoid this problem again in the future.
OMB has asked for direction, and feels it is necessary for the Board to reach a consensus as to the
appropriate fund balance level in the General Fund.
cc. Danny L. Kolhage
Debbie Frederick
Board ofCoumy Commissioners (5)
Budgeting Process lor Ad Valorem Funds
Planning,
General Fine & Fire & Municpal Uninc Parks Build, Code, Municipal
Fund Forfeiture Ambulance Serv Dist 6 & Beaches Fire Marshal Policing
2006 Projected Actua 1 ooi 101 141 146 147 148 149
..
Beginning Fund Bal per FY 05 CAFR 27.765,786 S,167,075 1,703,796 .t71A1)5 1,079,105 5,469,010 9JO,8()2
Revenues
All Taxes 16,863,840 41.424.204 7,356,096 1.225,000 974.276 71,000 4,033,802
other revenue 21.146,055 6,551,643 886,3 71 48,161 856,579 10,098,000 3,062,545
Total 38,009,895 47,975,847 8,242,467 1,273,161 1,830,855 10,169,000 7,096,347
Expenses total 43,000,000 49,193,8] ] 7,730,000 1,009,198 1.501.765 9,500,000 7,000,000
Excess Rev over Exp (4,990,: 05) (1,217,964) 5]2.467 263,963 329,090 669,000 96.347
Estimated Ending Fund Balauce FY 06 22.77S.MII (,,949,111 2,21 (),263 735.45S 1,41IS,195 6,US,OI(1 1,027,209
Estimation Factor by Policy 0,75 0,70 0,70 0,75 0,75 0,70 0,70
Fund Balance to Appropriate 17,081.761 4,864,378 1,551.384 55U94 1.056,146 4.296,607 719,046
Estimation Factor increased by 2.5OA' 0,800 0,725 0,725 1.000 0,775 0,725 0,725
Increased Fund Balance to appropriate 18,220,545 5,038,105 1,606,791 735,458 1,091,351 4,450,057 744,727
2007 Budget
Revenues:
Taxes! Ad Valorem 17,930,646 50,512.467 7,545,939 0 ] ,034,825 73,553 4,366,042
delinquent taxes 36.469 35,000 2,000 0 1.356 1.000 1.896
other revenue 14,290,00 ] 2,345,000 638,000 0 580,000 8,752,664 2,820,437
transfers in 4,600,000 0 0 0 0 0 0
less 5% ( 1,612,856) (2,644,623) (409297) 0 (80,809) (44 L36 i ) (359,419)
Fund Sal Fwd Rounded from Above 18,311,373 4,911,378 1,606,791 735,458 1,091,351 4,450,057 744,727
Total 53,555,633 5:5.15l).22I 9,383,43,\ 735A58 2,626,723 12,S35.91J 7,57J,68S
Appropriations:
operating 48,850,294 45,952,554 6.583,654 735,458 1,865,588 10,687.247 7,008,534
cash balance 2.190,114 8,561.492 1.106,160 0 271,009 650,000 400,000
transfers out 0 0 753,618 0 187,703 1,403,542 5,000
contingency 2,5] 5.225 645,175 940,000 0 302,423 95,124 160.149
Total 53.555.633 55. f 59,221 tl.j83AJl 735>~5S 2,h16.723 i 2.S35.913 757J.MB
Excess Revenues over Appropriations 0 0 I 0 0 0 (0)
EXHIBIT 2
Resolution No.
- 2007
A RESOLUTION CONCERNING THE TRANSFER OF FUNDS
WHEREAS, it is necessary for the Board of County Commissioners of Monroe County, Florida, to make
budgeted transfers in the Monroe County Budget for the Fiscal Year 2007, now therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY, FLORIDA, that there shall be transfers of amounts previously set up in the Monroe County
Budget for the Fiscal Year 2007 as, hereinafter set forth to and from the following accounts:
Fund #001 General Fund
From: 001-5610-61503-530508
Cost Center # 61503 Health Care Respite Act
001-5130-06030-560640
Cost Center # 06030 Purchasing
001-5130-00104-530340
Cost Center # 00104 Gllvernment Enterprise Mgmt
001-5110-00101-560640
Cost Center # 00101 Board of County Commissioners
001-5110-00101-530310
Cost Center # 00101 Board of County Commissioners
001-5120-05000-530490
Cost Center # 05000 County Administrator
001-5130-00102-530460
Cost Center # 00102 Financial Package Clerk
001-5710-62024-560640
Cost Center # 62024 Libraries Key West
001-5710-62024-530310
Cost Center # 62024 Libraries Key West
001-5710-62026-560640
Cost Center # 62026 Libraries Marathon
001-5710-62026-560640.
Cost Center # 62026 Libraries Marathon
001-5710-62028-560640
Cost Center # 62028 Libraries Islamorada
001-5710-62028-560640
Cost Center # 62028 Libraries Islamorada
001-5710-62030-560640
Cost Center # 62030 Libraries Key Largo
001-5710-62030-560660'
Cost Center # 62030 libraries Key Largo
001-5140-67501-590990
Cost Center # 67501 County Attorney General
001-5530-67001-530400
Cost Center #67001 Veteran Affairs General
General Fund 001 trnsfr to Cash Balance page I
50,000.00
500.00
8,000.00
6,608.00
20,000.00
5,000.00
5,000.00
10,000.00
20,000.00
7,300.00
4,700.00
5,500.00
4,500.00
5,600.00
9,000.00
40,000.00
3,000.00
C22
001-5710-62032-560640
Cost Center # 62032 Libraries Big Pine
001~5710-62032-560660
Cost Center # 62032 Libraries Big Pine
001-5220-12001-530540
Cost Center # 12001 Fire Academy
001-5220-12001-530409
Cost Center # 12001 Fire Academy
001-5190-20501-560640
Cost Center # 20501 Facilities Maintenance
001-5]90-20501-560641
Cost Center # 20501 Facilities Maintenance
00]-5190-20506-530460
Cost Center # 20506 ADA Compliance
001-5620-21000-560641
Cost Center # 21000 Animal Shelters
001-5620-61504-560640
Cost Center # 61504 Bayshore County Home
001-5620-61504-530400.
Cost Center # 61504 Bayshore County Home
001-5690-61525-530409
Cost Center 61525 Social Service Transportation
001-5690-61525-530400
Cost Center 61525 Social Service Transportation
001-5]90-23506-560640
Cost Center 23506 Vehicle Replacement
001-5710-62023-560641.
Cost Center 62023 Libraries Admin Supp
001-5710-62023-530400
Cost Center 62023 Libraries Admin Supp
001-5130-60000-560641
Cost Center 60000 Community Services Ad
001-5370-61000-560641
Cost Center 61000 Extension Services
001-5640-61501-530540
Cost Center 61501 Welfare Administration
001-5640-61501-530400
Cost Center 61501 Welfare Administration
001-5370-50005-560641
Cost Center 50005 Land Steward
001-5370-50005-530400
Cost Center 50005 Land Steward
001-5340-40501-530409
Cost Center 40501 Hazardous Waste
001-5410-22001-510120
Cost Center 22001 County Engineering General
001-5] 30-05004-530340
Cost Center 05004 File Management Services
001-5130-05002-530520
Cost Center 05002 Technical Services
001-5]30-05003-560640
General Fund 00 I trnsfr to Cash Balance page 2
9,400.00
2,600.00
24,000.00
5,180.00
181,525.00
40,000.00
134,600.00
1,873.00
5,000.00
1,500.00
10,000.00
3,000.00
212,339.00
3,697.00
1,200.00
1,356.00
592.00
2,500.00
5,000.00
1,079.00
1,000.00
1,000.00
50,000.00
66,204.00
50,000.00
100,000.00
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Cost Center 05003 technology Replacement
001-5130-06000-510120
Cost Center 06000 Grants
001-5130-06001-530520
Cost Center 06001 Office of Mgmt & Budget
001-5720-20502-530460
Cost Center 20502 Higgs Beach Maintenance
001-5110-00101-510240'
Cost Center 00101 BOCC Administrative
001-6850-04100-510240
Cost Center 04100 Guardian Ad Litem
001-5130-04318-510240
Cost Center 04318 Supervisor of Election
001-5120-05000-510240
Cost Center 05000 County Administrator
001-5130-05002-510240
Cost Center 05002 Technical Services
001-5130-06000-510240
Cost Center 06000 Grants
001-5130-0600 I-51 0240
Cost Center 06001 Office of Mgmt & Budget
001-5130-06030-510240
Cost Center 06030 Purchasing
001-5130-06500-510240
Cost Center 06500 Personnel
001-5250-10501-510240
Cost Center 10501 Communications
001-5260-11000-510240
Cost Center 11000 Emergency Med Air Tran
001-5220-12001-510240
Cost Center 12001 Fire'Academy
001-5250-13500-510240
Cost Center 13500 Emergency Management
001-5190-20000-510240
Cost Center 20000 Public Works Management
001-5190-20501-510240
Cost Center 20501 Facilities Maintenance
001-5720-20502-510240,
Cost Center 20502 Higgs Beach Maintenance
001-5410-22001-510240
Cost Center 22001 County Engineering General
001-5340-40501-510240
Cost Center 40501 Hazardous Waste
001-5370-50005-510240
Cost Center 50005 Land Steward
001-5130-60000-510240'
Cost Center 60000 Community Service Admin
001-5370-61000-510240
Cost Center 61000 Extension Services
001-5640-61501-510240
Cost Center 61501 Welfare Administration
General Fund 001 tmsfr to Cash Balance page 3
50,000.00
10,000.00
1,000.00
1,496.00
339.00
1,830.00
1,411.00
2,354.00
310.00
823.00
256.00
733.00
638.00
6,804.00
1,729.00
7,106.00
4,812.00
89,619.00
53.00
8,981.00
4,866.00
3,069.00
458.00
240.00
2,046.00
C22
001-5620-61504-510240
Cost Center 61504 Bayshore County Home
001~5690-61525-510240
Cost Center 61525 Social Service Transportation
001-5710-62023-510240
Cost Center 62023 Libraries Admin Supp
001-5710-62024-510240
Cost Center 62024 Libraries Key West
001-5710-62026-510240
Cost Center 62026 Libraries Marathon
001-5710-62028-510240.
Cost Center 62028 Libraries Islamorada
001-5710-62030-510240
Cost Center 62030 Libraries Key Largo
001-5710-62032-510240
Cost Center 62032 Libraries Big Pine
001-7140-62035-510240
Cost Center 62035 Law Library General Fund
001-5130-62500-510240 .
Cost Center 62500 Marine Projects
001-5540-65004-510240
Cost Center 65004 Affordable Housing
001-5530-67001-510240
Cost Center 67001 Veterans Affairs General
001-5530-67003-510240
Cost Center 67003 Vetel."an Affairs Transp
001-5140-67501-510240
Cost Center 67501 County Attorney General
001-5130-69000-510240
Cost Center 69000 Tax Collector
001-5130-69200-510240
Cost Center 69200 Property Appraiser
001-6020-69600-510240
Cost Center 69600 State Attorney
001-6030-69800-510240
Cost Center 69800 Public Defender
001-6050-80002-510240
Cost Center 80002 Judicial Support
001-6890-82004-510240
Cost Center 82004 Oth Circ Ct Juvenile
001-6510-82007-510240
Cost Center 82007 Family Court Case Mgmt
001-6220-83001-510240
Cost Center 83001 Circuit Drug Court
001-6230-83500-510240
Cost Center 83500 Pretrial Release
001-7130-84500-510240
Cost Center 84500 Information System
001-5250-04537-590990.
Cost Center 04537 Hurricane
001-5250-10501-510120
8,520.00
18,118.00
980.00
1,391.00
618.00
518.00
678.00
394.00
117.00
4,694.00
319.00
4,871.00
2,566.00
3,239.00
17,000.00
100,000.00
128.00
2,654.00
278.00
168.00
213.00
925.00
1,174.00
332.00
100,000.00
171,122.81
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General Fund 001 trnsrr to Cash Balance page 4
Cost Center 10501 Communications
001-5250-10501-510210
Co~t Center 10501 Communications
001-5250-10501-510220
Cost Center 10501 Communications
001-5250-10501-510230.
Cost Center 10501 Communications
001-5250-10501-530520
Cost Center 10501 Communications
001-5250-10501-560640
Cost Center 10501 Communications
1,044.99
16,852.90
31,995.00
15,092.30
63,892.00
To: 001-5130-85500-590991'
Cost Center # 85500 Reserves 001
1,890,221.00
BE IT FURTHER RESOL YED BY SAID BOARD, that the Clerk of said Board, upon receipt of the
above, is hereby authorized and directed to make necessary changes of said items, as set forth above.
PASSED AND ADOPTED by. the Board of County Commissioners of Monroe County, Florida, at a
regular meeting of said Board held on the 17th day of January, AD 2007.
Mayor Di Gennaro
Mayor Pro Tern Spehar
Commissioner McCoy
Commissioner Neugent
Commissioner Murphy
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
Mayor/Chairman
(Seal)
Attest: DANNY L. KOLHAGE, Clerk
General Fund 001 trnsfr to Cash Balance page 5
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