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Item B1 B1 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE i Mayor Holly Merrill Raschein,District 5 The Florida Keys Mayor Pro Tern James K.Scholl,District 3 Craig Cates,District 1 Michelle Lincoln,District 2 ' David Rice,District 4 Budget Meeting Meeting September 4, 2024 Agenda Item Number: B1 2023-2980 BULK ITEM: DEPARTMENT: Administration TIME APPROXIMATE: STAFF CONTACT: AGENDA ITEM WORDING: Acting County Administrator's Budget Discussion. ITEM BACKGROUND: PREVIOUS RELEVANT BOCC ACTION: INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDATION: DOCUMENTATION: FINANCIAL IMPACT: 5 CountyAdministrator 's Fiscal Year 2025 Tentative Budget Kevin Wilson, Acting County Administrator Tina Boan, Director Office of Management & Budget September 4, 2024 Harvey Government Center Key West, FL 1 FY2025 Budget Process • September 4 th — First Public Hearing Adoption of Tentative Budget and Millage Rate Key West at 5 :05pm • September 1 1th — Final Public Hearing Adoption of Final Budget & and Millage Rate Key Largo at 5 :05pm 2 Fiscal 2025 Budget Summary Proposed 'Total Ad Valorem Taxes Budgeted Ad Valorem $154,171,223 ""'aa 154,171,223 21.5% Delinquent Taxes Health Department $1,762,675 37,000 0.0%' Local Option,Use&Fuel Taxes Total Ad Valorem $155,933,898 103,025;000 14.4/6 Licenses,Permits &Impact Fees 9,113,559 1.3% Intergo .Rev./Grants,P1LT,Shared Taxes 26,085,000 85,E 3.6% Charges for Services 110,030,601 15.4% Fines &Forfeitures ' 2,137,500 0.3% Miscellaneous 3,935,100 0.5% Interfund Transfers/Excess Fees 52,880,119 7.4%' Fend Bal Fred/Less % 254,299,083 35.5%' Total Sources 715,714,11735 1Q0.0% ' 1penditure F'Y2025 % of Proposed Total B.O.C.C.. Operating 225,779,114 31.5°i"'4 Sheriff 9 ,755,16 13.5% Clerk of the Courts 10,046,015 1.4% Property Appraiser 6, 88,369 0.9% Supervisor of Elections 2,947,589 0.4% Tax Collector-3.0%of BOCwC& MCSD Tax Lev (F. . 192.091) 10,619,223 1.5% Judicial, Mate Attorney,Public Defender 4,650,680 0.6% Capital Projects,including Debt Service 173,119,361 24.2% Tourist Development Council 116,31 ,397 16.3% Budget Transfers,Cash Balance &Reserves 8,793,271 9. % Total Uses 100.0°r' 3 FY2025 Budget Increases Exnenditure FY2024 Ado ted FY2025 Proposed Change % BOCC Operating 212,151,594 225,779,114 13,627,520 6.4% Sheriff 90,691,120 96,755,166 6,064,046 6.7% Clerk of the Courts 9,059,815 10,046,015 986,200 10.9% Property Appraiser 6,365,708 6,688,369 322,661 5.1% Supervisor of Elections 3,177,039 2,947,589 (229,450) -7.2% Tax Collector- 3.0%of DOCC&MC SD Tax L ev y (F.S, 192.091) 8,575,291 10,619,223 2,043,932 23.8% Judicial, State Attorney, Public Defender 5,298,139 4,650,680 (647,459) -,12.2% Capital Projects, including Debt Service 131,224,360 173,119,361 41,895,001 31.9% Tourist Development Council 125,642,929 116,315,397 (91,327,532) -7.4% Budgeted Transfers, Cash Balance & Reserves 75,125,309 68,793,271 (6,,332,038) -8.4% Total Budget $ 66793 1 t,304 $ 715,714,185 $ 481,4029881 7.3% B.O.C.C.Operating Change Capital Projects,including Debt Service Change Personnel&operating Costs 5,564,149 Trauma.Star Helicopter Purchase 24,886,400 SAFER Employees-(24)Firefighter FTEs, 2,468,798 Twin Lakes SLR-Road Elev a tion 4,941,057 Solid Waste Collection&DisposalContractuallncreases 2,594,573 Airport Capital Projects Grant Match 7,410,000 Fimployee Services-Group Insurance Claims 3,000,000 Key West Airport Rental Car Facility 2,225,000 $ 13,,627,520 Key West International Airport Concourse A 1,909,160 Constitutional Officers s 41,371,617 Personnel&operating Costs 7,521,268 Law Enforcement Trust Fund-Forfeiture Funds,Revenue 1,018,662 8,539,930 4 FY2025 Ad Valorem ism ution 1,340,168 1% State Attorney, Public Defender 5heriff 2,450,496 2% Judicial Court Administrator 77,943,336 Fund 101 2,947,589 2% Supervisor of Elections 6,1SS,181 Fund 149 6,688,369 4% Property Appraiser 84,098,517 10,617,075 7% Tax Collector 10,046,01S 6% Clerk of Court 983,717 1% State Mandated Substance Abuse Mental Health/Baker Act Services Public 84,098,517 54% Sheriff Law Enforcement Safety: 4,941,686 3% Monroe County Detention Centers/DJJ/Extraditions $110.1M, 320,317 0% Fire Rescue Coordinator,&Fire Marshall 70.6% 936,717 1% Medical Examimer 1,762,675 1% MC Health Department 17,089,453 11% Fire&Ambulance 144,222,794 92% Constitutional Officers/Public Safety 3,439,728 2% Parks&Beaches&Recreation 3,187,725 2% Middle Keys Health Care 2,203,226 1% Human Services Advisory Board 1,903,000 1% Tax Increment Financing District City of Key West (Amount determined after Final Adoption) 977,425 1% Balance of BOCC Operating 155,933,898 100% 5 Save Our Homes - Countywide M i l lage As provided in Section 193.155(1), F.S., beginning in 1995, or the year after the property receives homestead exemption, an annual increase in assessment shall not exceed the lower of the following: a.Three percent of the assessed value of the property for the prior year; or b.The percentage change in the Consumer Price Index (CPI)for all urban consumers. Year CPI Change Cap FY24 FY25 Homesteaded 2024 3.40% 3.00% Cap 3.0% Save our Homes 2023 6.50% 3.00% 534,735.83 550,777.90 16,042.07 2022 7.00% 3.00% (50,000.00) (50,000.00) 484,735.83 500,777.90 Taxable Value 2021 1.40% 1.40% Maximum Increase Maximum Increase 2020 2.30% 2.30% 2.7191 2.6929 Per Year Per month 2019 1.90% 1.90% =1,318.05 1,348.54 > <:7370.�5O C2.`54 2018 2.10% 2.10% FY24 FY25 Non-Homesteaded 2017 2.10% 2.10% Cap 10% 2016 0.70% 0.70% 838,992.00 922,891.20 83,899.20 2015 0.80% 0.80% 838,992.00 922,891.20 Taxable Value 2014 1.50% 1.50% Maximum Increase Maximum Increase 2013 1.70% 1.70% 2.7191 2.6929 Per Year Per month 2012 3.00% 3.00% 2,281.30 2,485.25 <203.95 (E0 2011 1.50% 1.50% FY24 FY25 Commercial 2010 2.70% 2.70% Cap10% 2009 0.10% 0.10% 1,376,548.80 1,514,203.68 137,654.88 2.7191 2.6929 Max. Inc. IPer Year Max. Inc. IPern h 3,742.97 4,077.60 C334.�63 F27 89 6 South Florida Ad Valorem Tax Comparison FY25 Countywide Services — Per $ 100,000 of Value FY24 Millage Rate: 4.5000 FY24 Tax Levy: $450.00 . (Per $100,000 of Taxable Value) FY24 Millage Rate: 3.7623 P Y Tax Levy: 76.23 ; X" (Per $100,000 of Taxable Value) f f iii of inrc;i 07�����ltrr f � w uii pig FY24 Millage Rate: 5.5492 FY24 Millage Rate: 3.2043 y fo, - Browa ax Levy: } ` x Levy: ., Collier - "r,,,,,,,,,, % (Per $100,000 of Taxable Value) l o� (Per $100,000 of Taxable Value) f W Dade �« � fir 1%, f I FY24 Millage Rate: 4.5740 I "'H rFY24 Tax Levy: FY2024 Millage Rate: 2.7191 1 i�/''� /l (Per $100,000 100000 of Taxable Value)FY2024 Adopted Tax Levy: $271.91 FY2025 Proposed Millage Rate: 2.6929 T« FY2025 Proposed Tax Levy: $269.29 (Per $100,000 of Taxable Value) 'yll�tr �� „° � 1 a gym; FY2025 Millage Reduced 1.0%from prior year i Source: Florida Department of Revenue: Comparison of Property Taxes Levied 7 Countywide Gross Taxable PropertyValues vs . /AU Vd I U I I dX L(2Vy 46.2 $41.8 Billions _ $36 $30.0 26.3 $24.9 26.4 $19.6 $21.4 18.5 $19.1 $20.2 141.2 155.9 $118.9 $107.1 $95.3 $90.8 Millions $79.2 $85.3 $85.3 Taxable Value 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 %Change over -7 6% -14.9% -12.5% -5.2% 0.9% 2.1% 5.8% 5.8% 7.6% 8.2% 6.5% 7.2% 5.6% 5.4% 16.5% 13.4% 10.6% Previous Year FY 08 iiiiiiiiiiiFY09 IIm FY IO iiiiiFY11 IIIIu FY 12 IIIII FY 13 iiiiiiiiiFY14 ivoI FY 15 iiiiiiiiiiiiFY16 Iluu)FY 17 iiiiiiiiiiiiFY18 FY 19 FY 20 1111111111 FY 21 FY 22 FY 23 FY 24 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Above/-below roll-back 2,67 2.75 -0.03 -0,33 3.84 5,86 3.14 3.75 5A7 9.98 17.55 8.69 prior year tax levy 1,848,033 2,481,692 747,699 574,673 4,027,266 5,904,725 4,505,206 5,197,449 6,551,636 11,859,638 22,329,925 14,653,446 Im 8 FY2025 Salary BOCC 3.4°% COLA + 1.6% Merit = 5.0% $2,608,549 BOCC Total $2,8CI8,549 Total Ad Valorem: $10419,679 Total Non Ad Valorem: $1,188,870 Constitutional Officers Property Appraiser - 5.0% COLA $183,802 Sheriff - 7.0% COLA (Union) & 5.0% COLA (non-Union) $1,940,710 Supervisor of Elections - 2..0% COLA & 3.0% Merit $84,627 Clerk of Courts - 5.0% COLA $385,500 Total $20 594,689 9 General General Fund Operating _ Fund Balance FY2023 Audited FY2024 Projected FY2025 Projected Endiniz Fund Balance Ending; Fund Balance Ending; Fund Balance 6,988,422 1 Month Operating Capital 44,259,515 41,897,331 44,812,861 &ontohof Operating Reserves and 10,00s,000 Hurricane Disaster Reserves at 09/30/2025 Operating Capital 4 Months 5 Months 6 Months Proposed FY2025 Operating Budget 8 ,861,060 27,953,687 34,942,108 41,930,530 Hurricane/Disaster Reserve 10,000,000 10,000 000 10,0100,000 Minimum Fund Balance 37,953,687 44,942,108 51,930,530 In FY2023,the General IFund transferred$10,000,000 tot he Marathon Airport IFund (Fund 403)totem porarily fund the construction of the new EOC building. The construction is complete and the Marathon Airport is awaiting Grant reimbursement. Once the reimbursement is received,the$10,000,000 will be returned to the General Fund.All funds are expected to be returned by 09/30/2025. FY2025 Projected ending fund balance assumes the full reimbursement of$10,000,000 used for EOC construction.The cash will likely be utilized to fund other construction projects while the county waits for grant reimbursement. 10 Fiscal Year 2025 Capital Plan Discussion Revenue Estimates State Revenue Estimates for Fiscal Year Ending September 30, 2024 Year Amount %Change 1%,Tax Rate- Default Formula 1990 $ 6,527,762 Local Government - 1991 $ 7,763,175 18,9% Distribution Percentage Estimated Distribution 1992 $ 8,546,742 10.1% MONROE BOCC 60.345618 33,598,584 1993 $ 10,027,642 17.3% Islamorada 6.371477 3,547,442 1994 $ 9,953,100 -01.7% Key Colony Beach 0.707066 393,672 1995 $ 10,746,262 8.0% Key West 23.691520 13,190,709 1996 $ 11,521,699 7.2% 1997 $ 12,009,003 4.2% Layton 0.187499 104,394 1998 $ 13,217,392 10.1% Marathon 8.696820 4,842,122 1999 $ 12,996,907 -13% CountywHe Total 100.000000 55,676,924 2000 $ 12,387,681 -43% 2001 $ 12,719,997 2.7% 2002 $ 12,645,370 -0,6% One Cent Infrastructure Sales Surtax History 2003 $ 12,884,890 1.9% 2004 $ 15,365,641 193% 540,000,000 2005 $ 14,875,923 -3.2% $35,000,000 2006 $ 15,201,005 2.2% $30,000,000 2007 $ 15,200,286 0.0% $25,000,000 2008 $ 15,147,593 -01.3,% $20,000,000 2009 $ 13,702,434 -M% $15,000,000 2010 $ 14,085,030 2.84% $10,000,000 - - - - - 2011 $ 15,374,998 9.2% $5,000,000 2012 $ 16,318,450 6.1% 2013 $ 17,172,359 5.2% W 00 0 N W 00 0 N W 00 0 N E 2014 $ 18,653,970 8.6% N N N N N N N N N N N N LU 2015 $ 20,161,451 8.1% 2016 $ 20,817,676 3.3% 2017 $ 21,510,929 3.3% One Cent Infrastructure 2024 2025 2026 2027 2028 2029 2018 $ 20,805,323 -3.3,% Fund 304 Estimate Estimate Estimate Estimate Estimate Estimate 2019 $ 23,583,643 13.4% Beginning Fund Balance 91,154,846 70,433,283 14,313,283 6,772,199 6,258,579 11,118,842 2020 $ 19,863,169 -15.8% Revenue 39,359,220 35,594,387 34,031,155 34,031,155 34,031,15,5 33,973,996 2021 $ 28,613,899 44.1% Expense (60,080,783) (91,714,387) (41,572,239) (34,544,775) (29,170,892) (27,444,938) 2022 $ 34,358,790 20.1% 2023 $ 32,729,351 -4.7% Fiscal Yeor2022 hod the highest annual one cent infrastructure surtax revenue collected ot$34,3 midioo,Fiscal Yeor2023 saw a year-over-year 2024 Estm $ 31,903,371 -2.5% decline with total revenue for the year reaching$32.7 million,As of January2024,the state is estimating FY2024 revenue to be$33.6 million. However,Fiscal Year2024 monthly revenue has consistently fallen short of the previous year's receipts.Therefore,OMB is estimating that this trend 2025 Estm $ 31,500,000 -1,3%1 will continue and that revenue for FY2024 will be approximately$31.9 million.Actual revenue will change the ending fund balance estimate. 12 P!JoectName FY2025 l FY2027 FY2028 FY229 Solid Waste Impact Fee Projects(F_133) 137,615 Land Acquisition 1,094,346 Big Coppitt Key wastewater(fmr F_310) 51,680 51,680 51,680 51,680 51,680 Duck Key wastewater(fmr F_311) 31,000 31,000 31,0()0 32,000 Cudjoe Key WastewAte r(fmr F_312) ISO," 150,000 150,000 250,000 150,000 Boca Chico Shore Side Facility 100,000 Ocean Reef ILA/Ambulance 361,700 4'97,100 Public Defender/Simonton Property 158,401 Jefferson Browne/Jackson Square 3,072,702 2,700,000 2,200,000 SOL Bayshore Manor Renovation 7,650 Gato Building Repairs 902,620 HMGP Wind Retrofit 418,652 1,551,136 HMGP Generators 212,500 1,795,163 Higgs Beach(Atlantic Street relocation) 220,000 Rowell's Marina 100,000 Bernstein Park Renovations 520,050 Parks&Recreation Impact Fee Projects(F_131) 647,270 Key Largo Hydrants 150,00D 150,000 Fire&Ambulance Replacement 1,304,785 MCSO Generator Building 1,625,365 2,094,910 500,000 TraUnna Star Helicopter Replacement 38,193,200 MCSO Detention Center Spalling Repair 310,000 Sugarloaf Fire Station 6,479,010 EMS Impact fee Projects(F_135) 184,4W Key Largo 111 242,855 Seaview Drive Bridge Replacement 1,100,000 Twin Lakes 6,941,057 3,383,339 Harbor Drive Bridge Replacement 1,040,976 No Name Key Bridge Repair 403,340 400,000 4,400,000 2,963,950 Sugarloaf Bridge Replacement 3,480,191 1,160,064 Stillwright Point 1,210,014 FlaglerAve SLR(match fordesign) 625,000 574,964 Toms Harbor Channel Bridge 943,434 Crane Blvd Shared Use Path 1,150,000 914,247 Key Deer Blvd North of Watson Road Repair 400,000 437,539 1,774,351 Conch Key Roads Si 200,000 3,474,250 5,419,776 Ocean Bay Drive Embankment Repair 220,000 1,30D00o Key West International Airport Concourse A(F_405) 39,402,EJW Key West Airport Capital Projects Grant Match(F_4ezi) 11,000tow Key West Airport Rental Car Facility(F_404) 2,225,0w Marathon Airport Capital Project,Grant Match(F-403) 1,900,000 Key West Airport PFC Funded Grant Match(F_406) 5,185,077 Roads&Bridges(F_102) 9,674,640 8,142,772 8,142,772 8,142,772 8,142,772 Roadway Impact Fee Projects(F_130), 598,515 Card lSound Road Bridge Replacement(F-401) 1,447,800 TUbby'e,Creek Bridge(F_401) 2,963,517 Mosquito Creek Bridge(t`_401) 2,507,065 Southdiff Estates 2,303,000 1,750,000 1,7560()0 1,750,000 2,350,00() Engineering,Legal,and Admin Costs 3,481,852 3,383,432 3,383,432 3,383,432 3,383,432 Finance Miscellaneous 675,785 416,486 416,486 416,486 416,486 City of Marathon-Sparky's Old 7Mile Bridge 562,655 562,655 562,655 562,655 562,655 Debt Service.SRF Big Coppitt Wastewater 682,000 682,000 682,000 682,000 682,000 Debt Service SRF Cucjoe Reg.Wastewater 9,379,482 9,379,482 9,379,482 9,379,482 9,379,482 Debt Service.2016Revenue Bond 87609 5,403,042 5,39,9,739 Trauma'Star Helicopters Debt Service 4,504,225 4,505,525 4,503,730 4,503,839 4,505,688 Key Largo ILA 87608 2,125,000 125,000 125,000 125,000 Clerk ERP Loan 915,046 Total]Capittal]&Debt Servilce 17111%361 $ 51,924,60 43,302,2" 37,428,3" $ 35w702,392 13 Grant Funded Capital Project INarme Project Cost grant Funded County Funded %Grant Funded HMGP Wind Retrofit 12,046,085 8,522,768 3,523,317 7'1% HMGP Generators 9,126,655 6,953,642 2,173,013 76% Rowell's Waterfront Park 5,826,134 3,037,775 2,788,359 52% Key Largo III Roadway& Drainage 2,857,584 1,837,623 1,019,961 64% Twain Lakes Flood Mitigation 23,854,490 12,688,676 11,165,814 53% Stillwright Point SLR Design&Permitting 1,550,809 775,404 775,405 50% Flagler Ave Stormwater Resilience Design & Permitting 4,999,855 3,749,891 1,249,964 75% Toms Harbor Channel Bridge Repair 2,703,753 1,173,401 1,530,352 43% Crane Blvd Shared Use Path 2,549,620 1,485,373 1,064,247 58% Key Deer Blvd North of Watson Road Repair 9,059,942 6,148,052 2,911,890 68% Conch Key Roads SLR 12,710,851 3,566,825 9,144,026 28% Card Sound Road Bridge PDE 3,310,800 1,863,000 1,447,800 56% Tuhhy's Creek Bridge Replacement 6,466,907 3,348,865 3,118,042 52% Mosquito Creek Bridge Replacement 6,081,018 3,319,230 2,761,788 55% Winston Waterways Road Elevation &Stormwater Planning& Design 2,795,376 2,795,376 - 100% Big Coppitt Road Elevation &Stormwater Project Planning& Design 4,495,020 4,495,020 - 100% Total $ 110,434,899 $ 65,760,921 $ 44,673,978 60 14 Notable Funded Other Projeects/ Programs • The new state of the art Emergency Operation Center, costing $37.5M,was funded with entirely with state funds, legislative appropriations and federal funds. • Key West Airport Concourse A and Terminal Improvements program. Concourse A is funded with grants from the Federal Aviation Administration, the Florida Department of Transportation, passenger facility charges, and federal infrastructure money. The overall airport-wide program comes at a cost of$118M and includes major work on existing facilities, aircraft parking areas, and taxiways. • Monroe County's Road Resilience Elevation Plan: The County is embarking on a slate of resilient road infrastructure projects, despite the challenges posed by their high costs, thanks to the effort of staff to secure approximately $250M in state and federal grant funds (includes HMGP and RF.) The County now has seven community road elevation projects entirely or partially funded, and we just commenced construction of the County's first road elevation "pilot" project, for the Twin Lakes community. • A$1.6M state funds secured for the design and engineering of the Boca Chica Mooring Field shore side facility. Monroe County Marine Resources staff, in collaboration with the consulting firm Geosyntec, completed all environmental surveys, engineering, and design work, and applied for environmental permits for the Man of War Harbor Mooring Field, which will include 100 moorings. • $20M in state Stewardship funds and $12M in Restore Act grant funds secured for canal restoration projects. • $15M in state funding for new Artificial Reef Program: this new program is a partnership between the County and FWC to develop a framework to plan, construct, monitor, and maintain artificial reef structures in the Florida Keys. The benefits of these reefs are for the ultimate good of the State of Florida, its resources, wildlife, and public welfare. • $11M in state funding for new marine fire/emergency vessels to provide emergency services throughout the Keys waters. SummaryUpdateStu ies Bond Issuance • Principal Amount ( Not to Exceed ) : $45,000,000 • Preliminary List of Capital Projects : • Sugarloaf Fire Station - $11M • MCSO Generator Building - $5M • Twin Lakes Road Elevation - $11M • Sands Subdivision Road Elevation - $4M • Sugarloaf Blvd Bridge Replacement - $9M • Rockland Fleet Repair Shop & Fuel Point - $5M • Debt service funded by One Cent Infrastructure Sales Surtax (Not funded with Property Tax) *In November 2022 by voter referendum, the 1% sales surtax was extended by 15 years from December 2033 until December 2048 16 Key Points : • Lowered FY25 Countywide millage rate 2.6929, 1.0% below the FY24 rate 2.7191 likely to be the lowest in Florida again, $269.29 per $100,000 of value • Lowered FY25 Aggregate millage rate 3.3779, 0.8% below the FY24 rate 3.4049 • This budget absorbs unavoidable increased operational costs like CPI increases on vendor contracts, higher costs for utilities, fuel, goods and services. • Additional public safety investments. — Purchase of (3) Trauma Star Air Ambulance Helicopters — New Emergency Operations Center — Expanded Fire Rescue and Emergency Medical Care Services (24 Firefighters) — Sugarloaf Fire Station — Replacement Firetruck, Ambulance and the addition of 2 new Fire Rescue Boats. • Many Capital Projects funded in whole or in large part with non-local funding. — Canal projects fully grant funded with legislative appropriations, Stewardship and Restore. — Road elevation projects funded with $50M in Resilience FL. grants, $180M in Hazard Mitigation Grant Program funding, CDBG funding and congressional appropriation — Bridge replacement projects funded with FDOT, Small County Outreach Program, and Transportation Alternatives Program grants 17