Item B
Revised 2/95
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: March 21, 2002
Division: Management Services
Bulk Item: Yes 0 No ~
Department: Administrative Services
AGENDA ITEM WORDING: Presentation,discussion, and request for direction on policy
issues regarding the fiscal year 2003 budget process.
ITEM BACKGROUND: Each year the BOCC discusses the major issues that are
expected to arise in the upcoming budget process.
PREVIOUS RELEVANT BOCC ACTION: none
STAFF RECOMMENDATION: N/A
TOTAL COST: N/A
BUDGETED: Yes 0 No 0
COST TO COUNTY: N/A
REVENUE PRODUCING: Yes 0 No D
AMOUNT PER MONTH
YEAR
APPROVED BY:COUNTY ATTYD OMB/PURCHASING~ RISK MANAGEMENTD
J ~e:l
DIVISION DIRECTOR APPROV :. .~..- ---..!
, James L. Roberts, County Administrator
DOCUMENTATION: INCLUDED: D TO FOllOW: [gI NOT REQUIRED: D
DISPOSITION:
AGENDA ITEM #: 4-
AGENDA ITEM WITH LATE DOCUMENTATION
DIVISION Management Services
DEPARTMENT Administrative Services- OMB
SUBJECT Presentation on policy issues regarding the FY
2003 budget process.
DATE ITEM WILL BE AVAILABLE
March 15. 2002
AGENDA ITEM NUMBER
FY03
Budget Issue.
Office of Management & Budget
B
Topics of Dlsc....lon
What does our budget look like now?
What are the trends?
What are the major issues?
Cu.....nt Budget
.......
Revenues
Appropriations
I
Revenues $263,720,706
. Taxes
. Licen8eB & Permits
[] Intergovernmental Revenue
121 Charges for Slrvices
. Fines andForfetts
.MiBcellaneolJll
. Interfund Transfer
mOther Non-Revenues
Tax Breakdown
TDC
Franchise
1%,
One Cent
Sales
11 0/0
Fuel
1%
Appropri.tlons $283,720,706
EPubUcWol'b
.BOCC
OShertrr. Budlel
cM....ement ServtCll!1
.TDC
._11< sorely
.Crowlh Mlmt
Gaen ., Court.
.Commlmlay Servta!S
.AJrperU
eTa Colledor
.Coart Admin
.Propto1,y App.......
.T.....m. Cue Admin
.S.,v ., DedleD'
.County Attorney
.MedleallxuDlner
EJVetera. Arraln
[lCo",ty Admlnl.tntor
CPubllcDefender
mStale Attorney
BCrt.. ....tla Pro&:
IIQa.I-E:ltenJ... Semael
IIlAw' .rTnut Fund
Constitution.. Approprl.tlons
r-~b'kl
1=;'11=1
I Operating I
Divisions
~ax
CoIleclior
S3.7M
------"'"'"__________,,''___ ________'.n.nn._n__________
~
~
Boee Divisions $113 M
Public
Works
$68.1 M
Growth
Management
S7.8M
r.--80c.c-------1
~
......_-----.-......_-------.....
...__._.....:.......___..u
Management
Services
$22.6M
other $93.8 M
---._.......--~-_........_--
Community
Services
SUM
I BOCC I
I
BOCC Tourist Trauma County
Administrative Counc~ Administration Attorney
$62. 8M $21.1M $2M $858.5K
Veteran County Medical Public
Affa i IS Adm i nistrator Examiner Defender
$537. 5K $449.1 K $552.3K $257.9K
State
Attorney
$193.4K
Mlljor Trends
Property Values
Ad Valorem Millages
County Property Value Trend
..
1:1
.~
=
ii
12.000
11.500
11.000
10.500
10.000
9.500
9.000
8.500
8.000
7.500 .
7.000 ,
6.500
6.000
1998 1999 2000 2001 2002
Ad V.lo...... MIII.ge Trend
7.0000
6.0000
5.0000
4.0000
3.0000
2.0000
1.0000
0.0000
-+- Series 1
___ Series2
-.- Series3
1998 1999 2000 2001 2002
Homesteaded Properties
As of July 1, 2001 - 89,767 parcels.
17,274 parcels with Homestead
Exemption.
Changes in Property Taxes
......
References to average increase/decrease
in millage rates.
Homesteaded properties often come in
under this average percentage.
Other properties often come in over the
average percentage.
Major .......
Fund Balances
Loss of Revenue
Salary Related Issues
Non-profit Funding
Benefits and Insurance
I
Merit Program
Used in FY 00 and FY 01 Budget.
Budget impacts - BOCC and Constitutional
Officers.
Recruitment and Retention
Plans being reviewed by County
Administrator.
Estimated impact of $100,000 on the FY
03 budget.
I
Non-Profit Funding
BOCC adopted recommendation of Human
Service Review committee.
Replenishment of reserves.
Funding of $278,300 for FY 03.
Additional 6.70/0 increase requested.
Group Benefits
Medical costs increasing nationwide.
Projected increase of $1.5 million for FY
03.
Increase in departmental rates of 150/0.
Status of RFP Process.
GASB to release exposure draft (June 02).
Insurance
Insurance rates increasing nationwide.
Projected 240/0 increase on policies.
Projected 150/0 increase for internal
billings.
Expected $200,000 impact on budget.
Summary of Issues (Expenses)
. .....i'?k..nWl;WMNnW@@WmNtm@~i1f.t@~ti$..!.I.llmj;%~BT] ].li...mJ!'-XX"'..'~""":.;itbWA*
. '.,
. '..
. .
. .
. .
. .
. .
. . .
"THS~rWcoverSth8ke}'a,:eascove"El~i...ttliSP,.eSElntatiOI'l.Othel".issuel>.may.arise.durif9.the
buclg~tpro~l>S'n .
SOlJrce
Estimated n A,c:lValorelTlm'NorJo:AdnValorem.
Impact nn
. .2ClO .O()() n
FundsmJ. .
n 140,ClO()!
,800:
.......9 .ClOO
1 000:
2713,ClOOI
;j!78.()()()! .
86.000 ;
o
4,628,8Q() J
Fundsn
m... 60,o()()
457.200
42O.()OO.
o
m n . 0
n() .
o
700.000 .
1.637,:l!OO .
Fund Ba.anees
Audited fund balance figures will be
available soon.
To be discussed at the April BOCC
meeting.
Loss of Revenue
Effects of 9/11/01
EconomyfTourism
Effects of census figures
Cuts at state level
Primary Areas of Revenue Loss
'::--:;:'::\::>:>~\\tt::::rm:::fm1wnrrtw~%Ttt{~f%~tw~1.1W&~~::~:..;~_:.}#: ..- YIr':'-~1PJi~:i-~~:t~rW;*~~~f~%~::-
Local Option Sales Tax
State Shared Revenues
Gas Taxes
Key West Airport
Tourist Taxes
Interest
su.......ry
.
Current status of the budget.
How the budget has changed over time.
Major Issues affecting FY 03 budget.
I
Revenue Loss
Actual Revenue in these areas projected
to be $8.5 million less than in Fiscal Year
2001.
Conservative Budget Estimates.
Primary Areas of Revenue Loss
6O,OOO,lXlO
lO,lXlO,lXlO
. Budget
. Actual
SO,lXlO,lXlO
40,lXlO,lXlO
3O,lXlO,lXlO
20,lXlO,lXlO
o
FYOl
.Projected Actual
Summary of Issues (Revenue)
.~O> <'" . ,..
SOllCe
Local Q:>tion Sales Tax
State S~ed Revenues
Gas Taxes
Key V\est Airport
mc Taxes
Tourist Impact Taxes
nterest Earrings
City of Marathon debt
Total
Estimaed
Impact
930,000
180,000
160,000
480,000
840,000
240,000
5,700,000
1,030,000
9,560,000
Ad Valorem Non-Ad Valorem
Funds FlI'lds
930,000
400,000 (220,000)
160,000
480,000
840,000
240,000
1,900,000 3,800,000
1,030,000
2,540,000 7,020,000
t
KEY WEST
CHAMBER OF
COMMERCE
402 WALL ST. · KEY WEST, FL 33040 · 305-294-2587 · FAX 305-294-7806 . WWW.KEYWESTCHAMBER.ORG
March 20, 2002
Mayor Sonny McCoy
Monroe County
530 Whitehead Street, #102
Key West, FL 33040
Dear Mayor McCoy,
The Key West Chamber Of Commerce, representing a large portion of our community, would
like to take the opportunity to express our thoughts regarding the budget for fiscal year 2002-
2003. We are writing to you early in the planning cycle so that you can take our requests into
consideration at the beginning of the review process.
We do not have to tell you that it has been a difficult year for our community. The recession and
the events of 9/11, for all the reasons that you know, have caused all of us to make sacrifices in
our lives. Many of us have been forced to layoff our fellow citizens, refrain from increasing staff
to care for our visitors, or experienced revenue losses that effect spending through our
community. Certainly this has not been a year for increased prosperity and growth opportunities
to which our community has become accustomed.
Last year the County implemented an 11 % increase in taxes for county-wide services and a six
percent increase in the aggregate millage rate. Such an increase can only occur in prosperous
times for government and non-government alike. This is not such a time.
Before us is a time which is unparalleled in history and difficult to forecast. Accordingly, the
Key West Chamber Of Commerce would like to respectively request that you challenge
yourselves, as the fiscal guardians of our community, to look into a substantial decrease in ad
valorem taxes. In considering this request, however, please note that the safety of the residents
and visitors of the county is the most important function of our local governments, and we
caution you not to diminish service in the area of police protection or fire fighting. While our
business owners urge us to become smarter and more efficient managers, we would be remiss not
to urge the custodians of our government to also become smarter and more efficient in the
business of the County.
"The mission of the Greater Key West Chamber of Commerce is to serve its members
and maintain a viable economy for the businesses and working people of Key West."
There were several items that were put in the fiscal year 2001-2002 budget for a one-year term
such as a $3.s million bond prepayment. As a starting point for achieving the goal of reducing ad
valorem taxes, we would like to suggest that you remove these items prior to comparing a
proposed 2002-2003 budget to the previous year. By doing this, you will have achieved
significant savings already. We encourage you to focus on expenditures as well as the "bottom-
line" as it relates to rollback and maintenance. Such a focus will ensure that one-time or short-
term items do not become built into the budget as an invisible inflation factor.
We hope you will apply your expertise as the successful leaders you are in your own businesses,
to the business of running the County. On behalf of the Board of Directors of the Key West
Chamber of Commerce, I thank you for taking the time to reading this letter and for your
consideration of what we feel would improve our community.
;6' I ~tf)
ebb, II . ~ ;11-- J(j) .
Cc: County Administrator, Jim Roberts
County Clerk, Danny Kohlege
Finance Director, Sheila Barker
President, Florida Keys Lodging Association
Chairperson, Florida Keys Lodging Association
President, Key West Innkeepers Association
President, Key West Bar & Restaurant Association
President, Key West Attractions Association
President, Key West Business Guild
President, Key West Association of Realtors
Federation of Monroe County Chambers of Commerce
Board of Directors, Key West Chamber of Commerce
Members of the Key West Chamber of Commerce's Governmental Affairs Committee