ANNUAl BUDGET FORFY95 VOLUME I: EXECUTIVE SUMMARY

ANNUAl BUDGET FORFY95 VOLUME I: EXECUTIVE SUMMARY

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GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Hillsborough County, Florida For the Fiscal Year Beginning October 1, 1993 President Executive Director The Government Finance Officers Association of the United States and Canada (GFOA) presented an award for Distinguished Budget Presentation to Hillsborough County for its annual budget for the fiscal year beginning October 1, 1993. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

HILLSBOROUGH COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS ED TURANCHIK DISTRICT I JIM NORMAN DISTRICT2 VICE CHAIRMAN SANDRA HELEN WILSON DISTRICT3 LYDIA MILLER DISTRICT4 JAN PLATT COUNTYWIDE PHYLLIS BUSANSKY COUNTYWIDE JOE CHILLURA COUNTYWIDE CHAIRMAN FREDERICK B. KARL COUNTY ADMINISTRATOR CONSTITUTIONALLY ELECTED COUNTY OFFICIALS Richard Ake, Clerk of the Circuit Court Ron Alderman, Property Appraiser Cal Henderson, Sheriff Pam Iorio, Supervisor of Elections Melvin B. Smith, Tax Collector ;--:

A DESCRIPTION OF HILLSBOROUGH COUNTY GOVERNMENT Hillsborough County is geographically located midway along the west coast of Florida. The County's boundaries embrace 1,048 square miles of land and 24 miles of inland water for a total of 1,072 square miles. The unincorporated area encompasses 931 square miles or 87 percent of the total area. The municipalities of Tampa (the county seat), Temple Terrace and Plant City account for the remaining 141 square miles. According to the Hillsborough County City-County Planning Commission's 1993 estimates, the county's total population was 855,100 of which 533,400 live in the unincorporated areas. Seven-Member Commission Elected to Govern County Hillsborough County, a political subdivision of the State of Florida, is guided by an elected sevenmember Board of County Commissioners. Through partisan elections, three are elected to represent the entire county as a district and four are elected to represent single-member districts. Under a Charter Ordinance effective May 1985, the Board is restricted to performing the legislative functions of government by developing policy for the management of Hillsborough County. The County Administrator, a professional appointed by the Board, and his staff are responsible for the implementation of those policies. Commissioners Serve on Other Boards The Board of County Commissioners also serve as the Environmental Protection Commission. Individual Board members serve on various other boards, authmities, and commissions, such as the Hillsborough Area Rapid Transit Authority, Tampa Bay Regional Planning Council, West Coast Regional Water Supply Authority, Aviation Authority, Expressway Authority, Sports Authority, Board of Criminal Justice, Arts Council, Drug Abuse Coordinating Council, Metropolitan Planning Organization, Council of Governments and the Committee of 100 of the Greater Tampa Chamber of Conunerce. Constitutional Officers In addition to the members of the Board, citizens also elect five Constitutional Officers: Tax Collector, Property Appraiser, Clerk of the Circuit Court, Sheriff, and Supervisor of Elections. The Board funds all or, in some cases, a portion of the operating budgets of these Constitutional Officers. The Constitutional Officers, with the exception of the Supervisor of Elections, maintain separate accounting systems and budgets. Other Government Agencies Based on the degree of budgetary authority, taxing authority, the ability to obligate funds to finance any deficits and the ability to fund any significant operational subsidies, several other governmental entities also have their budgets reviewed and approved by the Board of County Conunissioners: the Environmental Protection Commission, the Civil Service Board, the Planning Commission, the Legislative Delegation, and Law Library Board. The budgets of these offices and the Constitutional Officers are included in this document. Role of the County Administrator The County Administrator is an appointed official who is responsible for carrying out all decisions, policies, ordinances and motions of the Board. The departments under the County Administrator are responsible for providing road construction and maintenance, solid waste disposal, parks and recreation, emergency services and water and wastewater treatment for residents of unincorporated Hillsborough County. The deparunents also are responsible for providing social services and public assistance to residents countywide. These departments are grouped into four offices: Support Services, Conununity Services, Financial Services, and Municipal Services.

BOARD OF COUNTY COMMISSIONERS. County County Attorney - - - Administrator I Data Management legislative liaison Community Affairs Management 1-- j~ Services Community Services I Financial Services Municipal Services Support Services Aging Services Budget Department Animal Services Administrative Support Children's Services Commerce Department Building Department Cabl9 Communications Community Action & Planning Agency Community Health & Human Services Cooperative Extension Employment & Training Debt Management Insurance & Claims Management Purchasing & Contracts Real Estate Emergency Medical Services Fire Department Housing & Community Development Medical Examiner Citizens Assistance & Information E ngineerlng & Construction SeiVices Facilities Management Fleet Management Head Start Library Services Parks & Recreation Permit SeiVices Center Human Resources & Equal Opportun~y Museum of Science & Industry Planning & Development Management Social Services Public Sefety Public Utilities Road & street Solid Waste

Table of Contents Introduction to the County Budget Documents for FY 95... 1 The Process of Adopting the FY 95 Budget... 3 FY 95 Budget Process Milestones... 4 The County Administrator's Budget Message for FY 95... 5 Summary Information on the FY 95 Budget... 13 FY 95 Budget Summary... l7 Chart: Where the Money Comes From... l8 Chart: Where the Money Goes... 18 Budget Sources and Uses... 19 Department Budget Summary Comparison... 20 Capital Projects Budget: Sources and Uses offunds... 22 Debt Service Budget Summary... 23 Summary of Funded Full Time Equivalent Positions... 24 Chart: Distribution offy 95 Positions... 24 Economic Indicators... 25 Charts: Population, Employment, Unemployment, Tourism... 26 Charts: Income, Interest, Inflation, Housing Starts, Commercial Construction... 27 Basic Information on Property Taxes... 28 Property Valuation... 31 Chart: Total Property Valuation... 31 Chart: New Construction Valuation... 31 Millage Comparison... 32 Chart: Use of the Countywide 10-mill Cap... 34 Chart: Use of the MSTU 10-mill Cap... 34 Impact of Local Taxes... 35 Major County Revenues... 36 Chart: Change in Assessed Property Values....40 Chart: Current Ad Valorem Taxes....40 Chart: Indigent Care Sales Surtax....41 Chart: Voted (9th Cent) Gasoline Tax....41 Chart: Local Option (6-Cent) Gasoline Tax... 42 Chart: Local Option Tourist Development Tax... 42 Chart: EMS Ambulance Service Fees... 43 Chart: Local Govermnent 1/2-Cent Sales Tax....43 Chart: State Revenue Sharing... 44 Chart: County (7th Cent) Gasoline Tax... 44 Chart: Federal Revenue Sharing....45 Chart: Building Department Fees... 45 Chart: Impact Fees... :....46 Chart: Phosphate Severance Tax... 46 Chart: Stormwater Assessment... 47 Chart: Solid Waste Annual Residential Assessment....47 Glossary of Key Terms....49 1bis doctunent, including its cover, is printed on recycled paper in order to aid in preserving our natual resources. We ask that you "recycle" this doclllllent by sharing it with others. Printed November 1994.

Hillsborough County Florida

Introduction to the County Budget Documents for FY 95 This is the financial plan adopted by the Hillsborough County Board of County Commissioners for Fiscal Year 1995 (FY 95), which began October 1, 1994, and ends September 30, 1995. This plan encompasses all funds appropriated by the Board of County Commissioners (BOCC) to fund departments under the County Administrator as well as the BOCC and the Constitutional Officers (Sheriff, Clerk of the Circuit Court, Property Appraiser, Tax Collector, and Supervisor of Elections); the County's judicial system; other boards, commissions, and agencies; and other governments and private, non-profit organizations. Some of the organizations included in this budget receive substantial additional support through other sources of funds: the Tax Collector, Property Appraiser, and Clerk of the Circuit Court each receive funding from taxes or fees levied separate from the budgets presented in this document. The judicial system also receives significant funding directly from the State of Florida; particularly for judges' salaries, the Public Defender's Office, and the State Attorney's Office. The budget is printed in four parts, each published as a separate document. Each is intended for specific types ofnsers. This multi-volume approach is used to tailor the material to different needs. Each budget document is briefly described below. A separate document, updated in July 1994, the Taxpayers Guide to the Hillsborough County Budget is available to explain the day-to-day operating budget and how -- and why -- it has changed over the past few years. The document also helps explain the budget process used to adopt the FY 95 budget and why the budget structure is so complex. Additional information may be obtained by contacting the Hillsborough County Budget Department directly at (813) 272-5890. Annual Budget for FY 95 Volume. 1: Executive Summary - This document is intended to communicate the broadest picture of the County budget to a diverse group of readers. It begins with a budget message conveying what strategies were used in developing the budget, portraying significant aspects of the budget in simple charts and graphs, and providing a glossary of key terms to assist readers in understanding some of the "accountingese" that inevitably finds its way into a budget document. This document conveys where the County stands, financially, and what steps are being taken to manage the County's finances. Annual Budget for FY 95 Volume 11: Operations and Funding Guide - This document crossreferences key detail for the budget, breaking the budget out by funding source, organizational structure, and number of positions. In large part, it provides County managers and others with a guide to the resources provided to, and the results expected from each organization funded by the County. It is comprised of three sections: a funding section, an organizational section, and a positions section. The funding section provides the reader with an introduction to the complicated financial structure required of an urban county to match revenues against their eligible uses. The structure shows how each fund is appropriated to different organizational units. The organizational section provides the reader with a matchup of resources and annual objectives and performance measures -- the output of each organization. It also cross-references staffing levels and funding sources. The positions section provides detail on the specific positions funded within each organization along with information on pay ranges. Adopted Budget for FY 95 Volume ill: Capital Budget - This document provides an outlook for the capital program for the new budget year and the following five years. It is oriented towards those who want a better understanding of the capital component of the budget and future projections. The Capital Budget document matches funding sources against programs and ties the annual budget process to the Capital Improvement Program, which 1

provides specific detail on each capital project. It also provides information on how future projects will impact the County's operating budget as each project is completed. This latter component, for example, addresses the issue of maintenance needs for a new park or staffing and utilities for a new library or fire station. Adopted Budget for FY 95 Volume IV: Financial Detail - This document breaks out detail on other non-operating components of the annual budget that don't deal with day-to-day operation of County programs -- debt and reserves. The level of detail provided tends to be oriented towards readers with finance or business backgrounds. In past years when a single document contained all of the budget information, some readers were overwhelmed by the detail provided -- particularly on debt. At the same time, management understood the importance of documenting this information for those interested in the County's financial health and its long-term obligations. The documentation of the County's reserves allows readers to see how the County has prudently set aside funds for catastrophic emergencies, financial commitments that must be carried forward to the next year ("reappropriations"), potential debt service requirements, renewal and replacement of capital, etc. Environmental Awareness This multi-volume budget, including covers, is printed entirely on recycled paper. In order to minimize waste, covers are interchangeable between documents and only covers and title pages are preprinted. All internal pages are reproduced on demand so that excess copies are not printed. Copies with printed covers are intended primarily for elected officials, senior County managers, libraries, the news media, and other users who will reference the document over an extended period Plain cover copies are reproduced in large quantities, on demand, for civic organizations and other interested parties to maximize distribution of budget information to the residents of Hillsborough County. 2

The Process of Adopting the FY 95 Budget The process for adopting Hillsborough County's FY 95 budget consists of four distinct stages or phases: 1. Planning, 2. Preparation, 3. Review, and 4. Public Adoption. The Planning Phase began October 1, 1993 with the development of a financial planning tool -- a "Pro Forma" budget extending the FY 94 budget for two major operating funds five years into the future. The planning phase continued with the preparing of budget instructions and examples, and preparing training materials. The Preparation Phase began with a budget kickoff meeting on March 23, 1994, by the County Administrator where directions for the budget process were provided and written budget instructions were distributed. The process included refresher training for departments in using the County's new automated budget preparation system. This system is linked to departments' nticrocomputers through connection of the mainframe computer to the County wide area network and to local area networks. Budget staff assisted departments in preparing two line item budgets: a continuation budget that re-priced the FY 94 budget into FY 95 dollars, and a "target" budget that showed what FY 95 costs could fit, on a priority basis using zero base budget techniques, into the same dollars budgeted for FY 94. Finally, departments were provided assistance in preparing documentation for the prioritization of programs from the bottom up using "decision units" to describe each component. Those decision units with the lowest priority were those that could not fit within the target budget, but which would he funded within the continuation budget. Departments also prepared documentation on mandates that must he addressed in FY 95. Mandates include new federal or state requirements that must he met. Mandates also reflect the cost of new County facilities canting on line that must he operated and maintained. Some organizations also subntitted what are known as "desired service level" decision units. These items have been discouraged in previous years because shortfalls made it difficult to fund existing programs at a continuation level. Another reason they have been discouraged is that in past years, many departments spent more effort justifying their new requests than they did justifying their existing level of resources. In the FY 95 process, however, new requests have been documented for consideration even though they generally could not he funded, given available resources. The Review Phase began with scheduled work sessions to review the budgets of selected departments with the County Administrator. Departments reviewed were: Solid Waste, Public Utilities, Road and Street Maintenance, Parks and Recreation, Aging Services, Children's Services, Fire, Engineering and Construction Services, Library Services, and the Museum of Science and Industry. These work sessions, which began in late April and ran through early June, were videotaped and open to the public. They consisted of a presentation of departmental programs followed by a review of the department's budget submission as detailed through decision unit summaries. Tapes of the reviews, along with all documents presented during the reviews, are available to the public for review. Upon completion of the selected departmental reviews, other departments under the County Administrator were examined in June in less detail during reviews with assistant county adntinistrators. A Taxpayer's Guide to the Hillsborough County Budget was updated in July for use as an educational tool for those interested in County budgets. This document was first produced in 1992 and received the Government Finance Officers Association Award for Excellence in Financial Management. The review phase ended with a series of final reviews of departtnental subntissions by the County Administrator, and receipt of official information on the County's ad valorem tax base for the FY 95 budget from the Property Appraiser. At this point, the County Administrator's Recommended Budget for FY 95 was produced for 3

presentation to the BOCC on July 14, in accordance with Florida Statutes. The Public Adoption Phase began with the formal receipt of the County Administrator's Recommended Budget on July 14, 1994. The BOCC began its review of the budget and the public process of review, change and formal adoption. Workshops were held July 20, July 28, and August 2. A second milestone in the phase was the setting on August 4 of proposed millage rates, which are used to prepare Truth in Millage or "1RIM" notices distributed in August. A small library millage increase was proposed at the August 4 workshop. 1RIM notices advised County taxpayers how tax rates proposed by all local taxing authorities, combined with current information on assessed value of real property, would affect the taxes on each taxed parcel of land. The 1RIM notice also served as the official notification of the time and place of the first Public Hearing for adoption of tentative millage rates and a tentative budget by each taxing authority. Additional BOCC budget discussions were held in late August and early September with a focus on outside agency requests, employee pay plan issues, and approval of new programs based on updated revenue estimates provided by the County Administrator. The third milestone in this phase of the budget process was the first public hearing, which was held September 9. At this meeting the BOCC, after hearing public testimony, adopted tentative millage. rates and a tentative budget. The fourth and final milestone in the budget process for adoption of the FY 95 budget was the second public hearing on September 22. The second public hearing was advertised by a published notice and a published breakdown of the tentative millage rates and the tentative budget. As with the first public hearing, the BOCC heard public testimony prior to adopting final millage rates and a final budget for FY95. In accordance with Florida statutes, the adopted budget was subsequently filed with the Florida Department of Revenue, effective October 1, 1994. FY 95 Budget Process Milestones: Planning October 1 - Begin "Post-mortem" on FY 94 Process and Begin Preparations for FY 95 Process and Schedule, Including Developing Multi-year Pro Forma Budgets. Prepararion March 23 -Budget "Kickoff'' Meeting April15- Revenue Worksheets Due April 29 - Budget Submissions Due Including Data Entry to Budget System by On-Line Departments June 1 - Budget Submissions Due From Sheriff, Clerk, Property Appraiser, and Supervisor of Elections Review April 28- June -Departmental Worksessions With County Administrator June 13 - July 13 - County Administrator Review by Team and Finalization of the Administrator's Recommended Budget. Public Adoption July 14 - County Administrator's Presentation of the FY 95 Recommended Budget to thebocc August 4 - BOCC Workshop to Set Proposed Millage Rates September 9-1st Public Bearing to Adopt Tentative Millage Rates and a Tentative Budget September 22-2nd Public Bearing to Adopt Final Millage Rates and the FY 95 Budget {--;' 4

The County Administrator's Budget Message For FY 95 November 1, 1994 This will be my last County budget. This month, I will be stepping down as County Administrator and my successor will assume the responsibility of administering the budget the Board of County Commissioners adopted in September, and will have to begin preparing for his first budget presentation during 1995. Being mindful of the pending transition, I adopted a theme for this budget that seemed appropriate. The theme was: "Setting the Stage." Just as one prepares for a dramatic or musical presentation by setting the stage, so it is with government. We know what lies immediately ahead and, from a financial point of view, we must make ready the stage upon which the drama will be played out. Not only will the people soon have a new Administrator, but there will be two new Commissioners. We can expect to experience an improving economic climate and a return to the growth mode wherein County services will have to be expanded to meet the demand. The people will be confronted with a water shortage; strict enforcement of the clean air and clean water laws will be expected; other regulatory and service responsibilities made necessary by the urgent need to preserve our envirorunent and natural resources will have to be assumed; and, there will be increased pressure to arrest and confine criminals, while taking steps to avoid the causes of crime. All of that will occur at the same time that pressure is increasing for reduction in taxes and government spending. Hillsborough County must be ready for those and other equally important changes, and it would be foolhardy not to set the stage for them. The FY 95 budget was prepared using a zero base budget process that we have successfully used the past two years. Organizations I supervise, as well as several of the boards, commissions and agencies funded by the Board of County Commissioners (Board) prioritized their existing programs from the ground up in what we refer to as "decision units." This process has allowed us to make informed cuts in organizations' budgets during a period of sluggish economic growth without major impacts in direct services to the public. This year, as our revenues grew, the process allowed us to make informed decisions about which programs to enhance to serve the public better. In a series of videotaped budget review sessions, I reviewed ten large departments' budgets. Those videotapes were made available through my office to anyone interested in the County's budget. Copies were also provided to the Citizens Advisory Committee, which allows the Board input from citizens they have appointed to serve on that body. In addition to the ten departments, I met with all of the other departments within my organization in a series of additional budget reviews. Using the information obtained through the reviews, and contrasting it against available new revenue, I developed a recommended plan for FY 95, which began October 1, 1994, and ends September 30, 1995. The documents I provided to the Board at workshops in July were the result of more than ten thousand hours of preparation by staff since my budget kickoff meeting on March 23. The documents summarize the forty-five thousand line items in almost one thousand cost centers that make up the budget and represented approximately 350 separately balanced accounts that we call "subfunds." But the balanced budget I presented in July was not intended to be the final, approved budget for FY 95. We worked through the Summer to refine and update our estimates of FY 95 revenues and the funds we would carry forward from FY 94. The final budget would also represent the changes the Board would make in a series of workshops culminating in two public hearings in September. The financial picture did improve as the Summer progressed. We received updated information on state-shared revenues, the Sheriff agreed to reduce his original budget request through cuts and deferrals, and we fine-tuned our projections for what we would actually spend by the time FY 94 ended on 5

September 30. Based on that information, the Board was able to address priorities tbat bad been identified for program expansions, update the classified employees' pay plan, and enhance our support of external social and cultural service organizations. The Board was also able to approve a nominal increase in the library services tax rate to address the condition of certain library facilities and the library collection. HIGHLIGHTS OF THE FY95BUDGET In adopting the FY 95 budget, the Board gave high priority to certain areas of responsibility. Emphasis was placed on enhancing public safety and library programs, and addressing water issues, long term financial needs, and other high priorities. PUBLIC SAFETY Law Enforcement - Thirty-two new Sheriffs deputies were added, as requested, to serve the unincorporated area in addition to providing three community service officers to staff the University of South Florida area district office. The Sheriff's Office also received seventeen positions to supplement its dispatch operations. When support staff are included, the Sheriffs Office is phasing in a total of seventy-nine new positions from the number approved for FY 94. Criminal Justice - Support elements for a new State-approved county judge were included in the FY 95 budget, as well as recommendations of the Public Safety Council regarding alternative programs to incarceration such as additional use of drug treatment programs. Emergency Medical Services - A new 12-hour paramedic unit is added to increase the number of units available to provide daytime service within the service area that includes the unincorporated area, Plant City and Temple Terrace. This is an innovative approach to increasing service during periods of peak demand without the ex-pense of staffing the unit 24 hours a day. Funding this unit also allows the County to seek state grant funds for additional 12-hour paramedic units. 6 Fire Services - A new fire company is provided to open the Valrico Fire Station in mid-1995. Twelve firefighters are required to staff this station 24 hours a day, 7 days a week. Funding bas also been provided to phase in training and arson investigation programs tbat were cut due to fimding limitations in prior fiscal years, and to fund a long range fire study. Animal Services - Four new animal control officers are added and we converted an existing part-time position to full time to improve response time countywide to priority calls for assistance. Alternatives to Crime - In addition to these substantial investments in expanding public safety services, the budget accommodates other expansion needs that indirectly address public safety concerns. Tbat is, adding new employees devoted to parks maintenance and recreation programs in order to operate new parks that had been previously approved and to provide additional recreational programs and recreation sites. The availability of additional recreation programs and sites will help discourage gang activity. To the extent we invest in recreational facilities and programs, we can provide safe alternatives for use by County youth when they are not in school. The new programs include extended hours at existing sites, two new recreation sites, midnight basketball at two sites, youth basketball at an additional site, expanded evening lighting for security and evening sports, extension of the Summer Fun Camp from 9 weeks to 10 weeks, teen programming, and expanded staffing of afternoon and evening recreation programs. LIBRARIES The FY 95 budget provides for the operation of a new library branch within the Museum of Science and Industry specializing in the sciences. The branch will be one of the areas inside the $35 million Museum expansion that will be accessible to the public without charge, with a staff of five full-time and two part-time positions. Last year at this time, the Board instituted a construction program for three new libraries. This budget provides for the second year of the program. In addition, the budget addresses certain other needs. We are instituting Sunday hours at our three largest facilities-- Main Library, Brandon Regional Library,

branches. We have included FY 95 funding to provide maintenance and repair that bad been deferred during a period of slow growth in the tax base. The budget provides six new support and management positions that had been withheld as we substituted automation for staffing over the past few years. Finally, it provides funding to expand some of our special collections to take better advantage of the facilities we already have. WATER ISSUES We have seen water issues rise to the forefront this year. Water issues include stormwater management, water quality, reuse, conservation and, most recently, pumping restrictions.. Public Utilities - We have begrm to establish reclaimed water improvement districts to provide residents with a mechanism for obtaining an inexpensive alternative to potable water for irrigation and the County public utility system an outlet for treated wastewater -- "reclaimed water." A network of distribution lines has been installed in certain areas close to our wastewater treatment facilities and the FY 95 budget addresses the cost of operation and maintenance of that distribution system. In response to residents' concerns over bimonthly meter reading, and the tiered conservation rate structure for water, the FY 95 budget includes a reconunended reinstatement of monthly meter reading and added personnel to address customers' complaints over meter readings. 1 Stormwater - The stormwater program maintains the same annual assessment that equates to $12 on a single family horne. The stormwater program is structured to place the revenue obtained through the assessment into a series of neighborhood projects and to support the National Pollutant Discharge Elimination System (NPDES) program. When the stormwater assessment was adopted, it was intended to address these needs, while the continuing need for stormwater maintenance would be funded with property taxes collected throughout the unincorporated area through the Municipal Services 1 While this budget does not reflect a utility rate, increase, the Board of County Conunissioners approved an amendment to the adopted FY 95 budget in October, 1994 to implement water conservation programs and a revised rate structure to encourage water conservation. 7 Taxing Unit (MSTU) tax. Any large stormwater projects would be funded through special assessments within the specific area of the County benefiting from the projects. There is one exception to this commitment that is reflected in the FY 95 budget: master planning activities required to identif'y future capital needs are funded as a capital project through the assessment. This master planning, or predesign work, is needed to address certain statutory and legal requirements and is a vital component in addressing water issues. EMPWYEE COMPENSATION AND BENEFITS There are several broad issues that underlie this budget. One is compensation. This budget anticipates an average employee merit pay increase of 4 percent That is the same increase as FY 94 and down from the 5 percent increase in FY 93. Since no cost of living increases are given, an employee with fully satisfactory service will barely keep up with inflation. Poor performers receive no increase. A survey of the County's pay plan for employees indicated that the County pay plan bas fallen behind significantly in comparison with public and private employers in the region. In the Board's deliberations in August, the Board approved a plan to peg the salary ranges for classified employees to the results of a survey of public and private employers in the region. The Board reduced our standard from an earlier standard that said we would pay better than 7 5 percent of private employers, to a new standard that says we will pay better than 50 percent of public and private employers (and lower than the other 50 percent). The earlier standard was not maintained due to its cost, so pay ranges did not keep pace with the market. We should be better able to maintain this lower standard. Under the new standard, the minimum salary for classified positions moves up and the maximum salary for lower level positions also moves up. Effective with the payroll period that includes January 1, 1995 all classified employees will either move up to a new minimum salary for their job classification, or receive a salary adjustment. Lower level classifications will receive a 1 percent increase in salary if they did not move up to a new minimum and are not already at the maximum salary for their position. Higher level classifications will receive a 0.5 percent increase in salary. These adjustments to

the pay ranges and salaries affect only classified positions -'those under the purview of the Civil Service Board. Earlier this calendar year, the Board approved a compensation study for unclassified positions within the Office of the County Administrator. The study has been completed; the resnlts will be addressed during FY 95 and are not reflected in the approved FY 95 budget. The cost of our self-insured health insurance program is anticipated to increase by up to 15 percent in FY 95. We took over this program in FY 94 and contracted for administration of the program by a private provider using its network of physicians and health care facilities. The increase reflects, in part, a shift in the plans chosen by employees and growth in the number of covered employees. The Board approved certain benefit changes to help control costs and agreed to raise employees' contributions. We will continue to monitor this program and expect some stabilization as we have more experience with the program. MUSEUM EXPANSION The budget provides funding to obtain land adjacent to the expansion project currently under construction at the Museum of Science and Industry. About eighteen acres of County land that had been turned over and marketed for private development is available by reimbursing the downpayment made by a developer. The land will provide opportunities for additional parking at the Museum or future expansion. Funds have also be set aside to provide additional marketing of the Museum when the expansion, which includes an!max Dome theater, opens later this fiscal year. INTERNAL AUDIT An additional internal audit team will be phased in during FY 95. The expansion of the internal audit function in the Office of the Clerk of the Circuit Court should accommodate additional cash audits and compliance audits. INTERNAL ORGANIZATION Data Management Department - This budget accommodates the complete reorganization of our data management system. The new Data Management Department is funded, while the former Information Technology Department is eliminated. As of October I, 1994, all data processing within the County Administrator's organization, which involves annual expenditures in excess of $5 million, will be under centralized control. Data Management will phase in the operation of computer systems for County departments in FY 95 and FY 96 that have been provided by the Clerk of the Circuit Court on a fee basis. It will also provide budget efficiencies through the centralization of computer eqnipment maintenance. Asian-American Liaison - The budget provides for the phasing in of an office of Asian-American Affairs to be modeled after the offices of African American Affairs and Hispanic Affairs. This is in keeping with our policy of ensuring all residents a proper role in government and government an appropriate liaison within the entire community. LoNG TERM OBLIGATIONS Long Tenn Liabilities - In my message last year, I discussed new accounting standards set by the Governmental Accounting Standards Board (GASB) that we must address in dealing with future liabilities and the reserves necessary to fund them. The changing standards require governments to account for these future liabilities in much the same way that businesses currently account for them. The FY 94 budget took steps to address some of those liabilities. The FY 95 budget further addresses these standards by implementing a proactive workers compensation program to control County costs, and by continning to set aside reserves. Reserves for workers compensation and general liabilities have been provided for in the County's Self Insurance Fund. A reserve for payout of sick leave and vacation to retirees has been established, for the first time, in the General Fund. As we solidify our estimates of reserve requirements to meet these liabilities, we will look for opportunities to build these reserves without adversely affecting our ability to finance day-to-day operations of the County. We also will be working with the Civil Service Board to develop options to limit our long term liability for the sick leave and vacation benefits that employees accumulate. 8

Capital Improvement Needs - Another long term obligation of the County is to address our growing deficit in terms of funding capital needs. Infrastructure needs, some of which relate to specific comprehensive plan standards and some that relate to other standards, continue to grow beyond the County's ability to pay for them without new revenues or expanded use of existing revenues. The identified deficit now exceeds $800 million and will grow as the County continues to extend its needs analysis for capital from a 6-year plan to a 20-year plan. In dealing with this issne, we also need to evaluate how the capital program will impact our cost of day-to-day operations. A workshop has been scheduled for early December to begin the process of addressing these needs. Long Term Debt - Funds have been set aside to address our requirements under the financing of the Yankees spring training and administrative complex. The budget anticipates issuing another $20 million in Environmental Land Acquisition and Protection Program (ELAPP) bonds prior to the end of FY 94, with bond proceeds used to continue acquisitions for that program. No tax rate increase was required since the County currently levies 0.25 mills for debt service on ELAPP borrowings, and this additional bond issue maintains that millage rate. The budget does not anticipate revenue from a 5th cent of Tourist Development Tax. Once arrangements are final on the financing of an arena for the National Hockey League's Tampa Bay Lightning, the Board of County Commissioners will have the right to approve the levy of the additional one percent of tax. REVENUES The budget relies on growth in existing revenues with no increase in ad valorem tax rates other that the small increase in the library millage. Partly offsetting that increase is a slight reduction in millage rates required for our general obligation bonds. (As the tax base grows, the millage rate necessary to pay off long term bonds declines.) Streetlighting assessments and storrnwater assessments are unchanged in the FY 95 budget. User fees have not been increased to balance the budget. The only significant revenue increase is a 6.8 percent increase in the residential solid waste assessment -- which equates to slightly less than $6 for a single family home. Growth in the ad valorem tax base accounts for about $9 million in new revenue to fund the FY 95 budget. That includes maintaining last year's library millage increase to fund three new libraries and to supplement the book budget. An additional $1.5 million increase provides for additional library system needs, as previously noted. Other revenues also played a significant role in funding the FY 95 budget: Growth in sales tax revenue and State Revenue Sharing (which is primarily based on the State's intangibles tax) increased strongly, reflecting a rebound from slower economic times. The FY 95 budget reflects an aggressive use of phosphate severance taxes to fund eligible programs -- particularly the use of reclaimed land for County parks and the funding of Environmental Protection Commission programs. Rent savings associated with organizations that moved into the County Center offset a considerable share of the debt service requirement for the financing of the County Center, and parking and other revenues will offset virtually all of the remaining cost. Part of the Sheriff's budget increase in FY 95 will be offset by payments from the State of Florida and from the U. S. Marshall's Service for inmates housed in County facilities. THE STAGE IS SET The FY 95 budget sets the stage for what is ahead. However, as our drama of change develops, there are opportunities for further modifications of the governmental structure to reduce costs, increase efficiency and eliminate duplication. The budget message is not the place for an extensive discussion of the history of local government, but, by way of introduction to this portion of the report, it should be noted that most of the fragmentation and diffusion of local government power came about in an.era in which the Board of County Commissioners was unable or unwilling to properly provide certain needed services and/or safeguards. The wishes of the voters were translated into legislative acts which, one after the other, established outside agencies to perform duties ordinarily within the jurisdiction of the Board. The fact that such outside agencies were 9

not directly accountable to the people and the fact that there would be duplication of effort as well as expense was seemingly less important than the need to remove them from Board control. Meanwhile, the County worked through and put behind it the rural image of its County Commission, and the damage done by corruption scandals. A home rule charter was developed and adopted by the people, which brought additional maturity to County government and attracted qualified, competent candidates for important policy-making positions. Today we have a large, municipal-like county government under a ten-year-old charter, presided over by a Board of County Commissioners who are well educated, experienced, competent, and have earned the respect of their constituents. When I presented my recommended budget to the Board in July, I respectfully suggested it is appropriate to begin reversing the old habit of stripping power from County government and start restoring and regaining appropriate governing authority. The Board tabled the issues I raised for future consideration outside the budget adoption process. I want to mention them in this message because they present opportunities that have not been fully explored and discussed. In this regard, three positive possibilities stand out, and I suggest they be addressed in the name of government efficiency and orderliness, but with the knowledge that there should be serendipity in the form of financial savings that can help fund future. needs. POSITIVE POSSIBILITIES City - County Planning Commission - By legislative act, we have the Planning Commission that functions as a governmental layer between local government and the state. When it comes to planning, we have the cities and the County attempting to plan and manage their respective futures; the Planning Commission, with its expensive staff, engaging in ''comprehensive 11 planning, reviewing planning done by the agencies with elected governing boards and then intervening between the local governments and the Florida Department of Community Affairs, the giant agency that presides over all comprehensive plans and growth management laws of the state. Ours is an uncommon structure for planning -- one that is unique in the State of Florida certainly among larger governments and an example of an organizational model that is becoming increasingly rare throughout the country. The Planning Commission is not unique by its existence and function as an appointed planning body, but rather by its direct employment and supervision of a large independent, professional staff. Should you become interested in pursuing this positive possibility, it can be demonstrated that by preserving the Planning Commission, but reducing its staff to an appropriate level, a considerable savings could be achieved. Such a savings could be realized without sacrificing any beneficial planning service for the people of Hillsborough County, Tampa, Plant City and Temple Terrace. No legislation would be required. I am not suggesting the abolition of the Planning Commission, only the reduction of its expensive staff and elimination of duplicative planning services. Environmental Protection Commission - Here again, Hillsborough County is somewhat unique. We are one of the few jurisdictions with its own local agency, with an extensive, expensive staff that spends its time doing those things that need doing for the protection of the environment, but which are already being done by State agencies also funded by taxpayers. Again, this is not a recommendation to repeal or request legislative repeal of EPC, but, rather a suggestion that much of the staff work could be done by other tax supported agencies, as in other jurisdictions, and enormous savings could result which could help fund needed non-duplicated services. Correctional Facilities - The Laws of Florida provide that local correctional facilities (jails) are funded by taxes levied and collected by County Commissions, and they may be operated by the Sheriff or the Board of County Commissioners. Control is fixed by the Board; no legislation is needed for a change. In our county, the Sheriff operates the correctional facilities, but in other counties, notably Orange Couuty, the Administrator is responsible, and accountable, for operating them. 10

The traditional arguments are sound; i.e., the Sheriff is the County's chief law enforcement officer and, therefore, the most logical official to be vested with the control of those he arrests for violating the law. If that were all there was to consider, this suggestion would be out of line. However, there is much more, including this discussion of economy. The Board receives a proposed budget from the Sheriff, which includes a request for funds for correctional facilities. That bndget can ouly be changed by the Board at a public hearing in September, and any change is subject to appeal to the Governor and Cabinet in Tallahassee. In actnal practice, the Board exercises practically no control over the correctional facilities' part of the budget. Can some of the current positions held by deputies be covered by regular employees? What is the correct number of correctional officers? What perquisites are correctional officers furnished? And, what about medical care for the inmates, and the opportunities for recovering medical costs from other governmental agencies or insurance companies? Should our indigent health care clinics take care of eligible inmates? What facilities are actnally needed? These and other questions remain unanswered, because the Sheriff is an autonomous, elected constitutional officer who, it is said, is accountable directly to the voters. Yet, the Board with all of its resources, can do little more than grant funding requests and levy taxes to cover the costs. The Public Safety Coordinating Council has been established and is empowered to make recommendations to the Board with respect to all aspects of the criminal justice system. One positive, prospective possibility is that they will visit the subject of whether the Orange County or Hillsborough County model would be more economical and better suited for this county under the present circumstances. OTHER POSITIVE POSSIBILITIES There are other opportunities to be explored for the sake of operational efficiency and to redefine how some governmental services are paid. Performance Audits - The Board has approved a multi-year plan to contract performance audits for all departments within the County Administrator's organization. An audit of Cable Communications was conducted in FY 94 and we will be presenting the findings to the Board in early FY 95. Several more performance audits are scheduled for FY 95. In addition, the Florida Legislature approved legislation this year to require performance audits of four organizations funded by the Board. The Civil Service Board is scheduled for an audit in FY 9 5 and audits are required in future years for the Planning Commission, Environmental Protection Commission, and Public Transportation Commission. These audits should provide information that can be used to better allocate our resources. Article V Costs - When Article V of the Florida Constitution was amended in the early 1970's, it was expected that the State would pay, from State funds, all of the costs of operating the state system of justice described in the Constitution. As we know ouly too well, each county, including ours, finds it necessary to levy taxes to pay many of those expenses. Those costs involve millions of dollars of local funds that we are providing, because of inadequate State funding. If the Legislature could be induced to properly fund the justice system, including the State Attorney and Public Defender, we could fund our own unmet requests, or better yet, reduce ad valorem taxes. Again, I respectfully suggest it is time to consider a campaign for financial relief in this area. Sponsorship of Parks - Commissioner Jim Norman has suggested a plan for corporate sponsorship of certain parks. He has actually gone a step further and sampled the corporate community's reaction; he indicates a positive attitude. Such a sponsorship campaign would be relatively easy to execute, and the anticipated $500,000 to $600,000 revenue would go a long way toward funding additional needs of the Parks and Recreation Department. Privatization - County government has been significantly improved in its service delivery capacity, but there are still many functions that should be considered for privatization, so that savings could be realized. Our Resource Recovery facility is a successful privatization project. We have found it to be economically beneficial to use private sector law firms, engineering organizations and construction companies in situations where such contractual services are sufficient. However, there is no clear, definitive policy in place that guides the administrative staff in this regard, and as we 11