PASCO COUNTY, FLORIDA Bringing Opportunities Home DADE CITY 352 5214274 COUNTY ADMINISTRATOR S OFFICE LAND O LAKES 813 9967341 WEST PASCO GOVERNMENT CENTER WEST PASCO 727 8478115 7530 LITTLE ROAD, SUITE 340 FAX 727 8157010 NEW PORT RICHEY, FL 34654 EMAIL: pcadmin@pascocountyfl.net Honorable Chairman and Members of the Board of County Commissioners 37918 Meridian Avenue Dade City, Florida 33525 July 13, 2010 Dear Commissioners: Enclosed for your consideration and review is the proposed, comprehensive Pasco County Budget for the fiscal year October 1, 2010 through September 30, 2011, submitted in accordance with Chapter 129.03(3), Florida Statutes. The proposed budget includes ad valorem (property tax) revenue based upon the two millage rates shown in the table below. As you will note the proposed aggregate millage rate is 6.52% below the rolled back aggregate rate and therefore, you will not be required to advertise a tax increase. Summary of Proposed Millage Rates General Municipal Fund Fire Road Operating Service and AGGREGATE Levy Unit Bridge 2009 2010 Actual Millage 6.3668 1.1991 0.0000 7.4739 2010 2011 Rolled Back Rate 7.1853 1.3575 0.0000 8.4532 2010 2011 Proposed Millage 6.5877 1.4267 0.0000 7.9031 2010 2011 Percentage below Rolled Back 8.32% 5.10% 0.00% 6.51% Pasco County has again suffered a significant decrease in taxable value as a result of the depressed real estate market. Our loss of taxable value from last year was $2.7 billion in the General Fund and $2.5 billion in the Fire MSTU. The combined loss for the last three years due to Amendment 1 and the real estate market now totals, in the General Fund, almost $11 billion. As a frame of reference, that is more than the total value of all new construction in Pasco County for the last 15 years dating back to 1998. The slight increase in the proposed General Fund millage rate (.2209) will still result in a loss of nearly $10 million in property taxes in that fund. "Pasco County Florida's premier county for balanced economic growth, environmental sustainability, and firstclass services."
The value of new construction has also fallen significantly over the last four years from $2 billion in Fiscal Year 2008 to just over $300 million for. Countywide Taxable Value 35.000 30.000 25.000 Billions 20.000 15.000 10.000 5.000 0.000 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Previous Year less Reductions Net Revaluation Increase New Construction The proposed budget as submitted is based on the following: The budget, net of interfund transfers, totals $1,023,676,882. The budget is comprised of 69 separate funds. The budget calls for the elimination of full and part time jobs that equal nearly 76 full time equivalents. Of these positions approximately 36 are currently filled while approximately 40 positions are vacant. Some of these position reductions are the result of consolidations of functions such as Public Works with Stormwater, Zoning/Site Development with the Development Information and Permitting division, and Engineering Inspections with Project Management. We will continue to explore further consolidations during the remainder of the year. The closing of the Centennial Library. All of the other libraries hours will remain unchanged. For the third year in a row there are no wage increases of any kind budgeted for all employees under the County Commission. A 2
Employee health insurance is budgeted at an increase in premium of 8.95%. Pension rates are budgeted for increases of 11.40% for Regular class, 15.76% for High Risk, 18.67% for DROP, and 39.80% for Elected Officials. There are some new positions being added: FY10 FY 11 Percentage Increase Regular 10.09 11.24 11.40% High Risk 21.51 24.90 15.76% DROP 11.25 13.35 18.67% Elected 17.06 23.85 39.80% 15 Firefighter/EMT s in Combat to help reduce the cost of unscheduled overtime 2 Animal Care Technician I s to operate the new animal adoption center 5 positions for the Stormwater Utility.5 Environmental Lands Program Coordinator 5 positions for Community Development 1 Customer Service / Performance Development Administrator The proposed budget includes significant increases in user fee revenues previously discussed by the County Commission: Ambulance Fees and Parks and Recreation fees. Similar to last year, a Reserve for Level of Service has been funded at $4,355,524 representing the additional funding provided by the.2209 mill increase to the General Fund. This will allow you, prior to the final adoption of the budget in September to (i) buy back levels of service that have been reduced in the proposed budget, (ii) replenish a portion of the financial sustainability reserves you have already voted to cut to prepare for FY2012, or (iii) reduce the proposed General Fund millage. A significant change for this budget is the elimination of the Contracts section. OMB has moved these contracts into various operating departments most closely aligned with their core functions. As a result these departments budgeted amounts for FY2010 have been restated to reflect the addition of the 2010 amounts originally budgeted in the Contracts section. A comprehensive list of the contracts including both the FY2010 and the FY2011 amounts, and the department or division the contract has been moved to is attached at the end of this budget message as a separate schedule. Prior to the passage of Amendment 1, the single largest benefit to residents with homesteaded property was the Save Our Homes provision that limited the annual increase in their property s assessed value. Beginning with Fiscal Year 1996, a home s assessed value would increase by the lesser of 3% or the increase in the Consumer Price Index (CPI). As market values increased dramatically in prior years, the assessed value was kept relatively stable. In the sixteen years Save Our Homes has been applied, eleven of those years the increase was less than the 3% maximum. To illustrate the property taxes paid to Pasco County, on the next page, we have a chart that spans the seventeen years since Save Our Homes was implemented and the additional homestead exemption of Amendment 1 beginning in 2009. We begin with a home in 1995 assessed at $81,708 (the Save Our Homes Value) with a A 3
homestead exemption of $25,000, the taxable value is $56,708. To this, we apply the millage rates for the General Fund and the Municipal Fire Services Fund. For the first three years, we also apply the millage rate levied to pay the voterapproved debt service for the Parks system and the Library system. Each year the assessed value is increased by the Save Our Homes percentage ranging from.1 to 3.0%. From the assessed value the homestead exemption of $25,000 is deducted for every year until 2009, when the second exemption increases the deduction to $50,000. For, we end up with an assessed value of $118,203 and a taxable value of $68,203. As you can see, our homeowner will be paying $54.09 more than in 2010 or about $1.04 a week. At the proposed rates, this taxpayer will still be paying $49.80 less than 1995, and $221.06 or 29% less than Fiscal Year 2003 taxes. County Property Taxes 900 800 767.86 700 600 500 400 300 200 100 596.40 546.60 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 General Fund Fire Parks & Library Debt Service For the last two years as the Market Value decreased on their homes, many of our homesteaded property owners saw no corresponding decrease in their Assessed Value (Save our Homes Value). This was due to the large differential between the Market Value and the Assessed Value that grew from 1996 to 2007. We have been informed by the Property Appraiser s office that of the 126,000+ homes that have a homestead exemption less than one third have a differential between their Market Value and the Assessed Value. Therefore approximately two thirds of our homesteaded properties will have an average decrease of 11% in their Assessed Value for 2010. If you were to apply the 11% decrease to the property in the above example the 2011 taxes would be $420.23 a decrease of $72.28 over last year, and a decrease of $176.17 from the 1995 amount. It must be remembered that 11% value is an average and some properties may see no decrease at all. A 4
The expenditure and revenue portions of the budget are depicted with the two graphics shown below. Please note that in the expenditure chart, the slice marked Utilities includes Water and Sewer, Solid Waste/Resource Recovery, and Street Lighting in subdivisions. Expenditures are shown net of intergovernmental charges and certain revenues are shown net of a 5% reduction as provided by state law. A5
New Budget Format This represents the first year of our new budget format using our web based software product GovMax V5.0 developed by Sarasota County. The reports that you see in this budget are only a subset of the available reporting resources. OMB has implemented this product in a very short timeframe, and will further utilize the operational and reporting functionality of the product over the remainder of FY2010 and FY2011. Many of the budget reports detail multiple years of historical actual expenditures and preliminary projected expenditures for fiscal years beyond 2011. You will note that prior year s positions are reported only for FY2010 and beyond. As we progress through future budgets the historical position data will be populated one year at a time. The most significant difference is that your Capital Improvement Plan is being presented in a separate document of over 250 pages. You will find a detailed description of each project including costs, funding sources, timetable, and a graphic showing the location of the project or a picture of the equipment to be purchased. Following the budget message the first section you will encounter contains several summary reports: Costs (expenditures) Fund (each fund described showing summary revenue and expenditure data) Authorized Full Time Equivalents (personnel positions) Programs by Expenditures Programs by Revenues Revenue Following that are individual sections that were previously referred to as Branches which are now know as Business Centers: Legislative Administrative Constitutional Officers Judicial Development Services Public Services Utilities/Solid Waste Reserves Debt Service Countywide Expenditures This is followed by a section that contains definitions and documents to help first time readers navigate and understand the document. Each Business Center contains summary information on expenditures, revenues by fund, and FTE (full time equivalents, personnel). The summary is followed by division detail that includes descriptions of programs and impact on the organization, expenditures, revenues by fund, and positions by job title. Expenditures and revenues are shown with historical actuals, FY2010 adopted budget, FY2011 proposed budget and projections for future years. A 6
Discussion of Revenues Revenue estimates for all of the governmental funds are prepared by the Office of Management and Budget (OMB). Revenue estimates for the enterprise funds are prepared by the responsible department and reviewed by OMB. Throughout the year, OMB tracks over 150 individual revenue line items. This data is used during the budgeting process along with information received from federal, state, and other local government agencies to identify trends in revenue receipts. A very conservative approach is taken so as to not overestimate revenues using the lowest of estimates in the event that projections from other agencies exceed the estimates prepared internally, or vice versa. This has been a significant issue this year as OMB has shared with you in some of our worksessions. OMB has received several estimates from the State of Florida that they consider to be overly optimistic. OMB has identified five revenue sources that they will be using more conservative estimates. They include Constitutional Gas Tax, Local Option Fuel Tax, Half Cent Sales Tax, County Revenue Sharing, and the Tourist Tax. The cumulative difference is over $3.7 million with over $2.8 million of that being the Half Cent Sales Tax. If the state estimates prove to be true we will have an increase in our FY2011 ending fund balance and will be better prepared for FY2012. Discussion of Fund Balances Fund balance estimates are prepared during each budget cycle. The process requires the revenue tracking procedures mentioned above and the best estimates of various operating departments of their expected expenditures for the then current fiscal year. The fund balance estimates are prepared prior to the submission of the proposed budget in early July and are revised during the budget adoption process prior to the final public hearing in September in an attempt to provide the most accurate estimates possible. Except for grant funds, a fund balance is estimated for all funds for which a budget is prepared. Care is taken not to overestimate fund balances which could lead to revenue shortfalls, while at the same time, avoiding underestimating fund balances which could lead to unnecessary tax or fee increases. Fund balances for each fund are shown on pages B 5 through B 25. Once OMB has received the Comprehensive Annual Financial Report after the new fiscal year begins, and determines if any material variances exist between actual and budgeted fund balances from the previous fiscal year, necessary adjustments to the budget are processed in the form of budget resolutions approved by the Board of County Commissioners. Ending fund balance projections for the current fiscal year are not prepared until the budget process is started for the following fiscal year. Constitutional Officers The budget of the Supervisor of Elections and the Clerk & Comptroller are presented as originally submitted. The budget of the Sheriff s Office is not presented as requested but instead at the same amount as budgeted for FY2010. The budget of the Property Appraiser is presented based upon an estimate prepared by OMB showing the portion allocated to county government. The remainder of the Property Appraiser s budget as submitted to the Florida Department of Revenue is funded through other special taxing units. The amount shown for the Tax Collector is an estimate prepared by the Office of Management and Budget as the A 7
budget for that office is not required to be submitted until August 1 st. Additional appropriations are shown in conjunction with the budgets of all Constitutional Officers. OMB will continue to work to identify as many of these additional appropriations as possible to more accurately reflect the actual cost of these offices. Judicial Funding for most courtrelated functions is provided through four fees: A $65 surcharge on court costs for felony, misdemeanor, and criminal traffic offenses. This fee is divided evenly among four programs: Teen Diversion, Court Innovations, legal aid, and the law libraries. Originally projected to generate $582,000 per year, we now believe annual collections will provide $468,000. An additional $3 surcharge on court costs to be used exclusively for Teen Court. This fee was adopted by the County Commission to begin July 1, 2005. This surcharge is budgeted to generate $120,000. A $4 fee on document recording, of which the County receives $2, to fund Court Technology expenses, including those of the State Attorney s office and the Public Defender s office. The County s portion of this fee is expected to generate $645,000. A $30 surcharge on traffic and criminal violations to fund court facilities. Originally projected to generate $770,000 per year, after the fee was doubled in July of 2009 we now believe annual collections will provide $1,135,000 per year. Court Innovations has 2.5 FTE s for. If any funds from the $65 surcharge are not expended for Teen Diversion, legal aid, or law libraries, the remaining balances are then transferred to Court Innovations. The legal aid portion of the surcharge provides partial funding for our stateimposed obligation to fund the Bay Area Legal Services. The funds that the two law libraries are receiving from the remaining 25% of the fee represents a drastic reduction from the level of funding received in prior fiscal years. The following items are funded by the General Fund: (1) Court costs (these represent costs associated with cases that began prior to the implementation of Article V reorganization), (2) contract with the Medical Examiner for services, (3) other appropriations, such as communication costs, that we are required to provide but are not eligible for technology funding, and (4) nontechnology funding of operating expenses in the State Attorney, Public Defender, and Guardian Ad Litem offices. The Public Defender has requested continuation funding for the program to divert mentally ill people from the jail into appropriate treatment settings in the amount of $198,000. The funding of this program is not required under the revisions to Article V. Prior to August 4 th, we must notify the Property Appraiser of the proposed millage rates and special assessments, and the date, time, and location of the first public hearing on the budget. This matter will be placed on the agenda for the meeting of July 27, 2010. In keeping with A 8
previous years policy, I am recommending that the first public hearing be held in Dade City at 6:30 p.m., Tuesday, September 7, 2010. For the third year in a row I would like to publicly thank all of the employees under the Board for all their dedication and hard work during what has been an extremely challenging budget process. Sincerely, John J. Gallagher County Administrator A 9
NOTE: THIS SUMMARY MUST BE DEVELOPED AND SIGNED BY AN OFFICIAL OF THE COUNTY'S FINANCE OFFICE ESTIMATED FY10 HISTORICAL Pasco County COUNTY EMERGENCY MANAGEMENT AGENCY EXPENDITURES HISTORICAL SUMMARY BY FUND FOR FISCAL 200910 LOCAL STATE/FEDERAL TOTAL County Federal Portion * Hazardous Other Total General Other Total State Portion of EMPA Materials State or State and/or Total County Expenditure Categories ** Fund Local Local of EMPA Base Grant Planning Grant Federal Federal EM Agency (Local) Funds Funds Base Grant (State) Funds Funds Funding [a] [b] [a+b=c] [d] [e] [f] [g] [d+e+f+g=h] [c+h=i] 1. Salaries & Benefits ACCOUNT# FY 09/10 ADMINISTRATION B127117000 $ 291,203.00 291,203.00 FY 09/10 EMPA TRUST FUND B127117040 2. Other Personal/Contractual Ser. $ $98,792.00 $98,792.00 $389,995.00 $ $96,949.91 $96,949.91 $96,949.91 $ $ FY 09/10 ADMINISTRATION B127117000 $ 47,656.00 $ 47,656.00 $0.00 $47,656.00 $ $ $ $ $ $ 3. Expenses FY 09/10 ADMINISTRATION B127117000 $ 21,190.00 $ 21,190.00 $48,000.00 $48,000.00 $69,190.00 FY 09/10 EMPA TRUST FUND B127117040 $27,153.00 $ 27,153.00 $5,808.09 $5,808.09 $32,961.09 $ $ $ $ $ $ 4. Operating Capital Outlay 5. Fixed Capital Outlay $ Total Expenditures $ $ 387,202.00 $ $ 387,202.00 $102,758.00 $146,792.00 $249,550.00 $636,752.00 Percentage of Funding % 60.81% 60.81% 16.14% 23.05% 0.00% 0.00% 39.19% 100.00% Amount of County funds provided as match for State portion of grant (EMPA) Amount of funds provided as match for Federal portion of grant (EMPG) $387,202.00 $118,792.00 I hereby certify that the above figures represent the actual funding source for the Emergency Management Agency for Fiscal Year 2008 2009 and does not include disasterrelated response or recovery costs nor any other costs incurred by other Departments. Signed Title Date ESTIMATED HISTORICAL FY0910
NOTE: THIS SUMMARY MUST BE DEVELOPED AND SIGNED BY AN OFFICIAL OF THE COUNTY'S FINANCE OFFIC ESTIMATED FY11 HISTORICAL Pasco County COUNTY EMERGENCY MANAGEMENT AGENCY EXPENDITURES HISTORICAL SUMMARY BY FUND FOR FISCAL 201011 LOCAL STATE/FEDERAL TOTAL County Federal Portion * Hazardous Other Total General Other Total State Portion of EMPA Materials State or State and/or Total County Expenditure Categories ** Fund Local Local of EMPA Base Grant Planning Grant Federal Federal EM Agency (Local) Funds Funds Base Grant (State) Funds Funds Funding [a] [b] [a+b=c] [d] [e] [f] [g] [d+e+f+g=h] [c+h=i] 1. Salaries & Benefits ACCOUNT# FY 10/11 ADMINISTRATION B127117001 $ 223,785.00 223,785.00 $ $112,124.00 $112,124.00 $335,909.00 FY 10/11 EMPA TRUST FUND B127117041 $17,928.00 $ 17,928.00 $102,758.00 $102,758.00 $120,686.00 $ $ 2. Other Personal/Contractual Ser. FY 10/11 ADMINISTRATION B127117001 $ 80,808.00 $ 80,808.00 $0.00 $80,808.00 $ $ $ $ $ $ 3. Expenses FY 10/11 ADMINISTRATION B127117001 $ 21,115.00 $ 21,115.00 $0.00 $21,115.00 $ $ $ $ $ $ 4. Operating Capital Outlay FY 10/11 ADMINISTRATION B127117001 $ 7,500.00 $ 7,500.00 $0.00 $7,500.00 5. Fixed Capital Outlay Total Expenditures $ $ 351,136.00 $ $ 351,136.00 $102,758.00 $112,124.00 $214,882.00 $566,018.00 Percentage of Funding % 62.04% 62.04% 18.15% 19.81% 0.00% 0.00% 37.96% 100.00% Amount of County funds provided as match for State portion of grant (EMPA) Amount of funds provided as match for Federal portion of grant (EMPG) $351,136.00 $112,124.00 I hereby certify that the above figures represent the actual funding source for the Emergency Management Agency for Fiscal Year 2008 2009 and does not include disasterrelated response or recovery costs nor any other costs incurred by other Departments. Signed Title Date ESTIMATED HISTORICAL FY1011
LINE# LINE OBJECT FY 10 BUDGET B127117000 EMERGENCY MANAGEMENT ADMINISTRATIVE ACCOUNT FY 11 PROPOSED BUDGET FY 10 BUDGET B127117040 EMPA TRUST FUND ACCOUNT FY 11 PROPOSED BUDGET 11200 PAYROLL $ 298,424.00 $ 247,700.00 $ 94,193.00 $ 84,091.00 12100 FICA $ 22,830.00 $ 18,949.00 $ 7,206.00 $ 6,433.00 12200 RETIREMENT $ 30,725.00 $ 27,842.00 $ 9,504.00 $ 9,453.00 12300 INSURANCE $ 38,016.00 $ 34,515.00 $ 19,008.00 $ 20,709.00 12302 VSIP INSURANCE $ $ 6,903.00 $ $ 33400 OTHER CONTRACTED SERVICES $ 6,780.00 $ 4,984.00 $ $ 34000 TRAVEL & PER DIEM $ 2,155.00 $ 2,155.00 $ $ 34100 COMMUNICATIONS $ 5,193.00 $ 28,897.00 $ $ 34403 COUNTY RENTAL EQUIPMENT $ 31,216.00 $ 31,117.00 $ $ 34602 MAINTAUTOMOTIVE EQUIP $ $ $ $ 34603 MAINT OFFICE EQUIPMENT $ $ 12,555.00 $ $ 34604 MAINT OTHER EQUIPMENT $ 1,212.00 $ $ $ 34700 PRINTING AND BINDING $ 300.00 $ 300.00 $ $ 34920 ADVERTISING $ 500.00 $ 500.00 $ $ 34923 FOOD AND DIETARY $ 300.00 $ 300.00 $ $ 55100 OFFICE SUPPLIES $ 2,300.00 $ 2,300.00 $ $ 55101 POSTAGE $ 2,000.00 $ 2,000.00 $ $ 55103 MAPS AND CHARTS $ 1,500.00 $ 1,500.00 $ $ 55104 DUPLICATING EXPENSES $ 1,300.00 $ 1,300.00 $ $ 55106 UNCAPITALIZED EQUIPMENT $ 2,200.00 $ 2,200.00 $ $ 55107 SOFTWARE $ 48,040.00 $ 40.00 $ $ 55200 OPERATING SUPPLIES $ 100.00 $ 100.00 $ $ 55201 GAS, OIL & LUBE $ 10,526.00 $ 10,526.00 $ $ 55202 INSTITUIONAL SUPPLIES $ $ $ $ 55204 TOOLS/IMPLEMENTS $ 50.00 $ 50.00 $ $ 55207 CLOTHING AND APPAREL $ 404.00 $ 404.00 $ $ 55401 MEMBERSHIPS $ 770.00 $ 695.00 $ $ 55402 BOOKS $ $ $ $ 55403 PERIODICALS & SUBSCRIPTIONS $ $ $ $ 66403 OTHER EQUIPMENT $ $ 7,500.00 $ $ TOTALS $ 506,841.00 $ 445,332.00 $ 129,911.00 $ 120,686.00