BOARD OF COUNTY COMMISSIONERS
SEMINOLE COUNTY, FLORIDA
MAY 21, 2009
The following is a non-verbatim transcript of the BOARD OF COUNTY COMMISSIONERS SPECIAL
MEETING OF SEMINOLE COUNTY, FLORIDA, held at 9:03 a.m., on Thursday, May
21, 2009, in the SEMINOLE COUNTY
SERVICES BUILDING at SANFORD,
FLORIDA, the usual place of meeting of said Board.
Present:
Chairman
Bob Dallari (District 1)
Vice
Chairman Mike McLean (District 2)
Commissioner
Dick Van Der Weide (District 3)
Commissioner
Carlton Henley (District 4)
Commissioner
Brenda Carey (District 5)
County
Manager Cindy Coto
County
Attorney Robert McMillan
Deputy
Clerk Eva Roach
Commissioner Henley gave the Invocation.
Commissioner Van Der Weide led the Pledge of Allegiance.
INTRODUCTION
Cindy
Coto, County Manager, addressed the Board to state staff will be presenting an
overview of the budget development process as it relates to FY 2010. The Fiscal Year 2009/10 budget booklet was
received and filed. She stated as in the
last three budget years, staff’s approach has been a proactive one in which
they have maximized the reserves to assist offsetting the impacts of property
tax reform and the present economic conditions.
She stated the budget process was initiated in November 2008 due to the anticipated
deficits. The deficit grew to $35
million in November and by March it went up to $42.8 million. Staff will be presenting the newest
projection which will reflect a further decline in the revenue. As the situation is deemed primarily to the
impact of the property tax reform, their approach is to create a long-term sustainable
plan for not only next year, but well into the future to continue to provide
public services for the community’s well-being and overall quality of life. The County’s loss of the annual general
revenue is estimated at $70 million with a deficit of operating revenues to
expenditures now projected at $47.2 million.
Staff believes this forecast to be an optimistic view. The County has reduced their general revenue
budget over the last two fiscal years by $25 million and they now have to
address another $47 million. The need for physical stability is more
critical now and the challenge before staff is to right side the organization,
not only for today, but to service well into the future. Staff continues to balance this challenge
with the needs of the community by providing the services that continue to
define Seminole County as a place that residents choose to live and work. In an effort to achieve more cost-effective
service delivery, a zero-based budget development methodology was
employed. The objective was to redirect
effort and funds from lower priorities to higher priorities, improve the
overall efficiency, effectiveness and reduce their spending. This approach
resulted in reductions totaling $28.1 million and that number is contrasted to the
$10 million that was presented to the Board on March 3. She stated she is pleased with the efforts of
staff to not only meeting the March work session objective but surpassing it. However, as the deficit has continued to
grow, these reductions are not sufficient to meet the deficit position which
they find themselves today. Staff’s
presentation will focus on the recap of the March 3 work session and an update
of the financial status with the work that has been accomplished. Staff has included in the budget book the
results of the citizens and business surveys conducted by PMG Associates, Inc.,
and those will be presented to the Board at the June 9 meeting. Also, included in the budget booklet is an
analysis of options, such as pay reductions, furloughs, reduction of work hours
and reduction in work force. This information
is provided to give the Board an overview of the opportunities and challenges
each of those face. Also, included in
that information is a survey conducted by 100 local government agencies and
what they are doing to meet their fiscal challenges. Staff has also submitted to the Board
responses of information they recently received. The package (received and filed) includes a
memo on Fertilizer Ordinance and Pollutant Removal Credits, Energy Conservation
Initiatives undertaken by staff, a memo and associated backup on information
received relating to a number of Budget Development Issues, and a more indepth
5-Year Forecast. She concluded by
stating she believes this year will be a major milestone in their effort to
ensure future financial stability. The
budget development process thus far has yielded $28 million in proposed General
Revenue Fund budget reductions. Staff
will continue to identify and implement additional opportunities to increase
the effectiveness and efficiency. She
stated staff is seeking Board action for the following: (1) Approve staff recommendations regarding
Outside Agency Funding as of October 1, 2009; (2) Approve staff proposed budget
reductions and authorize the County Manager to take all necessary action to
implement reductions in accordance with current County policies and procedures;
and (3) Provide direction on staff recommendations with regard to a Stormwater
Utility Assessment and a Millage Rollforward.
BUDGET OVERVIEW
Lisa Spriggs, Fiscal Services Director, addressed the Board to
display a PowerPoint Presentation (received and filed) and state she is going
to touch on the forecasted status and give the Board up-to-date information
that they have available today. She said
staff will discuss some of the recommendations they can use to get through
these challenges. She displayed and
reviewed the March 3rd Work Session Recap relating to County-wide
$987 million; $36.4 million Transfers & Excess Fees; $950.6 million
Spendable; $226.1 million General Revenue Operating Budget; $13.7 million
Program Fines & Fees; and $212.4 million Tax Supported Cost of Programs as
outlined on pages 2 through 7. She
displayed and reviewed Graphs (pages 8 thru 12) relating to Where Tax Supported
Programs Go, the Quality of Life Services, What Programs are Mandated or
Partially Mandated and what services the County is responsible for providing.
Robert McMillan, County Attorney, left the meeting at this time.
Ms.
Spriggs continued by reviewing a graph showing the Forecasted Budget Status for
FY 2010. She reviewed Tables (page 14
and 15) relating to the General Revenue Forecast (Structure Imbalance, Sales
Tax, County Revenue Sharing, State and Local Gas Taxes, Projected Net Deficit
before Ad Valorem Tax Factor, Property Taxable Assessments and Property
Appraiser Projection).
Chairman Dallari stated he would like to see what the difference
is for last fiscal year and this fiscal year instead of comparing the taxable
assessments from 2006 to this year.
Ms. Spriggs continued by reviewing the philosophy they used in
the development process as outlined on pages 16 and 17. She stated the focus was to structurally balance
and to ensure that they right-side by bringing the expenditures in-line with
the revenues over the long term. Staff
took a long-term view and a long-term approach.
She displayed and reviewed the Consensus Driven Process and stated that doing
a long-term financial plan involves the support of everyone (BCC, public and
staff). She stated staff’s approach was
to focus on the long-term sustainability within the budget process and she
reviewed same as outlined on page 20.
She displayed a table (page 21) and recapped the $42.8 Structural
Imbalance (Showing the Decline over the last 3-4 years).
Mr. McMillan reentered the meeting at this time.
Ms. Coto stated the State legislature decided that the property
tax reform was very critical. If they did
not have that, the market could have done self correction and the County could
have dealt with this issue within the reductions that have taken placed over
the last two years as well as the ones they are proposing today.
Ms. Spriggs stated the impact on Seminole County is 48% and if
they look at that statewide, local governments are large employers and supporters
of the economy. There was never a study
done on what the property tax reform did, but the natural instinct of local
governments was they have less revenue and they would cancel projects. Once the projects are cancelled, that would
affect the private industry as well. Discussion
ensued.
Ms.
Spriggs stated the next table (page 22) recaps the $43 million Use of
Reserves. The County’s projected deficit
comes to $33 million.
Upon inquiry by Commissioner Carey, Ms. Spriggs advised the
County would have saved about $5 million last year if everyone froze salaries
across-the-board.
Ms. Spriggs reviewed the Proposed Budget Reductions table as
shown on page 23.
Chairman Dallari stated he would like to know which departments
are being paid for by the General Fund.
Ms. Spriggs stated she can provide a detail of that at this
afternoon’s session.
Commissioner Carey stated she would like to know what
departments are cost-allocated out and what percentage is collected back.
Ms. Spriggs stated the Sheriff’s Office has agreed to freeze
salaries and $3.8 million was factored in for the jail. The Sheriff has absorbed half of the cost of
bringing that jail on-line. She stated
staff is proposing that the BCC’s staff salaries be frozen and that would
generate $1.6 million. The total reduction
from the $43 million is $28.1 million.
Upon inquiry by Commissioner McLean, Ms. Spriggs advised the Property
Appraiser and Tax Collector offices are freezing salaries and the Clerk’s
office has indicated that they are not giving out raises next year. The Supervisor of Elections has reduced their
salary budget but did not eliminate the possibility of giving out raises.
Upon inquiry by Chairman Dallari, Ms. Spriggs advised she will check
and see if the Clerk’s office is going to furlough three days for this year. She stated statutorily, all of the
Constitutional Officers’ final budgets have to be in by June 1st.
Ms. Spriggs continued her presentation by reviewing the
difference between the FY 08/09 and 09/10 budget. She stated based on where they are today, the
deficit has a gotten little worse than they thought. Based on the most recent discussion with the
Property Appraiser, they are looking at a tax roll decline of 10-12%. What they are factoring in for the countywide
tax roll is 11%. She displayed a graph
(page 26) showing where they were in March and where they are today. She stated the table on page 27 shows the
forecasted budget status and it is based on doing the recommended reductions
with no revenue enhancements.
Upon inquiry by Commissioner Van Der Weide, Ms. Spriggs advised
she is hearing that other counties are having more property assessment reductions
than what Seminole County is reflecting.
Ms. Coto stated she believes the counties to the south and north
are predicting pretty significant reductions.
Ms. Spriggs stated the table on page 27 shows that they not only
have a structural balancing problem, they have built up their reserves, but
they only can live off of them for maybe the next two years.
Commissioner Carey stated everyone recognizes that living off
the reserves is a bad idea and they will probably not see growth in this County
like they did in 2004, 2005 and 2006 because they do not have the ability to do
that again.
Ms. Coto stated during the normal years, they will probably see between
a six or eight percent growth factor in the ad valorem revenue stream. She said when the market stabilizes; she
anticipates that they will be looking at two to three percent.
Ms. Spriggs displayed and reviewed the graph on page 28 showing
the shortfall and reserves; however the reserves would be depleted within a
two-year period. She stated after the
County cut about $58 million with the recommended reductions and cuts over the
last two years, they are still in this state.
Upon inquiry by Commissioner Carey, Ms. Spriggs advised staff
factored in almost a 2% growth and she explained how they came up with that.
Ms.
Spriggs displayed a table showing the Forecasted Recommended Option of a roll
forward rate plus stormwater assessment and reductions. She stated staff’s recommendation is a
long-term approach and it is one that does it all at once or looks at
correcting the situation today so that they are not doing this every year. She explained how the roll forward rate works
in addition to implementing a stormwater assessment to pay for the stormwater
program. She displayed a graph and table
showing the Forecasted Recommended Option (page 30) and Forecasted House Bill
1B Formula (page 31) and she reviewed same.
She reviewed a slide (Tax Comparison) on page 32 showing the impact of a
resident based on what staff is recommending.
Commissioner Carey left the meeting at this time.
Ms. Spriggs displayed a slide on page 33 showing the difference
of Estimated Change in Tax Bill.
Commissioner Carey reentered the meeting at this time.
Ms. Spriggs displayed two slides that were not included in the
packet and reviewed the differential for 2008 assessed taxable value for
residential property ($225,000).
Mr. McMillan left the meeting at this time.
Ms. Spriggs reviewed the second slide consisting of the 2009
assessed taxable value.
Commissioner Van Der Weide left the meeting at this time.
Commissioner Carey stated she would like to know what is the tax
bill based on the current rate for a $225,000 home.
Chairman Dallari recessed the meeting at 10:37 a.m., reconvening
it at 10:45 a.m., with Commissioner Van Der Weide and Mr. McMillan being in
attendance.
Ms. Spriggs reviewed the Stormwater Utility Assessment Program
on page 34 and what the program will cover.
She stated if the Board implemented the fee, that will generate about
$15 million for the entire program and additional capital needs and it will
offset general revenue of about $6.8 million.
She displayed a table and reviewed the total impact of a single-family
resident. She reviewed the Status of
Other Operating Funds as shown on page 36 relating to Fire/Rescue District,
Tourism Tax Funds, Building Fund, $2 Technology Fee Fund, Water & Sewer
Fund, and Solid Waste Fund. Ms. Spriggs
stated all of the funds are impacted and reductions are being made in all of
these areas. There is still a gap and
additional revenue is needed in order to maintain services. Staff will continue to look at efficiency
measures and cost savings. Collectively
these costs are not enough to fill the gap even based on the current
reductions.
Commissioner McLean stated it would be nice to have information
about some of the personnel options and discussion about outside agency
funding.
Commissioner Carey asked if staff spoke to the School Board
representatives as she is sure that they are probably taking advantage of the
tax increase that the Legislature is allowing them to do this year.
Ms. Coto stated the Superintendent of Schools made a
presentation at the Mayors and Managers meeting Tuesday, and he indicated that
they have obtained approximately $20 million in federal stimulus money and that
prevented them from doing as many layoffs as they had anticipated. However, that money is only available for two
years and they do not have another source.
She stated Mr. Vogel indicated that the Legislature had provided some
relief in allowing them to do a ¼ of a mill increase. It could be put in place this fiscal year and
the subsequent fiscal year, and then it would have to be placed on the 2010
ballot. If it is not approved by the
voters, then they would have to come up with other alternatives.
Commissioner Van Der Weide stated the state of California went
to the ballot for six tax increases and they all failed miserably. There is going to be a multiple list of
increase in taxes by the time the next election rolls around. That is going to put the public in a worst
mood than they are in now. Chairman Dallari stated he doesn’t think this
is an appropriate time to do a tax increase.
He stated he would like additional information as to where these cuts
are coming from. He stated he is not
sure that they are as slim and trim as they need to be on some of the expenditures.
Commissioner Carey stated she feels staff has done a great job
in getting where they are. She stated
this County has grown a lot over the last five years and they didn’t have some
of the departments and positions as they do now and she is not sure they can’t
do a little deeper cutting rather than raising taxes.
Commissioner McLean stated he feels they need to look at this
situation as different than anything they have dealt with before. He said he feels with the County being more conservative,
that it affects them more, when they have these types of challenges. He suggested that they look at permanent solutions
and changes. He stated he feels that Ms.
Coto has done an excellent job in trying to move this down to a zero-based
budget.
Ms. Coto stated the Legislature has passed another bill for the
2010 ballot that will further decline the ad valorem taxes for first-time
homebuyers. She stated she feels it is
important to note that of the $28 million identified, $16 million of that was
just in the BCC operation. She said to
find another $19 million out of the $88 million, they will need drastic service
delivery reductions. She said she has
spent months reviewing line item budgets and the well is pretty dry. There will be things that they will no longer
provide to the residents.
Commissioner Carey stated while they had a lot of growth and id
a lot of “feel good” things, she feels they can go back and look at some of
those areas, find further reductions and look at outsourcing some things that
they do not need to be doing inhouse.
Commissioner Van Der Weide stated the results of the survey did
not show the questions that the Board was looking for. This thing is not going to turn around on a
dime and the County is probably going to be facing a problem next year that will
be even bigger. The County is going to have
to determine what they are going to do sooner or later.
Commissioner Carey stated they haven’t seen the worst yet as
most of the foreclosures have not been worked through the courts yet. She said they probably will see more
foreclosures in this calendar year than last year.
Upon inquiry by Chairman Dallari, Commissioner McLean advised he
feels it would be helpful to go over the alternatives regarding personnel costs
and outside agencies funding.
Commissioner Carey stated she feels it would be good to have an
opportunity to look at the additional information given to the Board and return
after lunch for a final discussion.
Chairman Dallari recessed the meeting at 11:14 a.m., reconvening
at 1:32 p.m., with all Commissioners and all other Officials, with the
exception of Deputy Clerk Eva Roach, who was replaced by Deputy Clerk Sandy
McCann, who were present in the Opening Session.
Ms. Coto advised
she has distributed an information sheet (copy received & filed) showing
General Revenue Funds operating expenses by department for FY 2009 and FY
2010.
OUTSIDE
AGENCY FUNDING
Commissioner
Carey expressed her concern with the County Manager’s proposed 50% funding cut
for the Central Florida Zoo, stating they were funded in the amount of $300,000
in FY 08/09 and reduced to $150,000 for FY 09/10. She said currently the zoo is in the growth
mode and she does not feel they are prepared for this much of a cut.
Ms. Coto
stated that the zoo has not incurred the type of cuts that other agencies have
in the past; and the other issue is the Tourism Development Tax is being used
for the construction of Jetta Park.
Also, TDC dollars are down by 33%.
Commissioner
Henley stated two years ago the Board told the Community Agencies that they
needed to become more self-sufficient.
He said the County has supported the zoo for many years – well beyond
what was committed to.
Commissioner
Van Der Weide reminded everyone that the TDC tax was originally done to help
the zoo.
Commissioner
Carey suggested not cutting the zoo so deep this year and then making an
additional cut next year.
Commissioner
McLean recommended using a “stair step” approach – cutting the zoo 25% this
year and another 25% next year. He said
he would also like to see that approach done for the Central Florida Sports
Commission.
Commissioner
Henley stated he believes the County Manager’s recommendation is reasonable in
light of not knowing what the cost of Jetta Point is going to be.
Upon
inquiry by Commissioner Van Der Weide, Fiscal Services Director Lisa Spriggs
advised the TDC Reserves are at $3 million.
A brief
discussion ensued with regard to MyRegion funding and Ms. Coto advised that to
date she is still awaiting information from the organization.
Motion by Commissioner Carey, seconded
by Commissioner McLean to approve funding the Central Florida Zoo in the amount
of $225,000; and revise the reduction of the Central Florida Sports Commission
funding to half of what the County Manager proposed.
Districts
1, 2, 3 and 5 voted AYE.
Commissioner
Henley voted NAY.
Commissioner
Carey stated that MyRegion is still meeting and having a lot of discussion
about regional issues, including transportation. Chairman Dallari said that until MyRegion
submits their mission statement and other pertinent information, the funding
amount will remain at zero.
Commissioner
Carey commended Commissioner Van Der Weide for spearheading the funding
reduction for the East Central Florida Regional Planning Council. She said there is also some new legislation
that would eliminate the requirement for the ECFRPC to review DRI’s.
Assistant
County Manager, Sabrina O’Brien, addressed the Board to advise SB 360 has gone
to the Governor for signing; however the Florida Association of Counties is
strongly urging the bill be vetoed.
Economic
Development Director, Bill McDermott, addressed the Board to advise the ECFRPC
voted to send a letter in opposition to the bill.
Motion by Commissioner McLean, seconded
by Commissioner Carey to approve the revised recommendations regarding Outside
Agency Funding as of October 12, 2009.
Districts
1, 2, 3, 4 and 5 voted AYE.
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Commissioner Carey stated she would like more information on
reduced hours for the work week and has asked Director of Information Services,
Rob Beach, for information on the cell phones and pagers. She advised that there are 266 County cell
phones and 208 pagers for a total annual cost of $123,379. She said that in these economic times, a lot
of corporate America are eliminating all cell phones including for
managers. She further said that they
need to take a harder look at this.
Chairman Dallari agreed that the County Manager needs to look at
a lot of things in order to cut the budget further.
Ms. Coto advised that she has cut 40 cell phones. Whereupon, Commissioner Carey stated she does
not believe that is enough.
Chairman Dallari stated he would like to see Ms. Coto work with
each Commissioner so that they can understand where the cuts are coming from
and to possibly make further cuts to the budget.
Commissioner Carey said she believes Ms. Coto has made a good
start and that the Board needs to give her authority to do the things she is
recommending today; but she does not feel they have done all they can and that
they are where they need to be fiscally.
Commissioner McLean reminded the Board that this process has
been ongoing since last November and it has been a painstaking process to get
to this point. He said he is not saying
that there cannot be any more cuts; but he doesn’t want to have short-term
solutions for long-term problems. He
added that he feels the Board should give the County Manager authority to move
forward.
Commissioner Van Der Weide stated many County employees are very
anxious about their employment and he believes the County Manager should be
given authority to proceed. He said
there is an issue with health insurance for a temporary period. Whereupon, Ms. Coto advised if the Board
approves her recommendation, as written, it will address that issue for that
month.
Motion by
Commissioner McLean, seconded by Commissioner Carey to approve staff’s proposed
budget reductions; and authorize the County Manager to take all necessary
action to implement reductions in accordance with current County policies and
procedures.
Under discussion and upon inquiry by Commissioner Van Der Weide,
Ms. Coto advised that the reduction in staff will be done within the next two
weeks.
Commissioner Henley stated the Board doesn’t have any choice and
are put in this position not as a result of the actions of the BCC. He said it goes to prove that cutting taxes
is not always the answer to everything.
Chairman Dallari advised he will not be supporting the motion
because he feels there are other ways of reducing the budget. He said other counties are furloughing
employees and cutting the work week. He
stated that he does not have enough information on how this will affect each
department.
Commissioner Carey said that, in her opinion, there are still
things that need to be looked at, including furloughs, reduced work week, and
other things. She added that she will
not be supporting Ms. Coto’s next recommendation to increase the millage.
The Chairman stated that without understanding the big picture,
he is not willing to tell a County employee that he/she is being laid-off.
Commissioner Van Der Weide said that he expects to have
additional meetings to discuss some of the other items that are on the table
(as alluded to by Commissioner Carey).
He further said that this is not a pleasant thing; however, with the
budget deficit, there is no other way to make up that much money. He added that the Board is not finished
yet.
Commissioner McLean agreed that there should be more discussion
on other issues.
Districts 2, 3, 4 and 5 voted AYE.
Commissioner Dallari voted NAY.
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Discussion ensued with regard to the County Manager’s
recommendation to approve a Stormwater Utility Assessment and Millage
Rollforward. Commissioner Carey stated
she still believes that they have an organization that is not yet “right-sided”
and she will not support a millage rollforward.
Commissioner McLean said he does not see anything that will make
up for the lack of a stormwater fee or rollforward, which is in the amount of
$20 million.
Commissioner Van Der Weide stated that he doesn’t think they
have exhausted everything to cut the budget.
He added that he would like to have more information on the rollforward
as to what it comes out to in dollars and cents.
Ms. Coto advised that she will receive the tax rolls from the
Property Appraiser on June 1st and the tentative TRIM rates will be
set on July 28th.
Commissioner Carey reiterated that staff needs to seriously look
at furloughs and reduced work week hours; and until everything is done to
reduce the budget, she will not be voting for the rollforward in millage.
The Chairman clarified that the direction, at this time, is the
Board is not interested in looking at the Stormwater Utility Assessment or
Millage Rollforward, and would like to see some alternatives.
Upon inquiry by Commissioner Van Der Weide, Director of Fiscal
Services, Lisa Spriggs, advised the percentage of reserves is currently at 20%
to 25%. Whereupon, Commissioner Van Der
Weide commented that if they have to use some of that, then they will.
Commissioner Carey stated that since there is not much going on
in the afternoon BCC meetings, discussions and updates about the budget can
take place then.
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There being no further business to come before the Board, the
Chairman declared the meeting adjourned at 2:24 p.m., this same date.
ATTEST:
_____________________Clerk_____________________Chairman
er/slm