Transcript Budget Background Information FY11 Outlook Goal Setting

Budget Background Information and
FY 11 Outlook for
Board of County Commissioners
Goal Setting/Budget Retreat
February 16, 2010
BUDGET BACKGROUND
INFORMATION
2
DISTRIBUTION OF FY2010
BUDGET by FUND TYPE
1.0 Billion
-
General Fund
1.1 Billion
1.2 Billion
-
Enterprise Funds
Other Funds
$3.3 Billion (Gross)
3
FY10 GENERAL FUND
REVENUES
Fees, Fines
and Misc.
Revenue
12%
Transfers
& Fund Balance
13%
Sales Tax and State
Revenue Sharing
6%
Ad Valorem
Taxes
69%
4
AD VALOREM TAXES FY07 – FY10
(EXCLUDING VOTED DEBT SERVICE TAXES)
Statutory 5% Rollback
900
891.7
862.2
Dollars (in Millions)
850
819.0
800
750
727.5
700
650
2007
2008
2009
2010
Fiscal Year
5
AD VALOREM TAXES FY07 – FY10
(EXCLUDING VOTED DEBT SERVICE TAXES)
900
891.7
Amendment 1 Year
862.2
850
Dollars (in Millions)
819.0
800
750
727.5
700
650
2007
2008
2009
2010
Fiscal Year
6
AD VALOREM TAXES FY07 – FY10
(EXCLUDING VOTED DEBT SERVICE TAXES)
900
891.7
862.2
850
Dollars (in Millions)
819.0
Economic Recession
800
750
727.5
700
650
2007
2008
2009
2010
Fiscal Year
7
FY08 – FY10 GENERAL FUND
BUDGET GAPS
FISCAL
YEAR
08
09
10
Cumulative
$ GAP
$ 90 M
$ 87 M
$109 M
$286 M
8
SUMMARY OF ACTIONS TAKEN
TO ADDRESS BUDGET GAPS
($ IN MILLIONS)
OPERATING
EXPENSE
REDUCTIONS
CAPITAL
EXPENSE
REDUCTIONS
08
44
22
6
9
9
90
09
61
---
8
2
16
87
10
76
6
0
4
23
109
181
28
14
15
48
286
FY
TOTAL
PRE-FUNDED
DEBT
REDUCTIONS
FEE
INCREASES
OTHER
TOTAL
9
DISTRIBUTION OF FY10
PROPERTY TAXES

General Fund
-

General Capital Outlay -
$19.0

Voted Debt Service
$74.4
-
$708.5
10
ALLOCATION OF FY10
GENERAL FUND TAXES
Mandated
Judicial &
Health
Expenses &
TIFs
9%
All Other
Programs
18%
BSO
50%
Human Services
9%
Parks &
Libraries
10%
Transit
4%
11
SUMMARY OF GENERAL FUND
BUDGET CHANGES ($ in millions)
FY07
FY10
%
CHANGE
450.8
425.8
-5.5
County Commission
Agencies
436.3
374.3
-14.2
SOE & Property
Appraiser
30.0
26.5
-11.7
BSO
12
KEY DIRECT SERVICE REDUCTIONS
COUNTY COMMISSION AGENCIES
(FY07-FY10)



Libraries
 Library Hours Per Week: Decreased 13%
 Materials: Decreased from $7.9M to $6.5M
Parks
 Closed most regional parks two days per week
 Reduced number of programs and special events
Transit
 route changes (headways, truncations, etc)
 community bus eliminations
13
TAX SUPPORTED FUNDS
OUTLOOK
14
ECONOMIC CONDITIONS
& TAX ROLL
INFORMATION
15
KEY FACTORS IN 2009
IMPACTING VALUE OF TAX ROLL

Low Consumer Confidence (High
Unemployment)

Excess Housing Inventory

High Level of Residential Foreclosures

Downturn in Commercial Market
16
BROWARD COUNTY
UNEMPLOYMENT RATES
YEAR
PERCENTAGE
December 2009
10.0
December 2008
6.8
December 2007
3.9
December 2006
2.9
17
FORECLOSURE DATA BY
MONTH
Foreclosure Data by Month
6,000
5,000
4,000
3,000
2,000
1,000
0
DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2007 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009
New Cases
Final Foreclosure Actions
*Broward County Clerk of Courts Office
18
CASE SHILLER HOME PRICE
INDEX LEVELS METRO AREAS
AREA
NOV. 2009
LEVEL
1 YEAR PERCENT
CHANGE
Miami
149.08
-12.1%
Atlanta
109.29
-6.2%
Boston
153.97
-.7%
Chicago
129.39
-8.5%
Las Vegas
104.22
-24.5%
Los Angeles
169.72
-3.5%
New York
173.24
-7.1%
19
PROPERTY APPRAISER’S
PRELIMINARY FY11 ESTIMATES

16% countywide decline

City declines range from 6% to 36%

Unincorporated decline is 21%
20
STATE REVENUE ESTIMATING
CONFERENCE PROJECTIONS OF
PROPERTY VALUE CHANGE
(FOR SCHOOL BUDGETING PURPOSES)
FY
FY
FY
FY
FY
11
12
13
14
15
-11.3%
- 5.1%
- 1.6%
- 0.3%
3.2%
21
TOTAL TAXABLE PROPERTY VALUE
% Change FY2006 – FY2015
19.2
20
15.4
15
11.4
Percent Change
10
5
3.2
0
-1.6
-5
-0.3
-5.1
-5.5
-10
-10.6
-11.3
-15
-20
2006
2007
2008
2009
2010
2011
Fiscal Year
2012
2013
2014
2015
22
FY11 REVENUE & EXPENSE
FORECASTS
23
POTENTIAL IMPACT OF TAX ROLL
DECLINE ON PROPERTY TAXES AT
CURRENT RATE
Base
Range of Impact
11-16%
General Fund
$708.5 M
78-113 M
General Capital Outlay
$19.0 M
2-3 M
24
OTHER GENERAL FUND
REVENUES
(EXCLUDING PROPERTY TAXES)




FY10 - $266 M
Most revenues have stabilized
Anticipate a slow multi-year recovery
beginning in FY12
Overall projected flat for FY11
25
COUNTY OPERATIONS
KEY EXPENSE VARIABLES




FRS Rates
Fuel Prices
Health Insurance Premiums
Property Insurance
26
CONSTITUTIONAL OFFICERS
KEY EXPENSE VARIABLES






Compensation
FRS Rates
Fuel Prices
Health Insurance Premiums
Jail Population
City Contracts
27
CONSTITUTIONAL OFFICERS
KEY EXPENSE VARIABLES cont’d




Inmate Food & Health Care Contracts
Post Employment Benefits
Crime Lab Funding - $5.7M in FY10 one-time
funding
Impact of Use of One-Time Funds or Deferred
Expenses in FY10 (other than Crime Lab)
 Property Appraiser - $2.2M
 Sheriff’s Office $8M
28
FY 11 POTENTIAL GENERAL
FUND BUDGET GAPS
RATE
TAX $ Change
SERVICE
IMPACTS
TAXPAYER IMPACTS
Same as FY 10
Significant Decrease
(11-16%)
Severe Service
Cuts (111M to
172M)*
County Taxes would decrease for many
residential properties, only homestead
properties with large SOH differentials
would increase
No tax increase
per State Statute
(Rolled-back
Rate)
Virtually none
Moderate
Service Cuts
($33-$59M)*
County Taxes would decrease for those
with significant taxable value declines
and increase for others – Overall no
increase in taxes levied.
Above Rolled-back
Rate
Approximately 5-8%
increase
Could Avoid
Cuts
County Taxes would decrease for those
with very substantial taxable value
declines and increase for others
*Excludes OPEB impacts and State cuts/additional mandates
29
ALLOCATION OF GENERALLY
FUNDED APPROPRIATIONS
SUBJECT TO REDUCTION
(EXCLUDES TIFS, RESERVES, AND STATE MANDATED HEALTH & JUVENILE JUSTICE PAYMENTS)
$
(Millions)
%
Sheriff
425.8
52
Property Appraiser
15.1
2
Supervisor of Elections
11.4
1
Judicial & Other Independent
Agencies
3.4
1
County Agencies
356.7
44
TOTAL
812.4
100
30
CURRENT CONDITIONS &
RECOMMENDED STRATEGIES
31
CURRENT CONDITIONS

Service Demands

Workforce
32
RECOMMENDED
STRATEGIES






No raises
Continuation of furlough days
No new services or service
enhancements
Alternative service delivery methods
Program eliminations
Further service adjustments based on
utilization
33
RECOMMENDED
STRATEGIES cont’d

Direct further efficiency efforts



Comprehensive outside review of parks &
libraries
Further investments in technology
Fund first two years of new courthouse
debt with one-time fund balance
34
RECOMMENDED
STRATEGIES cont’d



Continue investments in capital
maintenance & replacement facilities
Responsible use of reserves
Propose no tax increase budget (as
defined by State) in July with
contingency options to reduce millage
35
NEXT STEPS


Communication to Constitutional
Officers
Workshops


Constitutional Office Budgets/Other Major
Funds (May)
General Fund/General Capital Outlay
(June)
36