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County Administration

County Administration. STRATEGIC PLAN STATUS UPDATE FISCAL YEAR 2010-2011 (January 11, 2010). Strategic Planning Schedule. Presentations to Local Editorial Boards Cape Coral Daily Breeze – Oct. 14 Fort Myers News-Press – Oct. 15 Naples Daily News – Oct. 19 Tues., Oct. 20

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County Administration

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  1. County Administration STRATEGIC PLAN STATUS UPDATE FISCAL YEAR 2010-2011 (January 11, 2010)

  2. Strategic Planning Schedule • Presentations to Local Editorial Boards • Cape Coral Daily Breeze – Oct. 14 • Fort Myers News-Press – Oct. 15 • Naples Daily News – Oct. 19 • Tues., Oct. 20 • County Administration (includes Budget, Risk, EEO, Veterans, Smart Growth) • Public Works Administration (includes Construction & Design, Internal Services, Contracts) • Web page created on County Internet Site for public involvement • Tues., Oct. 27 • Public Safety • Transportation • Public Resources • Tues., Nov. 3 • Economic Development • VCB • Sports Authority

  3. Strategic Planning Schedule • Wed., Nov. 4 • Community Development • Natural Resources • Animal Services • Tues., Nov. 10 • Purchasing • Benefits/Human Resources • Thurs., Nov. 12 • Human Services • Solid Waste • County Lands • Tues., Nov. 17 • Parks & Recreation/Conservation 20/20 • Libraries

  4. Strategic Planning Schedule • Tues., Dec. 1 • Supervisor of Elections • Sheriff • Wed., Dec. 9 • County Attorney • Clerk of Courts • Hearing Examiner • Nov. – Dec. • Citizen Surveys Mailed – Nov. 30 and Dec. 7 • Citizen Survey Data Collected – Dec./Jan. • Additional Input Through Advisory Committees – Dec./Jan. • Employee Survey – Sent Dec. 3

  5. Strategic Planning Schedule • Mon., Jan. 11 • Court Administration • Strategic Planning Process Status Update • January • CIP Workshop – Jan. 26 • February • Citizen Survey Draft Report – Feb. 1 • Board Goals Workshop – Feb. 10, 11, and 12

  6. WHAT WE’VE HEARD SO FAR Overall -- Use fewer reserves in FY 2010-11 -- Continue careful expenditure management -- Come back at February goals setting with further program/service level adjustments Organizational – Employees -- No pay increases in FY 2010-11 (3rd year in a row) -- Adjustments likely in employee health insurance costs -- Progressively stricter travel limits

  7. WHAT WE’VE HEARD SO FAR Constitutionals -- Need to participate equitably if further cuts are required -- Sheriff changing legislation to contain OPEB liability -- Supervisor of Elections lobbying to defer ADA voting machine implementation

  8. WE CONTINUE TO CUT • Have 404 fewer positions (equating to $20 million annual savings): • Current – Holding 80 vacant • 09-10 Budget – Deleted 99 • 08-09 Budget – Deleted 197 • 07-08 Budget – Deleted 28 • “Deletions” through a combination of attrition, early retirement, and layoffs. • Current 2,460 employees about the same as in 2004-05. • Continued suspension of salary adjustments, and sick-leave buyback and bonus programs. • Significant reductions in operational costs, including vehicles, energy, leases, travel, supplies, and memberships. Some adjustments to hours and frequency of certain services. • Saved $9 million over five years with new ITG contract. • Saved nearly $1 million in leases, with more to go. • Saved nearly $1 million in travel costs.

  9. CAREFULLY MANAGING COSTS • We have carefully and conservatively budgeted for spending and revenues. • Spending through the 1st Quarter of 2009-10 was 20.2% of operating budgeted amounts ($86.6 million of $427.9 million). • Revenues through the 1st Quarter of 2009-10 were 22.1% of operating budgeted amounts ($68.4 million of $309.3 million). • We have intentionally not further used reserves, other than the operating subsidies.

  10. CAREFULLY MANAGING COSTS • Overall Fund Balances (including reserves, capital projects, business units, and enterprise funds) is coming down: • 9/30/06 $808 million • 9/30/07 $924 million • 9/30/08 $899 million • 9/30/09 $761 million • 9/30/10 Will decline more rapidly due to operational subsidies • Fund Balances in the three major property tax funds are: • General Fund $277 million • Unincorporated MSTU $ 17 million • Library $ 46 million

  11. FUND BALANCES ($ million) • General Fund • FY 07—08 274.7 • FY 08—09 277.4 • FY 09—10 217.1* (budgeted) • FY 10—11 156.8* (projected) • FY 11—12 96.5* (projected) *Assumes level reserve usage of $60.3 million per year.

  12. FUND BALANCES ($ million) • Unincorporated MSTU Fund • FY 07—08 93.6 • FY 08—09 17.3 • FY 09—10 6.5 (budgeted) • FY 10—11 0.0* (projected) • FY 11—12 0.0* (projected) *Assumes fund balance would stabilize at zero.

  13. FUND BALANCES ($ million) • Library Fund • FY 07—08 71.5 • FY 08—09 46.3 • FY 09—10 37.2 (budgeted) • FY 10—11 14.2 (projected) • FY 11—12 4.5 (projected)

  14. MAJOR ISSUES • Typically the worst budget years for states and localities are the two years after a recession ends. • State budgets nationwide are forecasted for another year of severe cutbacks. • 36 states reporting additional shortfall (National Conference of State Legislatures) • Shortfalls could reach $180 billion in coming fiscal year (Center on Budget and Policy Priorities) • From AP article: “Tax collections continue to sputter. Federal stimulus dollars are about to dry up. Rainy day funds have been tapped. And demand for services – like Medicaid, food stamps and unemployment benefits is soaring.” • Florida is forecasting a $2.8 billion shortfall. • Cuts at the state level could trickle down, or be pushed down, to the local level.

  15. MAJOR ISSUES • The property tax base could decline even further (overall impact of commercial sector devaluations still unknown). • The property tax base plummeted by 23.2 percent in 09-10 as falling housing prices and foreclosures continued to take their toll, resulting in a decline of $91 million in property tax revenues. • Current tax base of $65 billion is the same as in 2005-06 (Countywide tax rate, net of Conservation 20/20, however, is much lower today (3.65) than in 2005-06 (4.45). • All other revenues (sales tax, gas tax, fees, etc.) have dropped. • Demand for county services – particularly in the Human Services area with unemployment at a 35-year high – has not experienced a corresponding decrease. • Bottom line – we are attempting to do the same, or more, with fewer resources.

  16. GUIDING PRINCIPLES The following guiding principles will be discussed and confirmed at the February Goals Setting Sessions.

  17. GUIDING PHILOSOPHY • GUIDING PRINCIPLES WE USED LAST YEAR FOR 2009-10 BUDGET PREPARATION • Not increase property tax rates, even though taxable base declined by 23.2%; • Downsize workforce – as much as possible – through attrition; • Cut expenses, while still maintaining basic core services with minimal service level adjustments – both in operating and capital budgets; • Spend down reserves, in a targeted manner, to soften the immediate impact of revenue losses, and to maintain programs and service levels. • Reduce the level of reserves being used in the upcoming and future fiscal years (until economic recovery) by continuing to make cuts and refine service levels.

  18. GUIDING PHILOSOPHY • PROPOSED ADDITIONAL GUIDING PRINCIPLES FOR 2010-11 • Protect reserves – particularly – General Fund, by using “capacity” in other areas (operating, maintenance, and capital budgets) and, as much as possible, reserves in other areas; • Manage to the bottom line – meaning overall (departmental) budgets are more important to “live within” than individual budget line items, which can be used to cover costs (this recognizes that while there may be unexpected costs during the year; there also will be unanticipated savings);

  19. GUIDING PHILOSOPHY • PROPOSED ADDITIONAL GUIDING PRINCIPLES FOR 2010-11 • Utilize “timing” – can some expenses bridge fiscal years? Is the Board’s concern getting it done as soon as possible, or getting it done in a reasonable (even multi-year) timeframe? • Recognize the need to temporarily suspend certain costs – that short-term cuts do not mean they are gone forever, but they won’t come back until the local economy turns around; • Analyze non-property tax revenue potential (fees) and develop multi-year plans for gradual increases to transfer costs to users of certain services and offset the “ratchet down” effect of property tax reform;

  20. GUIDING PHILOSOPHY • PROPOSED ADDITIONAL GUIDING PRINCIPLES FOR 2010-11 • Comprehensively analyze core (mandated) vs. non-core (historical, discretionary) services, and efficiencies to effectively provide service-level options to Board; • Proactively meet loan and debt payments, recognizing that new loans are expensive and uncertain;

  21. WHAT’S NEXT • CIP Review Jan. 26. • Report to Board citizen and advisory group survey results. • Board goals setting session in February.

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