Collier County FY 2018 BCC Budget Policy February 28, 2017

FY 18 Budget Policy Highlights Key Annual Policies for Consideration and Board Direction (Policy Document Pages 1-31) Continuing Policies to be Endorsed by the Board (Policy Document Pages 32-34) Three (3) Year General Fund and Unincorporated Area General Fund Analysis (Policy Document Pages 35-43)

Millage Rate Policy Policy Document Pages 5-14 General Fund Operating Rate of $3.5645 per $1,000 of Taxable Value; Restart Conservation Collier Program through a Marginal Increase in the Rate of $.2500 per $1,000 of taxable value; General Fund Transfer to the CC Trust Fund for land purchases as part of the budget process Trust Fund transfers to the Maintenance Fund as part of the budget process Use the existing millage rate of $3.5645 to fund operations & capital transfers Continue Unincorporated Area General Fund (111) millage rate at $0.8069 per $1,000 of Taxable Value Allocate $0.0908 (amount increased by) to continue median landscape capital program. Equivalent transfer from Fund (111) to Capital Fund (112) fencing landscape capital dollars. Maintenance costs programmed in the Unincorporated Area GF Use the existing millage rate of $0.7161 to fund operations & capital transfers Why? Public Health and Safety Program Investment; Continuing Infrastructure Investment; Human Capital Investment and; Reserves

Millage Rate Policy Policy Document Pages 5-14 MSTU’s – Assuming Increasing Taxable Value With Advisory Board Oversight – Tax Neutral (Rolled Back Rate – same revenue as last year) to Millage Neutral No Advisory Board – Rolled Back Rate FY 2017 – 13 millage neutral rates; 6 rolled back rates; 2 Other

Agency Allocations Policy Document Pages 13-14 Premise is that all agencies will work together and cooperatively should the need arise for budget reductions due to taxable values below the planning threshold; reductions in property tax revenue; any state tax reform legislation; reductions in state shared revenue; or unfunded mandates. Conversely – increases in revenue above the planning threshold will also be allocated based upon Board direction.

Revenue Centric Policy Document Page 15 Enterprise Funds; Internal Service Funds; Special Revenue Funds and other Operational Funds which are supported by fees with no reliance upon ad valorem revenue will be allowed to establish budgets and conduct operations around revenue centric guidelines dictated by cash on hand and anticipated receipts. Within the General Fund and Unincorporated Area General Fund, net cost to these funds offset by fee revenue will be monitored and negative fee variances will be addressed through expense cuts and not subsidized by ad valorem revenue.

Agency Positions Policy Document Pages 15-16 Similar to FY 17, expanded position requests will be limited to mission critical functions, fully vetted with the Board and enumerated within the budget document including details of expanded operational costs and any offsetting program revenue.

Compensation Policy Document Pages 16-17 Appropriate a general wage adjustment equivalent to 2.9% as part of FY 18 budget planning with the structure of such adjustment developed by the County Manager and presented at the June budget workshop. Provide a targeted pay plan maintenance appropriation of .60% designed to maintain employee pay ranges at market competitive levels. FY 17 GWA at 3% valued at $3.4 million. FY 18 GWA and Pay Plan Maintenance valued at $4.3 million. GWA - $3.7 million Pay Plan Maintenance - $600K

Health Care Policy Document Pages 17-19 Maintain for the County Manager Agency an average cost distribution between the Board and Employees at 80% (Employer) 20% Employee. For FY 17, the County experienced no (0%) health insurance rate increase. Due to continued exceptional plan performance and plan reserves which exceed statutory minimums, no (0%) health insurance rate increase is proposed for FY 18.

Retirement Rates Policy Document Page 19 Adherence to OMB rates published within the OMB budget instructions. Rates Established based upon State Guidance.

Storm-Water Funding Policy Document Page 22 General Fund (001) storm-water funding planned at $2,000,000 to support based upon identified and engineered watershed benefits county-wide. Unincorporated Area General Fund (111) storm-water funding set at $4,172,000. Identify critical areas of concern throughout the County which the Board may program for priority new funding in FY 18. Continue Board discussions on a storm-water utility fee

Uses of Gas Taxes Policy Document Pages 22-23 Continue Board policy where pledged gas taxes pay debt service on the gas tax revenue bonds; with remaining gas tax funds programmed to support construction and transportation network improvements. Transfer dollars from the General Fund will provide the vast amount of funding support for maintenance of the roadway network and other transportation related expenses including the transit subsidy. Transfer dollars from the Unincorporated Area GF will increase $700K to $4,000,000 in FY 18 in addition to direct budget dollars in this fund for road maintenance. Gas Taxes grew modestly up 4.7% to $20.5M in FY 16. Forecast FY 17 and planning FY 18 revenue will be in the $20M range. $1M in gas taxes freed up for transportation network improvements beginning in FY 2015 due to restructuring of the gas tax debt.

General Fund General Capital/Debt Service and Debt Management Policy Document Pages 23-24 Transfer an equivalent planning sum of up to .3333 mils for county-wide capital purposes; paying non-growth related revenue bond debt; provide impact fee trust fund loans to cover growth related debt obligations and to fund much needed general governmental priority capital needs.

General Governmental, Enterprise Fund and Other Reserve Policies Policy Document Pages 24-30 GF – floor; 8% of operating expenses or $29.6 million – Ceiling; 16% of operating expenses or $59.2 million; current planning reserve for FY 18 is $39.8 million an increase of $5.9 million. Other Gen. Govt. Funds – Generally 2.5% of operating expenses with a ceiling of no more than one months expenses. Ceiling for the Unincorporated Area GF is $4.4 million; current planning reserve for FY 18 is $3.3 million. Other general governmental funds that receive transfer revenue from the GF will have reserves sized to cover the first month of operations or until the first GF transfer is scheduled. Reserve policy for Pelican Bay Services Division (PBSD) operating fund (109) set between 15- 30 percent of operating expenses given the districts coastal nature, level of infrastructure investment, natural assets and commitment to maintenance and resource protection. CCWSD user fee reserves established minimally between 5% and 15% of revenues with working capital resources set between 45 days and 90 days. Within the family of CCWSD family of user fee operating and capital funds reserves will range between $16.9 and 33.8 million while working capital resources will total roughly $19.2 million or 51 days. Targeted reserves within the GMD building permit fund (113) and planning fund (131) set at 6 months and nine months of operating budget appropriations respectively.

Financing New and Replacement Capital Infrastructure Policy Document Pages 19-22 County has not issued capital debt since FY 08 Finance Committee is engaged and continually reviewing all appropriate capital financing options FY 18 budget planning does not program issuance of debt as part of the adopted budget Any debt issue recommendation will include a consolidated financing plan based upon the number of current and future capital projects and initiatives to be financed, the timing of project implementation, expected payout schedule, the appropriate type of debt and existing market conditions

Schedule Policy Document Page 31 Resolution requiring budget submittals by the Sheriff; Supervisor of Elections and Clerk of Courts on May 1st. June Budget Workshop Dates – Thursday June 15th and if necessary Friday June 16th Adopt Tentative Maximum FY 18 Millage Rates on Tuesday July 11, 2017 Board Receives Tentative FY 18 Budget Document on Friday July 14, 2017 First Public Budget Hearing on Thursday September 7th with the Final Hearing on Thursday September 21st