Hendry County Board of County Commissioners Budget Workshop June 11, 2013

2013/2014 Budget Workshop Janet Taylor Darrell Harris District I District II Al Perry Karson Turner Don Davis District IV District V District III Vice – Chairman Chairman Charles Chapman Jennifer Davis Mark Lapp County Administrator Office of Management County Attorney & Budget Director

2012/2013 General Fund

2014 PROJECTIONS – Ad Valorem – June 1 st estimate of $1,677,849,952. This represents a flat valuation from prior year. July 1 st we will receive a revised final figure. State Revenue - Estimated revenues will not come out until late June from the State. Figures will be represented in budget books. Local Revenue - Initial local revenue projections are holding consistent with current year projections, however there are significant non-recurring sources that are no longer available for transfer as discussed historically.

Property Proceeds (Non-Recurring)$619,000 Cost Saving Measures Implemented Recurring$885,795 Additional measures taken/in process $ TBD - Recurring$58,860 Total$1,563,655 RECAP – 2013 Cost Reductions / Efficiency Improvements / Sale Proceeds

Other Revenue Enhancement / Cost Reduction Options : Alternative Funding Sources– BOCC instructed staff to inquire about natural gas franchise fee. Staff met with Florida City Gas to fact find regarding process. Additional information was received that currently a 6% fee would generate approximately $100,000/year. Insurance Savings - County is going out to bid for health and p&c insurance now for next fiscal year. Results will come late July. Communication Savings - Anticipate savings in communication and technology costs. Savings to date have been $58,860.

State Legislature: Medicaid – The legislation implemented a new methodology over the next seven years. County shares are based on Utilization in years 1 and 2. The shift to using Enrollees as the primary factor begins in years 3-7. Legislative Leadership have committed to resolving concerns prior to the year three impacts. The total county obligation in the first year is $269.6 million. The increase in the second year from $269.6 million to $277 million is much less than what was anticipated. The increases of the total county obligation in years 3-7 are limited to 50% of the growth rate of the overall state Medicaid program. In years 3-7 the county contribution percentages will shift from 100% based on utilization to 100% based on enrollees.

State Legislature: Hendry County Medicaid Payment Schedule ◦ 2014$440,446 ◦ 2015$452,535 ◦ 2016$562,868 ◦ 2017$676,622 ◦ 2018$795,058 ◦ 2019$920,689 ◦ 2020$1,051,263 Future Legislative Action could adjust figures in future years In addition to the figures represented above, we are paying back the arrearage for five years at $144,656/year.

State Legislature: Retirement - Significant increases to address the unfunded actuarial liabilities of the system were implemented. As a result, the following changes were made. From To Regular Class 5.18% 6.95% Special Risk 14.90% 19.06% Senior Management 6.30% 18.31% Elected Officials 10.23% 33.03% DROP Employees 5.44% 12.84%

Sheriff Budget Request: 2014 request is $593,789 more than current year. Request reflects a 3% Salary Increase. Request reflects various other cost increases for their operations. Representative from HCSO present for questions.

Timelines – Estimated Tax Value:June 1 Final Taxable Value:July 1 Tentative Budget to BOCC:July 15 MSBU/TRIM Not To Exceed July 23 TRIM: August 4 Tentative Budget Hearing September 10, 2013 Final Budget Hearing September 24, 2013 Staff will be contacting you to schedule budget workshops late July, early August.