2. Budget Overview FY 2014 Board of County Commissioners June 4, 2013

3. Budget Overview FY 2014 Discussion Points Overview of all Funds Discussion of Select Funds  B001 General Fund and B102 Municipal Services Fund  B107 Road & Bridge Fund – 2 nd Local Option Gas Tax  B119 Municipal Fire Service 3

4. Overview of all Funds The budget is comprised of over 70 Funds Types of Funds:  General  Special Revenue  Debt Service  Capital Project  Enterprise  Internal Service 4

5. Items Affecting all Funds Health insurance premium Retirement rates $4,081,724 Wage adjustments - $5,371,861 Investment in Strategic Initiatives - $6,063,962 5

6. Initiatives 6

7. 7

8. Discussion of Select Funds B001 General Fund and B102 Municipal Services Fund B107 Road & Bridge Fund – 2 nd Local Option Gas Tax B119 Municipal Fire Service 8

9. B001 General Fund Property Valuation Estimate  Existing property value went down 1.59% From$19,239,063,689 To$18,932,872,327 ($306,191,362)  When you include the value of new construction $355,127,673, overall property value went up 0.26% to $19,288,000,000 9

10. General Fund Millage 10

11. General Fund Summary 11

12. Parks Restore to 2008 Decreased service level over five years  2008 budget = $9.9 million  Return to comparable level of service at $9.4 million  Amount needed = 0.0804 mills Forty-nine positions lost  Forced to concentrate on routine maintenance  Less presence at parks (safety)  Aesthetics and landscaping are now a last priority  Less ability to engage the community 12

13. Rec centers lost hours - $102,000  Closed on Sundays – reduced hours on Saturday from 12 hours to 8 hours Four Community Centers - $105,000 3 closed for public use Community center restoration Capital Maintenance – $717,000  Since 2008, put off several capital projects that will eventually need attention Parks Restore to 2008 13

14. Parks  Total revenue for new fees ~$350,000 (0.0181 mills) Parking fees ~ $280,000 (0.0145 mills) Youth League Participation ~$70,000 (0.0036 mills) Return to comparable level of service at $9.4 million  Amount needed = $1,551,462 = 0.0804 mills Total amount of Millage to restore parks  $1,901,462 = 0.0986 mills Millage to Restore Parks 14

15. Restore Library Hours Hours  2008 - 17,472 hours a year  Current - 13,000 hours a year Staff  2008 - 130.0 FTE  Current - 99.5 FTE Summary  Over the past five years Libraries has seen a decrease of 25% overall 33% in electronic resources 27% in Paperback Books 20% Periodicals and Subscriptions 10% in Hardback books 15

16. Millage to Restore Libraries Libraries  Return to previous hours ~$356,491.00 (0.0185 mills) 16

17. Constitutional Budgets 17

18. Constitutional Budgets 18 How do we fund requested increases? 1. Ask them to cut their expenses/services to fund their requested increases (except for retirement and salary increases). 2. Ask the departments under the Board to again cut services to fund their requested increases. 3. Increase the millage rate to cover their requested increases.

19. B107 - Road and Bridge Fund 19

20. Comparison of Fuel Tax to Millage Rate Revenue GeneratedCent Average Annual Cost per Driver 1 Millage Equivalent 2 Average Annual Cost per Homeowner 3 $7,755,7905 ¢$37.500.4021$20.11 $6,204,6324 ¢$30.000.3217$16.09 $4,653,4743 ¢$22.500.2413$12.07 $3,102,3162 ¢$15.000.1608$8.04 $1,551,1581 ¢$7.500.0804$4.02 1. Based on driving 15,000 miles per year at 20 miles per gallon 2. This is in addition to the existing funding from the ½ Cent Sales Tax and existing fuel taxes 3. Based on a home with an appraised value of $100,000 and a taxable value of $50,000 ($50,000 homestead exemption) 20

21. 2 nd Local Option Gas Tax for Road & Bridge Fund and Paving Assessment Including 5 cent gas tax in proposed budget for discussion over the summer. 21

22. One Mill is approximately $19.288 million. For Calculation Purposes  On a residential property valued at $100,000.4021 Mills (equivalent to 5¢ gas tax) would be $20.11 (First $50,000 – homestead exemption)  On a commercial property valued at $100,000.4021 Mills (equivalent to 5¢ gas tax) would be $40.21 Taxable Value of Millage 22

23. B119 Municipal Fire Service Fund 23

24. B119 – COMBAT BUDGET ANALYSIS PASCO COUNTY FIRE RESCUE 24

25. DISCOVERY Through the FY14 budgeting process, an anomaly has been discovered that needs to be addressed. Over the past seven years (at least) the Fire Rescue Department has been operating on a deficit budget. Fund Balance has been utilized to fill in the deficit gap. The available Fund Balance is expected to drop below zero in FY14 25

26. HISTORY Pasco County Fire Rescue (PCFR)  Formed in 1974  Operates 28 Fire Rescue Stations and 4 support facilities (911, Fire Rescue Supply, Fire Rescue Headquarters, and the Training Center)  507 Total employees across all disciplines  Operates a fleet of over 160 vehicles and apparatus  Responds to over 58,000 calls annually 26

27. HISTORY  Call volume has increased over 12.5% over the past seven years (nearly 1,000 additional calls per year) 27

28. HISTORY Like all departments, Fire Rescue has absorbed the rising costs of operations by reducing or eliminating programs without affecting the level of service provided. Additionally, capital replacement schedules have been stretched to their maximums, and in many cases, eliminated altogether. This method of operation has lead to unexpected “crises” involving life safety equipment and the need for emergency appropriation of funds (SCBA, EKG Monitors, etc.) 28

29. BUDGET Looking at these two charts, the issue is not evident Budgeted vs. Actual 29

30. BUDGET Looking at these two charts, the deficit appears Revenues vs. Expenses Deficit Period 30

31. FUND BALANCE The available Fund Balance is expected to drop below zero in FY14 31

32. ISSUES TO SOLVE Improve revenue to match current fire department operational expenses – Eliminate the budget deficit. Return to capital sustainability by becoming more proactive in life safety equipment cycling. Build the Fund Balance back to County target levels over the next 3-5 years. 32

33. 33 FIVE OPTIONS DEVELOPED  OPTION 0: Same millage rate Increases only in uncontrollable items Adds Varicella vaccines No wage increase, no new initiatives  Total cost reduction: $825,500  Millage Rate: 1.5405  Rollback Rate is 1.5606 and is above Option 0 but below Option 1 Result: Reduction of service level of 3 Engine Companies and reduction of 30 total positions (18 from SAFER and 12 from operating budget). Loss and repayment of SAFER grant.

34. 34 OPTIONS  OPTION 1: Adjust millage rate to sustain current operations with a flat budget No new initiatives, no wage increases, or capital sustainability  Total Additional Cost: $1,469,361  Millage Rate: 1.6629  Change from FY13: +0.1224

35. OPTIONS  OPTION 2: No new initiatives or capital sustainability Adds a wage increase for all employees  Total additional cost: $2,709,179  Proposed Millage: 1.7359  Change from FY13: +0.1954 35

36. OPTIONS  OPTION 3: Adds a wage increase for all employees Begins building reserves by adding $1M to reserves  Total additional cost: $3,800,718  Proposed Millage: 1.8001  Change from FY13: +0.2596 36

37. OPTIONS OPTION 4: Adds a wage increase for all employees Adds Chief of Operations ($99,861) Adds Records Management System ($45,940) Adds capital sustainability Begins building reserves by adding $1M to reserves  Total additional cost: $4,058,388  Proposed Millage: 1.8153  Change from FY13: +0.2748 37

38. OPTIONS SUMMARY  OPTION 0: Same millage rate. Increases are only from uncontrollable items. No new initiatives and no wage adjustment. Result: A reduction of service level of 3 Engine Companies and a reduction of 30 positions (18 from SAFER and 12 from the operating budget).  OPTION 1: Adjust current millage rate to sustain current operations. No new initiatives, wage adjustment, or capital sustainability.  OPTION 2: Sustains current operations with a wage adjustment. No new initiatives or capital sustainability.  OPTION 3: Sustains current operations with a wage adjustment and begins building reserves by adding $1M to reserves.  OPTION 4: Includes a wage adjustment, adds Chief of Operations position, Records Management System, and capital sustainability Begins building reserves by adding $1M to reserves. 38

39. OPTIONS SUMMARY 39

40. Questions? Schedule:  June 11 – Budget Guidance Finalized  June 18 - Workshop – Business Plan Initiatives  July 9 – Proposed Budget and Business Plan Presented to BCC  August 4 – Deadline to Notify Property Appraiser of Proposed Millage  September 10 – Set Tentative Millage Rate and Budget  September 24 – Adopt Final Millage and Budget  September 27 – Final Millage Rate Due to Tax Collector, Property Appraiser, and Dept. of Revenue

42.  Capital sustainability refers to the practice of proactively cycling out certain life safety capital equipment before a failure occurs due to age or maintenance factors.  Pasco County Fire Rescue has retreated from this practice during the last five to six years in lieu of a “replace it when it breaks” approach. This was in response to the downturn in the economy.  Much of this equipment (shown in the following slide) is either at, or nearing, its end-of-life cycle as the threat of failure ever increases.  Equipment is categorized into two categories:  Operating Budget – Items that can be cycled out annually (i.e. a certain number each year, such as ventilation fans, saws, etc.  Penny for Pasco – Items that need to be cycled out in whole during their end-of-life year (i.e. Air Packs, Stretchers). CAPITAL SUSTAINABILITY

43. ITEM DESCRIPTIONTOTAL QTYBASE COSTLIFE (YRS)QTY PER YEAR Training Aids:28,00071 Vent Saws:122,50059 Vent Fans:321,50083 Thermal Imagers:2410,000102 Lawn Tractors:241,50055 Air Lift Bags:243,00083 Rescue Struts:243,000102 Extrication Tools:2410,875102 Pneumatic Tools:242,000102 Operating Budget Capital Rotation Schedule (proposed) Penny for Pasco Capital Rotation Schedule (proposed) ITEM DESCRIPTIONTOTAL QTYBASE COSTLIFE (YRS) SCBA:2508,7008 Ambulance Stretchers:335,0007 EKG Monitor/Defibrillators:6035,0005 Ventilators:316,0007 ePCR Tablet PCs:363,8004 Mobile Computer Terminals:762,8005 Mobile Radios:1723,70510 Handheld Radios:1713,0227

44. Millage Passage 44