1. MONROE COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS Fiscal Year 2015 Budget Discussion Roman Gastesi, County Administrator Tina Boan, Budget Director June 30, 2014 Marathon Government Center Marathon, FL 1

2. FY15 Budget Process June 30 th Today- Budget Discussion July 1 st - Property Appraiser Certifies Property Values July 16 th – Tentative Budget Delivered to BOCC July 24 th & 25 th – Special Budget Meeting, BOCC Certifies the Proposed Millage Rate to Property Appraiser Summer Studies Period 2

3. FY15 Budget Process September 3 rd – First Public Hearing – Adoption of Tentative Millage Rate and Tentative Budget Murray Nelson Government Center, Key Largo September 8 th - Special Budget Meeting – BOCC Discussion Direction Marathon Government Center, Marathon September 11 th – Final Public Hearing – Adoption of Final Millage Rate and Final Budget Harvey Government Center, Key West 3

4. Our Local Economy Stabilization Trends, County-Wide Taxable Property Values 4 In Billions $

5. Residential Real Estate Trends 5

6. Local Discretionary Sales Tax (1% Infrastructure) Revenue Monroe County, County Wide Totals DOR 2015 Est. Available July 2014 6

7. Fiscal Year 2015 Budget Summary 7 Revenue FY15 Proposed% of Total Ad Valorem Taxes$79,678,54918% Delinquent Taxes$334,6400% Sales/State Shared Taxes$52,400,64312% Licenses, Permits & Impact Fees$6,557,9051% Intergovernmental/Grants$16,347,5184% Charges for Services$62,128,27714% Fines & Forfeitures$642,6000% Miscellaneous$1,568,3400% Interfund Transfers$20,001,0005% Debt Proceeds$78,481,18018% Fund Bal Fwd/Less 5%$122,901,45828% Total Sources$441,042,110100% Expenditure FY15 Proposed% of Total B.O.C.C. Operating$121,396,81228% Capital Projects, including Debt Service$128,284,52029% Sheriff$53,352,89312% Tourist Development Council$43,888,94510% Tax Collector$4,961,0451% Judicial, State Attorney, Public Defender$3,392,0101% Property Appraiser$4,483,1581% Clerk of the Courts$3,559,9321% Supervisor of Elections$1,619,6610% Budget Transfers, Cash Balance & Reserves$76,103,13417% Total Uses$441,042,110100%

8. Where the Money Comes From (Sources) FY2015 – All Funds $441,042,110 8 Taxes Ad Valorem, Sales & Use Tax, Local Communications Tax, Local Business Tax Licenses & Permits Building Permits, Franchise Fees, Impact Fees, Special Assessments Intergovernmental Revenue Federal & State Grants, Federal Payment in Lieu of Taxes, Gas Taxes, State Sharing Proceeds, Local Government ½ Tax Charges for Services Internal Billings (Health, Risk, Worker’s Comp, Fleet), Housing of Prisoners, Solid Waste Assessments & Fees, Airport Fees, Etc. Fines & Forfeitures Court Cases, Library Fines, Violation - Ordinance Miscellaneous Interest, Other Rents, Settlements, Donations, Etc. Inter-Fund Transfers Grant Match, Cost Allocations Debt Proceeds Fund Balance Forward/Less 5%

9. Revenue Breakdown by Source SourcesFY12 AdoptedFY13 Adopted FY14 Adopted FY15 Proposed FY15 % of Total Taxes (All)$117,185,161$119,175,996$124,767,316$132,413,83230% Licenses & Permits$3,467,641$3,439,709$4,305,414$6,557,9051% Intergovernmental Revenue $15,566,239$17,269,972$17,026,519$16,347,5184% Charges for Services $58,455,095 $59,572,078$56,301,175$62,128,27714% Fines & Forfeitures$530,420$672,400$4,573,850$642,6000% Miscellaneous$2,620,852$2,024,987$1,903,186$1,568,3400% Inter-Fund Transfers$20,374,193$43,151,092$47,430,759$20,001,0005% Debt Proceeds00$52,704,000$78,481,18018% Fund Bal Fwd/Less 5% $101,278,803$128,855,827$111,739,730$122,901,45828% Total Sources$319,478,404$374,162,061$416,751,949$441,042,110 9

10. Types of Taxes Total Taxes$ 132,413,832 Ad Valorem Property Taxes (all funds) Delinquent $79,678,549 $334,640 Tourist Development Taxes $ 32,065,114 Fuel$ 2,210,000 One Cent Sales$17,120,729 Local Communications Service $ 630,000 Local Business$ 374,800 10

11. Sales Taxes Monroe County visitors pay 12.5% for lodging accommodations 7.5% Sales Tax One percent (1%) discretionary infrastructure sales surtax Six percent (6%) State sales tax School Board One- half (.5%) percent discretionary sales surtax 4% Tourist Development Tax The Monroe County Tourist Development Council 1% Tourist Impact Tax Half (50%) of this tax goes into the General Fund the other half (50%) goes to the MC Land Authority. 11

12. Where the Money Goes (Uses) FY2015 – All Funds $441,042,110 General Government Services BOCC Admin, Public Works/Eng., Growth Mgmt., Const. Officers, County Admin, County Attorney, Growth Mgmt., Reserves Public Safety Sheriff, Emergency Svcs., Construction of Fire Stations & other P.S. buildings Physical Environment Waste Water Projects & Solid Waste Transportation Key West & Marathon Airports and Roads Economic Environment Tourist Development Council, BOCC Misc. Human Services Group Insurance, Worker’s Comp, Welfare Svcs, HSAB & Non-HSAB Culture & Recreation Libraries and Parks & Beaches 12

13. 13

14. FY 15 Total Appropriations Public BOCC $ 121.4M Operating Division State Attorney $ 710k Public Defender $ 624k Sheriff $ 53.4M Clerk of Courts $ 3.6M Tax Collector $ 5.0M Property Appraiser $ 4.5M Supervisor of Elections $1.6M Judicial $ 2.1M 14 BOCC Operating$ 121.4M Constitutional$ 71.4M Capital Projects w/Debt Svc.$ 128.3M Tourist Development Council$ 43.9M Budget Transfers, Reserves & Cash Balance $ 76.1M

15. BOCC Divisions BOCC Public Works/ Engineering $ 155.9M Growth Management $10.5M Emergency Services $16.5M Employee Services $28.7M County Administration $31.6M 15 DivisionsNotes PW/ EngineeringPublic Works, Fleet, SW, WW & other Capital projects Growth Mgmt.GM Admin, Planning, Building & Code Compliance Emergency Svc.Trauma Star, Fire & Rescue, Fire Academy & Emerg. Mgmt. Employee ServicesPersonnel, Group Ins., Workers Comp, & Risk Mgmt. County Admin.CAD, BOCC Oper., G.A.L., Welfare Svcs., Librarys, Ext. Svcs., VA, Med Exam., OMB, I.T. & Airports

16. 16 BOCC OperatingFY14FY15% Change BOCC Admin$1,804,075$1,806,7910.2% Housing Assistance & Emp Fair Share Housing$1,646,678$1,540,498(6.4)% HSAB & Non-HSAB$1,884,751$1,885,0340.0% Guardian Ad Litem$198,377$195,967(1.2)% BOCC Misc.$3,497,346$2,585,703(26.1)% County Administrator$1,176,203$1,144,548(2.7)% Employee Services$27,878,316$28,707,7833.0% Budget & Finance$809,689$805,716(0.5)% Information Technology$2,170,406$2,090,802(3.7)% Emergency Medical Air Transport$2,745,603$2,825,7322.9% Fire & Rescue/ Emergency Mgmt.$13,216,452$13,408,0491.4% Public Works/Engineering/MSTU’s$13,568,810$13,524,356(0.3)% Solid Waste$17,863,023$17,661,651(1.1)% Fleet Management$2,592,513$2,974,52614.7% Growth Management$10,254,782$10,452,0591.9% Extension & Library Services$3,450,725$3,582,9203.8% Welfare Services$3,100,862$3,328,8477.4% Airport Services$8,905,698$9,229,6783.6% Veteran’s Affairs$598,835$592,819(1.0)% County Attorney$2,042,343$2,061,3170.9% Medical Examiner$685,346$647,912(5.5)% Upper Keys Health Care Taxing District$219,117$219,1040.0% Quasi-external Services$125,000 0.0%

17. Budget Issues Salary Discussion Group Insurance Internal Rate Health Department Request 17

18. Salary Discussion The budget does not include any salary increases for BOCC employees* – Adding a 3.5% merit increase for BOCC staff – ad valorem funds *The budget currently includes 3.5% for Constitutional Officers 18 General Fund$346,579 Fine & Forfeiture Fund$23,690 Fire & Ambulance Fund$877 Unicorp. Parks & Beaches$15,502 Growth Mangement Fund$136,523 $523,171 Sheriff $ 937,580 Clerk $172,000 Supervisor of Elections $20,000 Estimated Figures Property Appraiser $83,573 $ 1,213,153

19. Group Insurance Fund The current budget does not include the rate adjustment from $790 per month to $835 and proposes to utilize surplus fund balance in the Group Insurance Fund – Adding the increased rate amount (ad valorem funds) 19 General Fund$108,198 Fine & Forfeiture Fund$224,776 Fire & Ambulance Fund$55,931 Unicorp. Parks & Beaches$6,285 Growth Mangement Fund$32,699 Municipal Policing$37,800 $465,689

20. Health Department Ad Valorem Budget Increase Request This budget does not currently include the ad valorem tax increase requested by the Health Department Ad Valorem funding history *FY14 The BOCC also funded $226,000 (funds currently not drawn down from Health Dept.) for an Adult Immunization Program from General Fund, fund balance. Total funding of $1,165,070. **FY15 Health Dept. Ad Valorem funding request is $1,502,170 a $563,100 impact to ad valorem taxes. 20 $305,660 $342,034 $524,459 $672,000 $638,400 $510,720 $623,720 $817,247 $939,070 FY04FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14*FY15**

21. Ad Valorem Tax Levy 21

22. Ad Valorem Fund Summary $3.5 million 22

23. General Fund, Fund Balance 23

24. General Fund Revenue & Expenditures 24

25. Fine & Forfeiture Fund Revenues & Expenditures 25

26. Where do we go from here? Direction from BOCC Calculate actual millage rates based on certified property values (July 1 st ) Update revenue estimates as they are released by the Office of Economic & Demographic Research Continue to look for cost savings Prepare the Proposed Budget to be presented to the BOCC on July 16 th (Regular BOCC Mtg.) Continue to monitor expenditures, revenues and fund balances Thank You 26