1. SECOND BUDGET WORKSHOP August 31, 2010
LEE COUNTY
SECOND BUDGET WORKSHOP
August 31, 2010

2. Overarching Issues Three-year balanced budget timeframe
Timing of cuts and/or millage rate adjustments
General Fund focus
Mandated vs. Discretionary/Historical (these are options only)
Sep. 2 and Sep. 7
Under all scenarios, some use of reserves will be required
Service levels have to be addressed
The dialogue has to be framed in:
Programs/Service Levels vs. % (percentages)
Caveat – these are projections
Economy/Real Estate – still volatile
Return of unspent funds (recapture)

3. Reserves/Deficits Focus cannot be on one to the exclusion of the other
There is short-term coverage of deficits with reserves
…and it provided local tax relief
HOWEVER, Ignoring structural deficits impacts credit-worthiness and future flexibility
Reserves (projected at )
General Fund ($142 million)
Unincorporated ($87 million)
Library ($37 million)
Structural deficits
General Fund ($70 million)
Unincorporated ($4 million)
Library ($11 million)
General Fund is most problematic
Numerous competing entities and types of services
All options require some use of reserves
3-year horizon

4. Constitutionals & Courts
BoCC Operating 45%
Mill Rate:
Fully Funded
Current
Constitutionals & Courts
55%
Mill Rate:
2.6488
2.0188
(in millions)
Constitutionals & Courts $
55%
BoCC Operating Departments $
45%
Major Maintenance $
Debt Service $
Grants $
Non-department/transfers $
Road Loan Payments $

6. REDUCED BUDGET SUMMARY
Courts & Constitutionals (operating) – General Fund
$239 million
$239 million
$231 million
$224 million
$15 million REDUCTION (07-08) TO 10-11
BoCC Funding AND Operational Oversight
BoCC (operating)
$457 million
$443 million
$421 million
$409 million
Additional proposed $397 million
$60 million REDUCTION (07-08) TO 10-11
General Fund Only
$413 million
$401 million
$405 million
$383 million
$30 million REDUCTION (07-08) TO 10-11

7. RECOMMENDATION
Accept all reductions proposed at the June 28 workshop, including increased insurance premiums and a 4% pay cut through furloughs.
Incorporate $3.5 million of reductions that have been made since June 28 (including $573,398 in the General Fund).
Review and accept the additional $3.64 million of tier reductions (out of $16 million of options) in the General Fund that we are recommending today –
Public Safety (EMS) – $1,457,574
Transit – $782,226 (tier reductions) and $1,401,374 (subsidy reduction)
Reduce the budgets of Constitutionals and Court-related agencies by their respective payroll equivalents of the pay cut percentage the BoCC departments ultimately take (some already have offered these equivalents).

8. General Fund

9. General Fund

10. Board Reductions All Funds
Current FTEs – 2,445 (Holding 39 at $1)
10-11 Proposed – 2,484 (Deleted 56)
09-10 Budget – 2,540 (Deleted 93)
08-09 Budget – 2,633 (Deleted 197)
07-08 Budget – 2,830 (Deleted 28)
06-07 Budget – 2,858
413 deleted positions (5 years).
Current 2,445 employees about the same as in (2,424).

11. Fiscal Funded County Employees Per Year Positions Population
1,000 Residents
1991
2,059
346,287
5.9
2000
1,753
440,888
4.0
2001
1,877
454,918
4.1
2002
2,098
475,073
4.4
2003
2,200
495,088
2004
2,332
521,253
4.5
2005
2,424
549,442
2006
2,695
585,608
4.6
2007
2,858
615,741
2008
2,830
623,725
2009
2,633
615,124
4.3
2010
2,540
614,262
2011
2,445
*Population per University of Florida Bureau of Economic & Business Research

12. Major Cutbacks County-Wide
Staff reduction – 413 positions
Minimal service level impacts
Increased cross-training and job responsibilities
Reorganization
No pay adjustments for three years:
FY 08-09
FY 09-10
FY 10-11
Cost of Living (CPI) increased 4.6% during this period (June 2007– ; to June 2010 – )

13. Major Cutbacks – cont. Increase in employee-paid costs
2011 health insurance – $180 (minimum) to $420 (maximum)
Parking – $60 (min.) to $180 (max.)
Overtime – down $1.5 million since 07-08
Energy – down $4.4 million since 07-08
Fleet – down $4.5 million since 07-08
1,784 vehicles (07-08) to 1,658 today
Leased space costs – reduction of $765,000 annually
Further reduction of $525,000 planned for 11-12
Computers – contract reduction of $9 million over five years

14. Smaller Cutbacks Janitorial for downtown campus – $500,000
Janitorial public safety building – $56,000
Security guards
Established small equipment inventory exchange

15. General Fund

17. Public Safety Tier Reduction Options
Budget year-to-year
08-09 $45.0 million
09-10 $39.9 million (↓11.3%)
10-11 $38.2 million (↓4.3%)
Recommended:
Union Bargain two 24-hr. shifts to 12 hr. and close two BLS transfer facilities
Reduce open positions
$1.5 million reduction (union impact bargain)
Future Issues:
Bonita Springs Fire and EMS
Scheduled discussion at M&P
($1.4 million cost reduction; or $341,000, net of revenues)
Implementation would be FY
Inter-facility transport? ($1.7 million)

18. Human Services
$ 21.4 million
$ 17.2 million

19. Human Services Tier Reduction Options
Budget year-to-year
08-09 $20.5 million
09-10 $20.6 million
10-11 $21.4 million (↑3.9%)
↑ primarily due to Medicaid mandate
Discretionary
Partnering for Results – $4.1 million
Reviewing “Activities for Youth” funding ($1 million; after school and summer programs) for overlap with Parks & Recreation offerings
Mental Health – $2.8 million
Substance Abuse – $1.7 million

21. Facilities Tier Reduction Options
None proposed
Budget year-to-year
08-09 $15.7 million
09-10 $14.5 million (↓7.6%)
10-11 $13.2 million (↓8.8%)
$130,000 additional cuts since June 28
Square footage
BoCC occupied, 1.1 million s.f.
Others, 2.9 million s.f.
TOTAL, 4 million square feet

22. TRANSIT Tier Reduction Options
Subsidy year-to-year
08-09 $12.3 million
09-10 $12.3 million
10-11 $10.9 million (↓11.4%)
Tier 1 ($244,898)
Primarily reductions in hours of service and frequency of pickups
Tier 2 ($537,328)
Additional reductions in hours and frequency
Eliminate Sunday service Rt. 90 (low ridership)
Tier 3 ($902,061)
Eliminate routes
Including
160 – Pine Island
80 – Metro Parkway

23. Notes: $1M Reimbursed by TDC for Beaches, Boat Ramps, and Shorelines
Total General Fund Revenue - $2 M
Tourism Impact

24. Tier Reduction Options
Budget year-to-year
08-09 $14.1 million
09-10 $11.5 million (↓18.4%)
10-11 $11.5 million (no change)
Extension Services:  100% County Funded Programs:
$150,000 (Sustainability, FYN, 4-H)
Administration/County Wide Support Services:
$150,000 (Park Rangers, Heavy Equipment, Safety & Education)
Sanibel Agreement Renegotiation possible savings:
$100,000
Renegotiation – City of Bonita Springs Parking Decal MOU:
Increase revenue by $50,000 to $100,000

28. Future Issues Continued adjustments to health plan
Analysis of claims utilization by participating organizations
Separate millage rate for Sheriff/Constitutionals?
EMS in Bonita Springs
Continued sustainability initiatives (energy savings)
Overlap of Youth Programs funding
Human Services vs. Parks & Recreation
Sanibel agreement
Constitutionals support