TENTATIVE BUDGET FISCAL YEAR 2020 Table of Contents Overview ............................................................................................ Section 1 Special Assessments Resolutions .......................................................... Section 2 Millage Rate Resolutions ...................................................................... Section 3 Budget Resolution ............................................................................... Section 4 Fund Detail General Fund ...................................................................................... Section 5 Special Revenue Funds ........................................................................ Section 6 Debt Service Funds ............................................................................. Section 7 Capital Projects Funds ......................................................................... Section 8 Enterprise Funds ................................................................................. Section 9 Internal Service Funds .................................................................... ...Section 10 Regular Items Five Year Capital Improvement Plan ................................................... Section 11 TO: Honorable Chair and County Commissioners THROUGH: Donald S. Fisher, County Manager Beth A. Knight, Deputy County Manager Donna L. Renberg, Asst. County Manager FROM: Sharon Chauharjasingh, OMB Director ATE D : August 28, 2019 RE: Fiscal Year 2020 (FY20) Tentative Budget In preparation for the First Public Hearing, we are pleased to submit the FY20 Tentative Budget. The FY20 Recommended Budget, which was submitted in July, totaled $1,154,530,380. As described in detail below, subsequent to the Recommended Budget there have been changes implemented resulting in a submitted Tentative Budget of $1,164,746,692. This is a $10,216,312 increase from the Recommended Budget, but still a decrease of $4,543,302 from the FY19 Adopted Budget. COUNTYWIDE BUDGET SUMMARY - FY20 TENTATIVE BUDGET: To aid in the review of the changes made from the Recommended Budget, as well as comparing to the FY19 Adopted Budget, reports are attached to this memorandum that identify both variances. In particular, the first document attached to this memorandum is a Countywide Budget Summary. This report provides a comparison from the FY19 Adopted Budget to the FY20 Tentative Budget. In addition, to aid in the identification of changes made to the budget since the Recommended Budget, there is a shaded column that is labeled “* Variance.” This column is the Tentative Budget minus the Recommended Budget. As a result, staff respectfully submits the following synopsis to aid in the review of this report. COUNTYWIDE REVENUES: The County’s revenues continued to stabilize. The biggest increases, when compared to FY19’s Adopted Budget, were a result of Ad Valorem Taxes, Tourist Development Taxes, Permits, Fees & Special Assessments and Charges for Services. Revenues were reviewed after the Recommended Budget, however, and necessary adjustments were made as follows: o Based on additional actual receipts, Department of Revenue (DOR) projections for revenues distributed by the State, and projected growth, Revenues were adjusted in a number of categories; o Transfers In reflects a large increase due to finalization of the Cost Allocation plan, Open Enrollment and a transfer to a Capital Fund to allocate additional returned Excess Fees from the Sheriff to his Training Facility project and transfers to a Debt Service Fund for cost associated with the Communication Equipment Upgrade (Motorola); o Large decreases in Intergovernmental Revenue ($50M) and Fund Balance ($40M) from FY19 are still due to Federal and State Grant funding and remaining balances for on-going grants and capital projects; these funds will be revised for the Final Recommended as carry forwards will be appropriated at that time to allow for as accurate an estimate as possible. 1 | P a g e COUNTYWIDE EXPENDITURES: Personal Services compared to FY19 Adopted includes a 3% across the board pay adjustment for all eligible non-IAFF employees, increases to FRS, Workers’ Compensation and insurances, and 62 new position requests. Since the Recommended Budget, changes include the following: o Changes due to Open Enrollment selections; o 5 additional Full-Time Equivalent (FTE) positions in Fund 102 - Transportation Trust Fund (Special Revenue Fund) that were approved in August (FY19) due to the Interlocal Agreement with the City of Kissimmee for signal maintenance; o Allocating funding for 2-grant funded positions in Fund 156 - Federal and State Grants; o Allocating funding in 24/7 departments due to next year being a leap year; o Total number of FTEs presented in Tentative Budget equals 1,554.54, includes positions added during FY19 and new positions requested for FY20; Operating adjustments compared to FY19 Adopted included increases in professional services for streetscape design, redevelopment plan upgrades, PD&E study for gateway, and sidewalk masterplan. Contractual obligations included the County’s share of Medicaid and HCRA, payments to the Community Redevelopment Agencies, Lynx, haulers’ contract, SMG and CVB; continued support of Homelessness Initiatives and services such as Community Vision Project OPEN and Education Foundation’s career pipeline for construction; and increased support of road resurfacing to $12M. Since the Recommended Budget, however, the biggest changes were related to the following: o Changes to the Overhead Allocations for the Internal Service Funds; and o Increases in the Internal Service Funds ($3M) as a result of plan selections during Open Enrollment. Capital Outlay compared to FY19 Adopted included new CIP requests as proposed in the 5 Year Capital Improvement Plan (FY20-FY24). The attached sheet details the difference between the Recommended Budget and the Tentative, as highlighted: o The largest impact was within the Special Revenue Funds: Fund 143 - Mobility Fee West Fund appropriated the matching funds for an approved grant with FDOT and to begin the C532 Widening Project; Funds 148 - Building Fund and 149 - E192 CRA for new projects; Fund 177 - Fire Impact Fee Fund increased to pay more of the cost of the new Fire Station at Austin Tindall; Fund 178 - Parks Impact Fee Funds as the reconciliation of the funds in accordance with the program update were appropriated into the correct Impact Fee district; o Fund 306 - Infrastructure Sales Surtax appropriates funding for a new project (Countywide Signals) to begin to address warranted signals that are on a backlog to be replaced; o Funds were transferred ($5M) to Fund 315 - General Capital Outlay Fund for the Sheriff’s Training Facility due to the agreement with the Sheriff to appropriate their returned Excess Fees towards the project; o Ongoing Capital from FY19 will be brought forward into the Final Recommended Budget. Debt Service Funds established payments in accordance with the Bond / Loan requirements and were finalized after the Recommended Budget, which includes establishing a new debt service fund, to track the loan payments for the Communications Equipment Upgrade (Motorola) as this is the first year payments are due. 2 | P a g e Transfers Out increased from FY19 primarily due to increased support from the General Fund for the Constitutional Officers and transportation activities. Since the Recommended Budget, additional changes were made to Transfers Out including: o Adjustments Countywide due to the finalization of the Cost Allocation Plan; o Fund 001 - General Fund increased due to the appropriation of returned Excess Fees to Fund 315, as noted above, for the Sheriff’s Training Facility project and to support/balance Fund 102 - Transportation Trust Fund; o Fund 134 – Countywide Fire and Fund 306 - Infrastructure Sales Surtax due to transferring the required debt service payments to Fund 248 - Communications Equipment Upgrade (Motorola). Reserves continue to be established in accordance with Policy, State Statutes, actuarial reports, approved agreements and bond covenants. Funds remain set aside for disaster recovery expenses pending reimbursement from FEMA for Hurricane Irma. In addition, the largest reserve is for the continuation of the Neptune Road project phases in the Mobility Fee Funds. Since the Recommended Budget, however, the impacts to the Reserves are highlighted as follows: o Reserves - Operating, Debt, Claims, Assigned, and Stability were all adjusted in accordance with the requirements within each specific Fund; specifically, a reduction in Reserves Operating and Reserves - Stability in Fund 104 - Tourist Development Tax Fund as the property purchase at Austin Tindall closed; o Reserves - Capital were impacted primarily due to a reduction in Fund 148 – Building Fund and Fund 315 – General Capital Outlay associated with reductions to Fund Balance; Fund 306 - Infrastructure Sales Surtax to offset a reduction in revenues, support the Countywide Signal project and loan payments for Fund 248 noted above; and in Fund 401 - Solid Waste Fund to support the approved Special Assessment buy-down; o Reserves - Restricted increased in Fund 125 - Environmental Land Maintenance to reserve the additional funds due to the slight millage adjustment towards perpetual maintenance and in Fund 145 - Red Light Cameras as this is the first year the Fund is anticipated to provide funds for more than the contract expenses, once this is confirmed, funds may be appropriated towards an approved project