MINUTES OF THE MEETING OF THE BOARD OF COUNTY COMMISSIONERS

BREVARD COUNTY, FLORIDA

 

 

March 25, 2008

 

 

 

The Board of County Commissioners of Brevard County, Florida, met in special session on March 25, 2008 at 9:00 a.m. in the Government Center Commission Room, Building C, 2725 Judge Fran Jamieson Way, Viera, Florida.  Present were: Chairman Truman Scarborough, Commissioners Chuck Nelson, Helen Voltz, Mary Bolin, and Jackie Colon, County Manager Peggy Busacca, and County Attorney Scott Knox.

 

 

County Manager Peggy Busacca advised the fire assessment consultant has requested the March 27, 2008 workshop be rescheduled; he met with citizens on March 19^th and he has information he would like to compile from the citizens before he meets with the Board. She requested to reschedule the workshop.

 

Motion by Commissioner Voltz, seconded by Commissioner Bolin, to cancel the March 27, 2008 First Fire Assessment Consultant Workshop at 1:00 p.m.; and direct staff to coordinate with the Commissioners’ Offices and advise of the rescheduled date at the April 1, 2008 Board meeting.  Motion carried and ordered unanimously.

 

Commissioner Chuck Nelson stated he attended the ribbon cutting and pavilion dedication at Manatee Cove for Ruth Roberts who the Pavilion was named after; she was not able to make it because she had fell and was in the hospital but her husband attended and it was a nice turn out by the North Merritt Island homeowners.  He stated he had met Ms. Roberts in 1991; she persisted through all this time to get the park developed; and it was great to honor her in that way.

INVOCATION      

Commissioner Jackie Colon requested Commissioner Bolin’s Aide Dave Dingley to start the workshop with an invocation.  Mr. Dingley quoted a Bible verse and led the Board in prayer.

 

 

Commissioner Colon thanked Juanita Barton for the Harry T. Memorial Week. 

 

 

 

 

Commissioner Colon stated on I-95 south of 192 there is a wall on the south bound lane full of graffiti that is unacceptable and requested staff to find out who is responsible for cleaning it up. 

 

Commissioner Bolin stated when she got off the airplane in Moline, Illinois and was walking down the hallway there were numerous pictures of the space shuttle; and expressed how great it was to see the space program that far north.  

 

 

Chairman Scarborough advised an update on legislation will not be available at this time but requested at a future Board of County Commissioners meeting to have John Thrasher and Leigh Holt bring the Board up to date.  He encouraged the Board to advise staff of the methodologies it would like staff to explore. 

 

 

Assistant County Manager Stockton Whitten stated staff designed this presentation with three goals in mind; to discuss the current revenue situation, fund balances and the Board’s mid-year process, and next year’s budget and budget development.  He stated the County’s major revenue is general government including property tax, State Revenue Sharing, Local Half Cent, Communications Services Tax (CST), FPL Franchise Fees, and interest earned on investments.  He advised most of the information with regard to the make up and how those revenues are derived are in front of the Board’s budget books.  He advised three revenue sources that most major counties have that Brevard County does not are Utilities Services Tax, Infrastructure Sales Tax, and additional Gas Tax Revenue.   He further stated other major revenue sources are Local Option Gas Tax (LOGT), Tourist Development Tax, Constitutional Gas Tax, and Development Fees (Construction Industry Fees).  Commissioner Nelson stated he wanted the public to understand the General Fund is not just property taxes, it is also those other sources.  Mr. Whitten explained the comparisons of the General Government Budget and Staff’s Projections.  Chairman Scarborough stated he thought it was interesting that what the County did last year in balancing the budget was in response to what the legislature requested the local governments do, and the shortfalls are not happening not because of something happening in Tallahassee; these are things that are not for this upcoming fiscal year but the current fiscal year, which means these are current shortfalls that have to be addressed with the remainder this year; and it indicates there are two trends occurring, legislative and economic both coming together to create a limitation on what the County can do.   He explained the percentage breakout of the revenues for General Fund such as property tax at 67.5% and Miscellaneous at 4% which includes charges for services, grant funding, licenses, permits, and occupational licenses.  He advised of historical information from 1999 to the present time with regard to General Fund Taxable Values, Adopted Millage Rate, and Roll Back Millage Rate.  He further stated the roll back millage rate has changed over time and for this Fiscal Year was under 4%, the adopted millage rate was less than the roll back millage rate in the General Fund; he stated as property values have gone up the millage rate has gone down.  He stated there are 21 taxing rates that make up the aggregate millage rate.  Chairman Scarborough stated the millage rate in Fiscal Year 04 the aggregate millage rate was 7 ½ mills, because of the roll back effect the millage went down 2 mills to about 5 ½ and people said everything going

up was captured, but because of the TRIM notice the roll back drives the millage down proportionally, so the same amount of revenue is started except for new construction; and therefore, the County’s millage rate was reduced a total of two mills in a four-year period, which is a substantial amount of reduction and that is because of the way State had set up the TRIM notice.  He stated what is interesting is as property values decline the reverse can occur which has its own dynamics which was not anticipated by the Legislature.  

 

Commissioner Nelson stated he recalled a discussion that Brevard County has the most special districts and millage of any county in the state which makes Brevard a lot more complicated than other counties.   Mr. Whitten responded yes and there are no other counties or cities with 21 operating millages that make up their Aggregate Operating.  Chairman Scarborough stated it leads to the complexity; and inquired how many different scenarios with different taxing.  Mr. Whitten responded forty two. Chairman Scarborough stated when someone says their taxes have done this or that, they need to see their bill because it is more than Save Our Homes. 

 

Mr. Whitten stated the aggregate in terms of percentage decrease has gone down 18.39% since FY 1999.  He stated revenue increases with General Fund and taxable value increases; currently the new construction values are $1.8 billion, and the General Revenue from that valuation is $7 million.  Chairman Scarborough inquired if staff extrapolated that into the future.  Mr. Whitten responded no.  He stated staff does not anticipate that new construction valuation will be $1.8 billion next year and snapshot in time would be lucky if it is half that amount next fiscal year.  Commissioner Voltz inquired if staff has an idea what new construction has dropped from last year to this year and how much in impact fees were collected from that lack of construction as compared to last year.  Mr. Whitten responded last year the General Fund new construction as a percentage of property tax revenue was about 4.2% and actually went this current fiscal year to 4.7%.  County Manager Peggy Busacca stated she would get impact fee projections for the Board.  Chairman Scarborough stated the interesting thing about new construction is regarding the roll back where the millage goes back, where the revenue stream remains steady regardless of increase of values; the exception  to that is the new construction which is gravy on the top, so the more new construction coming on line for the first year has added revenue that does not get calculated with the roll back TRIM; and therefore to the extent there is less new construction it immediately and drastically limits the amount of revenue coming into the County. 

 

Mr. Whitten stated he wanted to correct something he had just said regarding the new construction, as a percentage of the taxable value is up because of taxable value, and the revenues went down because of the State reduction requirements; but again, new construction has actually gone down.  He stated in FY06, new construction was 5.46% and in FY07 which is the tax roll that funds the current fiscal year, went from 5.46% to 4.68%, so new construction did go down.  He stated for the current fiscal year the taxable values are $40.9 billion, new construction is 4.68% of that, and the increases in valuation went down .44%.  Commissioner Voltz requested that information with the impact fee projections.  Chairman Scarborough stated new construction is counted as construction at the moment a CO is pulled and inquired if staff has been able to take some of that data and understand where the County is headed with it.  Mr. Whitten responded it has not been done but could work with the Property Appraiser’s Office to determine what is on the tax roll.  Chairman Scarborough stated what concerns the Board is after vacation time in June there is a rush with data coming in, setting the millage, and discussing the budget; and it would be easier on the Board to have as many conversations as early as possible. 

 

Mr. Whitten explained the differences in voted and non-voted aggregate operating millage from FY04 to FY08.  He stated the factors affecting County revenues including the passage of Amendment 1 will cause a decrease in property tax revenues; a decline in the current real estate market may produce reduced property tax values and revenues; and the current economic downturn is bringing lower revenues in areas such as State funding to local governments, sales tax of all kinds, and fees like ones for new construction.  Mr. Whitten further stated Federal and State government mandates are continuing to come down to deal with for the next Fiscal Year, inflation, the cost to do business has increased, and Brevard County pays more today for insurance, fuel, electricity, medical costs, and road materials.  He presented a historical breakdown of all of the major revenues including the General Fund and its FY08 projected increase of $380,000.  Ms. Busacca requested Mr. Whitten to explain why the General Fund increased so significantly in FY07. Mr. Whitten stated the General Fund increased because of the fire flip and EMS is now being funded out of the General Fund where it was funded prior to that Fiscal Year as a non ad valorem assessment.  Mr. Whitten stated this is projected for this current Fiscal Year. 

 

Commissioner Nelson stated what is not seen are decreases in the special districts throughout because the aggregate is the controlling number because the Board did up the General Fund to pay for some things but reduced special districts down; and that is one of the misleading things because if looking at a single General Fund number what is missed are all the other numbers that go into the total budget.   Mr. Whitten agreed and stated significant services are being missed that are provided including library, mosquito control, fire, law enforcement, Road and Bridge (MSTU), voted Parks and Recreation, and EELS.   Commissioner Nelson stated the danger is if it is taken out of context to the total budget it is misleading because it looks like taxes are raised but it is not seen where it was lowered to offset it.  Commissioner Voltz stated people just look at the big numbers on their tax bills.

 

Mr. Whitten stated State Revenue Sharing was projected by staff to be under collected by $1.4 million.  Commissioner Scarborough stated it is below the FY03.  Commissioner Bolin inquired of a couple examples of State Revenue Sharing.  Mr. Whitten responded it is the disbursement of cigarette tax and sales tax collected in all 67 counties and redistributed to the State.  County Finance Director Steve Burdett agreed.  Mr. Whitten stated the Local Half-Cent Sales Tax is projected under the collected amount in FY03 with a loss of $1.8 million in revenue; Communications Services Tax had a huge jump from FY04 to FY05 because the rate was increased; and the FPL Franchise Fees are projected to come in at a deficit of $2 million.  Commissioner Voltz inquired where that number comes from.  Mr. Whitten responded the Franchise Agreement is the County gets 5.9% of their net revenues.  Mr. Burdett stated their monthly revenues can be accessed at any time. He stated the budget for the Franchise Fees in FY06 and FY07 is close to the projected and the estimate made of the 17.4% may have been a little unrealistic and may have been based on some false assumptions.  He stated he does not believe it is a matter of revenues from electricity going down but more closely associated with assumptions used.  Commissioner Nelson inquired with the SBA and lockdown of that, will there be a recapture and make projection.  Mr. Burdett stated Mark Peterson was concerned with the projection of $3 million and the discount rate is actually falling.  He stated there may be more reductions as the end of the year approaches. 

 

Mr. Whitten stated the projection is close to the budget for Local Option Gas Tax; the Tourist Development Tax projection is over what was budgeted; the Constitutional Gas Tax projection is

 

 

 

right at what is budgeted for the current Fiscal Year; and the major Permitting and Enforcement
Fees represents a decrease of $900,000, and adjustments have been made to their expenditures.  He stated Planning and Zoning Fees are projected to be down $200,000; Natural Resources is projected to be right at what is budgeted for the current Fiscal Year; and the same with Animal Services Fees. 

 

Mr. Whitten addressed the actions that have been taken that the Board can contemplate in regards to addressing the revenue reductions or the revenue shortfalls including suspension of advertising and filling non-essential vacant positions, suspension of non-essential travel, suspension of non-essential capital outlay, suspension and/or re-assessment of various Capital Improvement Projects, and suspension of Special Merit Raises.   Commissioner Voltz inquired if that includes Fire and Police.  Ms. Busacca responded just the Fire. 

 

Mr. Whitten discussed the mid-year budget process and the fund balance process and presented a draft copy of staffs thought process with regards to them.  He stated his fear is when staff discusses, fund balances numbers are thrown out without any context; the numbers are large because it is actually a large budget; and there needs to be some context placed on the numbers and reconciliation of the numbers before they are presented to the Board and the general public.  He stated most agencies use a portion of their fund balances to operate off of.  He advised he would meet with each of the Commisssioners and go over it in more detail. He stated during budget development and throughout the course of the year, staff has been given direction with regard to how staff should look at fund balances that are carried forward within the agencies; and staff’s intended process is during the mid-year budget supplemental to address instances where  staff believes the County can recoup some fund balances.  He stated the term return to the General Fund are discussions the Budget Office had with departments in regards to what they believe the Board can bring back into the General Fund budget. Chairman Scarborough thanked Mr. Whitten for providing some good data.  Commissioner Voltz agreed. 

 

Commissioner Voltz stated she felt Transit Services at 76.8% seems like a lot of money when the bus service is not what it should be and she cannot picture that being extra money laying around.  Mr. Whitten responded staff is still in discussion with the Transit Department with regard to where those numbers are coming from to make sure they are not from a grant source.  Mr. Whitten stated the Board may want to consider the use of whatever fund balances it has during the mid-year to address current revenue shortfalls. 

 

Mr. Whitten discussed additional actions for consideration, such as more stringent freeze on vacant positions, elimination of vacant positions, starting layoffs, further reductions and suspension of capital outlay and replacement, and to look at Capital Improvement Projects. 

 

 

Chairman Scarborough stated one of his conversations with staff members and at the lower levels was if the County had to go to massive layoffs or across-the-board wage reduction ; and there seems to be an interest to look at across-the-board wage decrease.  He stated he had requested information from all the Charter Officers and one of the Charter Officers has not responded; and requested the Board’s permission to write a letter on behalf of the Board requesting the information. 

 

Motion by Commissioner Voltz, seconded by Commissioner Bolin, to grant permission to send a letter on behalf of the Board requesting a response from one of the Charter Officers who has not responded to the letter previously sent to all Charter Officers from Human Resources Director Frank Abbate.  Motion carried and ordered unanimously.

 

Chairman Scarborough stated if the Board is going to discuss Redevelopment Districts the only one the County has exclusive jurisdiction over is Merritt Island and his conversations with various people are what are the abilities to reach into those and what does the impact of bonded indebtedness have; and requested a memorandum. Commissioner Nelson stated he would like to see where the County is in terms of major projects and in effect bonding on them and comprehensive information.  Commissioner Bolin inquired if some of these projects are built will there be staff to open them.  Commissioner Voltz inquired if there are any projects not under construction.  Ms. Busacca stated Canova is not under construction.  Commissioner Voltz inquired if there is a bid.  Ms. Busacca responded the bid has gone out and there will be something on the Board Agenda for that and she will give the Board that status.  Chairman Scarborough stated if not at the next Board of County Commissioners meeting then the following one, the Board will see the Marina Park in Titusville; they finally have a consensus of all the players there; and he thought it would behoove the Board to proceed with that.  Commissioner Nelson stated it is going to be difficult on the voter approved ones. He stated the irony is that at a time when the economy is doing badly it is better to try interjecting money into the community and what better way than public works projects.  Commissioner Colon stated she wanted to make sure that the mentality is whatever they come back with they would be chastised for and today sets the tone. She expressed she is glad that Mr. Burdett and Mr. Whitten are working together.  Chairman Scarborough stated a member of the community inquired to the counties fleet of cars.  Ms. Busacca responded staff is reviewing that and heavy equipment. Commissioner Voltz inquired if all the EELS money has been bonded.  Ms. Busacca responded yes but it has not all been spent.  Chairman Scarborough stated this may be one thing the Board may encounter because people may say can the County refund a bond.  He stated he is not encouraging it but the question is out there and the Board should have answers in case members of the public ask.  Commissioner Nelson stated the other misconception is when refunding $35 million that it is saved because the County is only making the payments on it. 

 

Commissioner Colon stated the Board was at a huge disadvantage last year because there was a moving target in regards to what the State was going to require from local municipalities; and inquired if staff could share with the Board advantages and disadvantages last year versus this year.  Mr. Whitten stated one of the things the Department of Revenue is still working on is that the County is under a mandate of the maximum millage and they are working on the instructions for calculating those because last year Fire was outside of the maximum millage calculation and this year it is not going to be outside of the maximum millage calculation; and there are still a number of questions and he is not confident in any of their reduction projections.   Commissioner Colon inquired to the County Manager’s expectations. Ms. Busacca responded the schedule is typically that a budget is required from the Directors in the middle of May. She stated this year staff asked for three scenarios from the budget for each Department and that will be a 10% reduction, 20% reduction, and status quo, which will be expected on April 14, 2008 to give staff opportunity internally to work through what that means because they learned last year that the impact of one program can have a significant impact somewhere else.  She stated staff will not have the preliminary roll until June 1^st as always; and
 staff will have a budget to the Board on July 15, 2008 that will say these are the programs that staff anticipates reducing and what the alternatives are.  Chairman Scarborough stated he understands they are going to the expenditure by program; some of the thrust of his comments go to doing away with redevelopment districts and across the board wage decreases; and there would be less impact on programs and more a generic restructuring of what the County is.  He stated he would like to address the larger issues before going to the programs.  Ms. Busacca stated it was tried last year and what the Board found last year was that they said it is difficult to make that decision until it is known how bad it is.  Chairman Scarborough stated it is a disservice to the County to slowly dismember it program by program when it needs to talk about the basic structure of things first.  Commissioner Voltz stated Mr. Knox is going to look at the issue with the Redevelopment Agencies but what they need is what each one’s bond programs are and how much the County actually gives them.  Ms. Busacca stated on April 17^th the Board has scheduled the Community Redevelopment Agency Workshop and typically what they have done is given an overview of what they have accomplished in that year.  She stated staff can ask them for the specific information the Board is requesting and change the tenure of that workshop.  Chairman Scarborough stated he is looking for something from the County Attorney because he may not be interested in the program because there may not be a program.  He inquired how much goes to Merritt Island.  Commissioner Nelson responded $1.4 million.  Chairman Scarborough stated that is a lot of programs.  Ms. Busacca inquired if it would be helpful to give the Board the legal information and financial information and not have a workshop.  Chairman Scarborough stated they need to have their opportunity to explain why they have a value to the community.  Commissioner Colon stated it would behoove the Board to listen to everyone.  She inquired if there have been any meetings with the Departments in regard to restructuring and reinventing themselves.  Ms. Busacca responded yes they have discussed ways and last year looked at the financial programs and had job sharing; and this year they are going to look further at administrative ways to talk about additional job sharing.  She stated they have not had the discussion of restructuring Departments but it is going to happen.  Commissioner Nelson stated regarding Redevelopment Agencies, he would hope as a Board, they treat them all the same.  He stated he felt last year heartache could have been saved if they would have looked at the larger issues first in the process. 

 

Commissioner Bolin stated there are three new Commissioners coming on board in November and she was going to propose a down sizing and having a possibility of one who would be designated to do all the Administrative work combined for all the Commissioners.  Commissioner Voltz advised Ms. Busacca to alert the other cities who have Redevelopment Agencies. Ms. Busacca responded they will.  Commissioner Nelson advised staff to ask where they are in terms of financially and what they have indebted themselves to.  Commissioner Voltz disagreed with Commissioner Bolin in regards to staff in the Commissioners offices because she is down one person and she is not going to be hiring anyone else but it is extremely difficult to run efficiently.  Commissioner Bolin stated she down sized by her own choice and has incorporated volunteers to answer the phones. 

 

Mr. Whitten advised the State estimated Amendment One impact to be $20 million for the next Fiscal Year which is an 8.7% reduction to tax revenues. He discussed increases to the FY08-09 budget including health insurance at 6% or $1.5 million, Union STEP pay plans, State and other mandates, and cost of commodities and materials used by agencies.  He discussed significant increases of material costs to the Road and Bridge Department.  

 

Chairman Scarborough stated the Board is going to attend a luncheon where two Congressmen are addressing some Space issues and he wanted to have an opportunity for the public to come if there are any questions. 

 

Mr. Burdett stated he would like to add on the list that Mr. Whitten gave the Board as far as the funds being returned to the General Fund, as it is discussed every year, reoccurring and non-reoccurring funds, that when these funds are returned do they represent reoccurring funds or not, so the Board has a good idea how these funds can be applied, whether to annual operations or just non-reoccurring types of expenditures.  He stated in the Fire Rescue Office in 2006 they had $3.3 million of uncommitted funds, then in 2007 they had $10.8 million of uncommitted funds, and now they have $15.5 million which is an increase of funds each year and usually those increase because revenues or resources are more than what they needed for that year.  He stated when he takes out what they have budgeted for reserves and capital which is $18.2 million, they are still generating another $4 million to $5 million of surplus beyond what their operating needs are; and advised the Board to look at that when developing next year’s budget.  Mr. Whitten stated the Board gets a chance to discuss the issue at mid year and the Internal Auditors have a meeting with the County Manager next week to present the draft of the financial conditions review for Fire Rescue. He stated they will know what their recommendations are in two weeks that will come to the Board for its decision making process with regards to current fiscal year and next fiscal year.  Ms. Busacca stated the Fire Assessment Consultant is looking at this, so there will be suggestions on the Fire Assessment side as well as the General.  Chairman Scarborough inquired if an accountant was hired to do an analysis.  Ms. Busacca responded yes with the Internal Auditor.  Chairman Scarborough inquired when the results will be in.   Ms. Busacca responded in a few weeks.  Chairman Scarborough inquired of any advance warning.  Ms. Busacca responded no.  Chairman Scarborough stated these are non- reoccurring which may allow the County to reduce things down but they are not going to be a continuing, so the Board needs to be cautious of that. 

 

Chairman Scarborough inquired if Mr. Burdett wanted to present a Power Point.  Mr. Burdett responded no because most of it was brought up in what Mr. Whitten presented.  Commissioner Colon inquired if the two budget offices have been working together.  Mr. Burdett responded things are coming along good.  Commissioner Colon inquired how often they are meeting.  Mr. Whitten responded he thinks they are meeting whenever is needed. 

 

Chairman Scarborough stated on page four it is showing a $4.2 million shortfall in the current year budget and inquired what are they going to do to find $4.2 million to balance the current year budget.  Mr. Whitten stated he wanted to have that discussion at mid year.

 

Chairman Scarborough stated the Clerk’s Office has already taken steps to act on the budget up front to lessen the burden because if waiting to the end it becomes harsher and if there are things to be done he would like to do them now also.  Commissioner Nelson stated it would be good to look at six-month expenditures and if at mid-year look at what savings have been used at that point.  Ms. Busacca stated Finance can help staff with that. 

 

 

 

 

 

 

Upon motion and vote, the meeting adjourned at 10:32 a.m.

 

 

 

ATTEST:                                                         _________________________________

                                                                        TRUMAN SCARBOROUGH, CHAIRMAN

                                                                        BOARD OF COUNTY COMMISSIONERS

                                                                        BREVARD COUNTY, FLORIDA

___________________

SCOTT ELLIS, CLERK

 

 

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