LEE COUNTY

STRATEGIC PLANNING2010-2011

STRATEGIC PLANNING

WHY?This is the worst recession since the great depression and it will have long term impacts, demand change and require innovation

U.S. economic recession is forecasted 28 months, currently in 24th monthFlorida’s recovery will lag the national recovery by three quarters. Predicted to show an economic upturn the 3rd quarter FY10-11Net migration; in FY 2003-2004 net migration was growing at a rate of 1 million increase in Florida’s population every 2 yrs. 7 mos. In FY2008-09 net migration in Florida declined by 65,000 individualsUnemployment rate July 2009; Lee County 13.2%, Florida 11%, National 9.4%, (Regional Economic Research Institute)

(As reported August 20, 2009, Florida Association of Counties, by Dr. James Zingale, Capitol Hill Group, LLP)

STRATEGIC PLANNING

Major revenue sources that are shared by State and local governments

Property tax, sales tax, motor fuel tax, cigarette tax, documentary tax and communication services tax have all decrease as a result of the recession

Florida’s state and local taxing structure has a narrow base and is subject to wide fluctuations due to economic business cycles. Florida’s constitution limits the use of income and wealth tax bases, leaving in highly volatile sales and transactions sources as the primary taxes used to fund state and local governments

STRATEGIC PLANNING

Lee County’s challenge during these last 2 years of economic downturn has been to maintain services without burdening residents with additional taxes and fees;

by employee attritionlayoffs (reassigning duties of those positions to others) greatly reducing out of county travel no merit or cola increases suspension of bonus program suspension of sick leave buy back, departments continue to reduce costs in their operating budgetsgreatly reduced lease space

As a result as we begin the next fiscal year the County will have reduced $187 million in operating costs

STRATEGIC PLANNING

The County has not increased any of its tax rates since 2000, during this period;

general fund tax rate has been reduced from 4.99 to 3.65 library tax from 0.96 to 0.28, unincorporated MSTU tax rate has been reduced from 1.21 to .84

Can’t live on savings forever…we expect to use about $65 million of general fund reserves next year to keep the tax rate stable

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Lee County Population

Barometer of Costs

Increases from FY04-05 to FY09-10

Inflation                                            13.4%

Population                                        12.7%

TOTAL                                             26.1%

Total Operating & Capital Budgets

FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10

BoCC (millions) 21% Increase $ 347 $ 399 $ 448 $ 457 $ 442 $ 421

Constitutionals   41 % increase $ 164 $ 187 $ 216 $ 239 $ 239 $ 231

Capital      27 % Reduction $ 483 $ 467 $ 564 $ 511 $ 458 $ 352

TOTAL (billions)   $ 1.0 $ 1.1 $ 1.2 $ 1.2 $ 1.1 $ 1.0

Staffing Level 2,424 2,695 2,858 2,830 2,633 2,540

REVENUE BY MAJOR SOURCE

Summary FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10

Ad Valorem Taxes/Other Taxes 358,072,862 421,814,290 517,096,935 522,856,536 452,037,054 359,899,273

Licenses & Permits 12,128,902 15,446,970 17,576,123 11,842,310 16,906,325 5,648,687

Intergovernmental Revenues 87,734,938 87,709,541 93,509,145 96,288,977 81,559,114 77,932,465

Charges for Services Less Court Related Services 234,118,954 283,107,913 315,919,301 337,289,031 338,083,361 324,182,902

Court Related Services 4,320,000 4,889,000 5,973,504 5,369,404 6,140,778 4,328,294

Fines & Forfeitures 1,115,720 881,930 1,471,500 1,454,500 2,194,800 1,976,000

Miscellaneous Revenues 85,145,781 104,636,154 124,162,302 155,022,918 77,970,768 40,099,154

Non Revenues 228,474,940 217,293,759 234,870,147 263,241,166 240,803,282 213,166,216

TOTALS 1,011,112,097 1,135,779,557 1,310,578,957 1,393,364,842 1,215,695,482 1,027,232,991

General Fund Operating BudgetsFY 04-05

Courts Related Programs

$15,727,3926%

Sheriff$110,998,097

44%

Supervisor of Elections

$5,618,9332%

BoCC$93,578,728

37%

Property Appraiser

$8,417,7373%

Tax Collector$11,682,902

5%

Clerk to the Board

$6,775,8753%

BoCC Operating Budget

Tax Collector

Clerk to the Board

Property Appraiser

Supervisor of Elections

Sheriff

Courts Related Programs

Board of County CommissionersCutbacks (What Has Been Done So Far)

1. Wages frozen for two years2. Decreased workforce by 423 positions, or

15% (combination of attrition, holding vacant positions, layoffs, early retirement program in 2008)

3. Suspended bonuses and travel4. Curtailed post-retirement insurance

subsidy (Jan. 2008)5. Cut operational expenses6. Reduced capital projects program7. Kept 2009 tax rates the same

CURRENT EFFORTS

1. Continuing to hold vacancies2. Cutting hours in low demand times/seasons –

Animal Services, Libraries, Parks & Recreation, Transit

3. Reassessing/Revising staffing ratios – all operations; NW Regional Library

4. Increased response/service frequency times – internal operations; Parks & Recreation mowing maintenance

5. Matching services levels to population growth slowdown

6. Streamlining CIP7. Trying to determine what constitutes “non” core

Future Issues

1. Potential for further declines in revenue (managing expectations – cannot maintain current service levels if this happens

2. Further cuts –cannot use same level of reserves to balance budget

3. Fund balance – between county operations and constitutionals and courts

4. Monitoring economic conditions – striking the balance of when to cut and how much

5. National Recession ending, but labor and housing markets will lag

Strategic Planning

……. is the first step in the developing a results-based accountability system and is defined as the process of addressing the following questions:

Where have we been?

Where are we today?

Where are we going?

What do we have to work with?

How do we get there – making decisions?

STRATEGIC PLANNING

WHAT DO WE WANT TO ACCOMPLISH

Identify and define specifically “CORE SERVICE LEVEL”

Adopt the philosophy of Core Service Level

Provide clear direction to departments to maintain agreed upon core service levels for 2010-11 budget cycle

TO BE SUCCESSFUL

Commissioners, staff, residents, all STAKEHOLDERS must be involved and supportive of the process “we are in this together”

Understand that we are treading on new waters, we may make changes along the way to the process

Understand we can “agree to disagree” but we must move forward with the majority decision. We are developing our road map for our Goal setting workshop and the next budget cycle.

Prioritizing our goals is essential in developing our strategic plan

Strategic plans are not merely laundry lists of goals, but reflect the priorities of the stakeholders in the planning process.

If we want a useful plan it must be succinct and easily translated into useful measures.

We are faced with prioritizing services that our community has been accustomed to receiving

STRATEGIC PLANNING PROPOSED SCHEDULE

TIMEFRAMEOctober and November

Department Presentations – taxing funds, fee based (enterprise optional and presented as requested by Commissioner)

Presentations will be in a consistent format providing the Board the opportunity to ask questions

Presentations will be video tape and on County web site

STRATEGIC PLANNING PROPOSED SCHEDULE

TIMEFRAMEDecember

Statistically valid citizen survey (approximate cost NTE $15,000) to gather opinion of services and costs

Citizens will have the ability to view all presentations on the County Web site

YOUR ROLE - Survey Advisory Committee’s for input into the process. Citizen survey plus prioritizing non mandated services

STRATEGIC PLANNING PROPOSED SCHEDULE

TIMEFRAME

JanuaryDepartments and Administration work together in developing service level scenarios and associated costs based on Board input, Department recommendations, citizen and advisory committee input

STRATEGIC PLANNING PROPOSED SCHEDULE

FebruaryBoard Goal Setting Workshop - February 10, 11 and 12Adopt the philosophy of Core Service Level - Identify and define specifically “CORE SERVICE LEVEL”Presentation of service level scenarios, Department recommendations for Board consideration and direction for 2010-11 budgetProvide clear direction to departments to maintain agreed upon core service levels for 2010-11 budget cycle