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to move forward, it was assumed that the sale would be concluded by the end of the current fiscal year and that the lower rate structure would be in place effective October 1, 2018 (all of FY2018/19). Any delay in the implementation of the rate reduction would require an adjustment to the budget. The impact to franchise fee revenue from FY18 projected levels is a reduction of $560,000 in the MSTU Fund, offset by a $350,000 decrease in budgeted electricity expenses across all funds. Overall, electric franchise fee revenues are only decreasing by $60,000 due to FY18 actual revenues exceeding budget. It must also be noted that in FY 2019/20, the value of transmission lines and related infrastructure will be added to the tax roll, as FPL is a private entity and the government exemption previously provided to Vero Beach Electric would no longer be valid. This will have a positive impact on the taxable value in all taxing funds. Indian River County has taken a conservative approach in funding OPEB expenses, rather than simply identifying the liability in the financial statements. Every other year, there is a full actuarial study to identify the financial status of the OPEB trust fund, as well as quantifying future funding requirements. Due to stronger than expected investment earnings and a decrease in projected health costs, the proposed budget reflects savings of $502,100 from FY18 OPEB funding levels. This highlights the prudence of the conservative approach that the County has taken for several years. Rather than facing rising costs for retiree health insurance, we are experiencing a decrease in OPEB costs for FY 2018/19. A major issue affecting both governments and corporations alike is the threat from cybersecurity breaches. Baltimore's 911 Emergency Dispatch System and the City of Atlanta are two examples of government agencies that have recently fallen victim to ransomware attacks. These types of cybersecurity attacks are becoming increasingly prevalent among government agencies and therefore the need to protect against them has become a priority. Today's society is highly connected and dependent on information technology, which makes all organizations more vulnerable to cybersecurity threats. A Cybersecurity Technician position is being added to Computer Services to ensure that County facilities are protected, to the extent possible, from hackers. Additional investments in capital and operating costs have also been included in the budget per cybersecurity best practices. A looming challenge lying ahead is the Constitutional Amendment that would provide an additional $25,000 homestead exemption on non -school taxes. Assuming passage of this referendum, the estimated impact on county tax revenues is potentially over $3 million. If adopted, the additional exemption.would shift a greater portion of the tax burden to non-homestead properties and businesses. In recognition of the potential impact, staff is planning ahead to prepare for a reduction in FY 2019/20. For example, there are a number of one-time items funded in the budget. This will ease the impact of the tax revenue loss, should the additional homestead referendum pass. The Development Review Committee, consisting of Board appointed stakeholders in the building/development industry and citizens, was created to help streamline the development review process and evaluate development review fees. This effort has been underway since October 2017 and one of the remaining tasks is to evaluate the existing development review fee structure, which has remained unchanged since 2004. As such, there are no recommended increases in development review fees in the proposed budget. Staff will bring forth any recommended fee changes once the Committee's work is complete, which will likely occur sometime in FY18/19. This is another means that staff is planning to address expected revenue reduction due to the additional homestead exemption. 4