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BOOK W ma %3 RETROACTIVE SALARY INCREASE TO COUNTY EMPLOYEES - PIPER AIRCRAFT DELINQUENT TAX PAYMENT Administrator Chandler reviewed the following memo dated December 6, 1994: TO: Members of the Board - of County Commissioners DATE: December 6, 1994 SUBJECT: PIPER DELINQUENT TAX PAYMENT PROCEEDS FROM: James E. Chandler f%f? Joseph A Bair County Administrator OMB Director DESCRIPTION AND CONDMONS The Tax Collector is in receipt of Piper's back taxes owed to the Indian River County Board of County Commissioners in the amount of $633,478.38. The breakdown of the taxes to the'respective taxing funds is as follows: General Fund $361,054.98 Emergency Services District $154,998.52 Solid Waste Disposal District $117,424.88 Total $633,478.38 Indian River County has reviewed potential alterative uses of the Piper proceeds. Several factors were taken into consideration in allocating the funds. First, we are in an extremely tight budget year. Second, the Piper back taxes are non-recurring revenue, therefore, we have to be careful in allocating the funds for recurring expenses. If we were to do so, we could create f rbire financial problems by having ongoing expenses without a matching revenue stream. With this in mind we have looked at these potential uses: Make the 2% raise retroactive to October 1, 1994. A 21/a raise was funded for eight months of the year beginn;ng February 1, 1995 because we did not have sufficient resources to give a full year raise. This would have no additional future impact on expenditures since the County is already committed to absorbing the full annualized cost in the 1995/96 fiscal year. Because Piper is located in the City of Vero Beach no M.S.T.U. taxes apply.. We would have to absorb the additional raise cost of $6,907.00 plus its share of Road and Bridge which is $15,640.00. 2. Apply the remaining balance in the E.M.S. fund, after raises, towards the new pumper truck that would otherwise require borrowing the full purchase price. This was a concern for staff and is a non-recurring capital expenditure. 3. Apply the remaining balance in the General Fund and S.W.D.D. to replenishing the reserves in those funds. Already in the first sixty (60) days of the year we have drawn down for Courthouse security leaving only $382,290 in the General Fund. The S.W.D.D. district has also had to absorb an increase due to the reinstated hours at the refuse centers as well as potential costs of ever growing unanticipated environmental requirements. RECOMMENDATION Approve the recommended uses mentioned above. 32 December 13, 1994