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BOARD OF COUNTY COMMISSIONERS <br />VER co <br />z° o� • <br />OR110" <br />July 8, 2022 <br />Board of County Commissioners <br />Indian River County <br />1801 27th Street <br />Vero Beach, FL 32960 <br />Dear Commissioners: <br />As required by Florida Statutes, transmitted with this message is the recommended budget for Fiscal Year <br />2022/2023 (FY 2022/23). <br />The proposed budget represents the general operating framework for providing all County services for the <br />forthcoming year. As presented, it reflects the County Administrator's plan of implementing and funding <br />the recommended service levels. The budget has been developed with a combination of guidelines <br />provided by the Board of County Commissioners (BCC) throughout the year, critical input from all • <br />departments, Budget Department guidance, the Administrator's perception of needs, responses from the <br />community, and requests from the Constitutional Officers. <br />Major Issues Impacting FY 2022/23 Budget Development <br />In developing the proposed budget, the effects of inflation have played a major role in cost escalation. The <br />Consumer Price Index -South Urban (CPI) for May of 2022 reached 9.2%, climbing to rates of inflation not <br />seen since the early 1980's. Higher inflation makes it increasingly difficult for consumers to afford normal <br />everyday purchases, and poses a similar challenge for local governments as well. As the cost for essential <br />goods such as fuel, chemicals, electricity, and building materials rise, the County is forced to increase the <br />budget in response. <br />The proposed budget includes a $723,327 or 42.0% budgeted increase in fuel costs. The average price of <br />gasoline has increased from $2.939/gal in June of 2021 to $4.791/gal in June of 2022(1), reflecting a 63.0% <br />increase over the past year. <br />The County has received notification from Florida Power & Light that the Florida Public Service Commission <br />unanimously approved a comprehensive four-year rate agreement which will result in increased rates to <br />Indian River County. Staff has included a 15% increase in these utility costs for FY 2022/23 which amounts <br />to an increase of $1,315,717 in the proposed budget. <br />Inflation has impacted the cost of chemicals as well. As the Board will recall, agenda items have been <br />approved to implement standing price adjustments for certain chemicals due to the fact that extreme • <br />1 ) gasprices.aaa.com 6/21/22 <br />