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volatility in the market does not allow ford istributors to lock in prices overextended periods of time. Asa result of this volatility, a $458,600 or 21.1% increase in chemical budgets is being requested. •Various contracts the County has entered into with vendors providing services have reached their maximum CPI increases for the upcoming fiscal year. Solid Waste Disposal District (SWDD) contracts with Waste Management, Republic Services, and Atlas Organic are all scheduled to increase 3% which is the maximum allowable CPI amount per our agreements. The impact of these CPI increases on SWDD is $336,000. Additionally, SWDD was notified on June 14, 2022 that Republic Services has requested to terminate their agreement to transport recyclables to St. Lucie County due to the increased cost in diesel fuel prices. This termination will force the County into bidding out the contract in order to secure a new vendor to provide transportation services. Staff estimates this contract change could cost an additional $165,000 in the upcoming fiscal year. Similarly, International Golf Maintenance (IGM) is not able to perform their maintenance duties at Sandridge Golf Course within their 1% annual cost escalation clause, and has requested an additional 9.5% or $113,331 to continue operations next fiscal year. Unfortunately, inflation is not the onlyfactor causing expenses to rise. Ongoing supply chain issues coupled with nationwide labor shortages are also impacting the County and vendors alike. Shortages in the raw materials needed to produce concrete and asphalt, along with six-month delays in obtaining steel for the production of concrete products and bridges, have driven up the cost of County road projects, as well as drawn out completion dates. Materials for producing water and sewer pipe are also in short supply. Automotive computer chip shortages have significantly impacted the County's ability to purchase vehicles in a timely manner. Raw material shortages have contributed in delaying the County's orders for dump trucks and ambulances. Labor shortages have caused increases in contracted staffing costs as well as challenges in filling vacant positions within County Departments. Salary adjustments for County employees isare proposed to remain competitive for recruitment and retention purposes to ensure that County departments can deliver services expected by residents. Priorities included in FY 2022/23 Budget The FY 2022/23 budget has been formulated with Public Safety at the forefront. The significant roles played by both the Sheriff's Office as well as the County's Emergency Services District have been funded as priorities. Sheriff Eric Flowers originally submitted his budget request which contained an 18.3% or $10,963,447 increase in funding. Once County staff received the preliminary taxroll estimates, discussions with the Sheriff ensued regarding efforts to minimize the burden on local taxpayers. On June 23, 2022 after the final taxroll was received, County staff met with the Sheriff to arrive at a budget increase that would not require an increase in the millage rate. Staff and the Sheriff were able to agree to a $7,246,103 or 12.1% increase over last year's funding, for a total budget request of $67,250,000. This increase will provide substantial additional funding while minimizing the need for a tax rate increase for the residents of Indian River County. Staff supports the Sheriff's amended budget given the importance of providing adequate resources for the vital function of law enforcement and appreciates his efforts in reducing the request. The Emergency Services District budget continues to fund the emergency vehicles replacement plan, which includes a med-unit for $445,000 as well as two fire pumpers totaling $1,320,000. The Optional Sales Tax fund includes a replacement med-unit and an additional fire pumper, for a total of two med- units and three fire pumpers in next year's request. Construction of Station 15 is also programmed into •the Fire Rescue/Impact Fee Fund in the amount of $1,620,000. Construction of Station 15 is scheduled to begin next fiscal year, with the station opening date being early FY 2023/24, depending on the availability of land to be provided as part of a proposed development in the City of Felllsmere. Also included in the Impact Fee Fund is the Emergency Operations Center (EOC)/Fire Administration Building Expansion Design