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• BOARD OF COUNTY COMMISSIONERS July 7, 2023 Board of County Commissioners Indian River County 180127 th Street Vero Beach, FL 32960 Dear Commissioners: I'm pleased to transmit with this message the recommended budget for Fiscal ,Year 2023/2024 (FY 2023/2024), as required by Florida Statutes. The proposed budget represents the general operating framework for providing all County services forthe upcoming fiscal year. The budget has been developed collaboratively with a combination of guidance provided by the Board of County Commissioners (BCC), input from departments, direction from the Office of Management & Budget, requests from the Constitutional Officers, community needs identified by State • agencies and community non -profits, and my evaluation and assessment of the needs of the organization. The budget was developed with an emphasis on maintaining core services provided to the community, advancing infrastructural investments, enhancing the organization in both the short and long term, and investing in our most critical asset, our employees. Major Issues Impacting FY 2023/2024 Budget Development In developing the proposed budget, the effects of inflation have played a major role in escalating costs. The April 2023, Consumer Price Index -South Urban (CPI) was 5.5%. Though inflation is lower than last year, it still impacts the costs to provide government services. Inflation makes it increasingly difficult for consumers to afford normal everyday purchases, and the impacts to local government are generally greater considering the County does not purchase typical consumer products. The cost for essential goods such as fuel, chemicals, electricity, and building materials continue to increase, and the County is forced to increase the budget to maintain and enhance operations and delivery of government services. Various contracts the County has entered into with vendors providing services have reached their maximum CPI increases for the upcoming fiscal year. Staff negotiated contracts with Waste Management and Atlas Organics to increase 3.84%, while Republic Services and Indian River Sustainability Center have agreed to a 4.0% increase. The impact of these CPI increases on SWDD is $570,416. The proposed budget includes a $222,930 or 11.8% budgeted increase in fuel costs. The fuel market • continues to be unpredictable and fluctuate monthly, sometimes weekly, with geopolitical uncertainty, OPEC crude production, and U.S. oil companies not projected to dramatically expand production. The 2