07/12/2023 - Laserfiche WebLink

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monthly changes, mixed with the future uncertainty has caused the County to err on the side of caution and conservatively budget for an increase in costs. The chemicals market is even more unpredictable; the County is impacted by both the impacts of inflation • and the volatility in chemical market prices. Distributors are unable to lock in prices over extended periods of time, and trends suggest it is unlikely prices will stabilize or slow down. As a result, a $620,900 or 23.1% increase is being proposed in the budget for chemicals. Although inflation has slowed since last fiscal year's budget was developed, it is unfortunately not the only factor causing expenses to rise. Ongoing supply chain issues, coupled with nationwide labor shortages, are also impacting the County and vendors alike. Shortages in raw materials needed to produce concrete and asphalt, along with multi -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 also contributed to delaying the County's orders for dump trucks and ambulances. Labor shortages have caused increases in contracted staffing costs as well as posed challenges in filling vacant positions within County Departments. The County is additionally experiencing increased property and casualty insurance premiums. This fiscal year our premiums increased by $852,465, or 27.0%. The Florida Legislature approved CS/SB 7024, the bill makes changes to the Florida Retirement System (FRS) and the Retiree Health Insurance Subsidy. The changes enhance our employee's retirement benefits, but the increased rate changes are borne by the County. The FRS employer rate increase totals $4,408,702 Countywide across all funds, including Constitutional Officers. • Priorities included in FY 2023/2024 Budget The FY 2023/2024 budget has been developed based on organizational needs and how we can be more responsive to the needs of our community. Continued population growth leads to increased demand for public services. This requires the County to address departmental needs as well as invest in our employees. Delivering exceptional services requires exceptional employees. Recruitment and retention continue to be a challenge for local governments across the state and nation. In orderto retain and attract the caliber of employees necessary to enhance our service delivery we must ensure we are, and remain, competitive in compensation and benefits within (and beyond) the Treasure Coast region. In order to position the County for success in attracting employees that want to serve the public and be an Indian River County Difference Maker, we are reviewing our recruitment strategies, evaluating relevant employee policies, and conducting a compensation study. The purpose of the compensation study is to analyze and develop a competitive pay plan that will support recruitment and retention. Related, this budget proposes to invest in our employees by including vision insurance, dental insurance, and long-term disability as a County -paid benefit to all eligible Board employees, as well as Constitutionals, resulting in a cost of $584,970 countywide. Competitive salaries are important to recruitment and retention, but so is organizational culture and direction. An organization that values their employees invests in them. Investing in professional development of our employees and charting a course of what the organization stands for and what it • aspires to achieve is equally important. This budget proposes to provide funding for leadership development training, customer service training for our frontline workers, and strategic planning for our organization. A strategic plan sets a course for the County with the future in mind: to what do we aspire 3