|
Commissioners has only 22.6% (or$22.60 dollars for every$100 dollars of ad valorem revenue) of the General Fund
<br /> available to fund County operations and services.
<br /> 411 County Administration and staff have worked hard to control expenses for the upcoming year, recognizing the very real
<br /> prospects of a contracting economy and uncertain fiscal future.Additional cuts would severely reduce or eliminate key
<br /> local services provided by the General Fund. Raising the millage rate would also be fiscally reckless,especially with the
<br /> Governor's Office and the Florida Legislature evaluating property taxes, their impact on homeowners, and local
<br /> government service delivery with the intent of developing provisions to reduce taxes.
<br /> Considering the County's ongoing commitment to public safety and the points discussed,I recommend a 6.0%increase to
<br /> the Indian River County Sheriff's budget for FY2025/2026,amounting to a$4,734,717 increase,which is a total budget of
<br /> $83,646,672.When drafting the current fiscalyear's budget,the County and the Sheriff agreed the Sheriff's Office would
<br /> receive an increase proportional to its share of the General Fund Budget. For Fiscal Year 2024/2025,this amounted to
<br /> $4.78 million, or 52.8% (excluding electric) of the General Fund Budget.
<br /> Using the same formula where the Sheriff's Office receives an increase proportional to its share of the current year
<br /> General Fund Budget,the Sheriff's budget for FiscalYear2025/2026 would increase by$4,583,732 based on the increase
<br /> in ad valorem revenue from taxable value growth,with the Sheriff's office comprising 52.8%of the FY 2024/2025 original
<br /> General Fund. However, I recommend a 6.0% increase for the Sheriff's Office budget, totaling $4,734,717, which
<br /> represents 51.8%of the General Fund Budget.
<br /> Understanding the future fiscal impact to the County is critical to the BOCC's decision concerning the allocation of fiscal
<br /> resources to support the Sheriff's law enforcement,corrections,and courthouse operations. In simple terms,there is a
<br /> high level of confidence that the Sheriff's budget,following a steep upward curve,and based on current trends,will grow
<br /> beyond the capacity of the County to fund basic needs,absent increases in the millage rate and budget reductions.This is
<br /> concerning given the forecasts for an economic slowdown on the horizon.
<br /> • I believe it is critical to reiterate my caution from last year's budget message, echoed by the Board of County
<br /> Commissioners at the budget workshop,regarding the Sheriff's escalating annual funding requests.These increases are
<br /> fiscally unsustainable over time. Expenses must align more closely with available revenues, especially with the very
<br /> realistic prospects of a contraction, or at the minimum a cooling, of the economy and potential structural changes to
<br /> Florida's local government revenue streams.While it maynot be aperfect storm,thepath is analogous an earl track of
<br /> g g early
<br /> track
<br /> tropical storm forecast to make landfall in 2027 or 2028.Proactive preparation to tighten or controlexpenses is essential
<br /> to prepare for and navigate these future challenges.
<br /> FY2025/2026 Budget Highlights
<br /> The total proposed budget is$597,623,132,a decrease of$73,305,111 or 10.9%from the current year. Although,it should
<br /> be noted this is an increase of$72,903,257 or 13.9%from the beginning budget of$524,719,875 for the currentfiscalyear.
<br /> A detailed all-fund expense summary is contained in the exhibits following this message (pages 20 and 21).
<br /> The following chart illustrates the 10-year trend in the County tax roll. The FY 2025/2026 General Fund tax
<br /> roll is approximately$2.58 billion or 8.8% higher than the previous fiscal year. Although the current change in taxable
<br /> values is positive,there is still uncertainty regarding future years'tax roll growth with many economists,while no longer
<br /> forecasting a recession in 2025, still predict economic growth slowing in 2027.
<br /> •
<br /> 9
<br />
|