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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 />• 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 />Consideringthe County's ongoing commitmentto public safety and the points discussed, I recommend a 6.0% increase to
<br />the Indian River County Sheriff's budget for FY 2025/2026, amounting to a $4,734,717 increase, which is a total budget of
<br />$83,646,672. When draftingthe currentfiscalyear'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 budgetfor FiscalYear2025/2026 would increase by$4,583,732 based onthe 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 criticalto the BOCC's decision concerningthe 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 Countyto 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 />• 1 believe it is critical to reiterate my caution from last year's budget message, echoed by the Board of County
<br />Commissioners atthe budget workshop, regardingthe Sheriff's escalating annualfunding 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 may not be a perfect storm, the path is analogousto an earlytrack of
<br />a tropical storm forecast to make landfall in 2027 or2028. Proactive preparation to tighten or control expenses is essential
<br />to prepare for and navigate these future challenges.
<br />FY202512026 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 forthe current fiscaIyear.
<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.
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