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July 11, 2008
David Byron, APR
Community Services Director

COUNTY MANAGER DINNEEN PRESENTS COUNTY COUNCIL WITH $634.7 MILLION RECOMMENDED BUDGET FOR 2008-09; VOTRAN SERVICE REDUCTIONS RESTORED

Volusia County Manager Jim Dinneen Thursday presented the Volusia County Council with a $634.7 million proposed budget to fund the operations of county government for the fiscal year that begins Oct. 1.

The proposed budget calls for all county property tax rates to be at or below rollback rates.

“Further property tax reductions cannot be made without severely impacting services,” said Dinneen in his budget message to the County Council. “For example, in Fire Services alone, we would have to reduce the fund by $1.3 million, or the equivalent of 17 full-time firefighters at the maximum millage rate versus the recommended rollback rate or 32 positions if reduced at the same level as the general fund in 2006-2007 and 2007-2008.”

The recommended property tax rates for the five countywide funds together amount to $5.40 per $1,000 of assessed valuation. These rates include the general fund, library fund, Volusia Forever and debt service and the Volusia ECHO. All are proposed at or below the rollback rate. The rollback rate is the rate that generates the same amount of tax revenue as the previous year’s rate, minus the growth in the tax roll from new construction which this year is about $1 billion. Normally, the rollback is less than the previous year’s tax rate because of Florida’s rapid growth. However, the slowdown in building has dropped taxable property values countywide by 11 percent.

Property taxes for all funds account for $234.4 million of Dinneen’s recommended budget, an increase of $6.2 million, or 3 percent. “The effective difference for budget purposes is much less because tax revenues instead of being 3 percent normally would have grown by 6 percent,” said Dinneen in his budget message. “Rollback rates do not recognize the inflationary cost increases of goods and services.”

County government’s documented cost index is a growth in operations of about 7 percent annually.

Dinneen pointed out that Volusia County was ahead of the Legislature-mandated property tax reductions. Beginning in the 2006-2007 fiscal year and continuing through the recommended tax rates for next year’s budget, Volusia County’s tax reform totals about $117 million. “The Volusia County Council has been very proactive in recognizing the need for property tax relief,” said Dinneen. “That’s why I think it’s reasonable to recommend rollback tax rates.”

The recommended overall budget of $634.7 million is an increase of $32 million from the current budget. The recommended general fund (finances services the county provides to all Volusia citizens) of $247.3 million is funded by the rollback tax rate of $4.50 per $1,000 in taxable value, an increase of 60 cents from the 2007-2008 adopted general fund rate.

Increased expenditures in the recommended 2008-2009 general fund amount to $3.9 million.

The municipal services district (MSD) budget that funds services the county provides only in unincorporated Volusia is $57.4 million and is supported by a property tax rate of $1.40 per $1,000 in assessed valuation, the rollback rate. Expenditures in the MSD budget are up $444,946.

Dinneen is recommending a 2 percent wage increase for all county workers in good standing, with no merit raises due to budget constraints. All county departments have been asked to fund the 2 percent salary increase through efficiencies. With few exceptions, all county departments submitted budgets equal to the current year which means any growth in operations, including salary increases and rising fuel prices, had to be offset by other reductions.

There are 13 recommended new positions, only one of which is funded by general fund tax dollars. Six of those are to staff the expanded Ocean Center, which is scheduled to open early next year. Six are related to the expansion of the Deltona Regional Library, which is being doubled in size with an attached environmental center and amphitheater. This project is scheduled to be completed early next summer. The other new position recommended is a pathologist in the Medical Examiner’s Office.

There are few new or expanded programs or capital projects in the recommended budget. The major capital project being recommended is $10 million, to be repaid by a 20-year loan, to begin to address jail overcrowding. “I am taking a threefold approach by determining what needs to be done to address our present facilities,” Dinneen said in his budget message. He said of major concern is the housing of inmates with special medical needs including those with mental health and substance abuse issues. “Second, what needs to be done to replace the dormitories, and third what new facilities need to be constructed.” Jail expansion is expected to occur over multiple years.

The fiscal plan plugs about $1 million into the Votran public transportation budget which means proposed route reductions won’t be necessary. “I have consulted with the County Council individually and each one of them believes this is not the time to cut public transportation services at a time when gas prices are going through the roof and so many of our citizens are hurting,” Dinneen said Thursday.

Votran, as a way to offset $1.3 million in cost increases (almost half due to higher fuel costs), had proposed a number of route reductions to achieve a like savings.

The County Council’s two required budget hearings are Sept. 4 and 18.

The entire proposed budget will be available soon on the county’s web site.

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