Friday, April 25, 2008 - County's Budget Financially Sound, According to Audit

St. Lucie County's Office of Budget and Management recently received its outside audit from Berger, Toombs, Elam, Gaines, and Frank, which reported that: ''The county is in a strong financial position to deal with the anticipated budget shortfall of the next several budget fiscal years.''

Through prudent fiscal management of the General Fund and Fine & Forfeiture Fund, the 2006-2007 audit shows:

•  As of Sept. 30, 2007, the county had a total of $85,308,359 fund balance forward, of which $41,017,705 was already budgeted to support the 2007-08 operations, including $11,292,035 for the emergency reserves, and $4,285,030 was advanced to other funds, leaving the county with an additional $40,005,624.

During the March 2008 Strategic Planning Session county administration staff discussed with the county commissioners the projected fund balance forward and how the excess funds will be applied in the upcoming fiscal year.

• From the $40,005,624 excess fund balance forward, $31,284,684 is being applied towards the projected shortfall for the 2008-09 and 2009-10 budget years.
  
• The balance of $8,720,940 is supporting carry over capital projects and other prior and existing obligations.

''At this time the 2009-10 estimated budget shortfall is $14 million, which the county continues to close in on,'' said County Administrator Doug Anderson.

St. Lucie County's Auditor J. Gaines with Berger, Toombs, Elam, Gaines, and Frank stated that: ''When the numbers were finalized, I was pleased at the sound financial condition the county was in during these times.'' 

''Recognizing that we are facing severe economic times ahead, every county department has buckled down and saved every penny available in order to continue providing the services that our residents demand,'' said Anderson. ''The money that we are carrying forward to help balance the next two years' budgets is a result of the hard work of every county employee.''   

A fund balance forward is a one time source of funding. Once the fund balance forward is used to balance against recurring operating expenses, it is used up. 

In 2006, St. Lucie County officials anticipated an economic downturn or possible recession and some kind of property tax reform within the state. Based on these factors the county has been working very hard in reducing spending.

''If the county had not taken the measure it took in 2006 and accumulated the $85,308,359 fund balance forward as of September 2007, the county would have been forced to curtail many more services and would have had to implement extensive layoffs throughout the organization,'' added Anderson.

In the next two fiscal years the county's ad valorem revenues will be decreasing by an estimated $51 million. St. Lucie County will continue the restructuring of the county's operations because of the ongoing reduction in revenues, said Anderson.